IFSA offers award super alternatives
The Investment and Financial Services Association (IFSA), already upset over the Australian Industrial Relations Commission’s approach to award sanctioned superannuation funds, has taken its concerns to a key Senate committee.
IFSA has made a submission to the Senate Education, Employment and Workplace Relations Committee inquiry into the Fair Work Bill 2008, arguing that mandating a default fund in awards results in a range of negative public policy outcomes, including inconsistency with Australia’s long-term micro-economic reform agenda, the imposition of higher fees on superannuation fund members and a lack of flexibility.
The IFSA submission argues that the Senate committee should recommend amendments to the Fair Work Bill to ensure the default superannuation market in Australia is competitive.
It has suggested that as an alternative to the mandating of particular default funds, there should be no default fund nominated within awards or, where such a fund is nominated, employees or employers nominate an alternative.
The submission argues that modern awards should also ensure any funds nominated as default funds have to meet consistent criteria which are generic in nature and apply across all industries.
AUTHOR
Mike Taylor
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