The Parliamentary Joint Committee on Corporations and Financial Services on Tues 9.10.2012, tabled in the Senate its report on the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012.
The Bill is the third tranche of MySuper legislation and proposes to introduce measures relating to the transition of accrued default balances to MySuper by 1 July 2017, default funds in modern awards, superannuation fees, providing intra-fund advice, insurance, and the disclosure of executive pay and investments.
In recommending that the Bill be passed, the majority of the Committee said that many of the concerns relating to the transfer of members who have chosen a default fund into a MySuper fund are exaggerated. However, the Committee did recommend that APRA continue to consult on the proposed product dashboard requirements.
In a dissenting report, the Coalition members called on the Government to withdraw the Bill pending further consultation. The Coalition members also recommended that the Bill should be amended to ensure that a member who has previously exercised choice of fund (while also opting for the default investment option of that chosen fund) cannot be automatically transferred into a MySuper product by having previous contributions defined as an “accrued default amount”.
[LTN 196, 10/10]