Industry welcomes productivity commission inquiry into superannuation default funds

Tuesday, 24 January, 2012

A Productivity Commission Inquiry into superannuation default funds in modern awards has been announced.

Default superannuation funds in modern awards apply to employees covered by an award who do not exercise their right to choose a superannuation fund.

The news has been welcomed by Australian Industry Group CEO Heather Ridout.

“Default funds play an important role in simplifying superannuation for employers and employees,” Ridout said.

“Superannuation funds have largely been included in modern awards on the basis of their inclusion in pre-modern awards. Many of the funds have been included in awards since the late 1980s and it is timely that there be a review to ensure that the criteria for selecting and reviewing funds is appropriate.

“Ai Group has a longstanding involvement in the workplace relations and superannuation systems and intends to play a major role in the Productivity Commission’s inquiry.”

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