AUSTRALIA - Public sector employees in Western Australia have been told they will be able to choose their superannuation providers.
The new legislation, which was introduced by the State Parliament earlier this week, means that the GESB, formally the Government Employees Superannuation Board, will face competition from other providers.
GESB is Western Australia’s largest superannuation fund, with around 280,000 members and more than AUS$8bn under management.
Government enterprises minister Ljiljanna Ravlich said: "Research and consultation has shown that members think it is important to be able to choose the super fund that best suits their requirements."
The changes will enable GESB to become a public offer fund so that members can continue to contribute their employer contributions to GESB after they leave the public sector. Furthermore, family and friends can also become members.
Ravlich said a new member-owned organisation called GESB Mutual would be created to oversee the accumulation scheme funds under Commonwealth regulation, in line with superannuation and wealth management industry standards.
"Under this structure, all value will remain with members, with any surplus being returned to members through maintaining competitive fees and delivering new products and services," said Ravlich.
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Opt-out rates at the end of June 2018 "remained consistent" with levels before the April contribution rate increase, according the Department for Work and Pensions (DWP).
The Pensions Regulator (TPR) has appointed Charles Counsell as its new chief executive, who will take over from Lesley Titcomb next year.
The Financial Reporting Council (FRC) should be abolished and audit and advisory businesses should be split into separate entities to improve the sector for both savers and investors, two reports published today say.