APSS Death and TPD benefits explained
Your Union has received a number of enquiries recently from concerned members highlighting confusion regarding Death and Total and Permanent Disablement (TPD) insurance benefits payable to members of the Australia Post Superannuation Scheme (APSS) and their families.
Members should be aware of the following simplified explanation as to their APSS entitlements:
- For employee members, Death and TPD cover ceases at age 60. This is quite common for insurance in superannuation. Members who require insurance beyond age 60 should seek coverage outside the APSS.
- The ‘additional cover’ received for a Death or TPD benefit for eligible members aged under 60 is based on the member’s actual salary, not Final Average Salary (FAS), at the time of death or disablement – and the number of years until they reach age 60 multiplied by 14.3%.
As an example; if a member died or is totally and permanently disabled at the age of 45, with an actual salary of $60,000 p.a, their death or TPD benefit is calculated as follows:
($60,000 x 14.3%) x 15 years*
TOTAL BENEFIT = $128,700
*number of years until the member reaches age 60
As always, members are encouraged to seek financial advice on matters pertaining to their superannuation, including when considering insurance options.
As a member of the APSS, you are entitled to one hour of obligation-free general financial advice with StatePlus by calling 1800 620 305.
Your Union, including your Officials and local AURs, are not qualified to, and cannot, provide financial advice to members. However, some State Branches have relationships with worker oriented financial planners that offer free or discounted financial advice to CEPU/CWU members. Members should contact their State Branch directly for referral details.
