Industry fund overhauls fee structure

A $5.6 billion superannuation fund has made a number of changes to its fee structures.

EISS Super introduced a new fee structure on August 12, advising members that it regularly reviews fees and costs.

On August 1 however, it did not charge investment and administration fees, but charged indirect expenses.

"We may vary the fees without your consent but where required to, will provide you with at least 30 days' notice in advance of any increases to fees and costs," the updated PDS shows.

Under the old structure, the fund used to charge ICRs on the following options on a per annum basis: high growth (1.01%), balanced (0.95%), conservative (0.77%) and cash (0.33%)

With the new structure, fees for the high growth option for example, are split across: investment (0.28%), admin (0.39%) and ICR (0.34%).

The EISS Super MySuper Conservative Balanced fund charges 0.24% for investment fees, 0.39% in admin fees and 0.21% in indirect costs. Previously, it charged 0.84% of indirect costs, which is equal to $420 per annum based on a $50,000 balance.

EISS said it relies on information provided by its investment managers to calculate the investment fees and ICRs.

Where the actual amount is not known and cannot reasonably be known, EISS said it uses estimates.

"We have made enquiries to obtain the most complete information available."

From 1 August 2019, EISS members had to pay more for death and TPD cover as part of the Protecting Your Super changes.

Death and TPD cover, and death only cover rose by 7.7%. Salary continuance insurance and temporary salary continuance premiums also increased by 8.3%.

Read more: EISS SuperSuperannuation
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