Legalsuper has experienced a record year in terms of non-employer contributions, with personal contributions and transfers in 2009-10 rising 21 per cent over the previous financial year, the fund has announced.
Most of the growth came from transfers, which increased 52 per cent on the previous financial year, according to legalsuper chief executive Andrew Proebstl.
“These results are directly in line with legalsuper’s operational strategy to deliver steady, reliable growth year-on-year. We see the growth in transfers into legalsuper as evidence that our target market values having a fund that serves its particular needs,” Proebstl said.
“Over the last five financial years total non-employer contributions to legalsuper increased 159 per cent, demonstrating that the achievement of this strategy has been a long-term trend for legalsuper.”
The performance was more significant taking into account the halving in contributions caps, and the fact that figures from the Australian Prudential Regulation Authority showed an increase of 5 per cent in industry-wide non-employer contributions in the 12 months to 31 March 2009, compared to a 26 per cent increase for legalsuper, Proebstl said.
Comparatively low transfers out of legalsuper to other super funds of only 6 per cent for the year, combined with much higher transfers in and members moving to the pension option, shows that members are actively boosting their retirement savings and staying with the fund after they retire, Proebstl said.
