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Colonial First State launches retained benefits functionality
Colonial First State (CFS) has announced a retained benefits functionality, which the company said would offer employer superannuation funds a seamless transition.
The model had been specifically developed for FirstChoice Employer Super (FCES) and would provide retention of member account numbers and online login numbers, as well as no transaction costs for those on transition.
Research conducted by the Australian Human Resources Institute noted that each year Australian employers experience an average turnover of 18 per cent of their workforce.
CFS said this could put rebates and other discounts at risk and may lead to an increase in member fees.
“The new model combats these issues by giving members the option of retaining their current super plan, bringing benefits to both the employer and member,” the company said.
When an employer notifies CFS that a member has ceased employment, the employee is transferred to a retained benefits category, where they automatically receive the benefits, according to CFS head of super, product & investment services, Sam Wall.
“For advisers, we are committed to providing greater operating efficiency to help them attract more members and more plans by increasing the length of the member relationship,” Wall added
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