Brighter Super changes up investment, insurance fees

Not-for-profit fund Brighter Super has introduced numerous changes to its fees, decreasing investment fees while increasing insurance costs.

Effective October 1, the super fund lowered investment fees and transaction costs across most options. Its MySuper option's investment fees fell from 0.75% p.a. to 0.50% p.a.

The Balanced option's fees reduced from 0.65% p.a. to 0.55% p.a. and the Growth option went down from 0.64% p.a. to 0.58% p.a.

The industry fund had almost $38 billion in assets at the end of June, managing the retirement savings of 382,390 members.

"A MySuper member with a $50,000 balance now pays around $150 less a year in fees and costs than they did four years ago - a saving of more than 30%," Brighter Super chief executive Kate Farrar said.

"The mergers have helped us deliver greater efficiencies and better value, while continuing to invest in the support members need. With household budges under pressure, every dollar saved in fees can stay invested for our members' retirements," said Farrar.

Brighter Super was formed via the merger of LGIAsuper, Energy Super and the subsequent acquisition of Suncorp Super. The combined organisation rebranded as Brighter Super on 1 July 2022.

Also effective on October 1, the cost of insurance for members rose. On average, premiums for death and TPD cover increased by 6%. Individual premium increases, however, varied between 4.88% and 7.14%, based on age and occupational risk rating.

Income protection cover increased by 5.6% on average. Individual premium increases varied between 4.78% and 9.12% based on age and occupational risk rating.

Brighter Super told members the cost of delivering insurance has continued to rise and has worked to keep the cost of cover the same for at least the last four years.

"To ensure we can continue to deliver you the important protection you need, we need to update the cost of cover," the super fund said.

Among other changes, the super fund improved the ability to claim on terminal illness cover. Members previously could claim on terminal illness cover if diagnosed with a terminal illness likely to lead to death within 12 months. As part of the updates, members can now make a claim if diagnosed with a terminal illness that is likely to lead to death within 24 months.

If insurance cover ceased due to being inactive for 16 months under Protecting Your Super rules, it could be reinstated automatically, if employers made a contribution. Now, Brighter Super members that cancel their cover will have it reinstated if they inform the fund within 60 days that they want it to continue.

This month, the super fund also launched two low-cost indexed share options, expanding its investment menus to meet adviser demand.

The Indexed International Shares and Indexed Australian Shares options provide a passively managed way to invest in local and global shares. Both options have investment fees and costs of 0.08% p.a. and no transaction costs.