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Greens amend MySuper bill to stop super 'flipping'

Media Release
Adam Bandt 22 Aug 2012

 

Greens Deputy Leader and employment spokesperson Adam Bandt has thanked the parliament for supporting his amendments to the MySuper Bill currently before the House of Representatives.

Mr Bandt says the amendments will stop super funds from gouging additional fees by unilaterally moving an employee's funds from one MySuper product to another after the employee leaves the workplace.

The Industry Super Network has identified that so-called 'flipping' occurred in 12 out 13 major retail superannuation funds and exposed members to increased costs averaging 30% or $292 per year.

"I am glad the Parliament has got behind the Greens' important amendments to protect workers' super," Mr Bandt said.

"Now, a worker who leaves their job and hasn't made arrangements for their super can be sure their fund won't 'flip' their money into another product with higher fees unless the worker agrees."

"By 'flipping' funds between products without permission, fees could have increased by up to 73%, so we needed to protect workers from this sort of gouging." 

 

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