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Call to replace ERFs
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Money in Australia’s eligible rollover funds (ERFs) should be transferred into one national fund, according to a submission submitted to the Cooper Review.
Specialist corporate superannuation advisory firm Super Advice Services used its submission to the second phase of the inquiry to argue for such a change at the same time as strongly opposing the creation of a single, government-run retirement fund.
Dealing with the future of ERFs, the submission claimed that while there would still be a cost to members from the establishment of a single, national fund, it would be much lower than was currently the case.
It suggested that at least a part of the answer might be to invest the monies in the Future Fund.
“The [Australian Taxation Bank] acts as the link between members’ lost super and wherever their monies are being held,” the submission said.
“ERF and lost super monies probably crossover at some point, and perhaps the best place for these funds is to be invested through the Future Fund so that at least the money is growing effectively and the Government’s contribution can be lower fees,” it said.
AUTHOR
Mike Taylor
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