BT today announces a new administration fee schedule for BT Super customers and Asgard Employee Super Account MySuper customers.
General Manager of Superannuation, Melinda Howes, said the new fee schedules will be implemented as part of our continuing simplification and migration program to BT Super.
The extensive migration program sees BT migrate over 470,000 customers and $21 billion in superannuation balances to a single IT system. The largest tranche of members is scheduled to be transferred in February 2020.
The changes to fees will occur in two stages:
- Changes to administration fees for MySuper and BT Super choice customers, which are a combined dollar and percentage fee, from 1 July 2020. These changes include:
a) A permanent reduction in the percentage fee from 1 July 2020, from the current 0.45 per cent per annum to 0.28 per cent per annum; and
b) At the same time the flat dollar fee will be increased from $78 per annum to $108 per annum.
- For an interim period before the fee changes, MySuper customers will receive a 10 basis point rebate (between 1 April and 30 June 2020).
The soon to be published Australian Prudential Regulation Authority (APRA) “Heatmaps” will not reflect BT Super’s new administration fees due to the prospective application of the changes. We strongly support measures to increase transparency for customers however, and we anticipate the benefits of the changes will materially impact how BT Super will be represented in future Heatmaps.
The net reduction or increase for MySuper customers and for BT Super Choice customers, at different levels of retirement savings, are outlined in the pdf.