As a member of Qantas Super, you are provided with insurance cover1. This means you’re automatically covered 24 hours a day, seven days a week for death, total and permanent disablement (TPD) and income protection.
If you’re considering taking out extra insurance outside of Qantas Super, please keep in mind that some or all of your insured benefit in Qantas Super may be subject to “offsetting”. The use of offsetting against disability benefits is common in the insurance industry, so it also may be worthwhile checking any other cover you have for this same exclusion. Offsetting ensures that members don’t receive a higher income while temporarily disabled than they would if they were working on full duties.
1Differing cover is provided for each division of Qantas Super and is subject to eligibility criteria. Check the disclosure for your division to review your Standard or Basic Cover and the eligibility requirements.
What is offsetting?
Offsetting means your income protection benefits (and for Divisions 1, 2 and 3, your TPD benefits) may be reduced if you receive other benefits or income for the same period or condition for which your insured benefits are paid. You’ll only receive a payment for the difference, if any.
Other benefits or income that can be offset include:
- Any income earned, which includes any sick or annual leave paid to you;
- Any worker’s compensation payment2, excluding any payments for medical treatment, rehabilitation or permanent impairment;
- For Divisions 1, 2 and 3 only, any social security payment2;
- Any payment received under Loss of Licence Insurance (pilots only);
- Any other income received as a result of the disability (including from other insurance policies). We may also offset any future benefits/income you are likely to receive2.
With the exception of Loss of Licence Insurance, we may offset any of the above benefits/income that you may be entitled to, whether they were paid to you or not.
The following benefits/income are not offset:
- Income earned from investments;
- Lump sum total and permanent disablement benefits (however these benefits are offset from TPD benefit payments in Division 3)
2Relating to the same period or condition.
How does offsetting work?
If you receive any offsetting amounts as a lump sum, they’ll be offset against your lump sum benefit in Qantas Super. If the benefit you are to receive from Qantas Super is a monthly income amount, then the lump sum offsetting amount will be converted to equivalent monthly income amounts to determine the amount of the offset to be applied.
If the offsetting amount is a monthly income and your Qantas Super benefit is a lump sum, then the reverse process applies. If you make a claim for an insurance benefit from Qantas Super, you’ll need to declare any other benefits or income you’re entitled to, and provide evidence, before any payments from Qantas Super can be made.
Please seek advice before making any decisions based on your insurance through Qantas Super. You can call us on 1300 362 967 or book a face-to-face meeting with a Super Adviser at no additional cost.
Here are examples of how offsetting works in different divisions in Qantas Super. These are not actual cases, and are only designed to illustrate how offsetting may work in practice.
Meet Jane (Division 6)
In her role, Jane prepares meals for customers, and has an accident at work. She badly cuts her hand, requiring a lot of treatment before she can return to work. Jane is in Division 6 and is automatically covered for income protection at 75% of her Superannuation Salary.
As the accident occurred at work, Jane qualifies for workers compensation payments which cover her salary while she is off work. These payments are greater than the income protection benefit from Qantas Super, and so no payments are made to Jane from Qantas Super.
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If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.