14Requirement for providing or offering insurance in respect of death

#### 14 Requirement for providing or offering insurance in respect of death MySuper members (1) For the purposes of paragraph 32C(2)(d) of the Act, for a MySuper member, other than a member who is a defined benefit member, the requirement is that insurance be provided by the fund in the event of the death of the member: (a) for a person of an age in an age range mentioned in subsection (5)—at the level mentioned or higher; or (b) for a person who is under 56 years—at a premium of at least $0.50 per week, or the equivalent. (2) However, if a MySuper member, other than a member who is a defined benefit member, has elected that insurance in relation to death not be provided, or that insurance in relation to death be provided at a lower level than provided for in subsection (1), the requirement is that insurance be offered by the fund in the event of the death of the member: (a) for a person of an age in an age range mentioned in subsection (5)—at the level mentioned or higher; or (b) for a person who is under 56 years—at a premium of at least $0.50 per week, or the equivalent. (3) The provision, by a regulated superannuation fund, of insurance in respect of death in accordance with subsection (1) is subject to such reasonable conditions as the trustees of the fund determine. Members other than MySuper members (4) For the purposes of paragraph 32C(2)(e) of the Act, for a defined benefit member, or a member other than a MySuper member, the requirement is that insurance be offered by the fund in the event of the death of the member: (a) for a person of an age in an age range mentioned in subsection (5)—at the level mentioned or higher; or (b) for a person who is under 56 years—at a premium of at least $0.50 per week, or the equivalent; or (c) if the contribution is made to a defined benefit superannuation scheme on behalf of a defined benefit member—that provides a death benefit with a future service component that is at least equivalent to the level of insurance in relation to death mentioned in paragraph (a). Level of insurance (5) For the purposes of paragraph (1)(a), (2)(a) or (4)(a), the level of insurance in respect of death is as follows: (a) if the person is aged from 20 to 34 years—$50,000; (b) if the person is aged from 35 to 39 years—$35,000; (c) if the person is aged from 40 to 44 years—$20,000; (d) if the person is aged from 45 to 49 years—$14,000; (e) if the person is aged from 50 to 55 years—$7,000. Exceptions (6) The requirement in subsection (1), (2) or (4) does not apply to an employer: (a) if, on or after 1 July 2005, the employer is making contributions under a Federal award in respect of an employee to a fund that does not meet the requirement—to the extent that the employer continues to contribute to a fund under that award in respect of the employee; or (b) if the employer makes contributions to an RSA on behalf of an employee—to the extent that the requirement relates to the employee; or (c) if the employer makes contributions to a capital guaranteed fund on behalf of an employee—to the extent that the requirement relates to the employee; or (d) to the extent that the requirement relates to an employee in respect of whom an arrangement by the employer results in the provision of insurance cover that includes death cover: (i) other than with the fund that the employer will contribute to if the employee does not make a choice; and (ii) at a level that is at least equivalent to the level mentioned in subsection (1), (2) or (4); and (iii) that does not provide for a potential benefit to the employer following the death of the employee; or (e) if, due to a particular employee’s health, occupation, hours worked or other circumstances determined by an insurer, the insurance requirement mentioned in subsection (1), (2) or (4) is not available in respect of the employee from the fund normally used by the employer; or (f) if, in respect of an employee, the employer makes contributions: (i) to a fund or successor fund governed by rules that, on 11 March 2005, determined that an amount of not less than $50,000 will be payable in respect of the death of an employee; and (ii) that were continuing on, or commenced after, 11 March 2005. (7) The requirement in subsection (1) does not apply to an employer if, under section 68AAA of the Superannuation Industry (Supervision) Act 1993, insurance in the event of the death of the employee is not to be provided.