AUSTRALIA- Telstra Super, the A$11bn (US$11.8bn) corporate superannuation fund, will cut administration fees on its retail product Telstra SuperPersonalPlus from 0.6% to 0.2% in July.
The administration fee will be accompanied by a member fee of A$1.50 per week. Telstra Super calculates that a member with A$50,000 in the fund's balanced option, for example, will see their member and administration fees drop from A$300 to $A178 per year.
Telstra Super maintains a not-for-profit retail product that is open to former Telstra employees who wish to leave their superannuation savings with the fund, and family of members. Telstra Super is open to all group employees.
"Almost all members who do change employers or roles want to stay with Telstra Super, which is testament to our strong performance, investment expertise and breadth of services," said Telstra Super CEO Martin Crowe.
Telstra Super's move to slash administration fees comes as the government works to implement the recommendations in last year's Cooper Review. Cooper recommended the SuperStream proposals aimed at reducing costs by an estimated $A1bn by targeting inefficient operations, and the creation of a simplified, mandatory default fund option, known as MySuper.
In the last 18 months, Telstra Super has introduced various products and services, including financial planning advice at no additional cost to members, discounted health insurance through an alliance with HCF, a new investment option, Defensive Growth and a retirement income calculator and market impact projector, in the Telstra SuperSimulator.
The People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...