The Western Australian State Government has signalled its intention to outsource administration for the Government Employees Superannuation Board (GESB), calling for expressions of interest in June this year.
The decision follows the implementation of changes suggested in the Whitlear Review, allowing public servants who were previously defaulted to GESB the option to choose their super fund from 30 March 2012.
WA Treasurer Christian Porter said these "choice" reforms would reduce GESB's economies of scale and push member fees up.
Porter said that consequently, the superannuation fund would be following the lead of other super funds that outsource administration services to lower member fees and focus on superannuation reforms and other challenges.
He said it was expected the offer would appeal to the market and result in better long-term outcomes for existing members and future state employees.
GESB's administration services will go to tender in June this year with a view to transitioning to the new provider halfway through 2013.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
Add new comment