Australia’s government has banned the common practice of young workers automatically being charged life insurance, as policy makers fix structural flaws in the world’s fourth-largest pension system.
Firms may only give life, disability and income protection insurance in default pension plans to new members aged under-25 or those with balances below A$6,000 ($4,075) if they’ve explicitly ask for it, under legislation passed by parliament Thursday. The bill comes into effect in April 2020 and ensures workers in dangerous jobs can still get automatic cover.