Consultation Paper 203 proposes to update the original ASIC guidance issued in December 2011 on age pension estimates in superannuation forecasts. The consultation paper will update Regulatory Guide 229.
CP 203 clarifies that superannuation funds will be allowed to rely on "prescribed assumptions about contributions and earnings in calculating a member's retirement estimate".
"We do not expect the super fund to make specific inquiries to determine whether the member's individual circumstances match the prescribed assumptions," said ASIC.
In addition, CP 203 proposes to allow superannuation funds to include the age pension as part of a retirement estimate.
ASIC Commissioner John Price said CP203 proposes to "broaden the ability of super funds to use retirement estimates if they wish".
"With the continued growth of the super sector, it is vital that fund members remain confident and informed about the prospects of their fund. The updated guidance will allow trustees to provide more accurate estimates in this regard," Price said.
