Super Fund Slashes Fees, Switches Administrator

A $5.5 billion superannuation fund scrapped several fees, discounted its insurance premiums and changed administrators.

EISS Super announced several changes that took effect from 1 October 2018 affecting its superannuation, pension, retirement scheme and defined benefit members.

This included Mercer Australia taking over as administrator from Link Group as of this date.

EISS said it was able to negotiate with its insurer TAL a 10% reduction in insurance premiums for members who have death, and TPD or death only cover.

In terms of fees, super and pension members will no longer be charged exit fees ($35).

For retirement scheme members, switching fees ($20) and request for family law information fees ($275) no longer apply. Additionally, defined benefit members will not be charged the latter.

Across the board, request for family law information fees ($110) and family law benefit split fees ($88) have been removed.

The Sydney-based super fund also announced it will automatically switch balances to the cash option for members who have passed away, provided formal notification of their death is received. This is to ensure benefits are protected and not exposed to market fluctuations, it said.

Among the other changes, EISS introduced a mobile app; stopped sending half-yearly statements dated July 1 to December 31; and extended its call centre hours from 8am to 8pm (AEST) Monday to Friday.

EISS was the super fund exclusively for workers in the energy industry in NSW until it opened to the public in 2013.

Separately, $27 billion Western Australian government superannuation fund GESB Super lowered its admin fees from 1 October 2018.

The percentage-based portion of admin fees dropped from 0.28% per annum to 0.20% per annum. The account keeping fee of $66 per annum or $5.50 per month remains unchanged.

Members of West State Super saw admin fees reduce from 0.06% p.a. to 0.04% p.a.

RI Allocated Pension and Transition to Retirement Pension admin fees changed from fee from 0.20% p.a. to 0.12% p.a.


By Karren Vergara

Financial Standard

21 November 2018

#SMSF #Superannuation #SelfManagedSuperFund #Pension #Retirement

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