Four Benefits of a Corporate Super Plan

Four benefits of a corporate super plan at a glance:

1. Lower fees for employees
2. Discounted insurance for fund members
3. Streamlined paperwork
4. Easy communication with employees regarding superannuation changes

Corporate super plans are simply superannuation programs set up by employers. When employees are hired, they’re given the option of signing up for the employer’s corporate super plan or sending their super contributions to another fund. 

This is a big decision for employees: the success of their super account can have a dramatic effect on their retirement savings and standard of living later in life. As an employer, you can provide a corporate super plan that helps your employees to achieve their retirement savings goals. Such a plan can be a great tool for attracting and retaining valuable employees. The following are four benefits of corporate super plans:

1. Lower Fees

Large corporations are often able to negotiate better terms, such as lower fees, with the superannuation fund manager because of the large amount of money invested. Lower fees can be highly advantageous to retirement funds over time. With more money going toward growing your capital and less going toward fees, money will grow faster.

Talk with one of our advisers about how you may potentially offer lower fees to employees investing in your corporate super plan.

2. Discounted Insurance

Another great benefit you can offer your employees through your corporate super plan is discounted insurance. Most corporate super funds have group insurance plans and the members of the fund receive attractive benefits.

Corporate super funds usually offer three kinds of insurance to members: 

• Life Insurance
• Total and Permanent Disability
• Income Protection

Super funds usually offer a default minimum amount of insurance, and in many cases, employees can increase, decrease, or cancel their insurance. Premiums are generally deducted from super account balances or funded by the employer as an employee benefit.

3. Streamlined Paperwork

When you sign employees up for your corporate super plan, most of the paperwork is taken care of for them. Instead of spending their first few days at work filling out forms, you can get them right to work doing the great things you hired them to do.

4. Easy Communication

If your employees need to make changes to their super accounts, they can simply talk with you or the super fund while they’re at work. Easy communication regarding super accounts is a nice benefit to offer your employees. Some of the issues they might need to talk over are making sure they have the correct beneficiaries listed on their account and choosing to start salary sacrificing to increase their contributions each paycheque.

As you can see, providing a corporate super plan to your employees can help you to improve the benefits package you offer. To talk over your company’s corporate super plan, contact us at Altus Financial.