A class action alleging QSuper overcharged fund members for life insurance premiums has been settled out of court for $67 million, without admission of liability.

The deal between the superannuation fund and plaintiff law firm Shine Lawyers is subject to Federal Court approval.

A spokesperson for Australian Retirement Trust, formed in 2022 through the merger of QSuper and Sunsuper, told insuranceNEWS.com.au: “The QSuper board has reached an in-principle settlement … to avoid the risk of costs associated with ongoing litigation. In agreeing to the settlement, the QSuper Board has made no admission of liability or wrongdoing.” 

The spokesperson says money to settle the action will not come from member accounts.

“The settlement amount will come out of money that had already been set aside by QSuper to provide for the potential liability from the class action, which was put into a reserve at the time of the merger to form Australian Retirement Trust.”

Shine Lawyers joint head of class actions Craig Allsopp says the settlement brings “long-awaited relief to affected fund members, the vast majority of which were Queensland government employees and their spouses, including teachers, doctors and other essential workers, many of whom were charged higher premiums despite having lower occupational risk.”