Cbus has argued the Early Release of Super (ERS) scheme has been detrimental to many Cbus members, having withdrawn their entire balance and seeing the cancellation of their total permanent disability insurance.
Speaking at the House of Representatives Standing Committee on Economics Cbus chief executive Justin Arter said members are typically working in dangerous occupations and would be unable to obtain insurance otherwise.
"Typically our workers are working at heights in dangerous occupations and many of them are wondering whether they will go home alive at night. As you can imagine being able to obtain that insurance at a reasonable price is an essential part of our offer," he said.
"When our members drain their account to zero that coverage goes away too. So we're anxious, very anxious, that they do maintain a balance with us and the concept of preservation is essential to creating a long, higher balance at retirement."
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Deputy chair of the committee Andrew Leigh questioned how Cbus members would be affected if the legislated 12% increase to the super guarantee does not come to fruition.
Arter said it would be a very adverse outcome for members with Cbus modelling revealed its members would on average be $7000 worse off if it is not implemented.
He said that Cbus feels particularly strongly about the increase to SG as a member who is between 25 and 29 typically has 56% of the retirement savings of the general population.
"If we extend that out to persons aged 65 years, our Cbus members retired typically with one third of the average superannuation retirement balance of the so called average superannuation member per the APRA statistics," Arter said.
"That member is more than twice as likely to still have a mortgage compared to the general population. Of course, that's taking into account the fact that a lot of our members have to retire early due to ill health."