Super dirty tricks.
When Virgin Super launched in 2005, we found some funds were employing dirty tricks to keep members rather than letting them go with dignity and grace. We were outraged – after all, it’s your money, which means you’ve got a right to it when you want it. If this sounds familiar, email dirtytricks@virginmoney.com.au to tell us your woes.
About our superannuation research.
In December 2005 we commissioned the experts at Roy Morgan Research to explore and measure the difficulties experienced by 3,596 Aussies aged 18-64 who were switching or attempting to switch super funds.
The resulting Barriers to Switching Super Report spoke volumes of peoples’ frustrations with the super industry since the introduction of Choice in July 2005 - and blew the following super switching fantasy right out of the water.
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Sally calls her old super fund and tells them she wants to switch to Virgin Super. Old fund: “Sure Sally. Here’s your member number, 123456. And here’s what you have in your account, $XYZ. We’ll send you an official letter summarising everything for you to sign and pass on to Virgin Super. This should reach you pronto.” Sally: “Thanks old fund.” Old fund: “Cheerio then.” |
What’s really going on?
Over a third of the people we spoke to in our research grumbled (and rightfully so) about reams
of paperwork, lengthy waiting periods and what appeared to be complexity for complexity’s
sake. Their stories included:
- it was up to their new fund to take care of the process (not true!)
- their old fund’s system was not capable of processing requests (as if)
And because legislation allowed it, some funds were keeping member funds for a whopping 90 days.
Good thing the Government listens to grumblers.
In a series of meetings with Australian Government representatives, we did a fair amount of
grumbling about super industry funny business. We were rather chuffed at budget time in 2006
when Treasurer Peter Costello proposed a bit of a clean-up of the super industry, including:
- one standard form to fill in for anyone who wants to switch funds
- a maximum 30-day turnaround for switching requests.
We’ll continue to keep close watch of the situation, and will grumble, roar or ask politely for further change as and when required.
Dob in dirty tricksters.
Email your woes to dirtytricks@virginmoney.com.au and we’l l add them to our list of trickery and pass it on to the Feds (Government that is). And if you need a hand to make the switch, we’re more than happy to help.
So please don’t be a stranger.