Class action modelling for superannuation reform
KordaMentha developed a dynamic model to simulate the performance of $3.2 billion in superannuation funds across four years, supporting a class action related to MySuper reform compliance.
KordaMentha was engaged by legal advisors acting on behalf of class members to provide data analytics support in a class action concerning compliance with MySuper superannuation reforms.
The action alleged that two major superannuation providers failed to transition approximately $10.2 billion in member funds in line with regulatory requirements and member best interests.
Our team was tasked with developing a model to simulate how member funds might have performed had the reforms been implemented at key points in time. This required detailed analysis of individual member accounts, including contributions, fees, and insurance premiums, over a four-year period.
How we helped
KordaMentha’s data analytics specialists designed a two-phase modelling approach to simulate fund performance and transactional components at the member level.
- Built a validation model to replicate historical transactions for over 100,000 members
- Developed a counterfactual model to simulate fund transfers and performance under reform-compliant scenarios
- Analysed fund performance, administration fees, and insurance premiums
- Applied fund-specific Product Disclosure Statements to recalculations
- Ensured mechanical accuracy across all model components
- Delivered insights to support legal strategy and settlement negotiations
Outcomes acheived
- High model accuracy: Phase one achieved 99.99% accuracy against historical records
- Counterfactual insights: Phase two enabled simulation of reform-compliant fund performance
- Member-level granularity: Model captured individual contributions, fees, and insurance premiums
- Legal support: Findings informed legal strategy and expert reporting
- Settlement impact: Modelling contributed to a favourable settlement for class members
- Scalable framework: Approach adaptable to other superannuation or financial services matters
