The Police Association of NSW (PANSW) has negotiated to reallocate funds used to subsidise Aware Super’s TPD police category default units of insurance cover, which will cease as of 7th December 2022. The funds will be used for a 0.5% pay increase and a $1023 one-off superannuation payment for the NSW police force in 2023.
The decision to reallocate the funding for that product to entitlements, such as salary and superannuation, was to make a positive difference for members by providing more value to them directly. Increases to salary and a financial injection into the members’ superannuation accounts provides greater financial security for those members.
But what has changed and why? How do these changes affect your policies and TPD claims if you’re a member of the police force?
Cessation of the Aware Super Fund TPD Insurance Products: What Are The Changes & What Do They Mean?
Aware Super (previously known as First State Super) will soon announce the cessation of the TPD police category default units of insurance cover due to rising premiums. These rising premiums (approximately $4,300/year) would significantly impact members’ savings through super contributions without sufficient entitlements to justify the increasing costs. Essentially, the product no longer represents the same value for money anymore, compared to when it was originally negotiated.
In short, you will no longer receive the additional cover provided by the TPD police category default units of insurance after the 7 December 2022 (this cover will still be offered and subsidised up until this date). Members can cancel ro reduce their TPD coverage before the cessation date.
For members concerned about what this means for their coverage, it is worth noting that the entitlements made up by the TPD Police category Default Units are relatively small compared to other types of coverage and compensation still available. See the graph below (the green bar represents the amount made up the TPD Police category Default Units):
What is Still Covered for Police Force Members
The following coverage is still available for the NSW Police Force members:
-Coverage for death and terminal illness under the police category default units will continue to be offered.
-Death and Disability Income Protection and PBRI Insurance (which includes TPD coverage) is not changing.
This should reassure any concerned members regarding their insurance coverage.
What Should I Do If I Am Making a Claim or On A Claim?
If you are an officer who is injured, in the process of making a claim, or are currently on a claim, you should seek legal advice as soon as possible before canceling your TPD cover or prior to the cessation date.
BurkeMead Lawyers are experienced in NSW Police Force Workers Compensation and working with public sector workers. Our team can assist you in navigating these changes – no matter what stage you’re at in the claims process.
What has the PANSW Secured for Members?
The Police Association of NSW, by reallocating this funding, has secured a direct solution for members that provide better value, including increases to salary and a payment into superannuation.
To this end, the PANSW has secured the following:
Pay Increase in 2023
An additional 0.5% pay increase will commence as of 7 January 2023. Other entitlements the PANSW has secured bring your total Award increases to:
- In 2023-24: a 3.5% pay rise, inclusive of 0.5% superannuation increase
- In 2022-23: a 3% pay rise, inclusive of 0.5% superannuation increase
- In 2021-22: a 2.5% pay rise, inclusive of 0.5% superannuation increase
One-Off Superannuation Payment of $1023 & Long-Term Savings
All members who held the Aware TPD police category default units of insurance as of 1 October 2022 will receive a $1023 one-off payment into their superannuation account.
Members will also enjoy long-term savings with the cessation of the product. Members will save on average nearly $7,000 in superannuation (the amount that would have been paid to a private insurance company) over the current term of the Award.
Between the one-off payment and the overall savings, members will be approximately $8,000 better off in 2023.
Need Help With Your NSWPF TPD Claim? Contact BurkeMead Lawyers
Navigating these changes while you are considering pursuing a TPD claim, or in the middle of making a claim, can be difficult. BurkeMead Lawyers are experts in personal injury and compensation and can assist you in making your claim or continuing with your claim while moving forward with these policy changes.
Contact BurkeMead Lawyers today to book a consultation or inquire about availability – please contact us on 02 4902 3800 or send us an enquiry.