Changes to super earnings base
Mike Fitzsimons
Plum has warned employers that time is running out to take action on ordinary time earnings (OTE) and has contacted all its corporate clients in relation to the standardisation of the superannuation guarantee (SG) earnings base to OTE, due to take effect on July 1, 2008.
Plum managing director Mike Fitzsimons said there had not been enough media coverage on the matter considering its potential to be a labour intensive exercise.
“There are so many circumstances where our corporate clients may have to adjust their current earnings base arrangements to ensure that they align to the new OTE definition,” he said.
“If our corporate clients are not across all the implications of the change, their employees might be short-changed on their superannuation contributions and a penalty could be imposed on the sponsoring employer.”
According to Plum, the changes have the potential to impact payroll systems, human resource policies, remuneration and benefit policies and finance budgets.
Recommended for you
Vanguard has launched a suite of five model portfolios in partnership with Lonsec Investment Solutions to offer active-passive solutions for financial advisers.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
