Part 3Insurance and investment

Part 3—Insurance and investment Division 1—Preliminary 26—Purpose of Part Pursuant to section 22 of the Act, this Part continues (with variations) the scheme of invalidity and death insurance established under the repealed Act. 27—Interpretation In this Part— prescribed member means— (a) a police member; or (b) a member employed by SA Ambulance Service Inc— (i) who was a contributory member of the SA Ambulance Service Superannuation Scheme (the ambulance scheme) before electing to become a member of the Triple S scheme and has not reached his or her normal retirement date for the purposes of the ambulance scheme; or (ii) who— (A) commenced his or her employment with SA Ambulance Service Inc on or after 1 July 2008; and (B) is classified as an operations employee under the SA Ambulance Service Award; and (C) is employed other than on a casual basis in the provision of ambulance services (within the meaning of the Health Care Act 2008). Division 2—Members Subdivision 1—Default invalidity/death insurance 28—Default invalidity/death insurance (1) Subject to this regulation and regulation 35A, a member under the age of 70 years is entitled to default invalidity/death insurance regardless of the state of the member's health. (2) A member is not entitled to default invalidity/death insurance if the member— (a) is a member of the scheme by virtue only of regulation 9(3), (5), (5a), (5b), (6), (7) or (8) or 14(1) (including any combination of these provisions); or (b) is— (i) employed or engaged for a specified period of time; and (ii) remunerated solely by a fee, allowance or commission; or (c) has received insurance benefits (or benefits of a similar kind) on account of a terminal illness paid— (i) under regulation 58(1)(b) or a provision of the repealed Act; or (ii) under an Act that provides for the payment of benefits by the Treasurer; or (iii) under an administered scheme. (3) A spouse member of the scheme is not entitled to default invalidity/death insurance in the spouse member's capacity as a spouse member. (4) Subject to subregulation (5), the following provisions apply in relation to a member who has received invalidity insurance benefits (or invalidity benefits of a similar kind) under the Act, the repealed Act, another Act that provides for the payment of benefits by the Treasurer or an administered scheme, and is subsequently employed in employment to which the Act applies: (a) the member is entitled to default death insurance, but not default invalidity insurance, in respect of the member's subsequent employment (and a reference in these regulations to invalidity/death insurance is to be taken, insofar as it applies to the member, to be a reference to death insurance only); (b) however, a death insurance benefit is payable only if the cause of the member's death has no connection with the condition in relation to which invalidity benefits (or a benefit in the nature of invalidity benefits) were previously paid to the member. (5) Subregulation (4) does not apply in relation to a member who is not entitled to default invalidity/death insurance by virtue of subregulation (2)(c). (6) In this regulation— administered scheme has the same meaning as in Schedule 3 of the Superannuation Act 1988. A member who holds fixed insurance cover when this regulation commences is not entitled to default invalidity/death insurance—see Schedule 3 Part 2. Subdivision 2—Additional invalidity/death insurance 29—Interpretation In this Subdivision— fixed benefit insurance cover—see regulation 34; standard insurance cover—see regulation 34. 30—Application for additional invalidity/death insurance (1) Subject to this regulation, a member under the age of 70 years (other than a prescribed member under the age of 65 years) may apply to the Board for additional invalidity/death insurance under this regulation. (1a) Additional invalidity/death insurance may only be provided to a PSS 3 member in connection with an election under section 36 of the Parliamentary Superannuation Act 1974 to take out voluntary invalidity/death insurance if the member has applied to the Board for the insurance in accordance with these regulations. (2) A person who is employed on a casual basis can only apply for additional invalidity/death insurance if he or she is employed pursuant to an arrangement under which he or she is to work for 9 or more hours each week or for periods that average, over a 3 month period, 9 or more hours each week. (3) A person who is not entitled to default invalidity/death insurance under regulation 28(2)(b) or (c), or who is entitled to default death insurance but not default invalidity insurance, cannot apply for additional invalidity/death insurance or death insurance. (4) A person who is a member of the scheme by virtue only of regulation 9(3), (5b), (6) or (7) (including any combination of these provisions) cannot apply for additional invalidity/death insurance. (4a) A person who is a member of the scheme by virtue only of regulation 14(1) is not entitled to additional invalidity/death insurance and any additional invalidity/death insurance cover held by a person if and when they become a member of the scheme by virtue only of regulation 14(1) is cancelled. (5) If within 3 months after electing to become a member of the Triple S scheme, a contributor under the Superannuation Act 1988 applies to the Board under this regulation for additional invalidity/death insurance that will entitle the applicant to benefits that will not, in the Board's opinion, exceed the benefits in the nature of invalidity and death insurance to which the applicant would have been entitled under the Superannuation Act 1988— (a) regulation 49(2) does not apply to the applicant; and (b) the Board must accept the application and the only conditions that it can impose on its acceptance are the conditions (if any) to which the applicant's membership of the State Scheme is subject or conditions to which the applicant agrees. (6) If the Board grants an application for additional invalidity/death insurance or for an increase or decrease in the level of additional insurance, the Board must fix the date for the commencement of the insurance or of the increase or decrease in the level of insurance. 31—Additional invalidity/death insurance for prescribed members (1) A prescribed member under the age of 65 years who has not taken out fixed benefit insurance has, regardless of the state of the health of the member, additional invalidity/death insurance cover at least equal in value to 3 units of standard insurance cover, determined according to the member's current age, and is liable for premiums in respect of that insurance fixed by or under regulation 34. (2) A prescribed member under the age of 65 years who has taken out fixed benefit insurance cover has, regardless of the state of the health of the member, the number of units of fixed benefit insurance cover necessary to provide the member with invalidity/death insurance cover at least equal in value to 6 units of standard insurance cover (taking into account the member's default invalidity/death insurance cover), determined according to the member's current age, and is liable for premiums in respect of that insurance fixed by or under regulation 34. (3) A prescribed member is not required to apply for additional insurance to which the member is entitled under subregulation (1) or (2). (4) Subject to regulation 34, a prescribed member may apply to the Board, in the approved form, to increase the level of the member's additional invalidity/death insurance. (5) If the Board grants an application for an increase in the level of additional insurance, the Board must fix the date for the commencement of the increase in the level of insurance. Subdivision 3—Amount of insurance benefits and premiums 34—Amount of invalidity/death insurance benefits and amount of premiums (1) There will be 2 classes of invalidity/death insurance: (a) standard insurance cover under the Table in Schedule 1 where the value of a unit of cover, as designated in column 2, is determined on the basis of the member's age; (b) fixed benefit insurance cover where the value of a unit of cover is fixed at $10 000 irrespective of the member's age (up to age 69). (2) There will be 2 classes of death insurance for members to whom regulation 28(4) applies: (a) standard insurance cover under the Table in Schedule 2 where the value of a unit of cover, as designated in column 2, is determined on the basis of the member's age; (b) fixed benefit insurance cover where the value of a unit of cover is fixed at $10 000 irrespective of the member's age (up to age 69). (3) Insurance cover under this Division ceases in relation to a member when the member reaches the age of 70 years. (4) The amount of the premium payable per unit of insurance cover provided under this regulation is to be fixed by the Board on the recommendation of an actuary. (5) An applicant for additional invalidity/death insurance may apply for standard insurance cover or fixed benefit insurance cover. (6) The class of insurance held by a member may, on application by the member in the approved form and subject to terms and conditions determined by the Board, be changed to the other class of insurance. (7) However, a member may not, at any 1 time, take out both standard and fixed benefit insurance cover. (8) Subject to regulation 35A, the amount of default invalidity/death insurance for a member who has not taken out fixed benefit insurance cover is 3 units of standard insurance cover. (9) If a member has an entitlement to default invalidity/death insurance immediately before taking out fixed benefit insurance cover, the level of the member's default invalidity/death insurance will be determined by the Board. (10) In making a determination for the purposes of subregulation (9), the Board must ensure that the member's default invalidity/death insurance after the member takes out fixed benefit insurance cover is fixed at a level that provides insurance cover that is as close as possible in value to, but does not exceed in value, the value of the member's default invalidity/death insurance cover immediately before the fixed benefit insurance cover is taken out. (11) If a member who takes out fixed benefit insurance cover does not have an entitlement to default invalidity/death insurance immediately before taking out the fixed benefit insurance cover, the member is not entitled to default invalidity/death insurance. A member to whom subregulation (11) applies may nevertheless make application for additional insurance. (12) The Board may allow a rebate of the premium payable under this regulation in respect of invalidity/death insurance cover or death insurance cover. (13) The aggregate value of units of cover granted to a member employed other than on a casual basis must not exceed $1 500 000 (inclusive of the member's default cover). (14) The aggregate value of units of cover granted to a member employed on a casual basis must not exceed $750 000 (inclusive of the member's default cover). 35—Voluntary reduction or cessation of invalidity/death insurance (1) Subject to subregulation (2), the amount of invalidity/death insurance held by a member may be reduced on application by the member to the Board in the approved form. (2) The value of invalidity/death insurance held by a prescribed member under the age of 65 years may not be reduced below an amount equivalent in value to 6 units of standard insurance cover. (3) Invalidity/death insurance held by a member (other than a prescribed member under the age of 65 years) may cease on application to the Board by the member in the approved form. (4) If the amount of invalidity/death insurance held by a member is reduced, or ceases, under this regulation, premiums will cease to be payable in respect of any cover that is no longer held by the member from a day determined by the Board (which must be as soon as practicable after receipt of the application). 35A—Application for insurance following decrease or cessation of insurance (1) If the amount of invalidity/death insurance held by a member is reduced under regulation 35— (a) further invalidity/death insurance may subsequently be granted to the member on application by the member in the approved form; but (b) if the amount of the member's insurance has been reduced to 2 units or less of standard insurance cover (or an amount of insurance that is lower in value than, but does not exceed in value, 2 units of standard insurance cover)— (i) the member's default invalidity/death insurance will not exceed in value the amount to which the member's insurance has been reduced; and (ii) accordingly, the Board may, having regard to the state of the member's health, grant the application subject to authorised conditions (see regulation 49). (2) If the amount of invalidity/death insurance held by a member ceases under regulation 35, further invalidity/death insurance may subsequently be granted to the member on application by the member in the approved form, subject to the following: (a) the member will no longer be entitled to default invalidity/death insurance; (b) the Board may, having regard to the state of the member's health, grant the application subject to authorised conditions (see regulation 49).