Yes, in most cases you can return to work after receiving a Total and Permanent Disability (TPD) payout. Whether this affects your entitlement depends on your policy’s terms, how the TPD benefit was paid or is to be paid, and whether payment of the full benefit is tied to ongoing medical certification confirming your ongoing satisfaction with the TPD definition.
Recovering enough to return to work is a milestone worth celebrating. Provided your original claim was made honestly and supported by accurate medical evidence at the time, you’re entitled to keep your payout, even if your health improves.
This article provides an overview of important considerations when you’re thinking about returning to work after receiving a TPD payout.
What does a TPD payout mean?
A TPD payout is a lump-sum insurance payment from your insurance attached to your superannuation fund when you are no longer able to work due to an illness or injury. To access the TPD insurance benefit within your superannuation policy, you need to meet your policy’s TPD definition. Sometimes the specific injuries your superannuation fund covers will also impact your TPD claim. You can learn more about the process in our article ‘How to claim TPD (Total and Permanent Disability)’.
Your super fund’s trustee must be satisfied that your injury or illness satisfies the relevant definition but generally that it makes it unlikely you’ll return to the work you’re qualified to undertake through education, training or experience. The role of a TPD insurance payout is to support you financially because you’re unable to work.
What are TPD claim requirements?
Unlike other compensation claims, TPD doesn’t depend on who was at fault for causing your injury or illness. You can lodge a claim if your medical condition stops you from working and you meet your policy’s TPD definition. For more information about what you need to do to make a successful TPD claim, read ‘What are TPD claim requirements?’
What to do before you return to work after a TPD payout
Before returning to work, check your policy wording and what it requires of you to obtain your TPD insurance payout, and any ongoing annual instalments payable under the policy.
If your policy is one where your insurance payment is made annually, you’ll generally be required to provide a medical certificate confirming that you still meet the definition of TPD within the policy. Almost any return to work would likely cause this type of policy payment to cease.
If, however you’ve received a lump sum TPD insurance payout, and it is not tied to future medical certification confirming that you remain TPD under the definition, then you’re generally able to return to work if you’re physically and psychologically able.
How to check the terms of the TPD insurance payout
Search your policy documents for the terms of release and ongoing payment of your TPD insurance payment that applied to your claim. The letter or email from your superannuation fund or the insurer confirming acceptance of your claim would also have set out the terms and conditions of the release of the TPD insurance payment and any conditions surrounding the same.
If your TPD insurance payment has already been paid in full, you generally aren’t required to repay a lump sum simply because your health later improves and you become able to return to work. This is because TPD is assessed at the time of the decision on acceptance of the claim, not as an ongoing test (other than in policies referred to above where they require ongoing or annual assessments so you continue to satisfy the definition of TPD in the policy).
If your claim is still being assessed, or you’re within a waiting period, returning to work before the claim is finalised is more likely to affect the outcome. You still need to meet the TPD definition at the point of assessment, so check whether you need to notify the insurer or fund if your circumstances change.
When should you get legal advice?
Getting legal advice before you return to work isn’t a legal requirement, but it reduces the risk of your claim being reviewed or challenged later. A lawyer can check your policy wording against your specific circumstances and flag anything that’s likely to raise questions.
Every TPD insurance claim is different, and the right approach to returning to work depends on the terms and conditions associated with the policy and acceptance of your claim. If you’re considering returning to work, our TPD lawyers are here to talk you through your options so you can consider your options with confidence. Get in touch to discuss your situation.