Retirement
Colonial First State settles MySuper class action for $56.3m
Super fund members alleged that Colonial failed to transfer $3.2 billion of accrued funds to a MySuper product in a timely manner.
Colonial First State settles MySuper class action for $56.3m
Super fund members alleged that Colonial failed to transfer $3.2 billion of accrued funds to a MySuper product in a timely manner.
Maurice Blackburn Lawyers has announced that it has reached a $56.3 million settlement with Colonial First State on behalf of 100,000 super fund members.
A class action filed by the law firm in October 2019 had alleged that Colonial contravened super law through its slow implementation of MySuper reforms for members of the FirstChoice Employer Super division.
This allegedly left these members in high-fee accounts with lower investment returns and also saw them bear the cost of commissions to financial planners.
The class action claimed that Colonial failed to transfer $3.2 billion of accrued default amounts over to a lower cost and higher performing MySuper product in a timely manner.
Furthermore, Colonial allegedly breached its duties to super members by failing to exercise the degree of care, skill and diligence required of a prudent superannuation trustee, perform its duties and exercise its power in the best interest of beneficiaries, and give priority to the interests of beneficiaries where a conflict of interest arose.
“As the High Court has recognised, superannuation is often the greatest asset Australians have. It is deferred pay and it is critical to a dignified retirement,” said Maurice Blackburn principal lawyer Miranda Nagy.
“Fund members are entitled to expect that superannuation trustees put their interests first.”
Maurice Blackburn also noted that this is the first settlement of a super class action since the Financial Services Royal Commission.
A trial had been scheduled to start next week but has now been vacated.
The $56.3 million settlement is inclusive of legal fees and remains subject to court approval, and Colonial did not admit wrongdoing in the case.
“MySuper was introduced to protect the retirement outcomes of Australians by ensuring that consumers weren’t losing money on unnecessary fees and products, and Colonial had a legal obligation over and above a basic moral obligation to move default member balances into MySuper at the time that best met their members’ needs, not their own,” said Ms Nagy.
Class action members should begin receiving compensation proceeds into their super accounts this year.
RELATED ARTICLES
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
