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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.
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