Fed: Bushfire victims should seek early access to super: Sherry

AAP General News (Australia)
02-10-2009
Fed: Bushfire victims should seek early access to super: Sherry

CANBERRA, Feb 10 AAP - People affected by Victoria's bushfire disaster should consider
seeking early access to their superannuation, the federal government says.

Superannuation Minister Nick Sherry has also reminded people that super accounts are
likely to have either death, or total and permanent disablement (TPD), insurance attached.

"I strongly encourage those that are able to consider this option," Senator Sherry
said in a statement.

Claims for early access should be made directly to super funds.

Senator Sherry said he had spoken with the Australian Prudential Regulation Authority
(APRA) and asked super funds and their insurers about prioritising bushfire-related life
insurance and TPD claims.

"I have also spoken with Pauline Vamos, chief executive of the Association of Superannuation
Funds of Australia, who has confirmed super funds will do everything they can to assist."

Under normal circumstances, people cannot access their super accounts until they are
55. But under limited, prescribed circumstances, the law allows for early access.

"This includes applications under severe financial hardship provisions," he said.

"Such applications must be made directly to your super fund and strict conditions for
this early release must be met."

APRA separately administers applications for the early release of superannuation on
prescribed compassionate grounds.

"These grounds include mortgage assistance in the case of threat of foreclosure, certain
medical expenses, modifications to a home or vehicle in the case of severe disability,
and expenses associated with a dependent's death or funeral," he said.

AAP cb/kms/tnf

KEYWORD: BUSHFIRES VIC SUPER

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