POWERED BY MOMENTUM MEDIA
Sunsuper not acting in members best interest: lawyer
Sunsuper stands alone as the only superannuation fund, at least in the not-for-profit sector, that does not offer early access on grounds of financial hardship and this does not represent best interests duty, according to a lawyer.
Berrill and Watson Lawyers director, John Berrill, said there now stood a decision for Sunsuper: “Will they continue to stand out from the rest? Or will they use a perfect opportunity as part of merger talks with QSuper who do allow members access to super in times of financial need?”.
“At the moment if someone that is in Sunsuper and needs to get access to their super because of financial hardship they have to transfer money out and into another super fund and possibly cop a fee to do that in order to access their super,” he said.
“It’s hardly acting in the members’ best interest to put them through that. It’s over to you Sunsuper.”
Berrill noted the fund’s TV ad and website stated “our customers sit at the heart of everything we do” but now it was the only major super fund in the not-for-profit sector that did not allow members early access to super on grounds of financial hardship.
When Super Review requested an interview on the matter with Sunsuper, the fund responded with a statement that said: “As a profit-for-members superannuation fund, it is our job first and foremost to help members save for the most financially comfortable retirement possible.
“However, we recognise that supporting vulnerable members is also important, so our financial hardship policy is currently under review”.
In October, industry super fund, Rest announced that its members could access their super if they were “experiencing severe financial hardship”. The fund said it had changed it policy after “listening to members, many of which come from less advantaged backgrounds, we know how much of a difference this can make”.
Prior to this change, Rest and Sunsuper were the only profit-to-member funds that did not allow early access to super for financial hardship.
Recommended for you
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
'Cop a fee' for transferring a benefit to another super fund. Good to see you've done your research, not. Exit fees from Super funds have been banned for several months. But don't let the facts stand in the way of a good story. Which is all this is, a story, but not even a good one.