Superannuation reform is well and truly in the spotlight again...
The headline reform, which the FSC has long advocated for, is to allow more than one million super members currently denied choice of
As well, a legal loophole being used by some unscrupulous employers to short-change workers of their full superannuation guarantee entitlements will be closed.
The package also contains a plan to form the Australian Financial Complaints Authority, combining three existing bodies to form a one-stop disputes shop for consumers. There are also measures to make super funds more accountable to consumers – from how they spend members’ money through to new reporting of expenses, Annual Member Meetings and a portfolio holdings disclosure regime.
Insurance in Superannuation Code of Practice
Wednesday 20 September will see the release for consultation of the Insurance in Superannuation Code of Practice.
The draft Code outlines a set of industry standards and new measures for all classes of insurance in superannuation, including life, total and permanent disability (TPD) and income protection, and has been jointly developed over the past 10 months by the Insurance in Superannuation Working Group with input from insurers, super funds and legal and consumer groups, as well as other stakeholders, including the FSC.
We support insurance in super – it enables working Australians access to life cover that they may not have otherwise considered or, especially for those in
However, some short-comings in the system arising from chronic consumer disengagement have been identified and with superannuation savings now having surpassed $2.3 trillion, the time is right for the industry to address these.
The draft Code includes measures to address the impact of insurance on retirement incomes and, in particular, the impact on
The FSC has played an important role in working with other superannuation organisations, including AIST, ASFA, ISA and IFF, to draft the Code. We look forward to continuing working with the ISWG throughout the consultation period.
Member input
The FSC team and I were very pleased to this month meet with many of our Melbourne-based members on their home turf.
While we were primarily there to provide policy briefings and an update on where the FSC will be focusing its resources in the coming months, the real value for us comes from the insights we receive from members, about your businesses – and what keeps you awake at night.
Member involvement is crucially important to the FSC and the valuable feedback you provide about what is going on at the coalface provides the foundations for our policy work.
I look forward to catching up personally with many more of you in the