A $13 billion industry superannuation fund has increased its insurance fees ahead of merging later this year.
MTAA Super wrote to members in a significant event notice to let them know that from 3 February 2020 insurance fees for death and total and permanent disablement will increase.
MetLife is the group insurer for MTAA; it is also the group insurer for Tasplan - the $10 billion fund that MTAA will merge with in October this year.
Members were told that MTAA and Tasplan will be working together to create an insurance offering that meets the needs of their combined memberships.
MTAA said the fee changes were necessary because the Putting Members Interests First and Protecting Your Super reforms meant a significant decrease in the number of members covered by its group insurance policy.
"Considering the reforms, changes to membership demographics and past claims paid, we have had to increase the cost of insurance," the fund said.
Members between the ages of 27 and 55 will see the cost per week of their death and TPD cover increase from $7.47 to $9.06.
In November last year, MTAA and Tasplan announced the merger would go ahead to create a combined national super fund with more than $23 billion in funds under management and more than 300,000 members.
The combined fund's corporate and trustee functions will be based in Canberra, with satellite offices in Tasmania and other locations.
MTAA Super's administration services will be moved in-house to Tasplan's Hobart facilities.
The merger is expected to be effective from 1 October 2020.