Workers should have access to a choice of superannuation funds to allow them to make contributions to the same fund throughout their working lives, irrespective of industrial agreements and awards, according to the Association of Financial Advisers (AFA).
In a submission lodged with the Treasury responding to the Government’s choice of fund legislation, the AFA said it held the view that employees should have the right to choose their own fund, and to retain that fund as they progressed through their working life.
“More particularly we recognise that the lack of choice has a detrimental impact in a number of different scenarios, including the following:
The AFA submission said that to address the scenario where people had multiple funds, employees needed to roll-over funds from one of their funds to another.
“This takes time and effort and often this is left undone. As a result, it is very common for people to have multiple funds and they often end out paying not only multiple fees but also multiple insurance premiums. This can also lead to lost accounts and contributes to issues with members being disengaged from their superannuation,” the submission said.
“Whilst being employed under an enterprise agreement may mean employees have access to a default fund, it is beneficial for them to also have the opportunity to choose their own fund. This simply gives them choice and does not remove their options.”
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