Ever since the Police Super Scheme was closed in 1988, the Police Association has been calling for a better death and disability scheme.

Post 1988 officers were initially offered death and disability insurance when they were shifted into First State Superannuation (FSS), however, this scheme involved high costs and low pay outs.  Further, this scheme only provided covering for total and permanent disability (TPI).

This meant that the remainder of officers on partial and permanent incapacity were required to rely on the Workers Compensation system which only provided a very basic safety net system and no coverage for off-duty officers.

Unlike other workers, Police cannot top up their workers compensation benefits via private insurance because of the inherent risks involved in their profession.

In 1998, the Government agreed to a range of measures to cover post 1988 officers.  These included:

• Salary top-up;
• Special risk benefit on death or medical exist;
• A rehabilitation and re-deployment scheme placing officers in civilian positions before considering medical discharge.

However, Police injured in non-special risk circumstances were not covered by the above.

The Association has been lobbying Government for some time for a commitment to introduce adequate death and disability coverage for all officers.  The Association used the NSW Fire Brigades Union’s template which has been modified to suit NSW Police.

In essence, the Association has negotiated a lump sum system for work-related injuries based on multiples of salary, which vary according to age and the degree of disability.

Where a member is killed or medically exited and totally and permanently incapacitated as a result of a work-related injury, a lump sum of 8.5 times salary would be payable.  This sum would gradually reduce from age 45. 

These lump sum benefits, unlike the death and TPI pension arrangements, is likely to be tax free and will not impact on accumulated employer’s superannuation entitlements.  These benefits can be paid in full to an estate or a spouse.  Most importantly, the entitlements will apply to injuries that occur while travelling to and from work.

Where a member is medically exited, but can still secure employment outside the service, a lump sum is payable at a slightly lower rate.

With regard to off-duty coverage, a lump sum of $250,000 would be paid on death or TPI while up to 2 year’s salary would be paid in respect of partial and permanent incapacity.

All these payments would be in addition to workers compensation and superannuation entitlements including lump sum payments.

The Association expects this new system will cost the Government less than $40m pa. 

For more information contact Tony Cardillo at Harris Wheeler on 49076300