Industry Super Australia (ISA) will fire another salvo in its bid to fend off default fund competitors launching a new television advertising campaign urging employers, and members to examine which super fund is their default fund.
ISA said the advertising campaign, titled ‘Banks aren't super', was in response to a lobbying campaign by major banks to reshape superannuation regulations to suit their business model claiming the banks "want to change the rules on how people join super funds to be allowed to ‘bundle up' business banking services and employees super arrangements".
ISA said that around eight in 10 working people do not choose a fund themselves and go with the default fund their employer has in place and that banks have already started to make moves to approach businesses about moving to bank offered default fund superannuation products.
The peak group said a survey conducted in late 2014 by UMR Strategic Research found that around a quarter of 550 small and medium business surveyed had been approached by a bank during 2014 about moving to the bank's own retail super fund, with half of that group stating their bank had offered them benefits to change their workplace default fund.
"The banks seem to stop at nothing to get their hands on Australian's super savings", said ISA, chief executive, David Whiteley.
"The retail and bank-owned super sector has failed to deliver competitive investment returns and are seeking to create an unlevel playing field that suits their business model potentially at the expense of Australians' super savings."
"Most employers will do the right thing by having a fund in place that is run to benefit employees, has low fees and a history of strong investment performance."
"And we know that employees expect employers to be looking out for them when it comes to super, and not for the banks. After all, employer's choice can make a world of difference to the life their staff will have in retirement."