The $54 billion industry superannuation fund is dipping its toes into the world of corporate super, launching a new offering this week.
Cbus officially launched its Cbus Corporate Super product on Monday for those who wish to join the fund via their employer.
The product is available to any employer with a minimum of 50 eligible employees. If the number of employees who are members of Cbus Corporate Super drops below 30 insured members, the employer and employees will be transferred into Cbus Industry Super.
The new offering will see a member defaulted into Cbus' Growth MySuper option, if they don't choose otherwise, but includes the benefit of automatic tailored insurance dependent on the member's job.
Cbus Corporate Super members can choose from three occupation categories to suit the risks of their job. Members are defaulted into the "light manual" category which is intended for those workers who are sometimes onsite, like a site supervisor or project manager.
There is also a "professional" category for accountants, architects, HR managers and lawyers, and a "non-manual" category for bookkeepers, quantity surveyors and payroll administrators.
Existing Cbus members who choose to move into the Corporate Super option who already have insurance cover will automatically receive the cover they are eligible for and fixed cover equal to any additional death or TPD cover they already held. They will also be entitled to automatic income protection cover where applicable.
Again similar to the MySuper offering, according to the PDS, most members are eligible for insurance though there are some caveats.
For instances, those aged 65-69 years of age there is no automatic cover for those who are not existing Cbus members. Members can apply for death and TPD but not IP insurance, and any cover received is fixed and reduces by 20% year on year.
The PDS states that those in the Corporate Super offering will pay 0.65% a year in investment fees, $1.50 a week for administration and an annual trustee operating cost of 0.19%.
Rainmaker head of superannuation research Jason Ross said the move is a sign the fund is diversifying its membership base.
"That being said, it is entering a competitive marketplace where often times funds provide insurance discounts or special deals to large employers to get new deals," he said.
"The new product has lower insurance premiums for office workers and allows CBUS to compete for employers that don't necessarily have high risk occupations or work in the construction industry."
Commenting, Cbus chief executive David Atkin said: "Through Corporate Super we are providing more flexibility for companies that want to offer more suitable products to their professional employees."
"This complements the highly tailored insurance products that our members doing manual work rely upon and claim against."
There is significant interest from firms looking to switch their corporate super offerings post-Royal Commission, Atkin added.
"A lot of companies were disappointed with the poor behaviour of the retail funds highlighted in the Royal Commission," he said.
The fund has a lot to offer in the corporate market due to its investment track record and performance of its property option, he added.