The chief executive of one of Australia’s most significant industry superannuation funds, TWU Super, Bill McMillin has questioned whether adequate elements will be in place for the appropriate implementation of the new choice of fund regime from the beginning of July.
“I know I echo the sentiments of many within the industry when I query the feasibility of choice of fund commencing on July 1,” McMillin said.
According to McMillin there is a real danger that poor financial literacy will lead to ill-informed investment choice and that at least a part of the reason for the confusion being experienced by fund members is the complexity of the current superannuation regulatory regime.
“We have a duty to our members to ensure they are sufficiently well-educated on choice to enable them to make sound decisions,” he said. “And we have an obligation to employers who participate in the TWU Fund to ensure they understand their responsibilities.”
McMillin said that achieving these objectives with appropriate lead time was proving difficult in circumstances where the regulatory and compliance requirements were still being finalised.
“As a not for profit organisation we have a responsibility to our members to ensure they understand their superannuation,” he said.
“The best way to get the point across is to educate people at a very young age about how superannuation works, including the impact of fees over long periods.”
