VicSuper discloses all
VicSuper has become the first superannuation provider to adopt a dollar based disclosure model and has also upped the competitive ante by declaring a new cap on fees charged to members with average balances of $300,000 or above.
From September 2004, statements issued to members leaving VicSuper benefit plans will also show the actual management fee charged.
As part of the changes, gross investment returns will be listed separately, with the tax on investment returns subtracted to provide net earning figures.
The management fee and any account keeping fees will be disclosed as seperate dollar amounts.
VicSuper chief executive Bob Welsh says transparency is a right of membership, putting out a challenge to other superannuation providers to follow.
“Superannuation will be an increasingly important source of retirement income going forward [and] capping our fees is one way we can assist our members to increase their super savings, allowing them to enjoy the lifestyle they want later in life,” Welsh says.
“We’re confident that changing the way we report our fees, investment returns and taxes will help members understand gross investment returns and assist them in understanding the net returns credited to their accounts and the fees charged,” he says.
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