While the key industry super fund bodies have lamented the Government’s proposed changes to super governance arrangements, Queensland public sector fund, LGsuper has declared it is backing the draft legislation.
The fund has issued a statement saying that it is backing the legislative changes requiring at least one-third independent directors on trustee boards plus an independent chair because it is already meeting that criteria.
The statement said that, in 2013, LGsuper became the first profit-for-members’ super fund to voluntarily adopt the board structure now being pursued by the Federal Government.
It said its nine-member board featured an equal mix of independent directors, and member and employer-representative directors.
Making this point, LGsuper chair and independent director Bronwyn Morris said the proposed reforms were in the best interests of all super fund members as they would bolster fund governance. “We have already seen the advantages this balanced leadership creates, as each independent director brings their own specialist skills and expertise,” she said. “In our case, the additional finance, investment and actuarial experience they bring to the table make an already good board stronger.”
Morris said the presence of one third independent directors complemented the in-depth knowledge of the fund’s member and employer representatives.
“At the end of the day, strong governance is critical in properly funding the retirement of our members. That is why we believe these best-practice governance standards need to be implemented industry-wide,” she said.
