The amended start date for the Putting Members’ Interests First legislation of 1 April, 2020 will allow time for superannuation fund members to make a considered decision about their insurance cover, before it is cancelled, a super body believes.
The Association of Superannuation Funds of Australia (ASFA) welcomed the new date of the legislation, that passed the Senate on Thursday, and said it would lead to “more consumers maintaining valuable insurance arrangements through their super”.
ASFA deputy chief executive, Glen McCrea, said super funds now had a better opportunity to reach consumers and help them understand what the changes would mean for them.
“More time for funds should enable more communications to members, smooth the response rate and reduce wait times to contact centres as we approach the commencement date,” he said.
McCrea noted the amended start date also provided funds with additional time to implement the necessary system changes and update their disclosure material.