• All profits to members’ funds, for example industry funds; and
• For profit funds, for example retail funds run by banks.

The ACTU and unions support industry funds and other “all profits to members” funds. These funds continue to deliver to their members higher investment returns than “for profit” funds while maintaining lower costs.

Industry Funds

Industry funds don’t pay profits to shareholders, instead they return all profits to members’ accounts. They don’t pay commissions to financial planners. Industry Funds outsource much of the running of the fund to reduce costs. They also have a history of innovative investment. This means investing not just in the stock market but also in property, infrastructure – roads, wind farms etc, and socially responsible investments. Read more about the features of industry funds.

The introduction of superannuation to industrial awards led to the growth of industry funds, which were designed to cover employees in whole industries. Most of these funds are now open to workers from any industry. Union and employer groups established industry funds jointly. The trustee boards are made up of equal numbers of employee and employer representatives. Read more about the history of industry super.

Recent research has shown that industry funds outperform other for profit retail funds. Read more about outperformance.

Public Sector Funds

State or Federal Governments established these funds to provide superannuation for employees in the public sector. They are run and structured with the same benefits as industry funds, and include funds established for public servants and for employees of statutory authorities and local Government.

Many of the traditional public sector funds were very generous (at least for those who retired after long periods of service). Many Governments in Australia have now reduced the super paid to public sector employees back to the compulsory minimums at least for new employees.

Retail Funds

Many employers may not wish, or be required, to run their own fund or be part of an industry fund. Such employers may use a master trust fund. These are, in effect, a type of multi-employer fund. Life offices and other superannuation providers usually run them, in order to make profit from workers super. They tend to invest predominantly in the Australian and overseas stock markets.

Retirement Savings Accounts (RSAs)

RSAs are like bank accounts and are run to make profit by financial institutions such as banks, building societies, credit unions or life insurance companies. These institutions often pay commissions to financial planners for directing your super to the fund. These commissions can substantially reduce your super.

Self Managed Funds

Superannuation Funds with fewer than five members are known as excluded, self-managed or do it yourself funds, often, because they are established by an individual or a family from their own superannuation savings. These funds are often very costly to run.

Corporate Funds

Many employers have established their own company based superannuation funds. These funds have their own trustee body charged with the particular responsibility for the fund. These trustees are usually derived from the employees of the organisation and therefore the trustee boards are made up of equal numbers of employer and member representatives.

Many of these kinds of funds are being outsourced due to the increasing costs of running the funds in the current regulatory environment.

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