Productivity Commission inquiries into superannuation – efficiency, competitiveness, default funds

Productivity Commission has been conducting inquiries into superannuation, including the efficiency and competitiveness of the super system and alternative ways to select default funds.

Productivity Commission proposes four ways to revamp default super funds

It would be possible for a person to have a single default super fund in their lifetime, instead of having multiple default funds as they change employers, under models developed by the Productivity Commission. The Productivity Commission was tasked by the government with developing alternative models for setting default super… Read More »Productivity Commission proposes four ways to revamp default super funds

Tender process for default super “solution looking for a problem”: ASFA

The Association of Superannuation Funds of Australia (ASFA) says a Chilean-style tender process for selecting default superannuation funds is a solution looking for a problem. ASFA has released a research paper on the Chilean tender process for pension funds, at a time when the Productivity Commission is considering such a… Read More »Tender process for default super “solution looking for a problem”: ASFA

Industry concerned by cost of super system efficiency framework

The Productivity Commission has released its framework for assessing the performance of the superannuation system, though the industry is concerned it could increase costs – which will be passed on to members. The Productivity Commission has released its report How to Assess the Competitiveness and Efficiency of the Superannuation System,… Read More »Industry concerned by cost of super system efficiency framework

ASIC warns about issues with employers choosing default super funds

ASIC has warned about the issues with employers choosing default super funds for employees, including around incentives and the offering of inducements. “Although employers currently have the legal responsibility to make a decision in relation to the default superannuation product, employers are required to neither select a fund that is… Read More »ASIC warns about issues with employers choosing default super funds

FSC welcomes “refreshing” approach towards default super competition

The Financial Services Council has welcomed the “refreshing approach” the Productivity Commission has taken towards competition in setting default superannuation funds. The Productivity Commission is conducting an inquiry to develop alternative models for determining default super funds. “Australia has a world leading superannuation system, however it can be improved through… Read More »FSC welcomes “refreshing” approach towards default super competition

Alternative default super inquiry is focussing on “inferior models”: ISA

The Productivity Commission should focus on the world’s best retirement income systems instead of “inferior models”, says Industry Super Australia. The Productivity Commission is currently developing alternative models to set default superannuation funds. Several industry super funds have made submissions to the inquiry in support of the current system. Industry… Read More »Alternative default super inquiry is focussing on “inferior models”: ISA

Industry funds ask if default super changes are ideologically motivated

Industry super funds say the existing system for choosing default super funds is working well and ask if the potential move to a competitive model is ideologically motivated. The Productivity Commission is conducting an inquiry into alternative models for choosing default super funds. However a submissions from industry super funds support… Read More »Industry funds ask if default super changes are ideologically motivated

Small employers shouldn’t have to choose default super funds: Mercer

Smaller employers should not have to choose default super funds for employees, Mercer has told the Productivity Commission. The Productivity Commission is conducting an inquiry into alternative models for setting default super funds. The consulting firm Mercer, in its submission to the inquiry, says it is “essential” that larger employers… Read More »Small employers shouldn’t have to choose default super funds: Mercer

Default super fund inquiry must put interests of members first

Organisations representing superannuation funds have called on the Productivity Commission to put the interests of super fund members first in designing a default super fund model. The Productivity Commission is currently conducting an inquiry to develop alternative models to choose default super funds. However Industry Super Australia and the Australian… Read More »Default super fund inquiry must put interests of members first