Funds cut fees ahead of contest

THE state’s super funds are cutting fees as they prepare to compete for the $70 billion held in Queensland public servant super accounts.

From July 1, state public servants no longer have to choose QSuper as their default fund, opening up a potentially huge opportunity for rival funds.

QSuper chief executive Michael Pennisi said the fund would cut administration fees by 10 per cent from October, bringing it to 0.18 per cent of funds held.

He said the fund was prepared for greater competition and would have cut administration fees regardless of the coming changes. The proposed “choice of fund” legislation brings Queensland into line with other states and territories.

“The Queensland Government has made a decision to give a choice to its employees and we support that,” Mr Pennisi said.

Melbourne health and education industry fund Hesta flagged it would look at attracting Queensland public servants into its $30 billion fund after the reforms were introduced.

Another beneficiary could be Brisbane-based Sunsuper, which has more than a million members.

Sunsuper has reduced its pension fees for members with an income account from $4 a week to $3 a week, effective from September 30.

QSuper has 560,000 members with a pension pot of $70 billion.