A superannuation fund’s directors and executives have committed to a 10 per cent cut in remuneration, as the fund buckles down for the COVID-19 crisis.
Queensland fund LGIAsuper has implemented the change, with it being in place until at least the end of June, when it will be reviewed.
The executive leadership team has taken the 10 per cent decrease through sacrificing their annual leave entitlements.
LGIAsuper chair John Smith said the board had considered the material impact of the pandemic when making the decision, particularly its effect on fund members, pensioners and on the fund’s local council stakeholders across Queensland.
“We are operating our fund in an unprecedented environment where more than a million Australian jobs are under threat,” Mr Smith said.
“Our core membership comes from the local government sector, and we recognise that this is a sector that is expected to be hard hit as ratepayers experience financial hardship.
“I am committed to ensuring that our members and our community stakeholders understand that we are at one with them and that we share in the impacts of this crisis.”
LGIAsuper chief executive Kate Farrar said while the board and leadership are demonstrating solidarity with members, the fund will not ask its employees to make the same sacrifices.
“Many of our members are directly impact by COVID-19, and it is important they know we are standing with them, while working tirelessly to protect them and their savings,” Ms Farrar said.
“We know our fund will be impacted by COVID-19, but our members can rest assured that we are determined to keep investing in services for members even through the fallout from this pandemic.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].