Big Queensland-based fund Sunsuper has urged key amendments to the Government’s legislation around MySuper to ensure that it does not have to be separated from other products.
In a submission filed with the Parliamentary Joint Committee reviewing the Government’s Stronger Super bills, Sunsuper chief executive Tony Lally has warned the PJC that some fundamental terminology contained in the bill (The Superannuation Legislation Amendment (MySuper Core Provisions) Bill) “raises significant confusion and uncertainty, and unintended and undesirable consequences”.
Lally said that while there had been a view expressed at the superannuation industry level that funds would be able to convert their existing default investment options into a MySuper option, this was not consistent with the wording of the legislation.
“Our view and concern is that based on the current wording of the legislation, MySuper will have to be interpreted as a separate ‘product’ within a fund, separate to other ‘products’ in that fund,” Lally’s Sunsuper submission said.
The submission has suggested a range of amendments to the wording of the bill to ensure that MySuper could be provided as an investment option within an existing product alongside other investment options.
Key to those suggested amendments is replacing the term “MySuper product” with “MySuper offering”.
