Understanding the transition from Police Blue Ribbon Insurance to the Enhanced Police Support Scheme
Published on December 2, 2024 by Hanaan Indari and Sara McLean
The NSW Police Force has announced that the ‘Enhanced Police Support Scheme’ (EPSS) will replace the current ‘Police Blue Ribbon Insurance’ (PBRI) on 1 October 2024. This new scheme is designed to better address the evolving needs of police officers, particularly with respect to off-duty support and injury benefits.
In this article, we outline the key changes under the new scheme and what these changes mean for NSW Police Officers, both current and retired, as well as their families.
Key changes to Police Blue Ribbon Insurance
The current PBRI provides financial protection to police officers, covering a range of scenarios including on-duty injuries, off-duty accidents, and critical illness. It also includes death benefits for families, short-term and long-term disability coverage, and rehabilitation support.
Coverage under PBRI is provided through Aware Super, and includes:
- Terminal illness and death benefits
- Total and Permanent Disablement (TPD) benefits
- Income protection (IP) benefits
From 1 October 2024, the new EPSS will take over, offering enhanced benefits in certain areas while also introducing significant changes to TPD coverage.
What is the Enhanced Police Support Scheme (EPSS)?
The EPSS is designed to offer broader support for police officers who suffer injuries, whether on or off duty. Key features of the EPSS include:
- Supplementary support payments for officers injured on duty for up to 10 years.
- Extended off-duty income protection from two years to three years.
- Continuation of the current on-duty and off-duty death benefits.
Total and Permanent Disability (TPD) Insurance changes
A major change under the EPSS is the removal of the traditional lump sum Total and Permanent Disability (TPD) payments, which will no longer be available through Aware Super for any NSW police officer who is certified unfit for work commencing on or after 1 October 2024. TPD insurance under the current PBRI provides financial support to officers who become permanently disabled and are unable to return to work. This benefit is usually paid as a lump sum to assist with significant life changes.
Under the new EPSS, rather than a TPD lump sum, injured NSW police officers will be entitled to an additional three years of income protection payments (from 7 to 10 years), known as a Catastrophic Exceptional Extension Payment (CEEP), if the injury or illness falls within the definition of ‘catastrophic injury’ or ‘exceptional injury’, the latter being the TPD definition a NSW police officer needed to satisfy to be paid the TPD benefit.
In addition, the EPSS payments are only payable to a NSW police officer if they are in receipt of workers compensation payments for the injury or illness; and the EPSS payments must be repaid if a NSW police officer receives a work injury damages payment.
This shift represents a significant change in how financial assistance is provided to officers who suffer a permanent injury, illness or disability.
Existing claims
It’s important to note that existing TPD and IP claims will remain unaffected by this transition.
In addition, if you:
- Ceased work due to an injury or illness before 1 October 2024; and
- Obtain medical evidence that the injury or illness has caused you to be totally or partially disabled for work;
You will still be able to submit TPD and IP claims to Aware Super for assessment.
Should you purchase separate TPD insurance?
Given the changes, NSW Police Officers may want to consider purchasing separate TPD insurance to maintain adequate protection against career-ending disabilities. While TPD cover can come at an additional cost, it can provide crucial financial security in the event of a severe injury or illness.
When evaluating whether to purchase TPD insurance separately, key considerations include:
- The level of risk associated with your occupation, particularly for police officers whose roles often involve high physical and mental demands.
- Affordability and sustainability of insurance premiums.
- Whether the insurance premiums and the TPD amount applicable exceed the value of the EPSS benefits because you may not be entitled to EPSS benefits if the TPD amount is classified as income from another source under the Police Amendment (Police Officer Support Scheme) Act 2024.
As the transition from Police Blue Ribbon Insurance to the Enhanced Police Support Scheme occurs, it is critical that NSW Police Officers understand the implications of these changes, particularly around the removal of TPD lump sum payments. If you are considering lodging a TPD claim or exploring alternative insurance options, seeking timely legal advice is recommended.
Please note that this article does not constitute legal advice. If you are seeking professional advice on any legal matters, you can contact Carroll & O’Dea Lawyers on 1800 059 278 or via our Contact Page and one of our lawyers will be able to assist you.
