Make selecting a super fund compulsory says EQT

16 January 2020
| By Mike |
image
image
expand image

In a submission filed as art of the Senate Economics Legislation Committee’s inquiry into the Government’s legislation changing default superannuation arrangements, Equity Trustees said the legislative changes did not go far enough.

“The continued operation of default funds and the lack of compulsion for employees to select their own superannuation fund may perpetuate disengagement and multiple accounts (and the knock-on implications of increased fees and insurance costs to superannuation members),” the submission said.

“Equity Trustees would make the case that the whole superannuation system should be based on a foundation of requiring all employees to exercise choice of superannuation fund.”

The submission said that given that the superannuation guarantee had now moved beyond its origins as an employee benefit to a legislated requirement, the employer’s role in selecting default funds for its employees had become redundant.

“Likewise, having any other agent select default funds exposes the employee to the interests of those bodies without any legislative protection requiring those bodies to act in the member’s best interest,” it said.

“Equity Trustees would therefore propose further legislation is enacted to ensure all employees are provided the opportunity to select a superannuation fund.”

Read more about:

AUTHOR

Submitted by Jenni on Thu, 01/16/2020 - 13:23

I absolutely agree. You have to choose your own bank account, so make people responsible for choosing their own super fund too

Submitted by An Old Timer on Thu, 01/16/2020 - 13:41

Dare I say it …. default into the Future Fund allowing the member to opt out ??? Food for thought ???

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

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 Co...

1 day 4 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

1 day 4 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

1 day 5 hours ago