The Productivity Commission has released the draft report: How to Assess the Competitiveness and Efficiency of the Superannuation System.
The Commission says the report includes a “proposed framework to assess the efficiency and competitiveness of Australia’s $2 trillion superannuation system”.
“Our superannuation system is large, complex and has broad reach. This means even small system improvements can offer significant financial benefits to Australian workers, particularly in their retirement.”
“We have developed a framework that will allow us to assess how well our super system is able to meet its primary purpose of providing retirement income,” said Commissioner Angela MacRae.
Following from a recommendation by the Financial System Inquiry, the Government tasked the Productivity Commission with developing criteria to assess efficiency and competitiveness in the super system. The Commission released an issues paper earlier in 2016, and plans to complete the final Research Report in November 2016. The Terms of Reference say that “this work will inform a review of the efficiency and competitiveness of the superannuation system, which the Productivity Commission will be asked to undertake following the full implementation of the MySuper reforms (after 1 July 2017)”.
“‘This is the first important step in our work. Undertaking a system-wide assessment of the competitiveness and efficiency of our super system is challenging and novel. It has not been done before. Getting the foundations right matters most — and we know there are no silver bullets,” said Productivity Commission Deputy Chair Karen Chester.
“Competition is not an end in itself. It will be assessed in terms of the benefits it can deliver for members.”
“In defining our assessment criteria, current policy settings are taken as a ‘system given’ to ensure our assessment focusses on what is within the system’s field of influence.”
The Productivity Commission says that submissions in response to the draft report are due by the 9th of September 2016.