NAB MySuper class action settlement approved

The Federal Court approved the $65 million settlement that was reached in December.

At the end of 2024, MLC Super Fund, NULIS Nominees and MLC Nominees agreed to settle the class action that was brought against it for deferring the transition of members to MySuper products.

The case was brought by Maurice Blackburn on behalf of MasterKey members in 2020.

Out of the $64.25 million agreed, an estimated $19.9 million will be paid to Maurice Blackburn. The plaintiffs, David Shimshon and Julian Cougan, will both receive up to $30,000. The balance - about $44 million - will be paid out to group members, plus any interest accrued.

Group members were initially expected to start receiving payments in March of this year, however the court approval was delayed.

The class action alleged the trustees breached their duties by delaying the transition of about 330,000 members' accounts to cheaper MySuper products.

Most members were part of The Universal Super Scheme which merged with others to become MLC Super Fund in 2016. It was alleged members were left idling in products that attracted higher fees and commissions to financial advisers that would have been banned in a MySuper option.

The action alleged the delay impacted about $6.8 billion in accrued default amounts.

In December 2020, the Supreme Court of Victoria ruled the case invalid saying prospective losses are not considered a loss under s 55(3) of the SIS Act.

The case was then moved to the Federal Court, with Maurice Blackburn saying the loss came in the form of the higher fees, commissions and lower investment returns, as well as a reduction in the amount members would have received in interest on their savings.