AIST defends industry super fund board structures
The Australian Institute of Superannuation Trustees (AIST) has sought to hit back at criticisms of the trustee board structures of industry super funds raised by the Federal Opposition leader, Tony Abbott.
AIST chief executive Fiona Reynolds said Abbott's view on superannuation seemed to be driven by ideology rather than what was really going to benefit Australians in retirement.
Dealing with the question of representation on trustee boards, Reynolds said it was ludicrous to label not-for-profit funds as being "union controlled".
"This is just plain wrong as, by law, industry funds must have equal numbers of employer and employee directors on their boards and, by law, they must act solely in the interests of their members, not in the interests of banks or organisations which are seeking to make profits out of the super system," she said.
"Furthermore, all board decisions require a two-thirds majority of the board, which does not allow one side to dominate the other," Reynolds said.
Mr Abbott was earlier this week was reported as telling Coalition parliamentarians that super funds could be turned into "gravy trains" for union officials.
The Federal Opposition financial services spokesman, Senator Mathias Cormann, has previously called for stronger rules around superannuation fund governance, particularly multiple directorships on trustee boards.
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