Australia's superannuation fund refers to a group of pension funds originally established to serve workers from a particular industry.
Beginning July 1, 2005, changes to Commonwealth legislation [2] allow Australian employees (with some exceptions) to select funds in which their employers pay their pensions. In turn, super-industry funds are no longer industry-specific and largely into non-profit public offering funds, open to the majority of workers in Australia.
Although the choice of funds becomes an option for most Australian workers, the majority of workers (more than 75%) remain with the default funds their employer chooses, which are more frequent than non-industrial super funds.
The referee of independent industrial relations, the Fair Working Commission, nominates super funds suitable for adoption by employers as default funds. Traditionally, the funds nominated by the Fair Employment Commission fit as default funds are nonprofit funds.
Four major banks in Australia have the majority of retail nonprofit retail funds and have lobbied the government for legislative changes not to regulate the processes traditionally used to nominate default funds in the workplace and make it easier for employers to adopt bank funds.
The Federal Government of Abbott has committed to opening a system of default funding sections showing that it will result in greater competition.
The super-fund is industry-based membership and has no shareholders. In this aspect, they differ from retail funds (or wholesale master trusts) which are public offering funds administered by financial institutions, with the aim of returning dividends to shareholders.
Video Industry superannuation
History of the Super Industrial Fund
Prior to 1992, superannuation was commonplace, but there was no national legislative requirement for employers to pay pensions to their employees. Instead, the industry rewards negotiated by the union movement try to force companies to contribute to pension funds for and on behalf of their staff. The system is not uniform, and the superannuation policy is associated with individual rewards, with different potential from industry to industry.
In 1992, the Keating Labor government introduced a mandatory 'Super Funds Guarantee' system as part of a major reform package to help ease the burden of increasingly burdensome government taxpayer pension schemes. Changes occur through tripartite agreements between government, employers and unions. Unions agreed to cancel a 3% national salary increase that will be incorporated into the new superannuation system for all employees in Australia. This is matched by the contribution of employers that increase over time.
Both union organizations and employers' organizations want to make sure that the money invested into the pension fund will be protected against high fees and commission products. This led to the formation of super-union-based industry funds, in competition with established retail funds.
Currently, industry funds are nonprofit mutual funds with more than 13 million accounts. The super-industry funds have policies designed for the benefit of members, and are governed by guardians representing employers and employees in the industry.
Maps Industry superannuation
Super Australian Industry
The Super Australian Industry (ISA) is an umbrella organization for the super industry movement. ISA manages a collective project on behalf of fifteen super-industry funds. These projects include research, policy development, government relations and advocacy, as well as coordinating the Marketing Campaign with SuperFunds Industries.
All ISA members are not a nonprofit industry super fund, but not all super-industry funds in Australia are members of the ISA. The funds that are members of ISA have nearly 6 million accounts.
The ISA Board currently consists of thirteen members and includes representatives of the super-industrial fund, as well as former state and federal ministers and the Premiers.
The Industrial Combined Marketing Campaign SuperFunds is responsible for a number of leading advertising and marketing campaigns on behalf of its membership including the long-running "Pair Co" campaign and press campaigns.
Submissions and Representations
Since the establishment of ISA, he has submitted a proposal to the government on a number of topics related to superannuation including:
- The Murray Inquiry (2014) into the Australian financial system, with special reference to superannuation
- The Cooper Review (2010) into the superannuation system and regulatory enhancement
- The Senate Standing Committee on Community Affairs includes the proposed tightening of eligibility for retirement
- Trowbridge Review into potentially conflicting remuneration and its impact on life insurance advice
- Joint Committee of Parliament on Corporations and Financial System Investigations
- The Senate Economic Legislation Committee reviews the simplification of the Bill on Financial Advice for the Future
See also
- Superannuation in Australia
References
External links
- Official SuperFunds website
- Super Australia's official website
- Overview of the 2014 Community Overview: AUSTRALIA OECD Social Indicator
- Melbourne Mercer Global Pension Index: Australia
- Worldwide Social Security Program: Asia and the Pacific, 2014
Source of the article : Wikipedia
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