The Australian government has published proposed reforms applicable to the superannuation pension provision in the “Your Future, Your Super” bill, following a consultation on the exposure draft that closed on 24 Dec 2020.
Removal of Portfolio Holdings Disclosure exemption. The current exemption that allows pension trustees not to disclose up to 5% of investment items related to commercially sensitive investments (if their disclosure could be detrimental to members’ interests), would be removed. Disclosure requirements are currently due to begin in the quarter ending in March 2022.
Stapling of accounts — Super to follow the employee. A stapled fund would automatically continue in a successor fund transfer. Australian public service employers would also have to comply with the new stapling rules. For instance, if a relevant employee does not choose a superannuation fund when they start employment in the Australian Public Service (or with certain other Commonwealth employers), their employer would not be able to make contributions on their behalf to the Public Sector Superannuation Accumulation Plan if the employee has a stapled fund.
Holding funds accountable for investment underperformance. The bill outlines notification and other requirements if a fund fails the performance test.