Unions back ‘collective’ power of industry funds

unions industry fund

3 October 2017
| By Mike |
image
image
expand image

Any attempt to diminish the collective power of industry superannuation funds through choice in super would only serve to entrench long-term inequality for workers upon retirement, particularly women, according to the Victorian Trades Hall Council (VTHC).

The VTHC has used a submission to the Senate Economic References Committee inquiry into the Government’s new superannuation choice legislation to argue against the dismantling of the current superannuation default regime.

The submission said the proposed laws purported to construct a false “choice” for workers by removing their right to bargain for their default funds.

“Bargained funds are almost always industry super funds because they are run only to profit members and consistently produce better outcomes in comparison to for-profit funds,” it said.

The VTHC submission said industry super funds tended to do well in part, because they were directed by workers.

“These super funds create stronger returns because of their large numbers of members, who have joined together to maximise their collective retirement savings,” it said. “In turn, these collective savings are better invested to produce higher returns.”

“The Turnbull Government’s proposed changes seek to dismantle this system and leave workers worse off,” the submission said.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 hour ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 6 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 7 hours ago