Is there a Superannuation Crisis?
The draft report of the Productivity Commission (PC) into the superannuation industry, released on Monday, has elicited many responses from all the various stakeholders.
The truth is that the superannuation system needs updating to reconcile it with contemporary circumstances but to date the vast majority of consumers have done reasonably well out of the current system.
As the PC’s report notes, the current superannuation model was developed by the Hawke - Keating government as part of the social wage embedded in the accord between employers, workers and the government.
As such it envisaged that workers would be employed by a single employer throughout their working life, that that employer would be a de facto custodian of their superannuation contributions and would choose a superannuation fund for them.
In the circumstances it was logical for superannuation to be embedded in the industrial relations system and for the choice of funds to form part of the enterprise bargaining agreements which were introduced by the Keating government.
The current workplace environment is radically different from the one that existed when superannuation was introduced.
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