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Give employers choice say CSSA
Employers should be able to choose any MySuper product to list as a default fund on awards as the products were designed to meet default requirements, Corporate Specialist Superannuation Alliance (CSSA) treasurer Gareth Hall said.
But the Productivity Commission could limit the default funds listed on an award to between five and ten, deeming the process of choosing from a long list of products too confusing for employers.
"The whole idea of the design of MySuper is that they're designed in such a way that they should be easily compared to each other, so it doesn't all really completely make sense," Hall said.
He said the Commission's other recommendation that Fair Work Australia (FWA) presides over the assessment was flawed because FWA did not have the experience or resources to make those types of judgements.
"We understand that FWA has been subject to some significant levels of criticism in their handling of recent enquiries. Their impartiality has been brought to question and they have taken a long time to come to a conclusion, which would lead us to question if they have the necessary resources to take on this role," Hall said.
He said if the Commission did not allow employers choice, an independent body should assess the suitability of default funds.
But CSSA could not understand why employers could not have the choice and disagreed with the Commission's assessment of employers' capabilities.
"If the Government has designed a product specifically to be a default superannuation fund, why not just say 'well that's what it's designed for, use whatever one you want'? I think employers are pretty good at making those decisions," Hall said.
He said despite the criticism the Commission was trying to find the right solutions.
"They really are just asking questions and trying to come up with the right answers," Hall said.
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