You automatically receive Death and Total and Permanent Disablement (TPD) insurance with your defined benefit account and you’re covered 24 hours a day, seven days a week.
Generally, you’re TPD if you’re physically or mentally unable to ever work in any occupation you’re reasonably qualified for or suited to as a result of retraining.
If your claim is successful, you’ll receive a lump sum amount using the following formula.
12% for each year of defined benefit membership up to age 60 x the benchmark amount (which is $66,860 as at 1 July 2016).
If you’re seriously incapacitated, but not totally and permanently disabled, you might qualify for a Partial and Permanent Disablement benefit. This is when you’re physically or mentally unable to work in any occupation for which you’re reasonably qualified. This benefit is calculated the same way as for TPD, but based on membership to the date you stopped work.
The cost of this insurance is built into the employer’s contribution rate. Your insurance stops when you leave your employer.