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Super Transformations – December 2018

Super Fund Facts

This year we helped a client obtain a superannuation plan fee reduction of $215,000 year in year out.

The way we did this is through our modern approach, which is to work with employers to transform their benefit design into a promotable superior benefit by;

  1. evaluating and improving the benefit design,
  2. promoting the plan to the workforce and
  3. performance measuring service delivery.  

The first step when transforming superannuation is to assess the current benefit design and service delivery framework.  We recently helped a diversified mining company with their superannuation benefit design.  When we met with this client they had;

  • Three default superannuation plans – all with different plan designs and
  • A total workforce of just over 4,000 employees

The company had grown over the years and now had multiple superannuation and insurance arrangements.  They wanted to know if their existing arrangements were looking after their employees best interests.

The employer consulted with AXIS to review their multiple superannuation and insurance plans.  We evaluated the current benefit designs and provided the employer with a Super Plan Evaluator report.

You can see a sample version of this report here.

We uncovered the following;

  • Only 55% of new employees were choosing to join the largest default super plan
  • In one of the default plans – 48% of contributions were lost to fees and insurance design (19% for the other plans)
  • Three year investment returns across the three plans varied from 7.0%pa to 9.8%pa

The employer was now armed with information and engaged our services to help them improve their benefit design.  We were able to negotiate a plan fee reduction of $215,000 year in year out, for 2,000 people in the largest default plan.  The employer was delighted with the savings and has engaged our consulting services to help them work toward improving their current benefit designs.

 

CLICK HERE TO READ AXIS SUPER FOCUS

How are Employer’s holding providers accountable?  In our experience Employers are struggling to hold providers accountable.

READ AXIS SUPER DIRECTIONS

Employers need new approaches to reach the workforce of the future …

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