As a Defined Benefit account member, you automatically receive insurance as part of your package of benefits. There are no premiums for this insurance and it can’t be cancelled.

The insurance cover represents the difference between the balance you accrued at the time of the incident you are claiming for and the projection of what you would have accrued had you worked to age 55 contributing at the default rate of 5 per cent (6 per cent for police officers). This means Defined Benefit account insurance other than income protection ceases at age 55; as from age 55 you’ll just receive your current benefit amount. Income protection ceases at age 75.

Income protection is available up to age 75. If you’re temporarily unable to work due to illness or injury, income protection may provide regular benefit payments of up to 75 per cent of your salary, for up to two years.

Before your income protection benefits can kick in, you need to use all your paid sick leave, and then take 14 consecutive days of unpaid sick leave. You can’t take any paid leave (like annual or long service leave) during this period, but you may be able to apply to Centrelink for income support benefits.

During your first five years of continuous cover, income protection benefits won’t be paid if your temporary disablement is related to a pre-existing condition as explained in our Income Protection Benefit Guide.

Once your claim’s approved, we’ll pay your benefit straight into your nominated bank account. We’ll also backdate your benefit to the end of your waiting period. While you’re on income protection, you don’t have to make standard member contributions and your multiple will continue to grow as if you were making contributions at 5 per cent.

What happens if my situation changes?

There are some cases where we may have to reduce or stop your income protection benefit. You need to let us know if you:

  • return to work or start a graduated return to work program
  • earn additional income
  • engage in a business or occupation
  • have a WorkCover claim approved for the condition or illness.

Keep in mind that you’ll need to pay back any overpayment of benefits, so it’s important you tell us as soon as possible if your situation changes.

Find out about income protection for police officers.

If you don’t qualify for the total and permanent disability conditions, you may qualify for permanent and partial disability (PPD). There is no insurance component payable with a PPD benefit, however it may allow you access to some of your existing super.

We’ll need to consider medical opinions to determine whether you’re considered permanently unfit or permanently incapable of performing your normal duties efficiently, but your illness or injury is not a total and permanent disablement. If you or your employer asks us to investigate a permanent disability benefit, a detailed medical report addressing specific questions will be required from your treating medical specialist. You, or your employer, will be responsible for the cost of this initial report if it’s required. QSuper will pay for the costs of any subsequent medical information required to assess your claim.

If you’re found eligible for PPD, you may be able to access a portion of your existing super. The remaining portion must remain in super. If you’re more than 55 years old and remain working with the same employer in a different role you may be eligible to continue in the Defined Benefit account.

If the QSuper Board of Trustees is satisfied that you’re unlikely to ever work again in any job for which you’re reasonably qualified by education, training or experience, you’ll be paid a TPD benefit. If you’re under 55 you’ll be paid the balance of your account plus your projected Defined Benefit entitlement to age 55. If you’re over 55 years old you’ll just be paid the balance of your account.

If you have been assessed as TPD an additional portion of your benefit may become tax-free. You can read more on tax in the Defined Benefit Account Guide.

You can choose to take your benefit as either a lump sum or a lifetime pension (if under 55).

Option 1 - Lump sum option

The lump sum benefit is made up of two parts

1. Your current benefit (including any extra benefits you may have in an Accumulation account).

2. Your insurance benefit - the difference between what you have in your Defined Benefit account so far, and what your account would’ve grown to if you’d continued in your role until age 55 and contributed 5 per cent1 of your salary.

Even if you’re not contributing the standard 5 per cent,1 we’ll still calculate your insurance benefit using this rate from the date of your total and permanent disability.

If you’ve worked full-time since you started contributing to your Defined Benefit account, and you’re approved for the TPD benefit, you’ll receive a multiple growth of 21 per cent2 for each year you’re unable to work until age 55. If you’ve worked part-time, we’ll calculate a part time equivalent portion of 21 per cent2 for each year you’re unable to work until age 55.

We’ll use your final salary as explained in How your final benefit is calculated.

If you’re entitled to an additional transfer multiple (ATM), we’ll include this when we calculate your benefit.

If you choose to take your benefit as a lump sum payment but pass away within 12 months of being paid, your dependent children may still receive the fortnightly pension if the cause of your death is related to the condition which prompted your TPD benefit.

You can find details about your TPD lump sum benefit on your annual statement, or contact us and we’ll let you know.

Option 2 - Lifetime pension (if you’re under 55 years old)

The lifetime pension amount you receive depends on your multiple and final salary as at the time you’re assessed as TPD up to a maximum of 75 per cent of your salary for super purposes. Your pension is indexed each August in line with movements in the Consumer Price Index – All Groups Brisbane.

The maximum lifetime pension amount you can receive is 75 per cent of your current salary. However the amount you're paid is meant to reflect your years of service, so we also take into account the multiple you have accrued within your Defined Benefit account. If your multiple is 7.35 (8.575 for police officers) or greater, you will receive the maximum 75 per cent of your salary. However if it is less than 7.35 (or 8.575), we apply a formula to calculate your pension amount.

This formula is: (salary x 75%) x (your multiple / 7.35)

We pay your pension into your nominated bank account fortnightly, less any tax payable.

If you want to take your benefit as a pension, you’ll need to tell us within three months from the time you’re determined totally and permanently disabled.

If you’re receiving a lifetime pension which is more than $100,000 per year, and you are over the age 60, then half of the amount over $100,000 will be assessable income and taxed at your marginal tax rate.

If you were to pass away within five years of your pension starting, a lump sum equal to pension payments for the remainder of the five years will be paid as a death benefit.

The lifetime pension may be reduced or suspended if you receive income from any business, occupation or employment.

If you receive or plan on receiving payments from Centrelink, you should contact them to see what impact this will have on any payments you may receive.

If you’re diagnosed with a terminal medical condition, you may be able to access your entire super tax-free by transferring your Defined Benefit to an Accumulation account. Keep in mind that if you do this you won’t be able to transfer back to your Defined Benefit account. You might like to seek financial advice before making a decision, to work out what’s best for you.

Before we can release your super, we need two registered medical practitioners to certify you have a terminal medical condition or injury and that you’re likely to pass away within two years. At least one of the registered practitioners must be a specialist practising in the area related to the illness you’re suffering from.

If you have Accumulation account insurance, this amount is generally available to you at the same time, please refer to the Accumulation Account Insurance Guide for more details.

To apply to access your super for a terminal medical condition, use the Terminal Illness Claim form.

Death insurance generally pays a lump sum to your estate or dependant(s) when you die. A dependant could be your spouse, your child, a financial dependant, or someone in an interdependent relationship with you. Your death benefit is calculated in the same way as the TPD lump sum, but there’s no lifetime pension option.

Each of your children under age 18 (or under age 25 if they’re studying full-time or any age if they have a permanent disability at the time of your death) may receive fortnightly payments if you pass away:

  • while you’re a Defined Benefit account member, or
  • within 12 months of receiving a TPD lump sum payment from the condition resulting in the TPD payment or the condition causing your death was related to why you received your TPD lump sum.

As at August 2017, the fortnightly child’s pension was $132.85. We increase the child’s pension each August in line with movements in the Consumer Price Index – All Groups Brisbane.

In some cases where we do not have a Tax File Number (TFN) for the child’s pension account, the Australian Taxation Office may require us to withhold tax from regular payments at the highest marginal tax rate. This means that 47% tax would be withheld from payments until a TFN is provided. To ensure no additional tax is withheld, QSuper must be provided with a Tax File Number for the recipient of the Child Pension.

Your Defined Benefit account insurance ends:

  • when you turn 55 years old (income protection continues until age 75) – although you may get some tax benefits when receiving total and permanent disability or death benefits
  • on the date that the QSuper Board determines that you’re totally and permanently disabled
  • when you finish up working for the Queensland Government or a related entity
  • if you stop being a Defined Benefit account member
  • when you pass away.

Additional insurance is available using the Accumulation account.

Find out more

Find out more about how the Defined Benefit account works.


 bank

Your final benefit

How your final benefit is calculated and how part time work can affect it.

Learn more

Briefcase

Resigning and changing jobs

Understand your options when you resign or change your job.

Learn more

 Cash

Growing your super

There are two different ways you can grow your super with us.

Learn more

Umbrella protection

Insurance

Details of the included insurance benefits.

Learn more

1. 6 per cent for police officers.
2. 24.5 per cent for police officers.