The Federal Government has restated the time-frame around its move to open up default funds under modern awards, with Assistant Treasurer, Kelly O'Dwyer citing changes to enterprise agreements and workplace determinations from 1 July, next year.
O'Dwyer used an address to a Financial Services Council (FSC) function in Sydney to reinforce the Government's determination to pursue changes to the default funds regime.
She claimed it was "critical that people are able to make retirement savings decisions that are best for them and their future".
"Around two million Australians are currently stopped from choosing which fund their compulsory employer superannuation will be paid into because they are covered by an enterprise bargaining agreement or workplace determination," O'Dwyer said.
"The Government will extend choice of fund arrangements to more employees under enterprise agreements and workplace determinations made from 1 July 2016, consistent with the recommendation of the Inquiry [Financial System Inquiry]."
The minister said that not having choice of fund could result in employees having multiple funds.
"This means employees can end up paying multiple fees and insurance premiums, reducing their retirement income. More choice will promote member engagement, and reduce fees through greater competition," she said.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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