The process began in 2013 and Industry Fund Services (IFS) remains the sole financial planning organisation partnering with the major Commonwealth Government superannuation schemes to provide financial advice to their public service and defence force members.
The Commonwealth Superannuation Corporation (CSC) is continuing to tell members via its website that “IFS is the only provider with whom CSC has partnered to provide a personal financial advice service to members”.
The CSC is the trustee for nine Commonwealth superannuation schemes including Public Sector Superannuation Accumulation Plan (PSSap), Public Sector Superannuation Scheme (PSS), Commonwealth Superannuation Scheme (CSS), MilitarySuper, and Defence Force Retirement and Death Benefits Scheme (DFRDB).
The arrangements which saw IFS selected to partner with CSC were put in place under the former Labor Government and formally announced in the CSC’s most recent 2013/14 annual report. While the website states that “IFS was chosen for several important reasons” it nominates only that “advice is provided solely in a member’s best interest” and that “IFS planners are experts in our scheme”.
Public service members of the CSC schemes are told that a fee of $185 will be charged for initial appointments from 1 August 2014, with no personal advice provided at the first meeting although a planner might provide general superannuation advice.
“Once your planner understands your financial situation and goals you will be given a quote detailing the type and cost of advice which would be most useful to you. As a guide, the cost for advice ranges from $530 to $5,320 depending on complexity. The average cost for comprehensive advice is around $3,200.”
“You receive ‘fee for service’ personal financial advice. This means you pay only for the advice you want. Most importantly, you know the exact cost up-front and you will never have to pay any commissions or hidden fees,” it said.
The CSC has retained a the services of a number of external providers including Pillar Administration for member administration and AIA Australia for insurance.
