Ms Christine Holgate
Managing director and group CEO
111 Bourke St
20th April 2018
I am writing on behalf of our members to voice our concerns regarding the disturbing news from the Royal Commission into the Banking Sector regarding the exposure of practices at AMP.
Our members who are in the default AMP accumulation Superannuation fund have potentially been exposed to unacceptable risk. I am sure that you are as perturbed by these revelations as we are.
We would ask that you undertake a review of AMP’s status as the default Superannuation fund and also examine the circumstances of how and why AMP was appointed in the first place. We would be extremely concerned if commissions have been paid to individuals and or if there were improper business arrangements between Australia Post and AMP to gain the default fund status.
Our Branch’s preferred default fund has always been for an Industry Fund to be appointed. Take Australian Super, one of the biggest Industry Fund as an example. Workers in the Australian Super default option would have been far better off in regards to both returns and fees and charges, than being in AMP.
Over last 5 Years 12.44% p.a.
Over last 5 Years 7.39% p.a.
Over last 5 Years 9.26% p.a.
Over last 5 Years 4.12% p.a.
Not withstanding the unethical practices of AMP outlined at the Royal Commission, the above figures clearly show that the Australia Post accumulation fund members would have been far better off over the past 5 years in an Industry Fund and that is reason enough to end AMP’s status as the default accumulation fund. This is a benefit that Australia Post can offer employees without any cost to the corporation.
I look forward to your initial response and have full confidence that you will do all you can to deal with this issue
Communication Workers Union