The Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos has urged superannuation fund trustees to look at the potential impact of new default fund arrangements under the Federal Government's award modernisation program.
"It will be fine if they're a public offer fund. But those default funds that are not open to the public will need to look at their long-term strategy," Vamos said.
"We have an ageing population and new members are a lifeblood to some funds, so the last thing you want to do is lose that."
She said trustees need to address this issue and talk to both employers and unions.
"It all depends on the level of reliance that funds have on default members," Vamos said.
However, she does not believe the allocation of default funds by the Australian Industrial Relations Commission (AIRC) will result in fee hikes or reduced competition.
"We're not looking at a huge number of members under awards. In the scheme of members it's a minority," Vamos said.
"But what it will mean is that some funds will be no longer able to receive new employers who bring in new employees," she said.
ASFA will meet tomorrow to decide whether they will lobby the government over the AIRC decision.
The new awards will come into effect in January 2010.
