AMP has agreed to a $120 million settlement in a major superannuation class action, paving the way for compensation to millions of Australians who were allegedly charged excessive fees on their retirement savings.
This landmark outcome, led by class action law firms Slater and Gordon and Maurice Blackburn, comes after years of claims that AMP put profits ahead of its members’ best interests.
Why Did AMP Settle the Case?
The class action, first filed in 2019 after the Banking Royal Commission, accused AMP of:
- Overpaying related entities for administration services.
- Charging super members higher fees than necessary.
- Keeping funds in low-interest, cash-only investment options.
The case alleged that AMP’s trustees prioritised the financial interests of the AMP Group over members’ retirement savings.
Although AMP has agreed to the payout, the company has not admitted liability.
How Will the $120 Million Be Paid?
- Total settlement: $120 million.
- AMP contribution: About $75 million.
- Insurance contribution: The remaining amount.
The settlement is still subject to Federal Court approval before compensation is distributed.
Who Is Eligible for Compensation?
More than two million AMP superannuation members may be entitled to a share of the payout.
You may be eligible if you held a super account with AMP (excluding Platform Fund or Mature Product) during these periods:
- From July 1, 2008 – Members of AMP Superannuation Savings Trust, AMP Retirement Trust, or the Eligible Rollover Fund.
- From March 30, 2011 – Members of the Super Directions Fund.
No action is required at this stage. Once the Federal Court approves the settlement, further details on the claims and distribution process will be released.
Why This Matters for Superannuation Members
This case is one of the largest superannuation class actions in Australia and highlights the importance of transparency and fairness in managing retirement savings.
- For members: It ensures accountability and provides financial compensation for years of alleged overcharging.
- For the industry: It sends a clear message that super trustees must act in the best interests of members, not corporate profits.
Statements from Both Sides
- Maurice Blackburn Lawyers: Described the outcome as a “major step toward justice” for millions of Australians.
- Slater and Gordon: Said the settlement delivers accountability and sets a strong precedent for the super industry.
- AMP Chief Executive Alexis George: Framed the agreement as a way to move on from a “legacy matter” and focus on rebuilding trust.
FAQs
1. Do I need to register for compensation?
Not yet. The settlement must first be approved by the Federal Court. Instructions will be provided afterward.
2. How much money will members receive?
The exact compensation amount per person will depend on factors such as account type, fees charged, and time period involved.
3. When will payments be made?
A timeline will be set after the Federal Court approves the settlement. This process may take several months.
4. Can I still register if I no longer have an AMP super account?
Yes. If you held an eligible AMP super account during the covered periods, you may still qualify.
5. Where can I find more information?
Updates will be available on the websites of Slater and Gordon and Maurice Blackburn Lawyers.
Final Thoughts
The AMP $120 million superannuation settlement is a powerful reminder that Australians deserve transparency, fairness, and integrity when it comes to managing their retirement savings.
If you were an AMP super member between 2008 and 2019, you may be entitled to compensation. While no action is required right now, keep an eye on updates from the Federal Court and law firms handling the case.
Your superannuation is one of your most valuable assets—make sure it’s working for you, not against you.