Super funds slash employer-sponsored benefits, says CSSA
Members may receive less benefits from employer-sponsored default superannuation programs as a result of Stronger Super legislation, according to the Corporate Super Specialist Alliance (CSSA).
CSSA treasurer Gareth Hall said the CSSA had been made aware of a number of superannuation funds removing employers' ability to pay administration fees and insurance premiums on behalf of their staff.
This would result in members paying these fees themselves out of their own superannuation savings, Hall said.
"It seems that some funds are using the MySuper compliance rules as an excuse to withdraw their employer-sponsored fund offering; simplifying their service to now only deal directly with the individual fund members," he said.
"The changes seem to result from the funds' interpretation of MySuper guidelines, which insist that MySuper products provide the ‘same offering for all members'."
The loss of additional benefits could cost members more than the 0.25 per cent rise in the Superannuation Guarantee, Hall said, which, combined with lower contributions limits, reduced employers' abilities to provide generous contributions to staff.
"These restrictions may force employers who have previously been providing superannuation benefits in excess of the legislated minimums to either stop making these additional payments or to pay them as taxable salary," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The Assistant Treasurer has reaffirmed the government’s commitment to strengthening retirement outcomes, consumer protections and cyber resilience in superannuation.
The industry super fund has advanced reconciliation efforts with a new initiative focused on improving outcomes for First Nations members.
The regulator has announced fresh legal actions in relation to the Shield and First Guardian fund failures.
The Gateway Network Governance Body has unveiled a detailed roadmap to guide the superannuation industry through the upcoming Payday Super reforms.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
211.16 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
121.06 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Smarter Money Long-Short Credit Investor USD
68.96 3 y p.a(%)
