Friday, 11 August 2017

Improving Accountability and Member Outcomes in Superannuation

This submission raises a number of concerns about the Government’s Accountability and Member Outcomes Bill. While AIST is generally supportive of measures to improve outcomes and accountability in superannuation, we are concerned that a proposal to modify the MySuper scale test to a broader outcomes assessment process will dilute the important role of net returns in optimising members’ retirement outcomes. We recommend that the proposed outcomes assessment be modified to a two-tier assessment that prioritizes net returns above other criteria. We also call for the new assessment process to be extended to the Choice sector, where there are many underperforming products. Similarly, we argue that the Government’s proposal to enhance APRA powers in regards to MySuper equally apply to the Choice sector.