Rollover hub saves dollars for super funds and their members

Stephen Withers
Monday, 28 March 2011 10:27

Business IT - Technology

An electronic hub for processing superannuation rollovers slashes costs for the funds. The reduction in processing time also cuts the 'between funds' time to keep the money working for investors.

The Industry Funds Forum's (IFF) eRollover Hub is up and running, and open to all APRA regulated superannuation funds. By automating transfers between funds, the Hub greatly reduces processing costs for funds and keeps investors' balances 'in the market' for longer.

A trial involving the REST, Sunsuper and Statewide funds showed a total average cost per rollover of $0.40, compared with $12.50 for manual processing.

The benefit to members transferring their super balances is on a similar scale. By reducing the time that their funds are not invested, the average value of lost income was reduced from $35.99 to $1.17.

The success of the pilot has fulfilled the objective for IFF to develop a total eCommerce solution for all rollovers increasing efficiencies and saving money for fund members," said IFF executive officer, Helen Hewett. "The Hub is an attractive solution for all APRA regulated funds as it requires one single fee-free connection and it's available now, so funds can benefit from immediate savings."

Other industry and public sector funds will begin using the Hub shortly.

The Hub uses Cuscal's ClickSuper payments system, and complies with the Federal Government's SuperStream recommendations.