AMP will pay $120 million to end a legal case about charging too much for retirement accounts. Many people will get money back from this deal. The case started because AMP was accused of making customers pay too much in fees for their retirement savings.
Two law firms led the case against AMP. They said AMP paid too much money to companies it was connected with. This made customers pay higher fees than they should have. The lawyers also said AMP kept some money in low-interest cash accounts which wasn’t good for customers.
Rebecca Gilsenan from Maurice Blackburn law firm said this $120 million agreement helps make things right. She thinks it’s good news for the many people who trusted AMP with their retirement money.
The lawsuit claimed that AMP put their own profits ahead of their members’ interests. This was wrong because super funds need to be open and fair to protect people’s money.
Emma Pelka-Caven who leads class actions at Slater and Gordon said this result shows other super funds they must do the right thing.
She added that all Australians should have their retirement money managed properly and her team was happy to help members get paid back.
AMP agreed to pay money but didn’t accept any blame.
The company’s boss Alexis George said this deal helps AMP move forward and leave old problems behind.
AMP will pay $75 million and insurance will cover the rest of the $120 million total payment.
The legal case started in 2019 after the Banking Royal Commission. The Federal Court later combined two separate cases into one big lawsuit managed by multiple law firms.
Who Qualifies for the $120 Million AMP Compensation?
The settlement of 120 million dollars needs approval from the Federal Court first. We will share more details about how the money will be given out soon.
You don’t need to do anything right now.
This deal will pay back eligible AMP super members. The case involves over two million people who were members of AMP super funds.
You can join the class action against AMP if you had a super account with them during these dates:
– If you were part of the AMP Superannuation Savings Trust AMP Retirement Trust or Eligible Rollover Fund you must have held your account from July 1 2008.
– If you were in the Super Directions Fund you must have held your account from March 30 2011. Please note this does not include Platform Fund or Mature Product accounts.
How does AMP’s $120m Superannuation Refund impact retirement savings?
It reimburses excessive super fees to eligible individuals.
