Death and total and permanent disablement

What is total and permanent disablement?

For the purposes of an entitlement to your Member Account and Employer Account, this means that the member has been absent from regular employment because of illness or injury for a period of six consecutive months (or such shorter period as may be determined by the Trustee in its sole discretion) and the member is considered by the Trustee unlikely ever to have a significant earning capacity in the future having regard to the previous employment and other characteristics of the member deemed by the Trustee to be relevant to such considerations.

For management and pre-management members, the definition of total and permanent disablement that applies in the case of the insured additional benefit (see below) differs from that set out above (the above applies for the purposes of an entitlement to the amount of your Member Account and Employer Account).

For a total and permanent disablement claim the insurer requires:

• absence from regular employment for three consecutive months due to illness or injury;
• the illness or injury means you will be unable to ever have earning capacity in the future of at least 25% of your Earnings in the last 12 consecutive months of work prior to the date of disablement, in any occupation for which you are reasonably suited having regard to previous employment, education and experience.  (“Earnings” is defined in the Trust Deed and is different to Salary.  It means before tax total remuneration and excludes discretionary one-off payments, overtime payments and most allowances.)

The insurer’s requirements can change.  Members will be notified if they change.

How is my total and permanent disablement benefit calculated?

If you become totally and permanently disabled whilst in service (as defined in the trust deed), a total and permanent disablement benefit will be payable, calculated in the same manner as the death benefit (see below) as if you had died on the date you became totally and permanently disabled.

If you are a management or pre-management employee member aged under 65 who has been accepted for cover, and qualify as totally and permanently disabled under the Scheme's insurance policy, you will also be entitled to the "additional benefit" described below, subject to acceptance of the claim by the insurer.

How is my death benefit calculated?

If you are a management or pre-management employee member aged under 65 and you die whilst in service your benefit will be a lump sum equal to the amount of your Member Account and Employer Account.

What is the additional benefit?

If you are entitled to the insured additional benefit, it will be an additional payment of the lesser of:

-10% of Salary at the date of your death multiplied by the number of complete years between the preceding 30 June and your 65th birthday; or
- four times your Salary at the date of your death.

The Trustee has taken out an insurance policy for the amount of your additional benefit. Your entitlement to the additional benefit is subject to cover being accepted by the insurer. For the insurer to automatically accept you for insurance cover you will need to be meet the following acceptance criteria:

(a) under age 65
(b) be a member of the Category E or Category F section of In-Tandem
(c) your additional benefit cover is no more than $1,000,000
(d) you join In-Tandem within 90 days of first becoming eligible to join; and
(e) on the day of becoming a member you are not off work due to injury or sickness ("Acceptance Criteria").

Please see the Scheme's Product Disclosure Statement (available in the Documents & forms section) for more information.