Industry Super Funds
Industry super funds are types of super funds that cover employees of whole industries. Beginning over 20 years ago, industry super funds are one of the most popular choices for employees. Over 5 million Australian employees are covered by industry super funds. Since 2005, the Super Choice legislation has declared all employers eligible to choose to join industry super funds. This article will answer two commonly asked questions about industry super funds.
What are Industry Super Funds?
Industry super funds are managed by employer associations and unions. As public-offer funds, these types of superannuation funds are "not for profit" funds. This often translates to lower fees in comparison to other types of super funds. The trustees that govern industry super funds are composed of employers, employees and union-members. Essentially, industry super funds are made for the benefit and profit of their members.
Why Choose Industry Super Funds?
There are numerous reasons why employees become members of industry super funds. Among these reasons are performance, service and value. Records show that, on average, industry super funds perform better than other types of super funds, such as retail funds. Likewise, industry funds have garnered numerous awards over the years. Some of these awards are based on value, services and products.
With regards to value and services, industry super funds are amongst the top ranked funds in the country. Industry super funds are able to raise their value-for-money performance by charging low fees and by not paying commissions to other entities. The services offered by such funds compete with many other types of super funds. From insurance options to non-super investment products, industry super funds offer a wide variety of services to their members. Aside from stock market investments, these funds also invest in property and infrastructure.
