The proposals, outlined by Minister for Financial Services and Superannuation Bill Shorten in his speech on April 5, call for the establishment of a Council of Superannuation Custodians to ensure future changes to super are consistent with the Charter.
The yet-to-be-developed Charter of Superannuation Adequacy and Sustainability will be formed by a dedicated group of industry experts, including former AustralianSuper chair Elana Rubin, former MLC chief executive Steve Tucker, Australian Prudential Regulation Authority deputy chair Ross Jones, former Cooper Review chair Jeremy Cooper and former Federal Court judge Alan H Goldberg.
In supporting the council, AIST said the Australian superannuation system “has matured to the point where there is a need for a body to take responsibility for broad, overarching superannuation policy”, not withstanding the role of various regulatory bodies in prudential matters.
AIST recommended the council be charged with developing, recommending and monitoring an adequacy benchmark, a sustainability benchmark and longevity index in order to provide proper focus on the key drivers of adequacy, sustainability and longevity within the superannuation system
“Given the importance of these key drivers, AIST recommends that both the Charter for the Council of Superannuation Custodians and the development of these benchmarks be enshrined within legislation,” the institute stated.
“AIST recommends that the council also play the role of testing superannuation policy changes against these benchmarks, as well as weighing up the cost of implementing change against benefits to the Australian people.”
