My Union Temporary incapacity & your super If you are a member of UniSuper in either the Defined Benefits Division (DBD) or Accumulation 2, then it is in your interest to take a couple of minutes to read this article. If you are experiencing, or ever do experience, chronic or significant health issues, then this may be one of the most important pieces of information you need to know. UniSuper provide an informative fact sheet about temporary incapacity and the facts quoted in this article are set out in more detail on their website.
What is temporary incapacity? Fact 1 Temporary incapacity benefits are an inbuilt feature of your membership. In other words, as a member of either DBD or Accumulation 2, you have been automatically contributing to the scheme as part of your normal superannuation contribution.
Fact 2 If you are temporarily unable to work due to injury or illness, you may be eligible to claim a temporary incapacity benefit. On a number of occasions over the years, I have seen members who are on the point of resigning because they have used up all or almost all of their available leave trying to deal with their health issues. The good news for members in DBD or Accumulation 2 is that there is an alternative to resignation and that is applying for temporary incapacity. In the cases I have been involved in, all members who applied were subsequently accepted for temporary incapacity.
Fact 3 Temporary incapacity is defined as: A state of health which, in the opinion of the Trustee, renders a member
unable to perform their own duties or any other duties for which they are reasonably qualified by training and experience and which are available at the member’s employer where: • The member has been absent from employment through injury or illness for three months within a period of twelve consecutive months immediately prior to the date of making a claim for a benefit on the grounds of temporary incapacity, and • The Trustee is satisfied that the state of health is not due to or induced by any wilful action on the part of a member to obtain a benefit. Unlike workers’ compensation, the question (apart from the ‘wilful action’ exception) is not how did you become sick, but are you sick as per the temporary incapacity definition. Providing you have the medical evidence to support the claim and meet the eligibility criteria for application, then your chances of being accepted into the Scheme are very good.
Fact 4 A temporary incapacity benefit will generally be paid for a period of up to six months, as determined by the Trustee. The Trustee may approve additional periods up to a maximum of two years if the claim is in relation to the same or related injury or illness. Under the terms of Clause 40.6 of the UniSuper Consolidated Trust Deed, employers are required to keep a suitable position available for the member on temporary incapacity for the duration of the period of incapacity. In my experience, this has meant that where health outcomes have improved for members on temporary incapacity, they have been able to return to their positions.
Fact 5 The maximum monthly benefit payable is determined according to the following formula: Benefit Salary x 60% x Average Service Fraction (ASF)
The fact sheet contains detailed advice about how ASF is calculated and other particulars about the way the benefit salary is derived. In considering a member’s overall financial position when receiving the temporary incapacity benefit, it is important to note that during such periods, UniSuper continues to pay both the 14% employer contribution and the 7% standard member contributions to the superannuation scheme.
Fact 6 Your temporary incapacity benefit will cease if: ... • you qualify for a disablement benefit or terminal medical condition... In the event that a member’s health does not improve after the maximum time on temporary incapacity or deteriorates significantly while on incapacity, then a member can apply for a permanent disablement benefit. More information about permanent disablement can be found on the UniSuper website.
How can I find out more about temporary incapacity? If you want to find out more about temporary incapacity, you can access the UniSuper website, contact your NTEU Branch or Division Office or contact your local university superannuation officer. If you know of a colleague who is experiencing significant health issues, please refer them to this article or the other listed sources of information. Finally, as a staff member who has seen many members accepted into the temporary incapacity scheme, I express my appreciation and thanks to the original architects of this scheme which has proven to be so beneficial for staff experiencing major health issues. Kathy Harrington, Industrial Officer, SA Division www.unisuper.com.au
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NTEU ADVOCATE • vol. 21 no. 2 • June 2014 • www.nteu.org.au/advocate • page 47