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Cooper’s 'Super Stream' measures get industry nod
Measures to improve the efficiency of super funds proposed by Jeremy Cooper have been welcomed by two leading industry bodies: the Australian Institute of Superannuation Trustees (AIST) and the Investment and Financial Services Association (IFSA).
Speaking at the AIST’s Conference of Major Superannuation Funds in Brisbane, Cooper proposed broader use of the tax file number as an identifier, electronic payments for contributions to replace cheques, and synchronising the employer’s monthly pay cycle with contribution payments.
AIST chief executive Fiona Reynolds said the measures were long overdue, and that currently more than a third of employers used paper cheques for employee contributions. She also supported the use of tax file numbers to verify and cross-match member data. “It’s absurd that in this day and age, when you can bank online and transmit all sorts of data across the world in an instant, that the back offices of super funds are drowning in paper,” she said.
“These measures that the AIST has long advocated for could save many millions of dollars and — more importantly — improve the retirement savings outcomes for many members.”
IFSA chief executive John Brogden also threw his support behind the proposals.
“[Using tax file numbers] would assist in minimising the number of superannuation accounts some people accumulate (often as a result of moving jobs) and it would also reduce the number of lost members,” he said.
“The use of paper and cheques is inefficient and increases the cost of providing superannuation. It is estimated that requiring business to contribute electronically could reduce administrative costs for superannuation by 25 per cent,” Brogden said.
AUTHOR
Mike Taylor
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