Retirement
Another retail super fund bites the dust
The “merge or die” mandate for super funds has claimed its next victim.
Another retail super fund bites the dust
Another retail super fund is admitting defeat, with the Credit Union Building Societies (CUBS) Superannuation Fund due to be wound up in March.
In a letter to members, owner Equity Trustees Superannuation Limited (ETSL) cited recent commercial and regulatory developments as the cause.
“Due to commercial and regulatory developments that impact the future sustainability of the fund, and having regard to the best financial interests of fund members, ETSL has resolved to terminate the fund on 1 March 2022,” the letter said.
ETSL said that the fund would cease receiving contributions from 4 February, with current pension payments to cease a week later.
Current CUBS Super Fund members will have until 1 March to inform the fund of where they’d like their account balance to be transferred.
CUBS is only the latest retail fund to admit defeat amid growing consolidation across Australia’s superannuation landscape.
Last year, APRA executive board member Margaret Cole said that retail funds like CUBS have historically been able to avoid scrutiny “thanks to gaps in APRA’s data collection, and a bewildering array of products and options that makes comparisons difficult”.
However, with the arrival of the regular performance tests introduced by 2021’s “Your Future, Your Super” reforms, this era is now at its end.
“For funds struggling with poor performance or lack of scale, these changes will only increase current sustainability pressures,” Ms Cole predicted.
Beyond considering the benefits of a merger with another larger fund, Ms Cole urged smaller retail funds to consider the benefits of consolidating their own product lines.
“It is common for retail trustees to operate a number of products across multiple funds – noting that each of these individual products is subject to the critical scrutiny of the performance test and APRA’s heatmap,” she said.
About the author
About the author
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more