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AIST pushes transition to MySuper
A super body is urging the government to speed up the transition of super savings from high-fee bank-owned default super funds into lower fee MySuper products.
The Australian Institute of Superannuation Trustees (AIST) argued grandfathering arrangements have trapped billions in super savings until 2017.
"AIST estimates that there are tens of billions of dollars of default superannuation that are outside the MySuper environment because of these grandfathering arrangements," AIST executive manager policy and research David Haynes said.
"A large part of the super savings pool is not getting the benefit of the lower fee MySuper environment. This is not only discriminatory; it is not in members' best interests."
The AIST observed that the Financial System Inquiry (FSI) looked into fee levels in super, and wants to move forward the transition date of 30 June 2017, which is the deadline to move all super savings into MySuper.
"Given the current focus on fees in superannuation, members of bank-owned super funds shouldn't have to wait until 2017 for these fee reductions to occur."
It is hard to gauge the full benefits of MySuper until all default super moves to MySuper, Haynes added.
AIST said in its FSI submission it wants a review of how well MySuper reforms are working once all default monies are moved over.
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