Equip Super reduces admin fees, introduces insurance fee

While their administration fees will fall, from next week many Equip Super members will begin paying an insurance fee calculated at 4% of premiums.

From July 1, Equip Super is reducing administration fees across accumulation, defined benefit and retirement products.

For accumulation and defined benefit members, the asset-based fee will be reduced from 0.22% to 0.19% per annum. The maximum administration fee charged will now be $950, compared to the $1100 it was previously.

The change to the asset-based fee doesn't apply to members of employer partners' BOC or Elgas plans, but their maximum fee charged will drop to $950.

For retirement products, both the asset-based fee and the weekly administration fee will be reduced.

The weekly fee will almost halve, going from $1.95 to $1, while the asset-based component is dropping marginally from 0.20% to 0.19%. The maximum asset-based fee charged will also be dropping from $1000 to $950.

Offsetting some of the savings to members, Equip will now introduce an insurance fee on accumulation and defined benefit products.

The new fee will apply to accumulation members with basic and/or voluntary cover and defined benefit members with voluntary cover, the fund explained.

The fee is calculated at 4% of premiums, which will be paid to the fund.

Equip Super has about $34 billion in assets on behalf of almost 143,000 members.