Superannuation total and permanent disability (TPD) compensation is given to employees whose employment has been terminated due to TPD or work capacity assessment. The TPD compensation is only available to the employees.

It does not apply to self-employed individuals. The compensation also depends upon whether the disability is a pre-existing condition or it happened after the service began.

So, there are eligibility factors to avail the TPD legal support. Here is a list of requirements for an employee to claim superannuation TPD compensation.

Legal Requirements

Superannuation TPD compensation is not an entitlement. The is a discretionary power vested with the super fund trustees. They decide whether the termination of employment falls within the definition of total and permanent disablement, entitles them to avail complete or partial payment of insurance premiums.

According to the law, a legal entitlement case arises only when the termination of employment is totally and permanently disabling.

Age Between 21 And 65 Years

Age is an essential criterion for claiming the TPD compensation. The super fund trustees may not pay superannuation TPD compensation if the employee was under 18 years at the time of their claim or aged above 65 years.

Total and Permanent Disability Factor

Superannuation TPD compensation is not payable in the event of termination due to death, self-inflicted injury, or when the employee has suffered from temporary disablement and recovered within 90 days.

Only when an individual has a disability that is permanent and can be established by a medical practitioner are they entitled to TPD compensation.

Not Retrenched on the grounds of Misconduct or Poor Performance

The super fund trustees might not pay the claim if the service of the employee was terminated due to misconduct or poor performance.

There is a difference between termination for misconduct and poor performance. Misconduct deals with an intentional act. In comparison, poor performance deals with an activity that may not be intentional but still does not meet the expectations.

No Other Type of Insurance Policy

The employer must pay insurance premiums (superannuation TPD compensation) for other policies like life insurance, income protection, and total permanent disability (TPD) because it is part of their package or a specific contractual arrangement between the employer and employee.

Paying Insurance Premiums

An insured individual must pay premiums for other types of insurance policies which entitles them to claim superannuation TPD compensation even if they are not availing any benefits from those policies.

Legal Entitlement

As per statista, by the second quarter of 2021, the value of superannuation funds under management in Australia amounted to approximately 1.54 trillion Australian dollars.

An insured individual is not entitled to claim superannuation TPD compensation if they do not pay their share of the insurance premium or when the employer pays the premiums in full on behalf of the employee.

They also lose entitlement once benefits, such as medical treatment, financial assistance, or income replacement, are available under another policy.

Employer’s Refusal to Pay

The insurer may not pay the compensation if the employer refuses to pay insurance premiums, either in whole or part, on behalf of the employee and did not inform them about this refusal.