Default Superannuation Funds in Modern Awards

Public inquiry

The Australian Government has asked the Commission to undertake an inquiry into default superannuation funds in modern awards.

The purpose of the inquiry is 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 state 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 will consider 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 will consult widely with all relevant stakeholders and welcomes submissions from them.

Contacts

Yvette Goss (Administrative matters)
Ph: 03 9653 2253

Imogen Curtis (Other matters)
Ph: 03 9653 2116

Fax: 03 9653 2199
Email: default.super@pc.gov.au

Free call: 1800 020 083

Further information

• Productivity Commission inquiry into default superannuation funds in modern awards - Joint media release from the Assistant Treasurer and Minister for Employment and Workplace Relactions (external link)
• About the public inquiry process