Legislation establishing a minimum standard for default superannuation accounts is an important step towards greater engagement for consumers, the peak body for superannuation said today.
Chief executive of the Association of Superannuation Funds of Australia (ASFA) Pauline Vamos said she was pleased to see the passage of the first tranche of MySuper legislation through the House of Representatives today.
"MySuper offers Australian workers a super account with defined fees, no commissions and a highly transparent investment approach," said Ms Vamos.
"This is like the 'Heart Tick' on food: To be called MySuper, all ingredients must be disclosed and products must meet certain standards and be authorised by the Australian Prudential Regulation Authority.
"It is an indication to consumers that the product meets a host of demanding requirements set by Government for default superannuation."
Last minute tweaks made today by the Government to the legislation were in response to suggestions made by ASFA.
"The legislation now makes it practical for funds to offer MySuper products which adjust the investment mix in-line with the age of the fund member - so-called lifecycle investing," said Ms Vamos.
ASFA had also been advocating the compulsory start date for employers should be moved from 1 October 2013 to 1 July 2014. A compromise start date of 1 January 2014 was passed in the legislation.
"The change to the mandatory implementation date for employers to make default contributions to MySuper will assist both funds and employers to make a smooth transition to the new MySuper arrangements."
For media inquiries, please contact:
Pauline Vamos, CEO, 0433 169 342
Rebecca Glenn, GM Marketing and Communications, 0416 170 439
Megan McDougall, Media and Communications Coordinator, (02) 8079 0849
ASFA is the peak policy, research and advocacy body for Australia's superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.