Super fund Hostplus rewrites rules to suspend cash withdrawals
The $44 billion superannuation fund representing the hospitality industry has silently given itself "absolute discretion" to "suspend or restrict" applications for cash withdrawals, despite furiously defending its ability to pay out the government's emergency early access scheme.
Hostplus has altered an extraordinary clause that will be relevant to a large portion of its members without any warning. Previously, the same clause had told members they can switch between investment options and it would be processed within two days. The amended clause gives the fund the total power to halt payouts at its discretion.
"The trustee may also decide to process a transaction request for a particular type of benefit from a suspended, restricted or closed option on a case by case basis. Any decision about whether to process transactions from such an option will be made in the best interests of investors as a whole."All impacted transaction requests will be processed using the effective unit price applicable on the date the suspension is lifted, or the date special approval is granted if earlier.
Hostplus largely represents workers from the hospitality, sports and tourism industries and concerns have been raised over its ability to pay out the government's early access scheme after it was exposed to have a high exposure to unlisted assets,
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