Head of Retail Distribution
As you may be aware, in November 2020, we moved most Accelerated Protection customers with their insurance in superannuation from the TAL Superannuation and Insurance Fund (TSIF) to TAL Super by way of Successor Fund Transfer (SFT). Subject to all requirements being met, on 31 May 2021 all remaining members of TSIF will be transferred to the Mercer Super Trust.
Why are we making this change?
TAL Superannuation Limited (TASL) (ABN 69 003 059 407, AFSL 237851), the trustee for TSIF, recently reviewed the super and insurance arrangements it offers to its members, and determined that it is in the interests of members to transfer their benefits to the Mercer Super Trust.
What does this change mean for your risk-only clients?
No impact on your risk-only clients’ policies or premiums
Upon transfer, a new account will be created for your risk-only clients in TAL Super, a plan in the retail division of the Mercer Super Trust. There’ll be no impact to your risk-only clients’ policies or premiums as a result of the SFT.
No change to how premiums are collected
Unless your clients provide us with alternative instructions, their premiums will continue to be collected in the same manner as they were before the transfer. We’ll also ensure that requests from external funds to roll over payment for insurance premiums will continue, directed to TAL Super, after the transfer.
TAL Super Tax Rebate
From 15 June 2021, we’ll begin the phased roll-out of the TAL Super Tax Rebate for all risk-only products held in TAL Super where premiums are funded via rollover on an annual basis. The rebate is currently only available for certain Accelerated Protection policies.
Third-party authorities for new risk-only policies
There’ll be no change to third-party authorities your clients have given regarding their risk-only accounts.
What does this change mean for your ARC Super, Pension and Annuity clients?
A new account will be created:
Mercer will become the administrator of those accounts.
Lower fees for most members
Mercer is a larger fund and likely to provide benefits of scale and deliver better retirement outcomes for members over the long term.
In addition, for most members of the fund, the fees payable will be lower. There are a small number of ARC superannuation members who may see a slight increase in fees, including those who:
Information on any changes to fees payable can be found in the Significant Event Notice.
Termination of loyalty bonus
Some of your ARC Classic 1 and 4 clients may have been eligible for a loyalty bonus if they remained invested in TISF to a specified date.
After the transfer, the loyalty bonus will not be available as part of the ARC Super Plan. In recognition of the removal of the loyalty bonus, a compensation payment will be made to certain eligible members before the transfer. The compensation amount has been determined by taking into account various factors including the potential value of the loyalty bonus, the length of time until eligibility, and administration fees that would have been paid up until the eligibility date. For some members the formula will mean no bonus will be payable.
Further information on these changes can be found in the Significant Event Notice.
Third-party authorities for new investment accounts
Once the transfer has been completed, Mercer will become the administrator of your clients’ new superannuation, annuity and/or allocated pension accounts.
If there are third-party authorities in place which allow you to access information about, or give instructions in relation to, your client’s ARC Super account, these will no longer apply after the transfer. You will need to contact Mercer after the transfer date and complete their process to maintain these, or similar, permission. You can contact Mercer to do this.
In the coming days, we’ll be sending your clients a Significant Event Notice to let them know about the change. After the transfer, your clients will receive:
Risk-only clients will also receive a:
To identify your clients who will receive this communication, please visit the Reporting menu in the TAL Adviser Centre and download your Policy Summary report. You’ll then be able to filter this report to show your clients who hold policies where the ‘policy owner’ is TAL Superannuation Limited.
Click on the links below to view the relevant Significant Event Notice for your client's policy:
Contact details after the transfer
For superannuation and pension, you and your clients will need to contact Mercer from 1 June 2021 on 1800 682 525.
For questions relating to retail, group or individual risk only insurance clients, there’ll be no change to the contact details you and your clients currently use to contact us.. If you have any general questions about the transfer, please feel free to contact our Adviser Service Centre on 1300 286 937, Monday to Friday 8:00am - 7:00pm (AEST).