The SMSF Association supports the Government’s superannuation reform package, saying it will improve the transparency and accountability of superannuation for the default retirement savings sector.
SMSF Association CEO John Maroney says: “Increasing transparency and accountability should lead to improved retirement savings outcomes for fund members, providing a better quality of life in retirement for Australians.
“Requiring MySuper trustees to publish annual information on investment and insurance strategies, fees, and returns is a positive development for superannuation by giving members more information about how their fund is performing and being managed.”
Maroney was responding to a statement yesterday by the Minister for Revenue and Financial Services, Kelly O’Dwyer, where she announced a raft of reforms aimed at giving consumers more control over their superannuation, as well as strengthen the system’s prudential framework.
He says the move to allow fund members to question the trustee board and executives of their superannuation fund annually will promote accountability and competition that should drive better outcomes for fund members.
“Allowing APRA greater oversight and increased powers in regards to default MySuper funds will enhance its prudential regulation of these funds and help ensure that members who have the least active engagement with their superannuation are adequately protected.
“We also support the Government’s intention to make opting out of automatic default life and disability insurance policies easier. This will help minimise the erosion of retirement savings that can be created by people having multiple insurance policies and superannuation fund accounts.
“Erosion of retirement savings through unnecessary or unwanted insurance in superannuation has been of significant concern to the Association and we are pleased that the Government is taking action in this area,” Maroney says.