POWERED BY MOMENTUM MEDIA
Member confusion over opt-out super insurance
The Superannuation Complaints Tribunal (SCT) has pointed out that many people making complaints about superannuation-related insurance believe it should be "opt-in" and that therefore they should be compensated for premium deductions.
The SCT's concern about the issue has been revealed in its latest quarterly bulletin in which Acting Chairperson, Jocelyn Furlan, explains why the body has issue a new brochure explaining what the SCT can and cannot.
"The Tribunal … cannot provide a remedy where the complaint is about the impact of the design of a fund on a complainant," she said. "For example, some superannuation funds offer insurance to members on an ‘opt-out' basis which means that the fund does not require the member's authorisation to provide insurance and deduct insurance premiums from the member's account." "Some complainants are of the belief that insurance should be ‘opt-in' rather than ‘opt-out' and have an expectation that the Tribunal will order a refund of insurance premiums deducted," Furlan said.
She said it was worth noting that, while the Tribunal had no jurisdiction to change the design of a fund, it could deal with complaints about the adequacy of the superannuation provider's disclosure about the insurance arrangements and premiums.
"This may include whether the amount of cover and the premiums that would be deducted from the account and the ability to ‘opt-out' of the cover were disclosed," Furlan said.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
