E9. Does the Introduction of new We agree with the Commission in stating that “Ultimately, an system retirement income assessment of the sector needs to go beyond a simple overcome products#* (output) examination of product diversity and levels of uptake, and focus impediments to on market and policy barriers to product development and the improving implication of those barriers for competition and efficiency” longterm (p223, Draft report No. 2)). outcomes for We note that the interaction of superannuation, tax and social members? security law has been a significant impediment to the development of retirement income products. Recent rapid policy development in this, aimed at removing disincentives to developing new product types, has opened new possibilities. Work on CIPRs is a prime example. Whether or not funds offer retirement income products and/or have refined them in recent years is a consistent transparent measure and applicable across all funds. It doesn't necessarily yield "level playing field" results, in that funds with younger, low balance demographics will have less demand for them. Small funds will have little capacity to offer them. Aggregated industry data not readily available. APRA does not collect it; it offers only number of pension accounts opened in the reporting year.
E9. Does the system overcome impediments to improving longterm outcomes for members? Introduction of new retirement income products#* (output) We agree with the Commission in stating that “Ultimately, an assessment of the sector needs to go beyond a simple examination of product diversity and levels of uptake, and focus on market and policy barriers to product development and the implication of those barriers for competition and efficiency” (p223, Draft report No. 2)). We note that the interaction of superannuation, tax and social security law has been a significant impediment to the development of retirement income products. Recent rapid policy development in this, aimed at removing disincentives to developing new product types, has opened new possibilities. Work on CIPRs is a prime example. Whether or not funds offer retirement income products and/or have refined them in recent years is a consistent transparent measure and applicable across all funds. It doesn't necessarily yield "level playing field" results, in that funds with younger, low balance demographics will have less demand for them. Small funds will have little capacity to offer them. Aggregated industry data not readily available. APRA does not collect it; it offers only number of pension accounts opened in the reporting year.
sub039-superannuation-assessment.docx