https://www.finsia.com/news/news-article/2014/08/07/brogden-bullish-on-super-fees-despite-murray-concerns

Brogden bullish on super fees despite Murray concerns

by Andrew Starke | Aug 08, 2014

Australia’s challenge over the coming years is to take the present superannuation system from a world class accumulation scheme to the world’s best retirement system, in part by scrutinising competition, performance and fees.  In his keynote speech to the Financial Services Council (FSC) annual conference in Cairns yesterday, outgoing CEO John Brogden reflected on his five years in the role and delivered a few parting shots to critics of the superannuation system.  He predicted that calls for superannuation to fund “all of the ills in the economy” would only grow louder in the future.

To counter this, the FSC have called for a national retirement income policy.  “We must embrace the opportunity and lead the debate on taking superannuation from a world class accumulation scheme to the world’s best retirement system,” he said, adding that superannuation and retirement income policy must be seen in the overall context of short, medium and long-term national budget sustainability.  “The system must not only provide a majority of Australians with an adequate retirement – it must also take intergenerational pressure off the budget. Failure to do this will mean our superannuation system and policy has failed,” Brogden warned.  “This policy will form views on critical issues that will determine whether superannuation succeeds or fails as the savings vehicle for Australia’s future. The alternative is rolling, piecemeal and constant changes into the system that undermine confidence and stability.”

A national retirement outcomes policy would potentially integrate the design of the superannuation system with government policy on ageing, welfare, health and tax.  The efficiency of tax concessions at the contribution, earnings and drawdown phases, lump sums versus compulsory or incentivised pensions and whether 12 per cent super will be enough to provide for life expectancies moving into the 90s and beyond are all ongoing issues for policymakers..............

read more   https://www.finsia.com/news/news-article/2014/08/07/brogden-bullish-on-super-fees-despite-murray-concerns

http://www.canberratimes.com.au/act-news/public-servants-super-could-be-slashed-by-more-than-30-per-cent-20140807-101mwx.html

Public servants' super could be slashed by more than 30 per cent

ACT News

August 7, 2014

 

The federal government wants to strip legal guarantees from the generous retirement benefits of its tens of thousands of public servants.  Unions say the move would enable the Commonwealth to strip hundreds of thousands of dollars from the retirement dreams of every bureaucrat, at the stroke of a minister’s pen.  Several departments are moving to scrap their workforce’s legally binding entitlement to the Australian Public Service’s generous 15.4 per cent employer superannuation contribution.  If successful, the move would leave Finance Minister Mathias Cormann free to slash the rate of employer contributions to public servants’ super by more than 30 per cent to the 9.5 per cent guaranteed to all Australian workers..

Superannuation is the latest battleground to emerge as 117 agencies and departments try to trash out new workplace deals with 160,000 public servants.  Already fights are raging about wages, working hours, allowances and other issues as departments slowly disclose their offers.  CPSU national secretary Nadine Flood said modestly paid rank-and-file government employees were worried about their retirement savings. “As bargaining continues, the number of significant Commonwealth agencies trying to remove the superannuation contribution from agreements is growing,” she said.  “The Department of Human Services (DHS) is the most advanced in its plan to strip superannuation from agreements, but we’ve got Health, Tax, Finance and the Australian Institute of Criminology following in its wake.

Read more: http://www.canberratimes.com.au/act-news/public-servants-super-could-be-slashed-by-more-than-30-per-cent-20140807-101mwx.html#ixzz39u9926Jq

 

http://www.investordaily.com.au/36041-fsc-to-develop-retirement-outcomes-policy

 

FSC to develop retirement outcomes policy

Friday, 08 August 2014 | Scott Hodder

 

The Financial Services Council (FSC) has announced it will develop a national retirement outcomes policy, to ensure that “intergenerational pressure” is taken off the national budget.  In his keynote speech to the FSC Annual Conference yesterday, Mr Brogden said the FSC will work with its members, business leaders and community organisations to develop the policy, with a focus on the short-, medium- and long-term sustainability of super.  “The system must not only provide a majority of Australians with an adequate retirement – it must also take intergenerational pressure off the budget,” said Mr Brogden.  Failure to do this will mean our superannuation policy has failed.”

The FSC outlined the policy will integrate the design of the superannuation system with government policy on ageing, welfare, health, and tax.  In addition, Mr Brogden said the outcomes policy will also consider a range of other issues including the efficiency of tax concessions at different lifecycle phases, and whether age pension or preservation ages should be aligned to life expectancy.  “This policy will form views on critical issues that will determine whether superannuation succeeds or fails as the savings vehicle for Australia’s future,” said Mr Brogden.  “The stakes are that high.”  “The alternative is rolling, piecemeal and constant changes into the system that undermine confidence and stability,” he added. 

 

read more    http://www.investordaily.com.au/36041-fsc-to-develop-retirement-outcomes-policy