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You can find the current article at its original source at https://www.theguardian.com/australia-news/2016/nov/07/superannuation-review-criticised-for-looking-to-nz-and-chile-for-inspiration
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| Superannuation review criticised for looking to NZ and Chile for inspiration Superannuation review criticised for looking to NZ and Chile for inspiration | |
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| One of Australia’s biggest superannuation lobby groups has criticised the Productivity Commission’s review of Australia’s default super settings, saying it is turning for policy inspiration to countries with inferior models. | One of Australia’s biggest superannuation lobby groups has criticised the Productivity Commission’s review of Australia’s default super settings, saying it is turning for policy inspiration to countries with inferior models. |
| Industry Super Australia, in its submission to the Productivity Commission’s review of the competitiveness of Australia’s super system, says the review should consider the world’s best retirement income systems, rather than hold up Chile and New Zealand as exemplars. | Industry Super Australia, in its submission to the Productivity Commission’s review of the competitiveness of Australia’s super system, says the review should consider the world’s best retirement income systems, rather than hold up Chile and New Zealand as exemplars. |
| It says the retirement income systems of Denmark, the Netherlands and Australia were ranked first, second and third respectively in Mercer 2016 Global Pension Index, released last month. | It says the retirement income systems of Denmark, the Netherlands and Australia were ranked first, second and third respectively in Mercer 2016 Global Pension Index, released last month. |
| But Chile (ranked eighth) and New Zealand (no ranking) were being held up as exemplars in the Productivity Commission’s review process, it said. | But Chile (ranked eighth) and New Zealand (no ranking) were being held up as exemplars in the Productivity Commission’s review process, it said. |
| ISA’s chief executive, David Whiteley, said the focus on New Zealand’s and Chile’s pension systems had set the Productivity Commission review off “on the wrong foot.” | ISA’s chief executive, David Whiteley, said the focus on New Zealand’s and Chile’s pension systems had set the Productivity Commission review off “on the wrong foot.” |
| He said key features of the successful Danish and Dutch systems were already evident in Australia’s industry, corporate and public sector default funds. | He said key features of the successful Danish and Dutch systems were already evident in Australia’s industry, corporate and public sector default funds. |
| “The best systems, just like Australia’s best performing funds, involve employers and employee representatives working together to deliver income security for retirees,” Whitely said. “They are not about generating profits for banks and financial institutions. | “The best systems, just like Australia’s best performing funds, involve employers and employee representatives working together to deliver income security for retirees,” Whitely said. “They are not about generating profits for banks and financial institutions. |
| “The approach to superannuation in Denmark and the Netherlands – along with the part of Australia’s system built and maintained by unions and employers – is internationally lauded. | “The approach to superannuation in Denmark and the Netherlands – along with the part of Australia’s system built and maintained by unions and employers – is internationally lauded. |
| “The key difference is that these systems and institutions put member interests above those of others, including shareholders.” | “The key difference is that these systems and institutions put member interests above those of others, including shareholders.” |
| Industry Super says the pension systems in Denmark and the Netherlands have trusted providers run on a not-for-profit basis for the benefit of members, just like Australia’s. | Industry Super says the pension systems in Denmark and the Netherlands have trusted providers run on a not-for-profit basis for the benefit of members, just like Australia’s. |
| It also says they have industry or multi-industry funds that are generally affiliated with industrial parties and their systems are wholesale in structure, rather than retail, to leverage scale and minimise costs, like Australia’s. | It also says they have industry or multi-industry funds that are generally affiliated with industrial parties and their systems are wholesale in structure, rather than retail, to leverage scale and minimise costs, like Australia’s. |
| Whitely said the argument from banks, that Australia’s super system will benefit with more competition at the default level, is not necessarily the case. | Whitely said the argument from banks, that Australia’s super system will benefit with more competition at the default level, is not necessarily the case. |
| He said one of the main difference between Australia and Denmark and the Netherlands was that we allow for-profit funds to participate in the default system. | He said one of the main difference between Australia and Denmark and the Netherlands was that we allow for-profit funds to participate in the default system. |
| The Turnbull government released the terms of reference for the review in February. | The Turnbull government released the terms of reference for the review in February. |
| If thinks Australians would benefit if banks and industry funds had to compete for right to manage the super savings of workers for at least two years. | If thinks Australians would benefit if banks and industry funds had to compete for right to manage the super savings of workers for at least two years. |