Superfund Colonial First State Investments Limited (CFSIL) has settled a class action case against them, ahead of trial lodged by Maurice Blackburn Lawyers on behalf of over 100,000 Aussies, for a combined total of $56.3 million.
The class action claims CFSIL transfers between MySuper products were allegedly delayed, resulting in lower investment returns and higher account fees for members.
“This class action relates to the transfer of certain default balances held by some members of FirstChoice Employer Super to a MySuper product in 2016 and 2017,” CFSIL said in a statement.
“If the court approves the settlement, eligible group members will each recover a share of the agreed settlement sum of $56.3 million, less an amount for the costs incurred by the Applicant and the Applicant’s lawyers.
“As the matter remains before the court, CFSIL is not in a position to provide further comment at this time.”
Class action members will receive their share of the settlement, paid directly back into their Super accounts this year.
Maurice Blackburn Principal Lawyer Miranda Nagy told Seven News the MySuper product was supposed to be in place to look after Aussies who let their accounts sit.
“The whole point of the MySuper reforms was to make sure that millions of everyday Australians who hadn’t made an active decision about their super, were not ‘getting charged for valet parking when they were taking the train’, as Minister Shorten said at the time,” she said.
“MySuper was introduced to protect the retirement outcomes of Australians by ensuring that consumers weren’t losing money on unnecessary fees and products, and Colonial had a legal obligation over and above a basic moral obligation to move default member balances into MySuper at the time that best met their members’ needs, not their own.”
The Superfund continues to maintain no wrongdoing, denying all allegations.