POWERED BY MOMENTUM MEDIA
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
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
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(%)
