Survey reveals mixed views on default funds

Super fund executives and trustees appear to be divided over default funds and how they are selected, with a new survey revealing contradictory attitudes. 

The survey, conducted during the Conference of Major Superannuation Funds (CMSF), found strong majority support for the concept of all approved MySuper products being eligible to be default funds, yet also supported the continued involvement of the industrial relations judiciary. 

The survey, conducted by Super Review, revealed substantial support for the Federal Government’s preferred policy approach, with nearly 63 per cent of respondents agreeing that all approved MySuper products should be capable of selection as default funds. 

The significance of the survey, sponsored by MetLife, is that the majority of delegates attending the CMSF event were executives or trustees of industry superannuation funds. 

The survey findings come at the same time as the Financial Services Council (FSC) has sought to question the appropriateness of the Fair Work Commission’s (FWC’s) review of default funds and, in particular, the status of the FWC’s expert superannuation panel. 

However, while some sections of the financial services industry have suggested the FWC should have no role in selecting default superannuation funds, 58 per cent of respondents to the survey said they were in favour of the industrial judiciary continuing to play a role.