Awards must remain integral to default superannuation, says AIST
The Australian Institute of Superannuation Trustees (AIST) has signalled it will be pressing the Productivity Commission to leave industrial awards as an integral part of the ability of employers to select default superannuation funds.
Responding to Friday's release of the Productivity Commission's draft report into default funds under modern awards, AIST chief executive Fiona Reynolds said her organisation was concerned about "employers being able to select funds outside a transparent award system".
She said it was something the AIST would be seeking to discuss further with the commission.
"AIST is all for a transparent and rigorous selection process that has members' interests as the only criteria for assessing default funds. Anything less would be unacceptable for the millions of Australians who rely on default funds to deliver for their retirement," Reynolds said.
However, she said the AIST was looking forward to further discussions with the commission - "particularly around the second stage factors required for the selection process and employers selecting funds within this process".
The Productivity Commission's draft report has recommended in broad terms that approved MySuper funds should be capable of selection by employers as default funds under modern awards - something which would open up the area to players such as AMP, Colonial First State and the other major institutional providers.
However, Reynolds noted that the commission's report had also suggested that funds would need to be "fit for purpose".
She said that meant they needed to be right for workplaces.
"Selecting the right default funds for a particular group of employees or workplace requires careful consideration. At the end of the day, the process must be about protecting members and delivering results - not just helping some funds make more money out of super," Reynolds said.
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