Public offer broadens base

OPENING up industry funds to all-comers has attracted different members to what used to be occupation-specific funds.

Public offer broadens base

MANY industry funds that used to be occupation specific have moved to "public offer" (open to all) since super choice was introduced and are attracting a new types of members.

The move to public-offer status by funds began before the introduction of choice in 2005, which is believed to have accelerated the trend.

According to super ratings, nine industry funds have become public-offer funds since choice came into being.

These are First State Super, Non-Government School Super, Intrust Super, Building Unions Super Scheme, AGEST Super, Vision Super, LUCRF Super, AMIST Super and most recently Tasplan, Tasmania's largest multi-industry super fund.

Some regularly grace the tops of the investment performance league tables across all types of super funds.

"Public offer means anyone can join irrespective of their employment status," says Tasplan general manager Neil Cassidy.

"Previously members had to be employed by a registered employer. Now everyone including the self-employed can receive the same benefits current Tasplan members enjoy."

Alex Dunnin, principal researcher of Rainmaker, says the move to public offer is not so much about taking on the retail funds as allowing the funds to compete across lots of industries. It's also about retention of members.

If you are in an industry fund that is not a public-offer fund and you move to an employer who does not participate in the fund, then your new contributions generally cannot go into your original fund.

You may also have to roll over your balance to another fund - generally the fund into which your new contributions are being made.

With the introduction of choice and portability, most members can choose where to have their contributions made and where their accumulated balance is invested.

By becoming public offer, industry funds can set up accounts that aren't linked to a participating employer to retain members changing employers.

Warren Chant of Chant West says if you changed jobs and could no longer be a member of your existing fund, choice allowed you to switch to the personal division