Cooper review latest

The review of the Australian superannuation system being led by Jeremy Cooper has published two important proposal papers in recent months: one on MySuper and one on Superstream.

The ACTU has welcomed MySuper as a commonsense set of proposals that will protect the interests of the majority of fund members who do not actively engage in making decisions about their personal super arrangements.

MySuper is in many ways a new name for what most not-for-profit funds already offer to default members. However, any fund which wishes to offer a MySuper product will now be required to meet certain minimum cost, governance and investment criteria. The overall aim is to reduce costs for members and to make sure that those who do not actively choose will always be in a fund that cannot exploit their lack of engagement.

The Superstream paper discusses how the administration of funds can be made more efficient. The paper proposes to use Tax File Numbers to identify member accounts and to help in simplifying account combination.

Among the proposals are that employers should face penalties if they do not pay contributions electronically and that trustees be required to accept contributions by electronic means.

The ACTU welcomes many of the Superstream proposals but would also like to see a requirement that electronic systems are used to ensure that payments received by administrators are processed and paid into member accounts within 48 hours.

Furthermore, efficient administration also requires a more effective system of compliance The ATO needs to have the resources and the incentives to focus on ensuring employers comply with their obligations relating to the payment of contributions. There should be a distinct section within the ATO with specific responsibility for super compliance, with its own staff, budget and performance targets.

Why you should be at the ACTU Trustees Forum

It is likely that the final report of the Cooper review panel will be made public shortly before our Trustees Forum on 29 July 2010.

Chris Bowen, the Minister responsible for superannuation, will be speaking and taking questions. The Forum will therefore offer an ideal opportunity to hear what the government thinks about the Cooper report and to ask questions about what will happen next.