The federal government today released the findings of the Financial System Inquiry final report, recommending – among 44 formal suggestions over 390 pages – potential shake-ups to the default fund selection process.
Addressing a press conference alongside Treasurer Joe Hockey in Sydney today, Mr Murray recommended setting a timeframe within which the government should expect to see the impact of MySuper on superannuation fees.
“We believe there is a need for bipartisan support for a superannuation system that is focused on retirement income,” Mr Murray said.
“As well as that, we have dealt with what we see as inefficiencies in this area in the accumulation stage.
“We have recommended that MySuper be replaced with a competitive mechanism for allocating default members to the best funds if MySuper has failed to deliver significant fee reductions by 2020.
“This represents a challenge to the superannuation industry because we still believe that 120 basis points of average fees is too high and limits the accumulation over time.”
In addition, the report recommends that superannuation fund boards should be required to comprise a majority of independent directors.
