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Stronger Super

Attachment
Government Response to the Review into the Governance, Efficiency, Structure and Operation of Australia's Superannuation System

Chapter 7: Retirement

Recommendation 7.1

MySuper products must include one type of income stream product, either through the fund or in conjunction with another provider, so that members can remain in the fund and regard MySuper as a whole of life product. The Government should consult comprehensively with industry before mandating the post-retirement arrangements to apply to MySuper products.

Government response

Noted

The Government will consult with relevant stakeholders on whether post-retirement products should be mandated for MySuper products at some time in the future.

Recommendation 7.2

Trustees should be required to offer intra-fund advice proactively to MySuper members as they approach normal retirement age. Over time, advice should be available on as broad a range as possible of the financial issues that members will face in retirement, subject to the requirements of the sole purpose test. In the near term, advice should address investment allocation and alternative retirement products offered within the fund.

Government response

Noted

The Government will consult with relevant stakeholders on whether MySuper products should be required to offer intra-fund advice and the appropriate timing of any change.

Recommendation 7.3

Trustees should offer intra-fund advice proactively to MySuper members in the retirement phase at periodic intervals.

Government response

Noted

The Government will consult with relevant stakeholders on whether MySuper products should be required to offer intra-fund advice and the appropriate timing of any change.

Recommendation 7.4

Trustees must devise a separate investment strategy for post-retirement members in MySuper products which has regard to the factors as set out in section 52(2)(f) of the SIS Act as well as inflation and longevity risk.

Government response

Support

The Government supports requiring a separate investment strategy for post-retirement members in MySuper and choice products which offer retirement income stream products and will consult with relevant stakeholders on implementation issues.