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Leaving your employer

If you’re with MLC MasterKey Business Super and you’re
leaving your employer, you can keep your super and
your insurance cover.

Transferring to MLC MasterKey Personal Super

Once your employer has told us that you’re no longer their employee and you’re an MLC MasterKey Business Super member—you’ll be transferred to MLC MasterKey Personal Super.

If you have insurance cover and you’re under age 65 when you leave your employer—you can generally keep your insurance cover in your MLC MasterKey Personal Super account.

To continue your insurance with an individual insurance policy, you can complete the Continuation option form.

What happens to my Death and TPD insurance cover?

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We’ll transfer the exact amount of Death and TPD cover you held at the time we transferred you to MLC MasterKey Personal Super (subject to eligibility requirements).

If you’re 40 or older, from your next birthday, any Death and TDP cover you have with MLC MasterKey Personal super will reduce by 5% each year. Your Death and TPD insurance cover won’t reduce if you apply to fix your cover. To apply, log in to complete the online form or download the Fix your cover form and return it to us.

Once your Death cover is reduced to $20,000 in the MLC MasterKey Personal Super plan, we’ll keep it at that amount until your cover ceases. If your Death cover is already less than $20,000, when you transfer to MLC MasterKey Personal Super, it’ll remained fixed until it ceases.

When you’ve reached age 61, any TPD cover you have in the MLC MasterKey Personal Super plan will reduce each year on your birthday by equal amounts until it ends at age 65.

You can cancel or apply to change your insurance cover at any time.

What about Income Protection?

Any Income Protection (IP) insurance you had in your employer plan will be cancelled the day we transfer your super to MLC MasterKey Personal Super. If you’d like to have IP, you can apply to reinstate it by logging in to your account.

You’ll need to return the IP reinstatement form within 60 days of transferring to MLC MasterKey Personal Super.

If you don’t return it in time, you’ll need to complete a new Insurance application form and may need to provide medical and employment information as part of your application.

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Before you reinstate your IP insurance cover, it’s important to consider that:

  • The cost of your insurance will generally be different in MLC MasterKey Personal Super (it’s usually higher than what it is in MLC MasterKey Business Super).
  • The cost of your insurance is deducted from your super account.
  • Your sum insured won’t change according to your salary as it may have in MLC MasterKey Business Super.
  • You may be paying premiums for higher cover than you’re eligible to claim.
  • The default 90-day waiting and two-year benefit period will apply in MLC MasterKey Personal Super, unless you applied and were accepted for a different waiting period and/or benefit period in MLC MasterKey Business Super. In that case, your waiting period and/or benefit period will stay the same upon reinstatement.

The maximum monthly benefit paid will be based on your income at the date of your disablement. We won’t pay more than your insured amount.

    We recommend that you review your IP sum insured regularly to make sure it’s aligned with your salary.

Transitioning to Retirement?

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If you’re 55 or over, a Transition to Retirement (TTR) strategy may help you ease into retirement by allowing you to access some of your super whilst you’re still working.

With a TTR strategy you can receive an income to maintain your living standard when winding back your work; and pay less tax. TTR pension payments attract a 15% tax offset between preservation age and 59, and are tax free1 at age 60 or over.

 

Get the advice that’s right for you

Determining when to retire and how to access your super requires careful planning. We recommend that you speak to your financial adviser before making any decisions.

 

Find out more

 

1Assume the TTR pension is commenced from a taxed super fund.

What happens if I don’t have insurance cover?

If you don’t have insurance cover when your account is transferred to MLC MasterKey Personal Super, you can apply for cover by completing the Insurance application form.

Find out more about your insurance cover:

Key documents

See your Product Disclosure Statement (PDS) and Insurance Guide for more detailed information and considerations.

Forms and documents >

Cost of premiums

The cost of your insurance will generally be different in MLC MasterKey Personal Super (it’s usually higher).

Cost of insurance >