Super funds premium rort of Queensland workers
31 May 2022
QSuper members have filed a class action against the national super fund in the Federal Court of Australia, alleging they were overcharged for life insurance policies.
The company is accused of breaching its obligations under the Corporations Act 2001 (Cth) and the Superannuation Industry (Supervision) Act 1993 (Cth) by failing to sufficiently notify its members of changes to premiums.
Class Actions Practice Leader Joshua Aylward said QSuper's conduct resulted in significant financial loss for up to 140,000 members.
"QSuper changed their life insurance policy on 1 July 2016 and failed to adequately notify its members of how to get cheaper premiums," Mr Aylward said.
"Significantly, most of the fund members impacted are Queensland Government employees and their spouses, teachers and health industry workers like doctors and psychiatrists," he said.
White collar workers were charged the same increased premiums despite not having the same risk-factors present in their lines of work.
"It's incredibly disappointing that essential workers serving our community at all hours are those taken advantage of by this super fund," Mr Aylward said.
Tens of thousands of members have also lost money on superannuation investments with the fund as a result.
QSuper fund members who held life insurance policies in 2016 are encouraged to register for the QSuper Class Action.
The class action is funded by Woodsford and run as a managed investment scheme named the Woodsford – QSuper – Litigation Funding Scheme (ARSN 657 154 508) (Scheme), which has been registered with ASIC.
Charlie Morris, Chief Investment Officer for Woodsford, said the class action provided an efficient means of delivering justice to those who may have been impacted by QSuper’s conduct. “Running a case like this as a class action, with the backing of Woodsford, means that the everyday Australians affected by the defendant’s misconduct may hold the defendant to account and access justice without any upfront cost.”
Further information about the Scheme is set out in the Product Disclosure Statement (PDS) issued by the Scheme’s Responsible Entity, Woodsford Australia Limited. A copy of the PDS is available on there website.