Victorian Government to outsource advice for employees

The Victorian Government will offer a tender to financial planning groups to provide fee for service advice for more than 100,000 public sector retirees.

The program provides public sector superannuants with the choice of taking up to 100 per cent of their retirement income as a lump sum.

The one-off offer will be made to some 54,000 pensioners and 50,000 deferred beneficiaries as part of a new government initiative, the Beneficiary Choice Program.

Arthur Andersen Personal Financial Management has been engaged by the government to assist with the tendering process and ensure that the advice given by the appointed planners meets required standards.

Arthur Andersen financial planning partner Graham Reeve says financial planners throughout Victoria are invited to provide fee for service advice at Government cost to all of the 104,000 beneficiaries who request the service.

"The tender opens tomorrow, and is open to anyone. It is not for large groups necessarily, and could be favourable for boutique practices," Reeve says.

Reeve says at this stage no final decision has been made on the total cost needed for the program, saying planning groups will no doubt stipulate what fees they will expect to receive if they are successful in the tender.

He says the successful tenders will be given information about the retirees and their superannuation balances, and will provide their new clients with tax and social security advice. Any additional services between the retiree and adviser would not be covered under the program and would require additional payment at the client's expense.

"The government pays for the roll-over service. The product selection is, however, not paid for by the Government," Reeve says.

"It is up to the individual to decide if they want to pay the planner for further advice regarding investments."

The tender will be available on the Victorian Government's website as of tomorrow, and will close on January 8, 2001.