Australian Super underpaid members by $2 million
A calculation error has forced AustralianSuper to remediate some of its members invested in its Australian Shares option of about $2 million.
The "credit rating error" affected members who are invested in the Australian Shares option only.
"Between June 2 and June 23, 2022, a franking credit was not accrued for in the crediting rate in the Australian Shares option," a spokesperson said.
About 6800 members were affected, while the median amount remediated was $26.42, including any earned interest. However, some members were impacted to the tune of $400 or more.
The amounts were only recently credited back to members' accounts, according to some member letters cited.
"After a review, the oversight of franking credits has been enhanced and is monitored regularly," the spokesperson said.
It is the second bungle that has recently come to light from the nation's largest super fund and its administrator Australian Administration Services.
In May, AustralianSuper said it will refund $70 million it overcharged 100,000 members after it failed to detect that they had multiple accounts.
AustralianSuper at the time said it "regularly identifies and combines multiple accounts held by a single member to help those members avoid extra fees" and that it failed to identify all instances of multiple member accounts.
In the 2023 financial year, the $300 billion super fund delivered 8.22% for its balanced investment option.
It recently made several senior appointments in the UK, recruiting talent from J.P. Morgan, BNP Paribas, and Macquarie Group.
This article first appeared on Financial Standard
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