ART makes sweeping changes to corporate super plans

Australian Retirement Trust (ART) has made an array of changes to several corporate superannuation plans it manages, including shuttering one.

The Tiffany & Co. Superannuation Plan has closed as of June 20 with members transferred to a Super Savings Accumulation account with ART. As a result, the structure of insurance, its costs and terms and conditions have changed to be in line with the Super Savings Accumulation insurance cover.

However, Tiffany & Co. Australia plans to implement employer-sponsored insurances through an external provider, independent of ART.

Meanwhile, members of the Newcrest Mining Limited Superannuation plan will see administration fees and insurance fees no longer be employer sponsored from July 1, except for Cadia EA employees and ONG monthly employees who are part of the corporate super plan.

Also from July 1, Australia Post Superannuation Scheme members will see changes to premiums for death, total & permanent disability (TPD) and income protection rates.

The change will vary based on a members' gender and age. Members under the age of 50 will receive a small reduction, whereas members 50 and older will incur a small increase.

Domino's Pizza Enterprises Ltd Superannuation Plan members will also see changes to death, TPD and income protection premium rates comes July 1.

For Category A staff, on average, there will be an increase in premiums, while Category B and Category C staff, on average, will see a decrease in premiums.

There will also be changes around the definition of terminal illness and the maximum level of cover a member can have.

ART said to better align the scheme with the Superannuation Industry (Supervision) Regulation 1994 (SIS) definition for the early release of superannuation benefits under a terminal medical condition, the insurance policy definition of terminal illness to receive payment of any death insurance benefit held under the plan is changing from a life expectancy certification period of 12 months or less, to 24 months or less.

The maximum cover level has also increased to $5 million.

In addition, income protection cover will be recalculated each October 1; this previously occurred on July 1. ART added there would be changes to the definition of TPD to include cognitive impairment, amongst other things.

Changes are also in store for members of the Evolution Mining Superannuation Plan, from July 1.

Death, TPD and income protection premium rates will be changing for all members, with ART pointing to poor claims experiences for members.

"While the plan has delivered value to members in need, the change in premium has been predominately driven by poor claims experience over the past five years," ART said.

"Members will, on average experience an increase in death and TPD premiums of 41%.  However, the actual increase will vary between individuals. Factors such as your age, gender, type of cover (standard or additional), and whether you hold insurance-only membership will influence the premium."

In addition, income protection premiums are expected to increase by an average of 55%.

Evolution Mining employees in the scheme will also see the introduction of insurance fees for insurance-only members. From 1 July 2025, a 10% insurance fee will be applied to the premiums of Insurance Only accounts of members who do not have their Superannuation Guarantee (SG) directed to the Evolution Mining Superannuation Plan.

"It is important to note that this insurance fee is incorporated into the insurance premiums and are paid by your employer," ART said.

Meanwhile, members of the ALS Limited Superannuation Plan will see changes to premiums for death, TPD and income protection as well. However, some staff will see a decrease in fees while others will see an increase depending on which category they sit in within their organisation.

EVT Superannuation Plan members under 40 years old will generally see a decrease in premiums for death and TPD premiums from 1 July 2025, while members over age 40 may experience an increase. This is the same for the Wolters Kluwer Superannuation Plan.

Premium rates for death and TPD cover are reducing for all members of the Otis Elevator Superannuation plan, with TPD definitions changing to align with ART's preferred definitions with enhancements.

PMSA Superannuation Plan members, as well as Schneider Electric Superannuation Plan members will experience an increase in premiums for death, TPD and income protection cover. This will vary based on age and gender.

Finally, there are several insurance mandate changes coming into effect as well.

For instance, Frasers Property Australia Superannuation Plan members will see a change of insurer from AIA Australian to MLC Limited, from July 1.

Goodman Fielder Superannuation Plan members will also see a change of insurer from AIA Australia Limited to Zurich Australia; however, AIA Australia is taking over as insurer of the Mondelez Australia Superannuation Plan from MetLife Insurance Limited.