Changes to administration fees and insurance premiums from 1 October 2020

From 1 October 2020 there will be changes to Mercy Super’s administration fees and insurance premiums. We’ve highlighted these changes below but you should read the August 2020 Member Notice or, if you have “retained” insurance cover the Members with retained cover edition, to better understand what these changes mean for you.

Administration fee reduction

We’re delighted to announce that from 1 October 2020 we will apply an administration fee reduction for both Super and Income Accounts. The following changes will be made to existing administration fees which will represent a reduction for all members:

• The $1.10 per week administration fee (often referred to as the Member Fee) for Super Account members will be eliminated from 1 October 2020.
• The 0.30% of account balance fee (often referred to as the Asset fee) will reduce to 0.25% from 1 October 2020 for both Super and Income account members. This fee is subject to a $600 p.a. cap—reducing the current $1,000 cap for Income Account members.

Insurance premium changes

A recent review of Mercy Super’s insurance cover showed it continues to deliver strong benefits to members when they need it most. The review also looked at our claims history, which has resulted in some changes to the cost of cover. From 1 October 2020:

• Death and Total and Permanent Disablement (TPD) premiums are reducing by an average of 3.5%. This is due to the experience for Death/TPD claims being slightly lower than expected, with these savings passed on in reduced premiums.
• Income protection premiums increasing by an average of 7.5%. This is due to the experience for Income Protection claims being higher than expected.

Need help? Let’s have a chat…

We exist solely to look after you — our members. If you’re not sure about the changes to your Mercy Super account or if you want to review your insurance cover, we’re here to help. Just get in touch – jump on the phone, send an email or if you happen to be near Mater’s South Brisbane campus – drop in and see us.