AUSTRALIA - As of 1 July, around 5.2m Australian employees will have a right to choose the superannuation fund to which their compulsory superannuation savings will be paid.
Employers must give a Standard Choice Form to their employees who are eligible for choice of fund, by 28 July. However, Michaela Anderson, ASFA's policy and research director has pointed out, there's no deadline for consumers.
Many people probably need to get to know their current fund first, before looking at what else is available to them. They could be pleasantly surprised to find they already have a good deal with their current super fund, said Anderson.
Research commissioned by ASFA late last year indicated that only around one in 10 people would be likely to change superannuation funds when choice of fund is introduced. Anderson said there were no indications that this figure had changed significantly.
Most people will be eligible for choice of fund, unless they are employed in the public sector or in some cases under state awards or commonwealth agreements.
Anderson also pointed out that the changes in procedure and paper work associated with choice of fund will mean increased workload for employers.
Initiatives have been developed by the superannuation and investment industry to ease the burden, such as the swimEC programme.
This will enable participating employers to electronically transfer super contributions and the necessary personal information to the participating superannuation funds.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.