Parliamentary Joint Committee Report on 4th Tranche to MySuper Legislation

With the current passage of the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012, a Parliamentary Joint Committee report has been released recommending that the bill be passed subject to the consideration of certain recommendations. The Bill itself marks the fourth tranche of legislation implementing the MySuper reforms.

The conditions upon which the Bill has been supported are that existing service provider contracts which are not in members’ best interests should not be permitted to apply in relation to members with an interest in a MySuper product; and that trustees should be required to inform members of their entitlement to reasons for decision upon a request in writing.

Overall, this Bill is part of a significant reform to Australia's superannuation system that will replace existing default superannuation products with one that is designed to be simple and cost-effective. The reforms will also result in the governance and integrity of the superannuation system being strengthened.

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