E
Emanance
Guest
Have spent the last 3 weeks having a massive run in with my employers default superannuation fund. Long story short, I started a new job nearly 3 months back. The admin lady at head office never received my 'standard choice form' in which I selected my SMSF, as it appears my store manager never sent it to her. The first I heard about the default fund is when my employer sent them $149.99 for two weeks worth of super from my first months paycheck. they sent me a 'welcome pack' with PDS on the 8/4/13 some 7 weeks & 5 days after I starting working for my employer. This alone is a breach of corporate law on behalf of BT as financial institutions must provide a PDS to clients with in the 5 day cooling off period of commencing a financial service.
At that stage I immediately contacted BT to ask what is going on with an account being set up in my name without my consent and requested that they don't touch my money as I intend to roll it over into my SMSF ASAP. BT assures me during this conversation that this $149.99 is secured in a special account that will not attract fees or charges, but will probably have the concessional 15% tax withdrawn. The next day at work I get my employer sorted out with where they must send my future super money. Then on a second night I call BT again to ask for them to email me the roll over forms which they do as well as telling me that they are affiliated with the Westpac bank, so I can drop into one of Westpac's branches to both get my ID verified and the roll over forms faxed through. The very next day is the 11/4/13, I do as instructed while also getting a 'communication report' from a helpful Westpac teller confirming the faxed ID & rollover form was received A-OK. I move on with life.
Then on the 19/4/13 I get in the mail my exit statement from BT and to my shock they had withdrawn $81.46 from the $149.99 for 58 days of a Death & Total & Permanent Disability Insurance policy covering me for $3 million. On the exit statement it lists the insurance being charged on the 11/4/13, the same day they received the roll over request and processed the rollover. This is despite on 2 separate phone calls BT assured me that such a small amount the money would not attract fees or charges. So after tax of $10.28 was deducted I only got $58.25 out of an original deposit of $149.99. I immediately got back on the phone to BT and asked what was going on. BT explained that all default superfunds will have death & TDP cover added as compulsory as per the new super laws, unless each customer contacts their superfund to 'opt out'.
I have since spoken to the Superannuation Complaints Tribunal, who weren't much help, but sent me to the Australian Prudential Regulation Authority who over see insurance on superannuation. I have had them confirmed today that industry wide as of the 1st of July 2013 each and every default superannuation fund must offer and implement by default a death & TDP coverage on each and ever member until such time those members opt out.
At that stage I immediately contacted BT to ask what is going on with an account being set up in my name without my consent and requested that they don't touch my money as I intend to roll it over into my SMSF ASAP. BT assures me during this conversation that this $149.99 is secured in a special account that will not attract fees or charges, but will probably have the concessional 15% tax withdrawn. The next day at work I get my employer sorted out with where they must send my future super money. Then on a second night I call BT again to ask for them to email me the roll over forms which they do as well as telling me that they are affiliated with the Westpac bank, so I can drop into one of Westpac's branches to both get my ID verified and the roll over forms faxed through. The very next day is the 11/4/13, I do as instructed while also getting a 'communication report' from a helpful Westpac teller confirming the faxed ID & rollover form was received A-OK. I move on with life.
Then on the 19/4/13 I get in the mail my exit statement from BT and to my shock they had withdrawn $81.46 from the $149.99 for 58 days of a Death & Total & Permanent Disability Insurance policy covering me for $3 million. On the exit statement it lists the insurance being charged on the 11/4/13, the same day they received the roll over request and processed the rollover. This is despite on 2 separate phone calls BT assured me that such a small amount the money would not attract fees or charges. So after tax of $10.28 was deducted I only got $58.25 out of an original deposit of $149.99. I immediately got back on the phone to BT and asked what was going on. BT explained that all default superfunds will have death & TDP cover added as compulsory as per the new super laws, unless each customer contacts their superfund to 'opt out'.
I have since spoken to the Superannuation Complaints Tribunal, who weren't much help, but sent me to the Australian Prudential Regulation Authority who over see insurance on superannuation. I have had them confirmed today that industry wide as of the 1st of July 2013 each and every default superannuation fund must offer and implement by default a death & TDP coverage on each and ever member until such time those members opt out.
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