Your Future Super News Today

The Your Future Your Super bill has passed the House of Representatives and will now be voted on after the Government dropped the controversial investment veto powers.

A measure within Schedule 3 of the Your Future, Your Super bill is setting a “very dangerous” precedent.

Labor will challenge the move in the Your Future, Your Super Bill mandating that employees should be stapled to underperforming funds when it comes to its third reading.

AIST chief executive, Eva Scheerlinck, said: “While we welcome the shift on more appropriate benchmarks and administration fees in the performance measures, the regulations unfortunately confirm widespread carve-outs to performance testing, including for the worst performing super products. “Crucially, some of the worst-performing superannuation products have been carved out of performance testing, putting consumers at risk of being stapled to a dud fund for life which will actually reduce ...

Administration fees are one of the biggest drains on retirement savings and including them in the test will drive fast improvements to the super savings of over a million super members, according to Super Consumers.

“This includes that trustees are responsible for determining an appropriate level of diversification for each investment strategy,” the submission said. “The notion that excluding assets from a trustee’s investment universe will improve outcomes is flawed. Further, that such a decision would be made by Parliament via regulation, to apply to all trustees regardless of their investment strategy or members’ investment choices, is not in members’ interests. “The legislation also does ...

The government’s proposed superannuation performance test would be detrimental to the super system and is not in the best interests of members, according to Chant West.

“Similarly, incorporating other ESG [environmental, social, and governance] and sustainability considerations into the portfolio introduces tracking error risk relative to the performance benchmark, which may not be rewarded over the timeframe before the performance test ‘bites’.” It also said the reforms would push super funds away from a total portfolio approach and back towards a strategic asset allocation approach. “We would liken this to going back to an old technology, one that ...

The Government’s Your Future Your Super superannuation performance test needs a collection of multiple metrics rather than a single metric based on a narrow assessment of quality, according to Frontier.

Print The Government’s proposed Your Future Your Super (YFYS) legislation stops short of addressing the underperformance across the superannuation sector, the Australian Institute of Superannuation Trustees (AIST) believes. AIST pointed to data from the Australian Prudential Regulation Authority (APRA) released this week that found over the five years to December 2020, profit-to-member super funds, on average, outperformed retail funds by 23%. AIST chief executive, Eva Scheerlinck, said this ...