Default Superannuation Funds in Modern Awards
This inquiry has now concluded. The final report was submitted to the Goverment on 5 October 2012 and was released on 12 October 2012.
The Australian Government asked the Commission to undertake an inquiry into default superannuation funds in modern awards.
The purpose of the inquiry was to design transparent and objective criteria for the selection and ongoing assessment of superannuation funds eligible for nomination as default funds in modern awards. In considering these criteria, the terms of reference stated that the Commission could have regard to the:
- appropriateness of the investment strategy of the default investment option of the fund in terms of risk and expected return
- medium to long term net-of-costs investment performance of the default investment option
- level of fees incurred by members
- scale of the fund and the level of services provided to fund members
- suitability and cost of insurance provided by the fund
- governance of the fund
- fees incurred and other impacts on members if they cease employment with an employer.
In undertaking the inquiry, the Commission considered the interaction with the design and implementation of MySuper, the role of Fair Work Australia in making and varying modern awards, and the interim public review of modern awards by Fair Work Australia in 2012.
The Commission consulted widely with all relevant stakeholders and welcomed submissions from them.