Reforms to deliver better retirement outcomes
Melbourne, 21 September 2011: AustralianSuper has welcomed the details supporting the key elements of the proposed Stronger Super reforms.
Whilst noting that the package did not contain all of the elements of the Stronger Super agenda which AustralianSuper supported, Chief Executive, Mr Ian Silk referred to the overall package as a big step forward in improving retirement outcomes for most Australians.
“That the majority of super accounts will be commission free by 2017 will be an outstanding achievement. We believe that the new MySuper products will generally be simpler for superannuation fund members to understand and make it easier for them to compare fees and net returns”, Mr Silk said.
AustralianSuper has always been commission free and run only to benefit its members and will have a MySuper product in 2013.
With respect to the allowance for multi-pricing of the MySuper product Mr Silk added, “We are heartened by the confirmation that the Government will determine the parameters under which a trustee will be able to offer a discounted administration fee. And we expect that Trustees under this process will be required to make a fair and reasonable allocation of costs between MySuper products and other products, including for employer-based plans.”
Mr Silk called for cost savings gained, through greater efficiencies in the new SuperStream processes, to be passed on to members. “The intent of these reforms is to improve the retirement outcomes of members so it would be an anathema for cost savings that result to be retained by the trustee,” Mr Silk said.
AustralianSuper also welcomes the consolidation reforms as a long overdue, “We receive lots of feedback from members who are frustrated in their attempts to consolidate their accounts. The new reforms to streamline the consolidation process and help them avoid
paying unnecessary fees on multiple accounts, is a significant achievement,” Mr Silk said.
Mr Silk also applauded the auto-consolidation reforms as well as the proposed increase of the threshold to $10,000 in 2014 as noted in the Stronger Super report, but called for the removal of the threshold altogether for the period beyond 2014.
ENDS
For more information, please contact:
AustralianSuper
Susan Fairley
Marketing Manager
03 8648 3834
sfairley@australiansuper.com