'Not your job': Superannuation Minister says super funds forget their role
Sydney Morning Herald
September 18, 2020

Assistant Minister for Superannuation Jane Hume has lashed out at industry super funds, saying their role is not to create jobs, rebuild the economy or get involved in the climate debate but to bolster retirement incomes for workers.

In a sign of mounting frustration between industry super funds and the federal government, Senator Hume accused Industry Super Australia of being "noisy" and "belligerent" and said it did not represent the views of some of its own member funds' bosses.



Industry Super represents 15 industry funds, including AustralianSuper, CBus, HESTA and HostPlus, that collectively hold the retirement savings of 5 million members. Since June, HESTA, CBus and UniSuper have all revealed plans to cut carbon emissions to zero by 2050.

"Some of these funds have got very big and very influential and they seem to forget their job isn't to rebuild the economy or create jobs or reframe the climate debate or require industrial relations changes at companies they invest in," Senator Hume said, adding the industry super sector accounted for about 40 per cent of accounts in the $3 trillion superannuation system.



Treasurer Josh Frydenberg said in June that retail and industry super funds should take a bigger role in local infrastructure investments. Industry Super and several fund CEOs responded by saying stable policy settings, including around the super guarantee rise, would be needed to ensure long-term investments could be made.


Industry Super chief executive Bernie Dean said he wanted to talk to the government about how to build a better future for members, but "instead of projects, pipelines and partnerships we're getting petty point scoring" and "name-calling".   

He said the sector had advocated for reforms to drive down fees and end conflicted remuneration models and would "not stop".

"We have supported the Prime Minister, Treasurer and assistant minister in their repeated promises on super and we want to work with them to get sensible changes up that will boost member savings, get the economy moving and stop that ticking time bomb of our ageing population," he said.

Industry Super has called individual MPs "hypocrites" for opposing a rise in the superannuation guarantee from 9 per cent to 12 per cent by 2025. The Morrison government is still considering the future of this legislation but the lobby group has warned a backflip on the rise would put at risk a $33 billion pipeline of investment from the funds over the next five years, which would help generate jobs and revive the economy.   

Senator Hume said many industry super CEOs and chairs "roll their eyes at the weird, shrill militancy of their lobby groups" in conversations with her.


Keating hits out at government over superannuation
Former prime minister Paul Keating has accused the Federal Government of breaking an election promise by "touching" the superannuation scheme.

"It's only the industry super lobby [out of the superannuation system] which is by far the most noisy, most belligerent, most resistant to change or improvement and they are also by far the most well-funded lobby group around," Senator Hume said.

The super funds have also been critical of the federal government's decision to allow struggling workers to access up to $20,000 from their retirement nest egg at the height of the coronavirus pandemic and have warned any moves to extend this will be met with resistance from the industry. So far $33 billion has been withdrawn from super accounts.

Industry Super has raised concerns about ineligible applications to the scheme and launched a marketing campaign online about the effects on retirement balances of withdrawing the money early.

Quote:


Why?

Are you quoting the Bible?

Quote:


Do you think people might be better off if they could manage their own savings?

Mix_Master wrote on Sep 20^th, 2020 at 8:37am:


Do you think making financial decisions for these people you look down on is worth the cost of thousands of dollars taken from people's savings every year just to manage government paperwork?

When I started work nearly 50 years ago, I signed up for super.

I was on a wage of around $18,000.00 a year, which was average.

I was advised that at my retirement, I would have a princely sum of around $175,000.00 to retire on, quite a massive ammount in the 70s.

But over the years, inflation decimated early super contributions and the $175,000.00 would be worthless.

Fees, Charges, and all manner of fiddles saw my super grow barely by the amount I contributed, sometimes less.

Up until around 15 years ago, my super was going nowhere, I also lost 10 years of contributions when the company choofed off and stole my super.

That was the final straw for me.
I went looking for a better way and found a super fund managed like a business, secure and fees only taken from the profits.
No profit, no fee.

In the last 15 years my super surpassed anything the previous 30 years even considered.

Im now retired at 62 with a comfortable income.

Super is a rort

My daughters invest in property and are already nearly independent.
My eldest expects to retire soon and simply live off property investment portfolios.

Until we get the same super fund as the public service parasites get "Futures fund" we are all screwed.

But then, we all know the politiocians and senior public serve us all get far far more that they could ever deserve.

Quote:

Quote:


The best way to do that is to abandon superannuation. While it remains a regulated scheme that people will inevitably try to take from, compliance costs will be high.

Quote:


I believe I mention this specifically. Though it would help if you were clearer about what you mean.

Quote:


People tend to be rational about other costs.