A body representing advisers working in corporate superannuation wants to charge a life insurance service fee.

All group life insurance commissions will be banned under the Federal Government’s MySuper proposals.

Corporate Super Specialist Alliance (CSSA) President Douglas Latto says the proposal for the fee was included in the association’s submission to Treasury on the draft MySuper bill.

“Corporate super specialists provide a range of insurance services to members of funds, including negotiating reduced premiums and better features,” he said.

“While the CSSA recognises it is inappropriate for commissions to be included in a premium when no service is being delivered, if corporate super specialists cannot be effectively remunerated members of corporate super funds would ultimately lose their services.”

The insurance service fee would be charged to all members of a fund at an agreed percentage negotiated with the employer, Mt Latto says.

It would have a zero default option if the employer decided not to provide insurance support to the fund’s members, and would operate in the same way asset-based fees are charged within managed funds and superannuation.

“This should ensure that only those receiving insurance services are paying the fee,” he said.

“It would be a better solution for fund members offering lower costs and more tailored features for each individual group life contract.

“It makes no sense that payment for providing services associated with insurance to members can only be made from the least efficient solution.”