AUSTRALIA - Superannuation reports will make long-term returns much more prominent on statements in order to highlight the long term nature of the investments.
Australian minister for superannuation and corporate law Senator Nick Sherry said it was important super fund members "appreciate that super is a long-term investment".
He said: "The past year has been a difficult one for super fund members due to the impact of the global financial crisis on returns. However, if fund members focus only on short-term returns, they risk switching investment options or funds to their long-term detriment."
Sherry added clear information about medium-to-long-term returns "can help fund members better appreciate that superannuation is a long-term investment".
The change to the law will also require returns to be disclosed at the investment option or sub-plan level in which the member is invested.
Supers will also be able to use online, web-based statements as the primary method of communication.
"This measure will potentially save super funds thousands of dollars in printing and production costs, savings which could be passed on to members," Sherry commented.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
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