Government to task PC on super industry efficiency

The Federal Government has confirmed its objective of changing superannuation fund governance arrangements and has moved to task the Productivity Commission to "assess the efficiency and competitiveness of the superannuation system".

Using its response to the Financial Systems Inquiry (FSI) final report today, the Government also committed to the development of an objective for superannuation and the development of what amounts to a MyPension arrangement.

However, on the key question of the competitiveness of the superannuation system, the Government said it would be immediately tasking the Productivity Commission "to develop and release criteria to assess the efficiency and competitiveness of the superannuation system".

"We will also immediately task the Productivity Commission to develop alternative models for a formal competitive process for allocating default fund members to products."

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It said that subsequent to the development of criteria and following the full implementation of the MySuper reforms, the Government would be tasking the Productivity Commission to review the efficiency and competitiveness of the superannuation system.

"We will develop legislation to allow trustees of funds to provide pre-selected retirement income products to help guide members at retirement and improve outcomes for retirees, including through increased private retirement incomes, increased consumer choice and better protection against longevity and other risks," the response said.

"We will also continue our work to remove impediments to product development," it said.