Super fund set to hike fees

A $4.5 billion industry superannuation fund is increasing its fees in response to the Protecting Your Super reforms.

Queensland-based BUSSQ will increase its administration fee by $0.75 a week from July 1.

In an update to members signed by chief executive Linda Vickers, the fund said it had to increase the fee to $2.25 per week to help cover the cost of implementing the Government's Protecting Your Super Package reforms, which come into effect from July 1.

The change will be significant for many of the fund's 85,000 members, who have paid an admin fee of just $1.50 a week for almost 15 years.

"From 1 July 2019, this administration fee will increase to $2.25 per week to assist with implementing the legislative changes included within this notice and ensuring we can continue to provide products, benefits and award-winning services that our members expect from BUSSQ," the fund said.

BUSSQ confirmed the change would not apply to members who only hold an income account, but said an increase to the fund's management costs would be applied across the board.

Part of the fee BUSSQ deducts from its earnings before they are applied to a member's account - the "administration (trustee) related cost" - will increase to 0.2% for all members regardless of the investment option they have selected.

The fund currently charges members between 0.15% and 0.17% depending on the investment option each member has selected.

Last week the prudential regulator, APRA, said it expected super funds to do the right thing by members when recovering the costs of implementing the PYSP reforms, including by using an appropriate reserve or altering its fee structure.

Read more: SuperBUSSQAPRAGovernmentLinda Vickers
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