Retirement
Rest Super members file class action over alleged insurance premium deductions
Retirement
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts.
Rest Super members file class action over alleged insurance premium deductions
Shine Lawyers has initiated a class action lawsuit against Rest Superannuation (Rest), alleging the unlawful deduction of income protection insurance premiums from members' superannuation accounts.
The law firm contends that from December 2008 to June 2019, Rest automatically enrolled new members in income protection insurance without their explicit consent. According to Hadi Boustani, Shine Lawyers' Practice Leader, the action also includes claims that members who had not contributed to their accounts for over 13 months received no coverage from their policies and that holding multiple policies resulted in negligible benefits. Boustani criticized the practice, stating, "This was money down the drain for fund members who paid a premium for no benefit." He further explained that the lawsuit seeks compensation not only for the unfairly deducted premiums but also for lost investment returns and incurred administration costs.
The lawsuit potentially affects up to 500,000 Rest members. One of the claimants, Jarrod Lane, emphasized the importance of the class action for accountability, noting his personal experience of being charged for an unclaimable income protection insurance over a period when he was not earning an income.
Woodsford, a global finance firm specializing in ESG and litigation, is financing the class action. Clare Owen, Woodsford Australia's Director and Head of Origination, emphasized the significance of superannuation for Australians' retirement plans and expressed the company's support for the lawsuit as a means to recover unjustly diminished superannuation funds.
Eligibility for participation in the class action includes Rest Super fund membership between 5 December 2008 and 30 June 2019, default enrollment in an income protection insurance policy, deduction of premiums for said insurance, and either no contributions for 13 months or payment for multiple default insurance policies. The lawsuit's case management hearing is scheduled for 16 February 2024, with Justice Button ordering Rest to submit its defense by 28 March 2024.
RELATED ARTICLES
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
Self managed super fund
Financial progress hinges on ambition, not income, says Stake Report
Australia faces a financial turning point, with new research from online investment platform Stake revealing a nation divided into two distinct groups: the 'Starters', who invest and feel in control ...Read more
Self managed super fund
OKX targets Australia's $1 trillion SMSF market with new crypto platform launch
In a significant move aimed at capitalising on Australia's burgeoning digital asset market, global onchain technology company OKX has unveiled a new Self-Managed Super Fund (SMSF) expansion on its ...Read more
Self managed super fund
Industry leaders launch SMSF Innovation Council to drive digital transformation
A consortium of finance industry leaders has launched an SMSF Innovation Council to help Australia's $1.02 trillion self-managed superannuation fund industry navigate digital transformation. Read more
Self managed super fund
Superannuation guarantee to be paid on government paid parental leave, says ASFA
The Association of Superannuation Funds of Australia (ASFA) has hailed the government's decision to include Superannuation Guarantee payments with its Paid Parental Leave policy as a critical step ...Read more
Self managed super fund
SMSF experts advise against hasty reactions to potential super tax changes
As the Australian Government proposes a new tax measure on superannuation earnings for balances exceeding $3 million, experts from the self-managed super funds (SMSF) sector are urging members not to ...Read more
Self managed super fund
Federal government announces changes to superannuation contribution caps
The Federal Government has announced changes to the superannuation contribution caps, impacting self-managed super funds (SMSFs) and their members from 1 July 2024. Read more
Self managed super fund
SMSF Association calls for joint effort to tackle early super access
The SMSF Association is calling on a collaborative approach including the Government, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), and the ...Read more
Self managed super fund
Debunking a superannuation tax myth: SMSF Association clarifies the impact on Aussie farms
In the ongoing debate about a proposed new tax targeting superannuation funds exceeding $3 million, the SMSF Association has stepped in to challenge claims from the Association of Superannuation Funds ...Read more
