NSW Police threatened by Govt’s super insurance changes

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.

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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.

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