Claims MySuper is endangering insurance balances
The MySuper framework offers no recourse to randomly transitioned fund members who stand to lose previously-accrued insurance balances, Corporate Super Specialist Alliance (CSSA) argues.
With the transition already beginning, CSSA treasurer Gareth Hall said more needs to be done to alert members of their potential losses.
“We believe many members are not aware of the problem and consequently are losing millions of dollars in insurance cover, cover which they may never be able to obtain again.”
“How can any Government legislate the removal of such important benefits from taxpayers, and offer them absolutely no avenue for compensation?”
Ex-corporate super members are given the chance to state whether they want to retain their super arrangements, but Hall said he knows of at least one member who almost missed the opportunity to opt out of the transition.
“If this member had been arbitrarily transitioned into a MySuper fund, his current insurances would have been cancelled,” Hall said.
“Our gravest concern is what will happen to members who are not engaged. What if they have changed address or are on leave and are not able to be contacted? They will just lose out,” Hall said.
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