Super fund gains ground
QSUPER says it is gaining members even after losing the monopoly to operate the state’s $70 billion public service pension fund.
State public servants from July 1 no longer had to choose QSuper as their default fund, opening up their nest eggs to rivals including Sunsuper and HESTA.
The changes also meant QSuper was free to attract members from outside the public service and interstate. Qsuper has cut administration fees and beefed up its call centre as it attempts to keep its membership base of more than 560,000.
It also launched a major advertising campaign.
QSuper chief executive Michael Pennisi said there was no evidence the fund had suffered from the reform and it was, in fact, picking up some members.
He did not disclose figures, but said 6000 people had registered on the fund’s website to join QSuper as soon as they were able.
“There is no doubt that there is more interest in the Queensland market from other funds,” said Mr Pennisi. “People are doing their homework before they come to us.”
He said most of the new members were attracted by word of mouth, but conceded a heavy marketing campaign was helping.
“We have invested almost $2 million in building capacity and capability in our Brisbanebased member contact centre,” Mr Pennisi said.
“This has included recruitment of new member service officers and enhanced training for our frontline staff.”
QSuper is facing increased competition from other funds such as Sunsuper, one of Australia’s biggest superannuation funds with more than one million members.
Sunsuper is also cutting fees as it attempts to lure QSuper members, but it says not all public servants are aware of their rights to change funds.
Melbourne-based health and education industry fund HESTA earlier this year flagged that it would look at attracting Queensland public servants into its $30 billion fund.
Sunsuper head of growth Queensland Patrick Twomey said there was more movement between funds than in previous years, but that the impact to Sunsuper had been marginal.
“It’s great that Queensland employees are exercising their right to choose a fund and some government agencies are proactively helping employees do so,” Mr Twomey said.
However, he added that not all State Government employees are aware of their rights to choose their own super fund.