The Federal Government has used the Budget papers to reinforce its intention to impose a “retirement covenant” on superannuation funds.
The Budget papers confirmed the Government’s intention to amend the Superannuation Industry (Supervision) Act 1993 (SIS Act) “to introduce a retirement covenant that will require superannuation trustees to formulate a retirement income strategy for superannuation fund members”.
The Budget papers said the Government would also amend the Corporations Act 2001 to introduce a requirement for providers of retirement income products to report simplified, standardised metrics in product disclosure to assist customer decision making.
The Budget announcement comes amid industry concerns that a one size fits all approach will not be appropriate with respect to the development of Comprehensive Income Products in Retirement (CIPRs).
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.