The Labour Union Co-operative Retirement Fund (LUCRF) has cut the fees of its pensions in a bid to introduce cost savings for its members.
The industry fund has reduced the management fee from 0.9 per cent per annum of member balances to between 0.2 per cent and 0.69 per cent depending on the investment options chosen by a member.
"We've always been a member-focussed fund and cutting our fees - in a smart and responsible way - allows our members to be that bit more comfortable as they wind down and finish their working lives," LUCRF chief executive Greg Sword said.
LUCRF pensions will also incur an administration fee of $1.25 per week, in line with its current superannuation accounts' fee levels.
According to Sword, the fee structure that came into effect from 1 January 2009 placed the pension fund among the most cost-effective retirement products available.
"The new fee arrangement has reduced the fees for every single LUCRF member, with some saving several thousand dollars a year," he said.
The announcement follows a decision by industry fund Hostplus to place a moratorium on raising its member fees for core and personal products for at least two years.
"The softening of the share markets domestically and internationally over the past six months has affected all superannuation funds," Hostplus chief executive David Elia said.
"While share market performance is beyond investor control, one thing they can control is the amount of fees they pay to their superannuation funds."
Members are charged a flat member fee of $1.50 per week and management fees range from 0 per cent to .82 per cent depending on the investment option chosen.
Hostplus currently charges fees below the industry average and last increased fees in December 2004.
