FWC proceeds on default super without experts
The Fair Work Commission (FWC) has declared its intention to proceed promptly with its review of default funds under modern awards despite looming Government policy changes and having only one expert superannuation panelist remaining.
The president of the FWC, Justice Iain Ross declared the commission’s decision to continue the default fund process in a formal statement issued late yesterday and despite the removal of the two other superannuation experts on the panel, Stephen Gibbs and Vicki Allen, over perceived conflicts of interest.
The expert superannuation panel, originally appointed by the former Workplace Relations and Financial Services minister, Bill Shorten, was intended to assist the FWC in short-listing approved MySuper funds as appropriate default funds for industrial award purposes.
Gibbs and Allen were stood down from the panel of the basis of perceptions of conflict of interest around their trustee board relationships with superannuation funds offering MySuper products.
Money Management understands that the only remaining “expert” on the panel, Arthur Apted, will be supplemented by a member of another FWC panel, economist Tim Harcourt, a former ACTU official who is not regarded as having any hands-on superannuation fund experience.
Concerns over perceived conflict of interest on the expert panel were first raised in submissions by the Financial Services Council, and Government concerns were later reflected in responses to questions on notice in the Senate by Employment Minister, Senator Eric Abetz.
The FWC president’s statement said funds would need to make their applications with regard to their MySuper funds by 28 April and that written submissions supporting those applications would need to be received by 10 June.
The Government has signaled it is unhappy with the default funds under modern award regime which appears to favour union-backed industry superannuation fund MySuper products.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
