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Super funds at the source of MySuper information
Super funds must prepare to become a major source of MySuper information to employers, according to the director of industrial relations at the Australian Business Industrial and NSW Business Chamber, Dick Grozier.
Many employers only have a half perception of what MySuper means for them, Grozier said at the Australian Institute of Superannuation Trustees administration conference.
Evidence seems to suggest that the Australian Taxation Office is currently a source of information for employers, although super funds should take that role, he said.
But super funds have to communicate with employers more effectively, he said.
Employers don't like the experience of choice because they have to talk to many different super funds, all with different requirements, he said.
Superannuation is a chore for many employers, he added.
Super funds should also tailor any information given to members in such a way that members will go back to the super fund for more information, rather than going to the employer, according to Grozier.
"We don't want to see employers being tempted to give what looks like financial advice to employees," he said.
Grozier warned that changing default options was going to become more common.
MySuper authorisation would see some funds dropping out of the cohort of default funds, while the pressures of scale and the Productivity Commission recommendations would push consolidation.
Employers don't change default options because the whole choice regime process and the effort of making friends with a new fund made it too hard for employers, Grozier said.
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