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Industry Bodies

CSSA: FWA lacks expertise, experience to make default super calls

27 Aug 2012
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Fair Work Australia (FWA) does not have the specific knowledge and necessary superannuation experience to select default super funds for inclusion in industrial awards, according to the Corporate Super Specialists Association (CSSA).

The CSSA is responding to a statement from the Minister for Financial Services and Superannuation, Bill Shorten, on the Interim Report of the Productivity Commission Inquiry into Default Superannuation Funds (the Productivity Commission), which indicated the Government supports establishing a FWA expert panel responsible for selecting default super funds for inclusion in industrial awards.

“Fair Work Australia has been subject to a significant level of criticism in their handling of recent enquiries,” said CSSA President, Douglas Latto. “Their impartiality has been brought into question and they have taken a long time to reach decisions. We don’t believe they have the necessary resources, expert knowledge and high level of superannuation experience required to take on such a critical role; a role which will significantly impact the retirement savings of most Australians.”

Mr Latto said the CSSA shares concerns raised by the Shadow Minister for Financial Services and Superannuation, Senator Mathias Cormann, who said Minister Shorten’s expressed support for an FWA expert panel pre-empts the Productivity Commission’s findings and final recommendations and inappropriately favours industry funds.

“We have been encouraged by the Productivity Commission’s approach to date, which has clearly been to investigate ways in which to make the default super selection process more open, contestable and transparent,” Mr Latto said. “By indicating support for one of the options outlined in the interim report over another, we believe the Government is undermining the impartiality of the work being done by the Productivity Commission.”

Mr Latto said the CSSA believes that employers should be able to select any MySuper fund as a default fund on behalf of employees. 

“The roles of employees under a particular award can be very diverse,” he said. “Employers understand that better than most.  As such, we believe it is very important to allow them to tailor their superannuation offering to suit the needs of their own workforce.”

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