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Award modernisation process uncovers industry fund differences
Sharp differences have emerged between key industry superannuation funds as a result of the Australian Industrial Relations Commission’s (AIRC's) award modernisation process, which looks likely to preclude some funds from holding default status in particular industries.
The process has also revealed differences between the funds and the views being expressed by the Minister for Superannuation and Corporate Law, Senator Nick Sherry.
The depth of concern being felt by some industry funds has been revealed in a submission to the AIRC by CareSuper, which has warned that the fund risks being put beyond the reach of both employers and employees in the sectors it currently covers.
The CareSuper submission puts it at odds with a number of other industry funds covering the same sectors and which appear to have obtained default fund status from the AIRC.
In her fund’s submission to the AIRC, the chief executive officer of CareSuper, Julie Lander, also differed with some of the views expressed by Senator Sherry, that the problems arising from the award modernisation process could be overcome by the exercise of choice.
Lander said it was important to preserve the existing superannuation arrangements for clerical and administrative employees in all industries “who can and do move between employers, to allow continuity of membership”.
“We further believe it is valid that in the event of company restructuring or the establishment of a new business, any employer can nominate CareSuper as its default fund for relevant employees,” she said.
“Whilst employees can exercise choice in relation to superannuation, many do not, believing that it is either too difficult or that they do not want to inconvenience their employer, sometimes in fear of job security.”
AUTHOR
Mike Taylor
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