Updating the Common Bond

Learn more about our proposal.

Updating the Common Bond

Appendix 2 of the Teachers Mutual Bank Limited’s Constitution talks about the “Common Bond”. This defines who is eligible to become a member.

In the current Common Bond, individuals are eligible to become a member based on five categories. We are proposing to increase this to six categories.

Categories that define member eligibility

Categories proposed to be amended

1. Employment

1. Employment

2. Family

2. Family

3. Approved Persons

3. Students and Graduates

4. Continuing Membership

4. Approved Persons

5. Transferring Members

5. Continuing Membership

 

6. Transferring Members

Teachers Mutual Bank Limited has grown to serve the banking needs of more key workers in our economy. The way we define some eligibility categories in the Common Bond need to be updated to reflect this evolution over time.

Employment

Category Description
1 Employment

(a) A person who is a financial member of the Australian Education Union and is employed as a teacher, lecturer or instructor in Australia in

i) a government school
ii) a tertiary educational institution
iii) a government funded teaching service.

(b) A person who was a financial member of the Australian Education Union up to the point of promotion but has ceased to be eligible for membership because of promotion within a government education department.

(c) An employee or paid officer of:

i) the Australian Education Union
ii) the company or any of its subsidiaries
iii) the Professional Teachers’ Council NSW
iv) the NSW Teachers Federation
v) the Australian Education Union
vi) the State School Teachers Union of Western Australia.

(d) A person who is employed as a clerical assistant, teacher’s aide or other ancillary staff member in any of the institutions referred to in (a) above and is a financial member of an appropriate industrial association.

(e) A student in a teacher training course at any educational institution in Australia and is an associate or student member of the Australian Education Union.

(f) A person who is employed as an education officer in a government department and is a financial member of the Australian Education Union

(g) A retired person who was eligible under any other category prior to his or her retirement.

(h) A person who is an employee of a government education department in Australia and is a financial member of their appropriate industrial association where one exists.

(i) A person who is a member of Teachers Federation Health Ltd.

(j) A person who is registered with the Teacher Registration Board of Western Australia and is a financial member of an appropriate industrial association where one exists.

The current Employment category definition is based on education, sourced from our history. The definition needs to be updated to accommodate individuals in Teachers Mutual Bank Limited’s current niche markets – employees in education, emergency services and health sectors - and their industrial associations.

Most of the changes to the Employment category reflect the same criteria that apply in the existing Common Bond expanded to include the emergency services and health sector.

In addition, volunteers in the emergency services sector (e.g. Rural Fire Services, State Emergency Services) have also been accommodated.

The amendments being proposed to the Employment category in the Common Bond are:

Category Description
1 Employment

(a) A person who is an employee in:

i) the education sector
ii) the emergency services sector or
iii) the health sector
in Australia and who is a financial member of their industrial association;

(b) A person who is studying in an education institution in Australia to be employed in the education sector and who is a member of their industrial association;

(c) A person who is studying at an education or training institution in Australia to be employed in either the emergency services or health sector;

(d) A person who is a member of a member-owned health fund established by or for employees in any of the sectors referred to in (a);

(e) A person who is an employee or paid officer of an industrial association, professional association or member-owned health fund established by or for employees in any of the sectors referred to in (a);

(f) A retired person who was, immediately prior to their retirement, eligible under (a) or (e);

(g) A person who is a volunteer in the emergency services sector; or

(h) A person who is an employee of the company or any of its subsidiaries.

 

Family

This is how the Family category currently reads under the Common Bond:

Category Description
2 Family

A person is a spouse, parent, grandparent, child, stepchild, grandchild, brother or sister of a member or the parent, grandparent, child, stepchild, grandchild, brother or sister of the spouse of a member.

For the purpose of this rule, spouse includes a person who lives with the member on a bona fide domestic basis although not legally married to the member and whether or not that person is the same gender as the member.

A person is not eligible under this rule unless that person is a financial member of an appropriate industrial association where one exists.

As part of the proposed amendments to the Common Bond, the Family category will move to position 3. To reflect changes in the law, we’ve simplified the definition of the Family eligibility criteria in the Common Bond to reflect the recognition of same sex marriage as falling within the meaning of ‘spouse’. We propose to expand this category to include “de factor partner” to reflect contemporary reality.

Category Description
3 Family

A person who is a spouse, de facto partner, parent, grandparent, child, stepchild, grandchild, brother or sister of a member or the parent, grandparent, child, stepchild, grandchild, brother or sister of a member’s spouse or de facto partner.

Approved Persons

Currently, the Approved Persons category reads as follows:

Category Description
3 Approved Persons

A person approved by the board who has an affinity with the company, up to a limit of twenty percent of the total number of members admitted under the Employment and Family categories of this rule.

We would like to update the definition of an Approved Person to be more inclusive of all the categories of key workers we serve. This will considerably simplify the administration of the Approved Persons category.

Category Description
4 Approved Persons

A person approved by the board who has an affinity with the company, up to a limit of twenty percent of the total number of members admitted under the other categories of this rule.

Students and Graduates

In the Chemistry Department at the University of Western Australia in 1964, a credit society for university staff, students and graduates was created called Unicredit.

In 2015, Teachers Mutual Bank merged with Unicredit and it became UniBank.

To continue the heritage of Unicredit, we have created a new eligibility criteria in the Common Bond to accommodate Students and Graduates.

Category Description
2 Students and Graduates

A person who is:

(a) A student who is studying at a university in Australia in any field other than those referred to in 1 (a); or

(b) A graduate of a university in Australia.

Got a question?

Check out our frequently asked questions or email your question to commonbond@tmbl.com.au

Learn more about our Common Bond