Fees & costs

AUSCOAL Super operates on a not for profit basis. This means that only the actual costs of running the Fund are paid for by the members.

Administration costs

Effective 1 July 2006, the administration fee structure was amended by the Trustee to ensure that every member makes an adequate contribution towards the basic costs of fund membership.

Administration Fee: $1.00 per member per week

PLUS

Asset based Fee:  % of assets to meet the balance of cost of running the Fund.

PLUS

Trustee Fee:  % of assets to meet the Trustee's costs.

Generally, members with account balances of less than $1000 cannot be charged an administration fee greater than the amount of investment earnings credited to their account. This means that their account balance cannot reduce due to fees and is called "member protection".

Investment Management costs

Investment Management costs will depend on the investments that you select and are deducted from the investment return for each option before they are credited to your account. Investment costs reflect actual costs paid by the Fund to external providers and may change from time to time. The acutal costs will be reported in the Annual Report.

Service fees

Partial withdrawals

- 2 free per year after which a fee of $22 per withdrawal will apply.

Changing investment mix (asset switch)

 - 2 free per year after which a fee of $22 per investment choice form will apply.

Fee changes

We will not increase a fee or other cost that is deducted from your account without giving you at least 30 days notice beforehand.

It is important that members read the full information on fees and charges in the Product Disclosure Statement.

Reserve Accounts

AUSCOAL Super maintains a reserve account to manage certain historical insurance arrangements and also a separate reserve account to manage historical pension obligations for a small group of members

The Trustee has also established an Operational Risk Reserve (ORR) to meet the financial implications of identified adverse risk events. The ORR provides a source of funding to compensate members for operational errors and to manage the compensation process.

The ORR aims to enable the Trustee to put members' accounts back into the position they would have been had the error not occurred and to do so in a timely manner whilst awaiting professional indemnity or trustee liability insurance claims to be settled (if any) or recovery of compensation payments and costs from third party providers (where relevant).

The ORR was established on 29 May 2010 and it is intended to slowly build up the ORR by setting aside a small portion of the investment earnings of the Fund . The amount needed for the ORR will be determined periodically by the Trustee in accordance with the Trustee's policies and the Trustee reserves the right to change the policies as required.

The current aim of the Trustee is to slowly build the ORR over 3 years so that by 30 June 2013 it will have built up to 0.5% of the value of the Fund.