In a statement, BT said the changes to fees will occur in two stages:
- Changes to administration fees for MySuper and BT Super choice customers, which are a combined dollar and percentage fee, from 1 July 2020. These changes include:
- A permanent reduction in the percentage fee from 1 July 2020, from the current 0.45 per cent per annum to 0.28 per cent per annum; and
- At the same time the flat dollar fee will be increased from $78 per annum to $108 per annum.
- For an interim period before the fee changes, MySuper customers will receive a 10 basis point rebate (between 1 April and 30 June 2020).
BT said the incoming APRA ‘heatmaps’ will not reflect BT Super’s new administration fees due to the prospective application of the changes.
While BT said it strongly supported measures to increase transparency for customers, however, it also added that it anticipated the benefits of the changes would materially impact how BT Super will be represented in future ‘heatmaps’.
BT general manager of superannuation Melinda Howes said the new fee schedules will be implemented as part of a continuing simplification and migration program to BT Super.
The migration program sees BT migrate over 470,000 customers and $21 billion in superannuation balances to a single IT system, with the largest group of members scheduled to be transferred in February 2020.
The net reduction or increase for MySuper customers and for BT Super Choice customers, at different levels of retirement savings, are outlined below:
|
|
$10k balance
|
$25k balance
|
$50k balance
|
$100k balance
|
$250k balance |
|
Standard fee reduction (or increase) from July 2020
|
($13 p.a. increase) |
$12.50 p.a. |
$55 p.a. |
$140 p.a. |
$395 p.a. |
|
MySuper rebate April-June 2020
|
$2.50 |
$6.25 |
$12.50 |
$25 |
$62.50 |
Source: BT
