Mr Mann succeeds retiring CEO Douglas Latto, while Mr Harvie has taken over the reins from Terry Rhodes.

“I would like to thank Douglas and Terry for the many years they have invested into developing the WSSA into the representative body it is today,” Mr Mann said. “We intend to build on their work so that members can continue to deliver vital superannuation services to everyday Australians throughout a period of massive transition.”

WSSA members provide financial education and advisory services to thousands of corporate superannuation funds across metropolitan and regional Australia. They work with Australian companies and their employees by bringing financial education to the workplace at a low cost through structured programmes set in conjunction with employers and product providers. They also work with employers and policy committees to help ensure members receive competitive benefits and features, at competitive prices.

“Workplace superannuation specialists are involved in improving the financial literacy of many thousands of superannuation fund members on a daily basis, however in the current political environment their work is sometimes undervalued and underappreciated,” Mr Mann said. “The WSSA represents its members at an industry, government and regulatory level and our number one goal is to support them so that they can continue to provide their vital services to the many thousands of everyday Australians who need them.”

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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.

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Douglas Latto

Workplace Super Specialists Australia (WSSA) has partnered with CoreData Research to canvass the views of everyday working Australians on their financial wellness.

Launching its Financial Wellness Index at its annual conference in Sydney on 26 August, the research asks Australians to evaluate their financial confidence, literacy, feelings and attitudes around all things financial.

From the research, the WSSA Financial Wellness Index will uncover findings on:

• The spending habits of Australians
• How often Australians worry about money
• How much net income Australians save each pay cycle
• Whether Australians struggle to meet their regular mortgage payments
• Australians expectations on what their retirement will look like at age 65 if they maintain their current level of savings
• How long Australians estimate they are covered for given their current insurance arrangements

“The WSSA is in a very strong position to access the honest views of a cross-section of the Australian population on all things financial, as we are approaching it from the employee position where Australians feel the impact of their financial wellbeing day-to-day,” says Douglas Latto, Chief Executive Officer, WSSA.

The WSSA is also conducting similar research with employers which could highlight any gaps between what employers feel day-to-day and how informed employers are of these employee attitudes and feelings.

“Australian employers can have a positive impact on the financial wellbeing of Australians through information and programs that can help them to find the solutions they need and are looking for,” says Mr Latto.

The WSSA Conference, which will be held at the Four Seasons in Sydney on 26 August 2016, will also feature Optus Vice President of Human Resources, Vaughan Paul who will explain to attendees how they provide financial education and literacy to their employees and the value they put to it.

To register for the WSSA Conference, visit: www.wssa.asn.au/conference.

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Douglas Latto

Workplace Super Specialists Australia (WSSA) will launch its Financial Wellness Index at its annual conference to be held in Sydney on 26^th August at the Four Seasons Hotel.

The WSSA Financial Wellness Index will provide a real measure of the financial stress felt by employees by quantifying the impact a range of financial issues have on their wellbeing.

According to the WSSA’s Chief Executive Officer Douglas Latto, the workplace is where employees live their financial problems day-to-day.

“There are mortgages to be paid, credit card debts, kids to put through school, and the need to save for the future. This can create significant financial stress which can affect both attendance at work and commitment to a job.”

For this reason, he says the most valuable place to deliver financial education is at the workplace.

While schools is often thought of as the starting point for financial literacy, Latto says the inability to put these lessons into practice means they are not always fully understood.

“The workplace is where a difference can be made – and thousands of lives can be improved, resulting in a more productive and happier workforce.”

Also participating in this session is Optus Vice President of Human Resources, Vaughan Paul who will explain to attendees how they provide financial education and literacy to their employees and the value they put to this.

This will be followed by a panel session investigating the role of technology in delivering financial education. Will is replace it replace the workplace super specialist who delivers in person, or will it supplement their work and provide greater reach? An expert panel will help paint a picture for the future.

The WSSA Conference will b held at the Four Seasons in Sydney on 26 August 2016. To register visit: www.wssa.asn.au/conference.

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Douglas Latto

Workplace Super Specialists Australia (WSSA) is calling on Treasury to make the primary objective of superannuation more meaningful to working Australians.

The WSSA made the call in a submission responding to an Australian Government invitation to provide feedback on its Objective of Superannuation Discussion Paper issued last month.

An association that represents workplace superannuation specialist advisory businesses, the WSSA argues that the primary objective of superannuation is to ‘support working Australians in providing an income sufficient to maintain a standard of living in retirement similar to what they had during their working lives’.

In comparison, the WSSA considers the Financial System Inquiry’s definition of the primary objective of superannuation to ‘provide income in retirement to substitute or supplement the Age Pension’ as ‘impersonal’.

“There needs to be a method of engaging working Australians to be active rather than passive participants in securing their financial security in retirement,” says Douglas Latto, Chief Executive Officer, WSSA.

He says the WSSA believes this more personal primary objective, supported by three high level objectives of adequate levels of retirement income, relieving pressure on the Aged Pension and increasing national savings, is the basis of a stronger super model and one that creates a ‘clearer’ path for Regulators going forward.

“For superannuation to matter to Australians it has to be put in a framework of objectives and principles, which people can relate to and strive for.”

Latto says: “The above objectives need to be supported by principles and we concur with the four outlined in the Charter Group’s 2013 submission to Treasury titled ‘Objectives and Principles of the Australian Superannuation System’.

The four principles in that submission included:

• Adequacy – The degree to which the retirement income system enables people to achieve a sufficient standard of living in retirement relative either to the standard they enjoyed while working or as compared to an objective budget standard for retirees.
• Sustainability – Government expenditure, both actual and notional (through tax concessions) on the retirement income system (that is, the Age Pension and superannuation) must be affordable over the long term. Successive intergenerational reports have concluded that population ageing will place substantial pressure on Australia’s economy.
• Certainty – People should have sufficient confidence in the regulatory settings and their evolution to trust their savings to superannuation, including making voluntary contributions
• Fairness – A fair superannuation system is one that treats people in the same circumstances equally and is perceived to be fair by the community. Given that building up superannuation is connected with employment, regard has to be had to those, who for a variety of reasons, have not fully participated in the workforce and therefore have less superannuation than others in their age cohort

Latto concludes: “Retirement is about people. Superannuation is a vehicle which working Australians can utilize to improve retirement outcomes and reduce reliance on Age Pension support. If we keep this in mind, then we shall be on the right track.”

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Douglas Latto

The Corporate Super Specialist Alliance (CSSA), an association that represents workplace superannuation specialist advisory businesses, has rebranded as Workplace Super Specialists Australia (WSSA).

WSSA CEO, Douglas Latto, said, “What our members are really focused on is bringing financial education to the workplace. We believe our new name better reflects the type of work our members actually do with employees, including education, advocacy and employee empowerment.”

Mr Latto said WSSA members would continue to work to a set of guiding principles including accessibility, financial literacy, efficiency, transparency, affordability and adequacy. This has been enshrined in a new Code of Conduct which members must adhere to.

“In the past, we were sometimes mistaken for an association of corporate super funds when what we really do is construct communication programmes in conjunction with employers and policy committees, to ensure their employees are getting the most out of their super and managing it appropriately,” he said.

The WSSA also works with regulators, government, funds and members to continue to provide more innovative ways to provide this important service to employees.

To celebrate the new name and direction, the WSSA will host an inaugural conference at the Shangri-La Hotel in Sydney in August. More details to follow.

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Douglas Latto

Assertions made by The Royal Commission into Trade Union Governance and Corruption, suggesting that industry funds are paying substantial sums to the unions with which they are associated, come as no surprise to the Corporate Super Specialists Alliance (CSSA).

“The union’s negotiating and bargaining agreements would obviously be drawn to promote the industry fund to which they are related,” CSSA CEO Douglas Latto said. “Therefore, we believe the potential for conflict always existed.”

Mr Latto said any conflict of interest, perceived or otherwise, in the areas of enterprise bargaining and the selection of default funds should be examined and removed. “The industry funds movement has been very vocal about removing conflicts of interest from the financial planning industry. It is now time for them to apply the same standards within.”

In the interests of an open market, the CSSA is therefore calling for the decoupling of default superannuation funds from the industrial relations system.

“If the Fair Work Commission is allowed to select a limited number of default funds in modern awards, then hundreds of thousands of employers will be forced to change the default funds they have already chosen for their staff,” Mr Latto said. “This will create a considerable time impost on employers and will likely also result in more employees having duplicate accounts and potentially higher fees – that is, fees associated with the old account and then fees associated with the newly created account. This is a no win situation for employers and employees.”

Mr Latto said employers often negotiate special discounts or special conditions on behalf of their staff and often subsidise fees or pay insurance premiums for their employees. “Some MySuper funds do not allow this structuring to occur and do not recognise the employer in the superannuation relationship at all,” Mr Latto said. “Forcing employees into an inferior fund just because it is nominated in an award does not make sense.”

The obvious solution, according to Mr Latto, is to allow any MySuper fund to be a default fund. “The CSSA has always stood for choice for both the employee and the employer. The only way to bring down costs, improve efficiencies and introduce large-scale innovation is to have an open market. It’s time to break the nexus between unions and superannuation and allow any MySuper fund to be a default fund. Let Australians choose from an open market and remove the vested interests once and for all.”

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CSSA President, Douglas Latto, will take up the position of Chief Executive Officer while Managing Director of AFM Advisers, Terry Rhodes, will take on the President position.

Mr Latto says the change will enable a new strategic direction for the CSSA, which revolves around bringing financial education to the workplace and providing further professional education for corporate super specialists.

“Improving financial education in the workplace is the number one goal of the CSSA. Our association enables corporate super advisers to create a forum to work together to provide an even higher level of service,” he says.

“Our members are working with employers and policy committees all the time, to ensure their employees are getting the most out of their super and managing it appropriately – it is a service that is valued by both employer and employee.”

Mr Rhodes says his appointment will enable him to work more closely with the CSSA board to improve ways of providing essential support to employers and their employees in managing Australia’s growing superannuation pool. “I am looking forward to the opportunity to work with the CSSA Board, regulators, government, funds and members to continue to provide more innovative ways to provide a service which is so important to an individuals retirement saving and insurance choices,” he says.

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Douglas Latto

The mandatory transfer of personal superannuation accounts to MySuper will result in thousands of people losing insurance entitlements attached to their superannuation, according to the Corporate Super Specialist Alliance (CSSA).

“Not only will people lose the insurance cover attached to their previous super funds, they will also have no legal recourse to pursue for their loss,” says CSSA president, Douglas Latto. “This is because MySuper legislation contains immunity for the trustees. Consumers cannot sue the trustee because the trustee is protected by legislation passed by the previous government.”

The transfer to MySuper accounts has begun. It is occurring because the MySuper legislation requires all super members that have not made investment choice, or are 100% in the default investment option, to be transitioned to a MySuper fund by 1 July 2017.

“Those who are pushing for the transfers to occur as soon as possible are viewing the issue too simplistically and are not mindful of members who are at risk,” Mr Latto says. “Fees are not the only issue to consider when implementing these changes.  A lot of people have insurances and we know of a number of providers who are not only going to switch members to MySuper accounts, but who are also going to reduce or cancel their insurance as well.”

Mr Latto says the mandatory transfer to MySuper funds can result in significantly different insurance cover, with the member often oblivious.

“We have already heard some terrible stories. One person’s insurance was reduced from $1,673,000 to $60,000, others have had their cover cancelled completely. With most of the transition still to take place, the damage has only just begun,” he says. “The last thing we want to see is destitute families who have belatedly discovered that they have lost the insurance they expected to rely upon following the death or disability of a family breadwinner.”

Mr Latto says these issues are very significant to members, and the CSSA is urging the industry and government to look at the situation as a whole, instead of dealing with it as a side issue.

“Some superannuation funds are now offering low-cost ‘vanilla-based’ products that prescribe low levels of insurance cover without the option to have higher amounts,” he says. “So those who are being transitioned to these products are the ones who are going to lose out significantly.”

The solution, according to Mr Latto, is to make transition to MySuper ‘opt-in’, not ‘opt-out’ for all members with insurance cover.

“At the moment, it is quite clear that the best interests of many super fund members are not being met and unless we make MySuper ‘opt-in’, we will have a serious problem when claims arise.”

Mr Latto will be presenting on this topic at the Association of Financial Advisers (AFA) National Adviser Conference.  Visit www.afa.asn.au for more information.

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Douglas Latto

The Corporate Super Specialist Alliance (CSSA) disputes that making any MySuper fund a default fund will result in unnecessary costs and expensive red tape.

“We actually think the opposite is true,” says CSSA President Douglas Latto. “If any MySuper fund can be a default fund then most employers will not be forced onto the market in search of a new provider; they will elect to stay with their current fund. This means there would be no employer search costs and no red tape.”

Mr Latto says that at the moment some funds are under multiple Awards and each Award has a different default fund requirement. “This means employers may currently be paying to a number of different funds because the Award forces them to have different defaults for different groups of employees,” he says. “If any MySuper fund could be a default fund, employers could consolidate into the preferred fund amongst the funds they are contributing to. This would reduce time and red tape for the employer because they would then only have to choose one fund for their whole company.”

The CSSA also believes that it is not appropriate for the Fair Work Commission to be responsible for selecting default super funds for inclusion in industrial awards.

“With the greatest respect, we do not think the Fair Work Commission has the expertise or experience to do this kind of work. We are giving responsibility for millions of dollars of consumer retirement savings to people who have no expertise in choosing funds,” he says. “CSSA advisers take years to hone their skills, to make their selections and to understand how products work.”

Mr Latto also said that under the new MySuper rules only registered organisations can submit on modern awards and this presents a conflict of interest.

“Registered organisations are bodies like unions and employer groups,” he says. “When these organisations make their submissions they are highly likely to support their own funds. If any MySuper fund could be a default fund, this conflict of interest would cease to exist.”

Allowing any MySuper fund to be a default fund would also see the return of a fair market and a level playing field, he says.

“We utterly reject the concept of a ‘quality filter’ which narrows the universe of default funds down to a mere handful,” he says. “If the marketplace is reduced to just a few funds, people are forced to go into them. This is not only uncompetitive but also completely removes innovation from the marketplace because there is simply be no need to innovate.”

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