The Federal Government needs to provide more details of its plan to introduce auto-consolidation for Australian superannuation, ING Employer Super executive director Ross Bowden said.
“The Federal Government has flagged its intention to implement a system of automatic rollover to reduce lost super but is scant on the detail of how the system will proceed,” Bowden said.
“Reducing the level of lost super is commendable, but the Government needs to be aware that several issues may complicate the rollover process.”
ING Employer Super released a statement identifying a number of concerns that it said needed to be addressed before auto-consolidation is introduced.
It identifies a number of potential disadvantages for members if their super is automatically consolidated including loss of insurance cover, loss of suitable investment strategies, loss of lump sum death payments and difficulties with estate planning.
“ING is hopeful that the Federal Government will address these issues and consult across all sectors of the superannuation industry before implementation of the scheme,” Bowden said.
