Trustees warned on SG defaults
Mercer Investment Consulting has written to the trustees of client superannuation funds warning them that, in the current financial climate, employers may start defaulting on meeting their superannuation guarantee obligations.
The reminder from Mercer has come in the form of a checklist, which stated trustees should check whether employers are contributing the superannuation guarantee and other contributions on a timely basis and in accordance with award and legislative provisions.
“In this period of financial uncertainty, the number of defaulting employers and those in arrears is likely to increase,” the Mercer checklist said.
It said trustees had a responsibility to members to at least notify them if contributions were not being paid.
The document also sought to remind trustees to review their Investment Policy Statement, warning that in the current environment fiduciary risk was high and an up-to-date statement could help minimise risk.
AUTHOR
Mike Taylor
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