FORWARD FOCUS INTIMES OF CHANGE External environment Monitoring and responding to the environment in which we operate Political landscape As a result, as at 30 June 2021, vital automatic default While there has been a steady focus on superannuation insurance cover has been retained for or provided to 138,000 policy settings in the political arena for years – generating building and construction workers at Cbus since April 2020. significantreform – there has, in the past year, been Nearly $13 million in insurance benefits has already been paid an increasing focus on the core principles that underpin to 106 Cbus members or their beneficiaries – theirpartners Australia’s enviable retirement income system. That being and kids – in that short time. universality, compulsion and preservation, and their Claims made and paid out by Cbus include tragic incidents suitability for the future. of teenagers, fathers and carers dying during this period, Debate over whether the already legislated, scheduled and includes members being killed or seriously injured at work. growth in the super guarantee from 9.5% to 10% should The first year of the Dangerous Occupation Exceptionled to proceed this year, took place with the Government significant tangible benefits to Cbus members who continued ultimately confirming that they would not seek to make any to have insurance coverage through their super. changes. Cbus advocated for the increase on behalf of our members, in recognition of the fact that Cbus member Your Future, Your Super balances are much lower than the general population, but Cbus is concerned that the availability of quality insurance also understanding that a delay would further compromise for workers in hazardous occupations is once again at risk of being the ability of funds to do exactly what the recovery period undermined with the introduction of a ‘stapling’ measure, called for, which was to invest in the economy, and to create contained in the Your Future, Your Super package, which jobs. We won the argument, and our memberswill passed the Parliament in mid-June 2021 and comes into force benefit from higher contributions. in November 2021. Cbus maintains a strong connection to the industries Stapling workers to their first fund for life, unless the worker we serve, helping us to design tailor-made products and actively chooses another fund, will impact younger workers new services for workers in building, construction and allied to building and construction, who are at risk of no longer receiving professions. This includes designing our default insurance automatic, affordable insurance cover through the Dangerous offering with hazardous occupations in mind, and investing Occupation Exception at Cbus. in programs to improve super guarantee compliance and support members to recover unpaid super, a problem which Some funds’ policies contain exclusions which could leave disproportionately impacts blue collar workers. Politically workers in hazardous occupations without cover, because, unlike motivated efforts tobreak the connection between industry Cbus members, their insurance terms have not been tailor-made superannuation and industry itself may mean the needs with hazardous industries in mind. Members and their families and interests of members and employers are not met. typically only discover these exclusions when tragedyhasstruck, when they try and fail to make a claim against cover they believed Putting Members’ Interests First Act they had. and the Dangerous Occupation Exception Cbus advocated on behalf of members in written submissions7 Due to our success in securing a Dangerous Occupation to the Treasury and meetings with the minister, as well Exception to the Putting Members’ Interest First Act, as at a hearing of the senate committee which enquired into we are now one of a handful of funds to offer default the bill. We spoke to our employers, to members and their insurance cover to all workers, regardless oftheir representatives, to the media and to decision makers themselves. age or account balance. While Cbus secured significant support for an exception to the stapling rule for workers in hazardous occupations, unfortunately that amendment failed after a deal was struck between the government and One Nation. 7 cbussuper.com.au/about-us/news 22 Annual Integrated Report 2021