AustralianSuper will introduce a new fee for MySuper members from April 2020 to offset the impact of the Protecting Your Super changes.
Effective April 1, AustralianSuper's members will start paying the 'Administration fee - Protecting Your Super' fee; a variable fee based on a member's account balance, up to a maximum of 0.04%.
On a balance of $50,000 the fee equates to $20 a year. The new fee brings total annual fees and costs payable on a $50,000 balance to $437.
It will not apply to Choice Income or Transition to Retirement Income accounts.
The new fee is in addition to the fund's existing administration fee of $2.25 per week and investment fee of 0.60%, and will be deducted from investment returns daily before returns are added to member accounts.
From April 1 to June 30 this year, AustralianSuper will charge members the total annual amount for the new fee before charging it over a full financial year from July 1.
It comes less than a year after the fund increased admin fees by 50% in March 2019, adding a further $39 per year to member fees.
With the PYS legislation seeing fees and costs incurred by members with less than $6000 in retirement savings capped at 3%, the new fee is necessary to cover the shortfall, AustralianSuper said.
"This reduces the funds available to cover administration costs, products and services for all members. The new fee will be used to cover this gap in the most sustainable way," the fund said.
"Even with the new fee, the combined administration and investment fees for the Balanced investment option (where most members are invested) are still lower than they were 10 years ago."
The last time AustralianSuper increased costs was in April 2019 when the premiums for its group insurance went up, also on account of the PYS reforms.