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Early indications of grandfathering a worry, says CSSA
Early indications of how grandfathering will apply to corporate superannuation funds suggest an "administration minefield" for trustees, according to the Corporate Super Specialist Alliance (CSSA), which has appealed to the Government for clarity on the issue.
CSSA president Douglas Latto said he understood grandfathering would apply to commission, asset-based fees and member fees for current remuneration models prior to July 2013.
"Post-July 2013, these options will be available for new members and the only way for a collective fee to be payable is via the intrafund advice fee," he said.
CSSA said the dollar-based per member fee could include commission, member and asset-based fees, insurance cover, and intrafund advice fees which could differ for MySuper and Choice members, and if workplace variables were not taken into account, result in a nightmare for trustees.
Fund providers are currently looking for ways to simplify the issue, but getting it wrong would affect market share, according to CSSA.
Latto said the only good news would be for corporate super specialists, as trustees would need to outsource workplace services such as running policy committees, member education, technical and administrative support to employers and advocacy for employers and members.
Latto appealed to the Government and Treasury to provide clarity so fund managers could design remuneration models and planners could understand how best to structure their businesses.
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