POWERED BY MOMENTUM MEDIA
QSuper settles class action
QSuper has agreed to an in-principle settlement of nearly $70 million over claims it failed to notify members of life insurance premium changes.
The fund – which merged with Sunsuper to create Australia’s second-biggest fund ART – said on Wednesday it has reached an in-principle agreement to settle the class action that alleged its failure to notify members of premium changes breached obligations under the Corporations Act and Superannuation Industry Act, causing losses to up to 140,000 members.
The class action was brought against the fund back in 2021 and initiated by Shine Lawyers over changes the fund implemented in July 2016.
In its update on Wednesday, the fund said it has not admitted to any wrongdoing and has chosen to settle the matter to avoid the risk of costs from ongoing litigation.
“The agreement to settle the class action was taken to avoid the risk of costs associated with ongoing litigation, and has been taken in accordance with our duty to act in members’ best financial interests,” the fund said. “In agreeing to resolve the litigation, the QSuper Board Pty Ltd has made no admission of liability or wrongdoing”.
Moreover, it said the $67 million settlement will be paid from a reserve put aside prior to the merger.
“No funds to settle the class action will come out of member accounts,” the fund said.
The agreement still needs to be approved by the Federal Court, QSuper said.
“While the in-principle settlement has been reached, the in-principle settlement is still subject to Court approval, and we are limited in the information we can provide and are unable to give members advice,” the fund said.
Speaking at the time of the class action’s lodgement, then-Shine Lawyers’ employee Joshua Aylward said most of the fund members impacted were “Queensland government employees and their spouses, teachers and health industry workers like doctors and psychiatrists”.
Furthermore, it was alleged that the super fund charged white -collar workers the same increased premiums despite not having the same risk factors in their professions.
AUTHOR
Adrian Suljanovic
Recommended for you
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
