Key stakeholders are not sufficiently engaging with the Australian Industrial Relations Commission's (AIRC) award modernisation process, according to a soon-to-be-released Association of Superannuation Funds of Australia (ASFA) report.
The report, compiled by ASFA research director Ross Clare, found a significant level of disengagement with the process from superannuation funds, key employers and unions.
ASFA chief executive Pauline Vamos said: "People are not very engaged with the process. They are very busy because they've got a global financial crisis and are trying to manage liquidity risk, so it's very easy to not think about it because it doesn't come in until 2010."
Vamos said it was important for funds to monitor and participate in the process.
"Going forward, if a number of funds, including the not-for-profit funds, don't engage with the process, they will be impacted in the long run. There's no doubt about it," she said.
However, not all funds are ignoring the issue.
Not-for-profit fund CareSuper has lodged a submission with the AIRC arguing for the importance of preserving the existing superannuation arrangements for clerical and administrative employees in all industries.
Legalsuper chief executive Andrew Proebstl said his fund was monitoring the process, and intended to lodge a submission with the AIRC when an award was decided later this year.
"My understanding is that if a fund is not listed in the modernisation award, then they will be somewhat hamstrung in terms of winning new business from January 2010," Proebstl said.
"So I think it's in the interest of most funds to have default fund status in their award somewhere. If they don't, it's like having one hand tied behind your back."
Vamos said funds should also be looking at ways to preserve their 'grandfathered' position.
"That is, if you're a current default fund, you want to continue to be a default fund," she said.
The report revealed a number of existing default funds, including those in the not-for-profit sector, had not been nominated.
To date, AustralianSuper and Sunsuper have been nominated in seven awards and REST and Hostplus in four.
AMP was the only retail fund that received a nomination.
Seventeen new awards for priority industries have been established and will come into effect in January 2010.
The stage two industries/occupations will be finalised by April 2009.
