Further MySuper standards usurp member choice: ASFA
The Association of Superannuation Funds of Australia (ASFA) has urged the Government not to meddle in super member's financial decisions by forcing all accrued default amounts (ADAs) into MySuper accounts.
ASFA questioned why, if the member had given the superannuation fund trustee a direction as to their investment option, ADAs should then be transferred to MySuper.
"This amounts to the Government interfering with, and effectively overriding, valid financial decisions made by the member," ASFA said.
Members who have chosen to have an amount invested in the default option should be treated as choice members and not have any amounts moved into MySuper, ASFA said.
It said there was nothing "inherently special" about the default investment option, which was just like any other investment option for members who had chosen to have part or all of their account balance invested in the default.
The definition of accrued default amount rested on a policy position that posited that balances placed into the default investment option be treated as 'MySuper money', according to ASFA, which said it undermined the Super System Review, which categorised members as disengaged/MySuper members and engaged/Choice members - not MySuper and Choice money.
The industry body also questioned the fair divvying up of cost recovery between Choice and MySuper products, with members who hold account balances in both options facing the possibility of two administration fees, and funds with lifecycle options unable to implement differing fees for different investment options.
ASFA said the provision which states that all members should be charged the same percentage amount should be changed, so that all MySuper members were charged a fee in accordance with the same percentage scale.
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