POWERED BY MOMENTUM MEDIA
(July-2002) Members of corporate funds still better off
Members of the larger corporate super funds usually get a far better deal than their counterparts in other funds, according to a recent study by the Corporate Super Association (CSA).
CSA CEO Nicholas Brookes says the average contribution by larger corporate funds is 12.5 per cent, which is significantly higher than the current Super Guarantee rate of eight per cent.
Brookes adds that 67 per cent of the larger corporates pick up the costs of administration, compared to industry funds, which charge their members an administration fee. In addition, 62 per cent of the corporates also pay for their members’ life and TPD (total and permanent disability) insurance.
“If you add all this together, the corporate funds input structure is massively superior. As a package it is impossible to beat,” says Brookes.
Turning to the cost side, he says the average corporate MER is around 0.7 per cent, compared to that of master trusts which is often at around 0.9 per cent.
“Corporate funds roll into master trusts because they believe they can save money, but they are not thinking from a human resources point of view and about how they can become an employer of choice,” Brookes says.
“But we are seeing in the large corporate fund market the emergence of those who want to be employers of choice and who do see superannuation as core to their business.”
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