THE Minister for Financial Services, Bill Shorten, has made good on his promise to the retail superannuation sector to have the Productivity Commission review default super funds in industrial awards. Mr Shorten and the Assistant Treasurer, Mark Arbib, issued the terms of reference for the review yesterday.
The retail super sector, dominated by banks and insurers, wants to be able to have its funds compete with not-for-profit funds as the default providers in awards. Default funds receive the compulsory super contributions from employees who do not choose a fund. In workplaces covered by industrial awards, the default funds are mostly not-for-profits.
The review is likely to begin next month and run for up to eight months.