BT Financial Group statement on Productivity Commission findings

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One of Australia’s leading superannuation providers has said the Productivity Commission’s recommendations for the selection and ongoing assessment of default funds in modern awards was a win for Australian workers. 

BT Financial Group head of superannuation Melanie Evans said, if implemented, the recommendations would result in a more transparent and competitive superannuation system.  

“The Productivity Commission’s findings have highlighted the opportunities for change and we welcome its recommendations. Empowering employers to choose any MySuper fund as their employees’ default superannuation fund is a sensible approach and one that will encourage greater competition,” Ms Evans said. 

“MySuper funds must comply with a strict set of rules and therefore it is appropriate to allow employers to make a choice based on their employees’ needs if they wish to.  Previously, employers covered by an award were limited to whichever funds were listed in that award. 

“For those employers who don’t wish to make a choice, we also welcome the recommendation to base the selection process for default funds in modern awards on a fund’s compliance with the MySuper regime. This is an endorsement of the Government’s key superannuation reform, MySuper. 

“A tighter process in the selection and ongoing assessment of funds listed in awards is prudent and will improve competition, leading to better outcomes for Australian workers. 

“Australians deserve a superannuation system that gives the best chance to maximise savings. The Productivity Commission’s recommendations would deliver greater competition and therefore higher retirement savings for working Australians.”

3 July 2012

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