The settlement, which still requires approval from the Federal Court, is a result of negotiations between QSuper (now part of Australian Retirement Trust, since its 2022 merger with Sunsuper) and Shine Lawyers, the firm representing the plaintiffs.
A representative from the Australian Retirement Trust stated that the settlement aims to mitigate the expenses related to ongoing litigation. It was also confirmed that the sum will not impact member accounts directly, as funds had been pre-emptively set aside to cover potential liabilities following the merger.
Shine Lawyers' joint head of class actions, Craig Allsopp, remarked on the resolution, highlighting that it provides much-needed relief to those affected. The majority of these members were public sector employees in Queensland, often in lower-risk professions such as teaching and medicine, who were nonetheless subjected to high insurance premiums.
This settlement holds substantial relevance as it addresses a major concern for many superannuation members who felt they were unfairly charged for life insurance. It also highlights an ongoing issue within the financial sector regarding transparency and fairness in fee structures. With superannuation being a critical aspect of financial planning for many Australians, ensuring equitable and just management practices is essential to maintain consumer trust.
As the settlement awaits court approval, the focus will shift to how these funds are distributed to affected members and what measures will be put in place to prevent such discrepancies in the future. Expert opinions suggest a need for heightened scrutiny of insurance premium calculations and enhanced communication from super funds. Members and stakeholders will be keenly observing whether this case prompts a broader inquiry into insurance practices within superannuation funds, potentially leading to policy reforms to better protect consumers.
Published: Tuesday 3rd June, 2025
Last updated: Tuesday 3rd June, 2025
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
