Do industry funds have an unfair advantage?
Richard Watts discusses the implications of the Productivity Commission’s recommendations to change the default super arrangement.
There’s been some big shake ups in the world of super in the past six months. And one of the biggest is the Productivity Commission’s call to change the way workers are channelled into default super funds. At the moment, the default fund is most often an industry fund but the recommendations pave the way to give retail funds a bigger slice of the $7 billion a year super pie.
Instead of the current system where unions and employers choose the default fund, the PC recommends that Fair Work Australia or another independent body choose who qualifies to be a default fund.
Richard Watts, from Industry Super Network, tells 3Q that he is receptive to a merit based system if it means retail funds meet the same governance arrangements and produce returns equal to the industry funds.
3Q: This week's episodes
-
Essential Report with EMC’s Peter Lewis and Jackie Woods
Comments19 Sep 2012Lewis and Woods talk through this week’s polling numbers: voting intention, leader attributes, drug laws in Australia, and more…
-
Are we ready for the grey revolution?
Comments12 Sep 2012Ken Morrison says our cities need to be transformed for our ageing population – and it’s not solely about nursing homes.
-
Ships, trains and submarines — can we build them here?
Comments11 Sep 2012Tim Ayres wishes Clive Palmer and other mining giants would give local manufacturers a go instead of heading overseas.
-
Do we undervalue our public sector innovations?
Comments11 Sep 2012Nadine Flood questions whether governments take our science and other publicly funded breakthroughs for granted.