AMP Australia Chief Executive, Scott Hartley, has welcomed the release of the Your Future Your Super regulations by the Federal Government, saying they will give effect to new laws which will benefit all MySuper members.
The new laws include the introduction of ‘stapling’ which means a fund will follow an Australian as they move from one job to another, preventing the creation of duplicate super accounts.
The annual performance test will lay down the challenge to ensure all super funds are focussed on delivering competitive member outcomes.
The decision to use administration fees from the most recent financial year in calculating the annual performance test, rather than an eight-year average, will encourage further reductions in fees by superannuation funds.
While some superannuation providers such as AMP have significantly reduced their fees over the past several years, other funds have increased their fees, particularly after the introduction of the Protecting Your Super legislation. All members should expect their fund to be judged on all of the fees that are charged to them today.
The decision not to use historical fee data in the calculation of the performance test reflects the challenges around the inconsistency across funds of reporting that data.
AMP Australia CEO, Scott Hartley said:
“The Your Future Your Super legislation will help ensure super funds deliver better outcomes for their members.
“Using administration fees from the most recent financial year in the calculation of the annual performance assessment is sensible. It will ensure funds can be assessed on the fees that they are presently charging members and acknowledges the inconsistencies in the historical recording of fee data across funds.
“Delivering strong and sustainable returns for our members is a priority and AMP was pleased to deliver an average return of 20 per cent for our AMP MySuper lifecycle members for the past financial year.”