WSSA responds to Productivity Commission MySuper Review

From

Douglas Latto

Fewer superannuation funds, reduced innovation and less competition within superannuation funds could be the future of superannuation in Australia if the Government chooses to go down the path of a tender or auction for fund selection, which looks to restrict the number of default funds to a maximum of 10.

According to the Workplace Super Specialists of Australia (WSSA), these ‘unintended consequences’ will significantly impact the effectiveness and sustainability of competitive superannuation funds in the Australian market if they are not chosen for the default fund list.

“Is this what the Government wants,” asked WSSA President Douglas Latto.

“We have consistently said that employers are best placed to choose default super funds,” he said, “and this is based on our experience over a number of years.

“Also, it is too early to decide on the effectiveness of MySuper as it has not had a chance to operate in an open and unfettered marketplace.”

WSSA is still examining the assisted employer choice model and the merits of the assisted employee choice model, the other two options outlined in the Productivity Commission’s findings.

 

1 comment

  • David Deck says:

    The Government has a great opportunity to open up superannuation for awards. This is probably the biggest change for many Australians regarding their super in the last 10 years. Advice and education need to play an important part and I hope this is not just dumbed down by just price or union relationship link.

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