Super update—changes to insurance cover and fee caps

Great news, we’re reducing most of the premium rates for your employees’ insurance in super. This is part of our regular review process, ensuring your employees’ insurance in super continues to be fair and competitively priced.

We’re also removing the insurance fee cap and reducing the Administration fee cap.

If your employees have tailored premium rates for Death, Total and Permanent Disablement (TPD) and Income Protection (IP) cover, these rates will stay the same. The premium rates for your plan will be reviewed separately at the end of your plan’s premium rate guarantee period. We’ve sent you an email confirming the changes that apply to your plan.

New premium rates and other insurance changes

From 1 October 2025, we’re:

• reducing the standard premium rates for Death, TPD and IP cover in MLC MasterKey Business Super
• increasing the sum insured amounts for the same cost, for employees with Fixed Premium Death and TPD cover in MLC MasterKey Business Super
• improving the TPD definition used to assess a TPD claim to be less restrictive, if the date of claim is on or after 1 October 2025 and your employee hasn’t worked in paid employment for at least 16 months before their date of claim
• changing how the Insurer will assess your employee’s eligibility for an Interim Accident Benefit, if they apply for voluntary TPD cover on or after 1 October 2025
• making the following changes to insurance in MLC MasterKey Personal Super, which may apply to your employees after they leave your employment:
  • reducing the premium rates for Death and TPD cover in MLC MasterKey Personal Super
  • maintaining the premium rates for IP cover in MLC MasterKey Personal Super, except for premium rates for males with a 2-year benefit period, which are increasing, and
  • providing an option in MLC MasterKey Personal Super to change the occupational rating classification to Light Blue, if the member has retired and it’s beneficial for them to have that rating.

Automatic cover for employees without salary information

If your employee has automatic salary-based insurance cover and we don’t have their salary details, we’ll try to contact you to get the information. We’ll also try to contact your employee. If we don’t receive a response within 30 days, starting from 1 October 2025, their salary-based insurance cover will automatically switch to MLC Lifestage cover. They won’t be eligible for automatic IP cover, even if a salary is provided later.

Removal of the insurance fee cap

By April 2026, the insurance fee cap of $300 pa will be removed. The insurance fee of up to 8% is calculated based on an employee’s annual premium amount.

If an employee’s insurance fee is up to $25 per month (or up to a $300 pa), this change won’t affect them. If their insurance fee is more than $300 pa this change means they’ll pay higher insurance fees.

Reduced administration fee cap

Currently, the maximum percentage administration fee an employee pays on each account under MLC MasterKey Business Super and/or MLC MasterKey Personal Super is capped at $2,500 pa. By April 2026, the cap will reduce to $1,000 pa.

If your employee’s percentage administration fee exceeds $1,000 pa, this change means they’ll pay lower percentage administration fees.

How we’ll communicate to your employees

We’ve recently written to your employees with insurance cover in MLC MasterKey Business Super in early August to let them know about the changes that apply to them.

In October, we’ll send a communication to employees who don’t currently have insurance cover. This will outline the changes to insurance and fee caps, so they’re informed in case they are provided with insurance cover in the future.

We’ll also write to the employees affected by the removal of the insurance fee cap. This will be at least 30 days before the change occurs.