The Construction and Building Unions Superannuation fund, better known as CBUS, is a fund that has been set up to serve the construction and building industry. As its name suggests, most of the members of the CBUS fund are construction workers and include tradespeople and labourers. Like most super funds, it provides sickness and injury insurance for workers, including total and permanent disability (TPD) and income protection insurance.
Many people who work in building and construction industry occupations are considered more likely than those that work in sedentary occupations, to cease work due to injury.
Need help with a CBUS insurance claim? Call us for free advice: 03 9448 8048
As a result, people who work in those occupations can have trouble getting reasonably priced insurance for TPD and death benefits (payable to dependents) because their jobs are classified as high risk.
In some cases, super funds even specifically exclude higher-risk employees from their insurance offerings by identifying them as special risk or uninsurable (for example, MLC superannuation).
Are all occupations insured for TPD and income protection in CBUS?
CBUS is not like some other super funds and it does not exclude specific occupations from its insurance offerings. However, the amount of the insurance benefit that a member is entitled to claim can differ depending on whether the member works in a manual or non-manual occupation.
Also, some CBUS members are entitled to apply to have income protection insurance cover, but only for those people that work in non-manual occupations.
The default insurance which is offered to CBUS members varies depending on the occupation that a member works in and how they become a member. To be eligible for TPD insurance, a member usually has to join the fund and satisfy some eligibility conditions, including:
- being over 25 years old; and
- employed and working without restriction when they first become a member of the CBUS super fund.
Does reducing my work hours impact on my CBUS insurance?
Importantly, the CBUS fund provides insurance that is more flexible than some other funds. There are minimal restrictions on changing jobs and working fewer hours.
This is different to some super funds that require that their members work minimum hours to keep their insurance cover or favourable insurance terms. This is because many people who work in the building and constructions industry, work sporadically and move from job to job and may experience extended periods between jobs.
What is the CBUS TPD definition?
To be entitled to TPD benefits as a member of the CBUS fund, you usually have to:
- cease work due to illness or injury (it doesn’t matter which); and
- be permanently unable to work in any occupation which you are suited to by education, training or experience.
Importantly, unlike some other superannuation fund insurance terms, there is no retraining clause. This means that people must only show that they are unlikely to work again in jobs that they are able to perform without being retrained.
Making a decision to claim a TPD is never easy. However, if you are a CBUS member and you are unable to return to work that you are qualified to do, you should make a claim.
If you are sick or injured, we can check your CBUS insurance entitlements for free and help you to make a claim. You should give us a buzz for a free consult with one of our superannuation experts.
Likewise, if you’ve already lodged a TPD or income protection claim with CBUS and it has been rejected, contact us for free advice about your options to appeal that decision.
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Please note that the above information is based on CBUS’s insurance arrangements as at 30 July 2021. Those insurance entitlements are subject to change and will change over time. If you require advice about CBUS’s current insurance arrangements, please get in touch for some free advice.