What are Additional death and invalidity cover (ADIC) birthday reviews and how do they affect us?
The premiums for additional death and invalidity cover are adjusted annually (as the same time anniversary adjustments are made to the member’s normal superannuation contributions). Increases in average salary plus increases in the member’s age will mean that, unless the member specifically elects, on the Form SE6, to decrease his or her cover or is required to do so because of reaching the maximum benefit cover, the employee and employer premium payable may need to be adjusted by the employer each year on the person’s birthday. For this reason it is vital employers submit accurate member data so that adjustments to ADIC can occur without manual intervention.
Related Questions
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