AustralianSuper: Australia’s largest superannuation fund is hit by a massive bomb
The corporate regulator is taking legal action against Australia’s largest pension fund, accusing it of engaging in practices that could undermine pension savings.
The Australian Securities and Investments Commission says AustralianSuper, the administrator of Australia’s largest super fund, has failed for a decade to identify members with multiple accounts.
Those with multiple accounts end up paying account maintenance fees multiple times over, ultimately diminishing retirement savings over decades.
ASIC says 90,000 AustralianSuper members were affected between July 1, 2013 and March 31, 2023, collectively costing them $69 million.
AustralianSuper is accused of becoming aware of the problem in 2018 but failing to act until late 2021 and early 2022.
The corporate regulator is taking legal action against Australia’s largest superannuation fund, accusing it of engaging in practices that could undermine retirement savings.
This would violate Section 108A of the Superannuation Industry Act requiring super funds to identify and merge multiple accounts.
The retirement savings giant is accused of embezzlement from 2019 to 2023 after becoming aware of the problem.
ASIC Vice President Sarah Court said the inability to merge multiple accounts into one would hurt retirement-age customers.
“Failing to merge duplicate accounts within a fund can have significant financial consequences for members who end up paying multiple rounds of fees, eroding their retirement balance over time,” she said. .