Cooper submission asserts need for mandated e-commerce use
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A technology service provider has highlighted key areas of known inefficiency in superannuation technology, and has stressed the need for mandated e-commerce use in its submission to the Cooper Review.
Payment Adviser stated that Australia would never meet its ambition of attaining a truly world-class retirement savings system unless the mandated use of intelligent e-commerce solutions was adopted. It has called for a “fresh approach” and “spirit of foresight and courage”, similar to that adopted by the architects of the superannuation guarantee system, in order to empower all superannuation participants.
Recommendations it made in its submission include a simplified collection of all superannuation payments for employers and payroll service providers by linking e-commerce transactions with contribution schedules to automate reconciliation (fast tracking the industry to straight-through processing). It also suggested: providing a low-cost online service to reduce administrative burdens and address cash flow issues for SMEs with fewer than 20 employees; reducing exceptions through pre-validation of fund and member details; enhancing member engagement by ensuring funds have the most up-to-date and relevant member information; stemming the growth of duplicate accounts; and developing an automated solution to consolidate lost accounts.
“Moving to an overlay of modern technology based on e-commerce is the only way to meet the Rudd Government’s call to cut red tape and the administrative burden for all employers, as well as achieving its vision for a member-centric, efficient and secure system,” said Payment Adviser’s head of global sales and marketing Brad Rosenthal.
AUTHOR
Mike Taylor
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