The Association of Superannuation Funds of Australia (ASFA) said that the amended start date for the Putting Members’ Interests First legislation, that passed the Senate today, should lead to more consumers maintaining valuable insurance arrangements through their superannuation.
“We appreciate the Government, Opposition and crossbench Senators adopting a pragmatic approach that will help consumers make better decisions in relation to their insurance.”
Deputy CEO Glen McCrea said that extending the commencement date to 1 April 2020 provides more time for fund members to be notified of changes and to make a considered decision about their insurance cover, before it is cancelled.
ASFA has advocated strongly for a 1 April 2020 start date as a reasonable compromise for the full commencement of the legislation.
“There is now a better opportunity for superannuation funds to reach consumers and help them understand what the changes mean for them. Consumers will have more time to consider their insurance needs and determine whether their insurance should be maintained.”
“More time for funds should enable more communications to members, smooth the response rate and reduce wait times to contact centres as we approach the commencement date.”
Mr McCrea said the amended start date also provides funds with additional time to implement the necessary system changes and update their disclosure material.
For further information and media inquiries, please contact:
Katrina Horrobin, 0451 949 300.
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. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.