Make portability as easy as RFT, says BT
The rules around superannuation portability need to be simplified to allow fund members more control over their superannuation, according to BT Financial Group.
In its submission to the Cooper Review, BT argued that portability is critical to member choice and that the global financial crisis has highlighted the deficiencies inherent in existing portability processes.
It said while the introduction of a standard 'Request for Transfer' form under the Superannuation Industry (Supervision) Act had provided benefits through the establishment of a standardised approach, in reality the process of consolidating super accounts remained overwhelming for many members, who simply dropped out when the process became too hard.
The submission referred to a survey undertaken by BT Funds Group in 2008, which found there was a strong desire to consolidate, with 40 per cent of members interested, but within which only 6 per cent actually completed the process.
To address the issue, BT has recommended the introduction of the ability for members to facilitate portability via direct debit request — a system that meant once a customer had given their request to the business/service provider, the customer's involvement in the process was complete.
AUTHOR
Mike Taylor
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