AMP has reached an in-principle A$120 million settlement to resolve a superannuation class action concerning historical fees and cash-option interest rates across AMP-related super funds. The proposed deal, which still requires Federal Court approval, covers conduct alleged to have occurred between 2008 and 2020 and has been framed by AMP as a “legacy matter.” While no admission of liability has been made, the settlement aims to compensate impacted members and draw a line under long-running issues revealed after the Banking Royal Commission era. Below, we unpack eligibility, timelines, how compensation could be distributed, and the broader legacy impact on Australia’s super landscape.
Settlement overview & what it means for super fund members
Under the proposed agreement, a settlement fund of A$120 million will be established for eligible AMP superannuation members. Final distributions depend on Court approval, deductions (legal costs, administration), and a Court-approved allocation model. Practically, members won’t usually need to “apply”; administrators identify eligible accounts from historical records. Expect a focus on products/fund options that allegedly charged excessive fees or delivered low cash-option interest. For members, the outcome is twofold: direct compensation (often modest per account, but meaningful in aggregate) and stronger trustee standards going forward.
- Amount: A$120 million (subject to Court approval).
- Coverage: Historical fees/interest issues (circa 2008–2020).
- Process: Court approval → administration → distributions.
- No admission: AMP states no admission of liability.
Eligibility, timelines & how payments may be calculated
Eligibility typically aligns with customers who held AMP-related super products during the class period and were affected by the fee/interest settings at issue. The settlement administrator (once appointed) will propose a methodology—commonly weighting factors like time in product, balance size, fee differentials, and product type. Timelines hinge on Federal Court approval and any appeals. After approval, administrators notify group members and publish guidance. Payments generally flow automatically to active accounts or via electronic transfer/cheque for closed accounts (after identity checks).
- Eligibility basis: Product type, dates held, and impact factors.
- Methodology: Court-approved allocation model (pro-rata style).
- Notice period: Formal notices/email and website updates.
- Inactive/closed accounts: Alternative payment arrangements.
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Legacy impact: governance, trustee duties & industry signals
Beyond cash payments, the settlement underscores rising expectations on trustee governance, product value-for-money testing, and transparent cash-option pricing. It also signals that class actions can play a corrective role when members’ savings are eroded by fee settings perceived as unfair. For the broader Australian super sector, this case reinforces the trend: stronger oversight, rigorous product reviews, and clearer disclosure. Members benefit through tighter conflicts management, regular fee benchmarking, and pressure on trustees to demonstrate outcomes consistent with members’ best financial interests.
- Stronger oversight: Tighter monitoring of fees/interest on options.
- Value for money: Product reviews and MySuper performance tests.
- Disclosure: Clearer fee break-downs and option-rate rationale.
- Member outcomes: Focus on long-term net returns after fees.
What affected Australians should do right now (practical checklist)
First, confirm whether you held an AMP-related super product between 2008 and 2020—check old statements, emails, or your MyGov/super fund portal. Next, keep your contact and bank details updated so any payment can reach you. Watch for Court-approved notices on official law firm/class action or AMP pages; avoid scammers promising “faster payouts.” Finally, consider a quick fee audit across your current fund options—compare cash-option rates, administration fees, and investment fees using your fund’s dashboard and the ATO’s YourSuper comparison tool to ensure you’re in a value-for-money product now.
- Verify history: Did you hold eligible AMP super products in 2008–2020?
- Update details: Ensure address/email/bank details are current.
- Follow official channels: Only rely on Court/administrator notices.
- Review today’s settings: Check fees and cash-option rates now.
| Item | Details (as proposed/announced) |
|---|---|
| Settlement Amount | A$120 million (subject to Federal Court approval). |
| Period Covered | Alleged conduct across approx. July 2008 – May 2020 (per filings/announcements). |
| Who Pays | AMP contribution ~A$75m; remainder from insurance (per market statements). |
| Admission of Liability | No admission of liability by AMP. |
| Eligibility | Impacted AMP-related super members in the covered period; specifics via Court-approved notice. |
| Distribution Method | Administrator identifies impacted members; amounts allocated via Court-approved methodology. |
| Next Steps | Court approval → settlement administration → payment processing and member notifications. |
| Member Actions | Update contact/bank details; monitor official notices; review current fees and options. |
FAQs
1 – Do I need to apply to get paid?
Usually no—administrators identify eligible members from records.
2 – When will payments be made?
After Federal Court approval and completion of administration steps.
3 – How much will I receive?
It depends on the Court-approved allocation model and your product history.
4 – Does AMP admit wrongdoing?
No—AMP has stated there is no admission of liability.
