Important changes to PSSap
We wish to inform you of two important changes to PSSap. These are:
- the introduction of a member pays fee model
- the cost of providing 'single issue' financial advice over the phone to PSSap members will be paid from the PSSap Fund.
Introducing a member pays fee model in line with Government policy
PSSap participating employers currently pay the cost of administering and operating PSSap, including costs to administer group insurance arrangements.
A member pays fee model means members will pay fees in future to cover these administration and insurance costs. The Government announced this policy change in its Mid-Year Economic Fiscal Outlook 2014-15. The announcement stated that fees will be introduced on 1 July 2015.
This policy change brings PSSap in line with most other major Australian superannuation funds which charge fees to members to administer their super accounts.
The fees proposed to commence from 1 July 2015 are specified below – see 'Proposed fees'.
The fees proposed cannot take effect until legislation is enacted. We will keep you informed of the status of the legislation on the PSSap website.
Cost of providing 'single issue advice' to PSSap members will be charged to the PSSap Fund
As a PSSap member, you can access personal financial advice over the phone on issues related to your insurance needs, contribution levels and investment choice within PSSap. This is known as 'intra-fund advice' or, more commonly, as 'single issue advice'.
This service is provided by Industry Fund Services to PSSap members, with CSC bearing the cost of this service. This cost will be charged to the PSSap Fund from 1 July 2015. Members will not be charged directly for this service. It will be charged to the PSSap Fund.
Important note: These fees will not be implemented until legislation is enacted. They are currently proposed to commence from 1 July 2015.
- Administration Fee – $60 per annum (pa) or $5 per month
This fee will be charged monthly in arrears and will be deducted from your account at the beginning of the following month. This fee will be charged on a pro-rata basis so that you will only be charged for the time that you are actually a member of PSSap.
- Insurance Fee – $18 pa or $1.50 per month
This fee will be charged as a flat monthly fee. It will be charged if you have insurance cover at the end of the calendar month and will be deducted from your account at the beginning of the following month. This fee will not be pro-rated.
- Exit Fee – $50 per withdrawal
This fee will be deducted from your account when a withdrawal is processed. It is a fee to recover the costs of disposing of all or part of your interest in PSSap.
- Family Law Fees
A fee of $170 will be payable upon initial request for family law related services (such as requesting superannuation information in accordance with family law legislation). This fee covers the cost of the administrative work required to respond to a request.
A fee of $110 will be charged to split a member's account due to family law arrangements.
Existing fees and costs paid by members and additional explanations of fees and costs can be viewed in the PSSap Product Disclosure Statement.