No. 2009/04
14 December 2009
A new member-oriented model for super?
Super System Review releases governance phase preliminary report
The Super System Review today released its preliminary report Clearer super choices: matching governance solutions following phase one (Governance) of its review of Australia's superannuation system.
The preliminary report:
- outlines key themes emerging in the Panel's work to date;
- proposes a new member-oriented model for super;
- gives a preliminary response to selected governance topics;
- identifies governance issues that it has decided not to pursue, including: government-directed investing; UN Principles for Responsible Investment and stock lending.
Review Chair, Jeremy Cooper said: "Governance issues cut right across the Review so it's too early for lots of final recommendations on governance. But, to help focus discussion going forward, the Panel is starting a conversation about a new member-oriented model for super which aligns more closely with member interests."
"So what are the aims of this model? Most members don't really engage with super, and for them we envisage a fund where the product is much simpler and cheaper for them. 'Bells and whistles' come at a cost and if you don't want them, you shouldn't pay for them. For those members who want choice, or who want to drive their own super, they will have lots of options."
The Panel also released its Phase Three: Structure (including SMSFs) - Issues Paper. The closing date for submissions for this third phase is 19 February 2010.
Background
- The Review is being conducted in three phases: Governance, Operation and Efficiency and Structure (including SMSFs). See The Scope of the Review for more information.
- Each phase opens with the release of an issues paper calling for submissions and is followed by the release of a preliminary report.
- The final report (encompassing all three phases) will be delivered to the Government by 30 June 2010.
- The Panel received over 110 submissions in response to the first phase of the review.
More information
More information on the Super System Review, including how to make a submission and get a copy of any papers, is available at www.supersystemreview.gov.au. Alternatively, call the Super System Review infoline on 1800 425 139.
Media Contact
Sophie Trumble – Tel: 03 9280 3376