What is my ill health cover if I belong to the Contributory Scheme?
There are two types of ill health cover for Contributory Scheme members. The calculation of the death or ill health
benefit varies for members with full benefits cover or limited benefits cover. This can result in a significant
difference of thousands of dollars to your superannuation benefit. Contributory Scheme members should apply for full
benefits cover as soon as possible. Contact us for further details on how to
apply.
If a Contributory Scheme member is granted a total and permanent incapacity benefit, the entire benefit may not be
taken as a lump sum. The maximum lump sum available is $50,000 and the balance is payable as a pension. However, a
member may apply to receive a further lump sum of up to $30,000. This application will be subject to the Board's
approval.
Where the Board is satisfied that a member retiring on the grounds of total and permanent incapacity is suffering
from a terminal illness, and two medical practitioners appointed by the Board have certified that the member is likely
to pass away within a twelve month period, the Board may approve the payment of the member’s full retirement benefit
as a lump sum.
Limited Benefits
A Contributory Scheme member remains on 'limited benefits' cover until
he or she has passed a medical examination conducted by a medical practitioner approved
by the RBF Board.
A Contributory Scheme member, who does not undergo or does not pass a medical,
will remain on limited benefits until they have attained a continuous period of ten years of contributory
service. After ten years of continuous contributory service, a member on limited benefits
cover will automatically be admitted to full benefits cover.
If a limited benefits member is unable to return to work due to injury, illness or
death, the prospective service component of the invalidity or death benefit will be calculated at the
current Superannuation Guarantee rate of 9% through until age 60.
Full Benefits
A Contributory Scheme member is covered for 'full benefits' if he or she
has:
- passed an RBF medical examination conducted by a medical practitioner approved by
the RBF Board; or
- been a Contributory Scheme member who has contributed for a continuous period of ten years.
If a full benefits member is unable to return to work due to injury, illness or death, the prospective service
component of the invalidity or death benefit is calculated at 20% through to age 60, for contributors who
contribute at a rate of 5% or greater. For full benefits members the maximum period allowable for the prospective
service component of a death or invalidity benefit is 25 years.
What ill health benefits are available if I belong to the Contributory
Scheme?
There are three types of ill health benefits that may be available to Contributory
Scheme members.
Total & permanent incapacity
'Total and permanent incapacity' means such bodily infirmity, physical
incapacity or mental incapacity, of such kind that the Board is satisfied
that the employee is, and until age 60 will continue to be, unfit to work
in a position for which the employee is reasonably qualified by education,
training or experience and for which he or she may be required to accept.
Interim invalidity
'Interim invalidity' means that the Board has determined that a contributor
- is unfit to perform the duties of his or her position; and
- is likely to recover sufficiently so as to enable the person to perform
the duties of his or her position, or such other position which he or she
may be required to accept; and
- should not be retired on the grounds of invalidity.
Partial & permanent incapacity
'Partial & permanent incapacity' means incapacity or infirmity suffered
by a contributor of such kind that the Board is satisfied that, by reason
of his or her suffering that incapacity or infirmity, the contributor is
unfit to continue to perform the duties of his or her office or position
or the duties of some other office or position that he or she may be required
to accept based on his or her training, education or experience.
This is only available to employees who became members of the Contributory Scheme prior to 1 July 1994 and has
been interpreted to mean that the Board is NOT satisfied that, by reason of his or her suffering that incapacity
or infirmity, the contributor is and until the age for retirement, will continue to be, unfit to continue to
perform the duties of his or her office or position or the duties of some other office or position that he or she
may be required to accept based on his or her training, education or experience.
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