In a bid to reform the superannuation industry, the federal government introduced a performance test as part of an initiative called Your Future, Your Super. Of the 76 super funds in Australia, 13 failed to meet compliance requirements.
The 13 funds that failed the test will have to reach out to their members in the next 28 days to explain their failings. Members should expect to receive messaging which is set out in law as part of new legislation that came into effect July 1. The messaging will read,
“Your superannuation product has performed poorly under an annual performance test that was introduced by the Australian government … we are required to write to you and suggest you consider moving your money into a different superannuation product.”
The performance test is part of a huge overhaul in an industry that is trusted with $3 trillion of hard working Australians.
Treasurer Josh Frydenberg said, “All up, $56.2bn of 1.1 million workers’ retirement savings are invested in the underperforming funds.”
The reform process is holding super funds to account and will be notified with a pass or fail mark. The funds will not be told why they failed and if they fail the test for a following year, will no longer be allowed to sign on new members.
Super fund lobby group ASFA CEO, Martin Fahy said.“Any product that falls 0.5 per cent below the median is labelled as failing. What the published test results don’t tell members is why, and by how much, their fund has failed the test.”
AMG Super – AMG MySuper
ASGARD Independence Plan Division Two – ASGARD Employee MySuper
Australian Catholic Superannuation and Retirement Fund – LifetimeOne
AvSuper Fund – AvSuper Growth (MySuper)
BOC Gases Superannuation Fund – BOC MySuper
Christian Super – My Ethical Super
Colonial First State FirstChoice Superannuation Trust
Commonwealth Bank Group Super – Accumulate Plus Balanced
Energy Industries Superannuation Scheme Pool A – Balanced (MySuper)
Labour Union Co-Operative Retirement Fund – MySuper Balanced
Maritime Super – MYSUPER INVESTMENT OPTION
Retirement Wrap – BT Super MySuper
The Victorian Independent Schools Superannuation Fund – VISSF Balanced Option (MySuper Product).
If you’re unsure of how your super fund stacks up, check out the calculator on the ATO website.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.