POWERED BY MOMENTUM MEDIA
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.
Recommended for you
Australian retirees could increase their projected annual incomes between 3 and 51 per cent by incorporating personal and household data into their retirement income strategies, according to new research.
The best interests duty and new class of adviser didn't make the cut for the pre-election DBFO draft bill; however, ASFA has used its submission to outline what it wants to see from the final package.
The peak body stressed that the proposed financial advice reforms should “pass as soon as possible” and has thrown its weight behind super funds providing a greater level of advice.
Economists from the big four banks have all predicted the RBA to deliver another rate cut during its July meeting; however, some admit the decision will be a close call.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
