Industry fund Hesta has announced it will be one of the first pension providers to offer superannuation advice to its members entirely free of charge.
The decision by the health and community services fund comes amid fierce debate about the provision of advice to members of superannuation funds, and how it is paid for.
Under Hesta's scheme members can ask a dedicated Superannuation Service Adviser (SSA) for free advice on investment choice, voluntary or additional contributions, insurance and account consolidation. Traditionally members have had to pay for such advice.
Hesta chief executive Anne-Marie Corboy said the limited service was aimed at those members with lower account balances that might not want to pay for a full advice package.
"In the current economic environment people are looking more closely at their superannuation, particularly those who are closer to retirement. We believe increasing our services in the areas of education and advice will benefit our members."
Hesta's workplace education program includes modules on debt management and budgeting, salary sacrifice, co-contributions, insurance and investment choice.
Other super funds have gone down the road of providing tailored advice to members, but none have so far offered it entirely for free.
REST Super, Intrust Super, Club Plus Super, Buss(Q), Christian Super and Catholic Superannuation all operate a scheme whereby members can call a switchboard to get limited financial advice from a third party.
The member, however, either has to pay for the advice directly or have a fee deducted from their superannuation balance.
Debate has raged across the industry about whether superannuation funds should pay commissions to financial advisers and the potential for conflicts of interest.
A high profile advertising campaign last year, sponsored by 17 industry funds, claimed that in the long term member returns could be severely handicapped by trailing commissions to financial advisers.
Financial advisers argue, however, that one off fee packages for advice can scare off members and that commissions are popular since they spread the payment over time.
