NSW Police threatened by Govt’s super insurance changes

federal-government/life-insurance/

24 July 2019
| By Mike |
image
image image
expand image

The Federal Government has been warned that its proposed further changes to insurance inside superannuation will put at risk crucial insurance arrangements covering NSW police officers.

The NSW Police Force has filed a submission with the Senate Economics Legislation Committee in which it points out the manner in which the Commonwealth’s proposed legislation will impact on the so-called Police Blue Ribbon Insurance (PBRI) arrangements which are part of the State Government’s obligations under the NSW Police Act.

The concerns of the NSW Police Force are important because under the terms of the Constitution, Commonwealth law trumps state laws.

The NSW Police Force submission said that it was taking steps in order to ensure that the insurance cover currently provided for NSW Police officers was not adversely impacted and that the provision of cover would not result in breaches of the Superannuation Industry (Supervision) Act.

“In particular, the NSW Police Force request clarification as to whether the PBRI arrangements may continue to be offered in reliance on the employer-sponsor contribution exemption currently set out in the Bill. If not, the NSW Police Force request that consideration be given to changing the Bill to insert an exemption that would apply to arrangements such as the PBRI arrangement,” the submission said.

It pointed out that while the PBRI cover is provided via First State Super, it is compulsory for all eligible NSW Police officers and that it is provided in accordance with the Police Act with the cost of insurance premiums generally shared between the Police Force and the relevant NSW Police Officers.

It said the eligible police officers contributed 1.8 per cent of their remuneration towards the premium by way of salary sacrifice while the NSW Police paying the remainder to First State Super as an employer contribution.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

4 days 5 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 5 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5