SuperEC, the e-commerce initiative to establish a common set of standards for the electronic processing of superannuation related information across fund managers and super fund administrators, has gone live with the first rollover of super contributions betweenColonial First StateandBT Financial Group.
The inaugural flow of funds is the culmination of a two year, industry wide effort to better manage the movement of superannuation monies between Australia’s superannuation providers, and will allow for the fully automated rollover of superannuation benefits under a universally agreed electronic standard.
The SuperEC program is an initiative of a number of industry bodies, including theInvestment and Financial Services Association (IFSA)and the Association of Superannuation Funds of Australia (ASFA), as well as a range of fund managers, superannuation funds, fund administrators and government authorities like theAustralian Taxation Office (ATO).
The rollover of benefits between Colonial and BT marks the conclusion of just the first phase of the SuperEC programme. When fully implemented in 2004, SuperEC will create the standards and processes required for the electronic exchange of all superannuation related information, cutting administration costs in the superannuation industry by 30 per cent and saving super fund members up to $660 million.
Head of BT Portfolio Services Geoff Lloyd says the SuperEC program is a pioneering effort to elevate e-standards across the superannuation industry.
“Integrated electronic processing marks the launch of a truly streamlined service for enhanced delivery to super clients, and the start of paperless processes which will result in cost savings all round,” he says.
ASFA director of policy and research Michaela Anderson says the initiative has the potential to create sweeping cost savings for super funds and their members.
Currently, Australia’s superannuation industry consists of 23.2 million fund member accounts, with almost 10 per cent, or 2 million accounts, being transferred or rolled over between providers each year.
“The costs savings and increased efficiency resulting from the implementation of the SuperEC Programme will have far-reaching benefits for funds and members alike,” Anderson says.
IFSA chief executive Lynn Ralph also welcomed the initial SuperEC transaction between Colonial and BT, but urged other fund managers to quickly follow the lead of the two groups in an effort to spread the e-commerce benchmark throughout the superannuation industry.
“[This] announcement sends a strong message to the rest of the industry about Colonial First State and BT’s commitment to improving the electronic standards of Australia’s superannuation industry,” Ralph says.
Other fund managers who have contributed to the SuperEC program and who are expected to adopt the standards include AMP, AM Corporation, ANZ Funds Management, CBA, ING, National Funds Management, NRMA, RSA/Tyndall, and Westpac Financial Services.
