An increasing number of people are exercising their right to choose the superannuation fund they would like to contribute to according to industry support service provider SuperChoice.
The conclusion has been based on SuperChoice contribution transactions from the 2008 September quarter that showed choice-of-fund has grown to nearly 12 per cent of the working population.
These figures come at a crucial time, given the release of the Government’s discussion paper on the implementation of a superannuation clearing house measure.
“The discussion paper released by the Minister is well considered and poses some detailed questions for the industry to debate, such as the role a central clearing house could play in increasing the overall efficiency of the industry and reducing costs to members,” SuperChoice chief executive Peter Phillip said.
Industry leaders came together at the Association of Superannuation Funds of Australia (ASFA) national convention to debate the impact of choice and to discuss potential solutions.
“The industry has an opportunity to end this costly administrative nightmare and deliver savings to all stakeholders – but it must come together to bring about a solution that benefits everyone,” Ernst and Young Partner Graeme McKenzie said.
“Efficient use of technology and elimination of 1970s paper-based processes have the ability to make a significant dent in the $2 billion that our industry spends on administration every year”, Philip said.
“It is clearly important for the industry to work together on this initiative for the benefit of members of super funds,” AMP Corporate Superannuation director and ASFA’s newly-elected Chairman Greg Healy said.
