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Letter to members regarding new insurance cover premium rates

Posted 3 April 2013 10:00am

A letter regarding PSS insurance cover premium rates is being mailed to PSS members from the week commencing 1 April 2013. The text of the letter is as follows

New insurance cover premium rates from 9 May 2013

I am writing to advise you of important changes to the premium rates for additional death and invalidity insurance cover for the Public Sector Superannuation Scheme (PSS).

We regularly review our insurance arrangements to ensure that our members are sufficiently protected in the event of death or disablement and that the premium rates charged remain competitive and fair for all of our members.

Although we have been able to maintain the level of premiums charged to members for over 3 years, due to increasing insurance costs, we need to make sure that insurance premiums accurately reflect insurance costs.

There will be a slight increase in premium rates from 9 May 2013. The new premium rate tables are available at www.pss.gov.au/premiums. The table below provides you with an example of how your premium rates may be impacted.

 

Age next birthday

Death & Invalidity cover

Current monthly premium

New monthly premium

Dollar change per month

30

$155,000

$5.68

$6.46

$0.78

35

$170,000

$7.65

$8.78

$1.13

40

$185,000

$12.03

$13.88

$1.85

45

$178,000

$18.69

$21.36

$2.67

50

$160,000

$29.20

$33.73

$4.53

55

$150,000

$46.13

$53.13

$7.00

60

$128,000

$62.72

$72.11

$9.39

To help you to calculate how much this change will cost you, refer to the premium rate table and formula available at www.pss.gov.au/premiums.

The new premium rates will be applied to your insurance cover from 9 May 2013 and premiums will continue to be remitted by your employer.

Other changes from 9 May 2013

Your insurance cover currently lapses where you cease to pay premiums for additional death and invalidity insurance cover within 30 days of the premium falling due. From 9 May 2013, provided the outstanding premiums are paid within 60 days of the insurance cover lapsing, your insurance cover will be reinstated without you having to provide further medical information.

If you would like more information please contact us on 1300 000 377 or email members@pss.gov.au.

Yours sincerely

Peter Carrigy-Ryan
Chief Executive Officer

 2 April 2013

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