November 2009
  
 

Catholic Super Income Protection Automatic Increase Available

With a pay rise due for many of you on 1 January 2010, the opportunity to automatically increase your Income Protection cover will soon be available but only for a period of 45 days from that date.

To receive the increase in cover without having to provide evidence of health all of the following conditions must be met:

  • Applications must be received by Catholic Super within one month of the effective date of a salary increase.

  • The new level of cover cannot exceed 17 units of cover or 85% of your Earned Income*.

  • Your employer must confirm the salary increase.

  • No automatic increase has been granted to you in the previous 12 month period.

  • Your Benefit increase cannot exceed 25% of your existing benefit.

  • You are “At Work**” on the date the increased cover commences.

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Find forms here PDF Size (543kb)

* Earned Income:

Your work status Definition of Earned Income
Permanent Employee The total package from employment last agreed between the employer and insured member immediately prior to the commencement of total disability which includes:
  • any salary packaged items taken in lieu of cash,
  • regular overtime and shift allowances (as determined by the average over the previous 12 months or the period since the member started their current occupation if less), and
  • commissions, regular bonuses, fringe benefits and other monetary benefits related to employment, (as determined by the average over the previous 3 years or the period since the member started their current occupation if less).
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Earned income does not include superannuation contributions made by the employer that are not part of a salary sacrifice arrangement.
Non-Permanent Employee (including casuals, part-time and unemployed) The total earnings from employment averaged over the 12 months immediately prior to the commencement of total disability, or the period of time since the member joined Catholic Super, whichever is the lesser.
Self-Employed The annual income generated by the insured member from his or her personal exertion, calculated by averaging the insured member’s net income per year for the 2 years immediately preceding commencement of total disability or the period of time since the member commenced to be self-employed if self-employed for a period less that 2 years. Net income means the insured member’s gross income from personal exertion less all expenses incurred by the insured member in earning that income.

** At work. This means you are gainfully employed, attending work and performing all the normal duties of your usual occupation and working your normal hours without restriction due to sickness or injury, or you are on approved leave other than leave which is taken for reasons related to injury or illness. To be ‘at work’ you also must not be receiving or claiming and/or entitled to receive or claim income support benefits from any source, including workers’ compensation benefits, statutory transport accident benefits and disability income benefits. For casual employees, ‘at work’ means you are available for work and capable of performing all the normal duties of your occupation without restriction due to illness or injury.