Retirement planning doesn’t have to be costly or complicated, which is why the Old Mutual SuperFund team has revised the SuperFund Choice fee structure.
Simplified investment packages
Until recently, Old Mutual SuperFund offered five investment packages, each with different fees based on your choice:
- Trustee Choice
- Lifestage
- Albaraka
- Strategy
- Extended
Now, we’ve introduced a single, uniform Member Administration Fee of R32.15 per member per month (excluding the governance fee). It doesn't matter which investment package you choose; everyone pays the same fee. The single fee is already being applied to all SuperFund Choice new business quotes.
Employers can still customise investment choices for their employees based on the chosen package. They can also convert the fee to a percentage of employees' monthly salaries, which remains fixed until our annual fee review on 1 July (or at the implementation of a requote).
In essence, our aim is to make retirement planning hassle-free. We believe that everyone deserves clarity and fairness in managing their retirement funds, and our new fee structure achieves just that.
Don’t pay for what you don’t use
We regularly see members in our Strategy and Extended investment packages who never use the added investment portfolios available to them. This means they are paying for something they are not using. With only one Member Administration Fee, this will no longer happen.
Coupled with our new basis of only one Member Administration Fee, we are also introducing an Asset Administration Fee.
Only members who invest in non-Old Mutual investment portfolios will pay the Asset Administration Fee. This fee covers the additional costs associated with administering portfolios offered by external investment managers i.e. daily investing and disinvesting of funds, daily unit pricing, etc.
- The Asset Administration Fee is 0.15% per annum, charged monthly.
- This fee is capped at R500 per member per month.
- The fee is deducted directly from members’ accumulated retirement savings.
- If a member has money invested in multiple non-Old Mutual investment portfolios, the fee will be pro-rated across the applicable investment portfolios.
- The fee is only applicable for as long as the member has assets in non-Old Mutual investment portfolios. The fee will stop if the member switches out of these portfolios.
New participating employers to SuperFund Choice.
All new business quotes will automatically be issued on the new fee basis. Your new business quote document will show the details of the one Member Administration Fee and the Asset Administration Fee.
The new fee basis will only be applied to existing Participating Employers on request.
We encourage you to discuss the new fee basis with those of your clients who have members in the Strategy or Extended packages. Making the change could result in members paying far less than what they currently do.
Once a Participating Employer has our new fee basis, there will be no choice to move back to the former fee basis. This applies to both new and existing Paticipating Employers who have opted to make the move.
If you have any questions related to Old Mutual SuperFund, contact your Old Mutual Corporate Consultants team, or visit the SuperFund communications hub for more information, reports, and updates.