Changes to TPD Lump Sum Entitlements by NSW Police: What You Must Know

If you’re a police officer serving in New South Wales (NSW), you may no longer have access to Total and Permanent Disability (TPD) insurance through your employer. The Police Association of NSW (PANSW) recently announced a plan to replace the existing Police Blue Ribbon Insurance scheme with one that won’t offer TPD compensation except to select few employees. We’ll define those exceptions as well as cover other important changes to TPD lump sum entitlements for NSW police in the article below.

What Changes Are Coming to Police Blue Ribbon Insurance?

Up until recently, the New South Wales Police Force (NSWPF) provided coverage for total and permanent disability as well as death benefits to their staff in the form of the Police Blue Ribbon Insurance (PBRI) scheme. PBRI in turn was managed via a super fund called Aware. 

In October 2024, however, NSWPF replaced their TPD policy under PBRI with a new scheme called the Enhanced Police Support Scheme (EPSS). Two major changes arrived along with the switch. 

1. EPSS is managed by the NSWPF, not Aware or any other super.
2. EPSS does not provide Total and Permanent Disability (TPD) insurance coverage. Instead, it offers monthly compensation to permanently incapacitated officers via an Income Protection (IP) policy.

What Is TPD and Why Is It Important for Police?

Total and Permanent Disability is an insurance policy that provides lump-sum entitlements to employees if they become injured on the job and are no longer able to work. The entitlement is designed to help the employee cover expenses they accrued as a result of their injury, including: 

• Medical bills for surgeries, treatments, and medication
• Rehabilitation
• Travel costs associated with going to doctor appointments and treatments
• Costs of hiring home care workers and purchasing equipment to improve the employee’s life
• Living expenses

TPD is an important policy for police officers to have, in particular, due to the dangerous nature of their job and the fact that violent crimes are on the rise. In the latest reported crime data by the Australian Bureau of Statistics, in NSW, assault offences went up by 10%, sexual assaults by 19%, and robberies by 6% from 2022 to 2023. Unlawful entry and motor vehicle thefts increased, as well. All these offences are examples of situations where police officers must put their health and wellbeing – indeed, their very lives – on the line.

What Does EPSS Offer as an Alternative TPD?

Instead of offering TPD, EPSS covers police officers with an Income Protection (IP) insurance policy. According to PANSW, any NSW police officer who becomes permanently incapacitated and can no longer work will receive monthly payouts for 7 years. These payouts are not entitlements from a lump sum, but rather calculated at up to 75% of the employee’s salary. If at the end of 7 years, the employee is still permanently disabled, they may apply for an additional 3-year extension of monthly IP benefits.

When Does EPSS Go into Effect?

On October 1, 2024, Aware ceased providing TPD insurance benefits for NSWPF and the new EPSS scheme went into effect. 

Who Is Being Impacted by the Changes to TPD for NSW Police?

All current NSWPF members are now covered by EPSS instead of PBRI with a few exceptions. The latter include any officers who were injured before October 1, 2024 and/or already have a claim going under the previous scheme. 

What Will Happen to NSWPF Members Who Already Receive TPD Compensation?

If you already have an ongoing TPD claim, then you don’t have to do anything; you will continue to receive lump sum entitlements per the terms of the previous scheme. 

What if I was Permanently Disabled Before October 1 and Haven’t Filed a Claim?

Some police officers in NSW may have suffered a debilitating injury before October 1, 2024, but haven’t yet filed a claim. In this case, and if the officer was deemed permanently incapacitated by a doctor prior to October 1, they can file a claim and still receive TPD under the PBRI scheme.

Why Is NSW Police Changing From PBRI to EPSS? 

PANSW stated multiple primary reasons for adopting the EPSS scheme and having NSWPF self-manage their insurance instead of allowing a third-party to handle it. Those reasons include the following potential benefits:

• Officers are now able to contribute more money to their superannuations, if they choose, because their PBRI insurance premiums are now reduced to 0.56% of their salaries, down from 21%. The 0.56% covers the death benefit, which still falls under the PBRI scheme and provides compensation for officers’ dependents in the event of their deaths.
• Officers could save thousands of dollars every year due to the lower tax burden. 
• Officers may now experience less confusion when filing claims and receiving compensation, since they no longer have to deal with three or more parties. Now, they can simply go through NSWPF to get their payments.

Supporting Police with TPD Claims Across NSW and Australia

Navigating Total and Permanent Disability (TPD) claims can be a complex and challenging process, especially for police officers dealing with changes in coverage and policy. If you’re facing difficulties with a TPD claim or need assistance understanding your entitlements, it’s crucial to have the right support by your side.

At LHD Lawyers, our team of experienced compensation and TPD lawyers is here to help police officers across NSW and Australia. Whether you’re struggling with an insurer or need guidance on a new or existing claim, we offer expert advice and personalized assistance. Contact LHD Lawyers today for a confidential discussion on how we can support your TPD claim.