Total Permanent Disability (TPD) Claims

30-06-2022    |    Video   |   Steve Groves

A Total Permanent Disability (TPD) Claim can be made on your Superannuation (Super) Fund under certain circumstances.  If you’ve suffered a serious injury or illness and you’re unable to work, gaining access to your TPD can be extremely beneficial. 

Since 1992 it has been compulsory in Australia for employers to pay a proportion of an employee's pay into a Superannuation Fund.  The current Superannuation rate is 10.5% of your income.  It is paid in every week to your Super Fund by your employer and your money is invested by your Fund and it builds up.  The scheme was designed to make the accumulated funds available to workers when they retired.

All of us who are employees receive regular updates from our Super Fund about our available balance.

What many people do not realise is that some Super Funds arrange an Insurance Policy to cover their members  in the event of their early death or Total Permanent Disability (TPD).

When you receive your regular update from your Superfund, if it mentions a "Death Benefit" or a "TPD Benefit" that indicates that you have been paying for a small insurance policy held by your Super Fund to cover these events.

So what is Total Permanent Disability (TPD)?

Each Super Fund has its own Deed that covers the benefits payable to its members.  Each Super Fund might have a slightly different definition of TPD but usually the definition covers the following areas: -

1.         The Member has been injured or becomes sick and has been off work for at least 6 months.

2.         The Member is not fit for their usual occupation or any other occupation for which they are suited by their age, education or training.

To receive a payment for your Total and Permanent Disability from your Super Fund, you must meet all of the criteria required by your fund in its definition of TPD.

To do that you have to provide your fund with medical evidence that indicates why you are totally and permanently disabled for your usual occupation, and proof that you meet the definition of TPD within your Funds policy.

Sometimes the TPD benefit is quite substantial.  If you have a serious injury, or are extremely unwell, and can meet the definition of TPD in your Fund’s policy, it is extremely helpful to have the lump sum payable from your Super Fund to assist you at a time when you cannot work.

At Lamrocks we have extensive experience assisting our clients to access their TPD entitlements from their Super Fund.

If you, a member of your family, or someone you know has suffered a serious injury and is unable to work or has suffered an illness that precludes them from performing their usual occupation, it is well worth investigating whether you, or they, have a viable TPD claim.

If you feel you may have a TPD entitlement, the starting point is to look at the updates that you receive from your Super Fund, and check whether it mentions a TPD entitlement.  If it does, and you feel that you may have a viable TPD claim, contact one of our specialists at Lamrocks and we will provide an initial no-cost assessment of your potential TPD claim.

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