Additional safeguards beyond simply MySuper compliance are needed to protect the interests of members, emphasises the ACTU in its submission to the Inquiry into Default Funds in Modern Awards.
These safeguards are especially important to prevent workers from paying unnecessary fees and charges in retail super funds. They include consideration of fund performance, the nature of fund governance and special protections for members who change employment.
The ACTU submission argues that existing award default arrangements have worked well, in most cases helping to allocate workers to well-run and good performing industry and non-profit funds. This is in a context where many employees are disengaged from their super and many employers do not want to choose.
The Productivity Commission Inquiry is due to provide a draft report for public comment in June 2012, with the final report due 6 October 2012. Further details of the Inquiry are available at: www.pc.gov.au/projects/inquiry/default-super