Background This measure will provide funds with a framework within which to administer intra fund consolidation. The amendments place a duty on trustees to establish and publish rules setting out a procedure for consolidating a member’s inactive interests within their fund on an annual basis. It was announced on 21 September 2011 as part of the Government’s Stronger Super package of reforms and will commence on the 1 July 2012 AIST The Australian Institute of Superannuation Trustees (AIST) is an independent, not-for-profit professional body whose mission is to protect the interests of Australia’s $450 billion not-for-profit superannuation sector. AIST’s members are the trustee directors and staff of industry, corporate and public-sector superannuation funds, who manage the superannuation accounts of two-thirds of the Australian workforce. AIST is a registered training organisation and has recently expanded its education program to encompass the growing and changing needs of all members of the not-for-profit superannuation sector. AIST offers a range of services including compliance and consulting services, events - both national and international - as well as member support. AIST also advocates on behalf of its members to relevant stakeholders. AIST’s services are designed to support members in their endeavour to improve the superannuation system and build a better retirement for all Australians. Contact Fiona Reynolds, CEO 03 8677 3800 David Haynes, Project Director 03 8677 3803 Executive Summary Intra fund consolidation is supported as the first step of various consolidation measures. However, this measure should not be limited to inactive accounts and accounts with less than $1,000. Furthermore, all ERF accounts should be included in intra fund consolidation measures. As a matter of principle, fund consolidation requirement should be as broad or broader than inter fund consolidation requirements. This measure appears more limited than the recommendations made by the Stronger Super Peak Consultative group and the SuperStream Working Group and sets a relatively low bar as the first stage of the system wide account consolidation process. AIST clarification on the definition of and submits that intra fund consolidation should be based on ’interest’ members separate accounts, rather than total interest.
Background This measure will provide funds with a framework within which to administer intra fund consolidation. The amendments place a duty on trustees to establish and publish rules setting out a procedure for consolidating a member’s inactive interests within their fund on an annual basis. It was announced on 21 September 2011 as part of the Government’s Stronger Super package of reforms and will commence on the 1 July 2012 AIST The Australian Institute of Superannuation Trustees (AIST) is an independent, not-for-profit professional body whose mission is to protect the interests of Australia’s $450 billion not-for-profit superannuation sector. AIST’s members are the trustee directors and staff of industry, corporate and public-sector superannuation funds, who manage the superannuation accounts of two-thirds of the Australian workforce. AIST is a registered training organisation and has recently expanded its education program to encompass the growing and changing needs of all members of the not-for-profit superannuation sector. AIST offers a range of services including compliance and consulting services, events - both national and international - as well as member support. AIST also advocates on behalf of its members to relevant stakeholders. AIST’s services are designed to support members in their endeavour to improve the superannuation system and build a better retirement for all Australians. Contact Fiona Reynolds, CEO 03 8677 3800 David Haynes, Project Director 03 8677 3803 Executive Summary Intra fund consolidation is supported as the first step of various consolidation measures. However, this measure should not be limited to inactive accounts and accounts with less than $1,000. Furthermore, all ERF accounts should be included in intra fund consolidation measures. As a matter of principle, fund consolidation requirement should be as broad or broader than inter fund consolidation requirements. This measure appears more limited than the recommendations made by the Stronger Super Peak Consultative group and the SuperStream Working Group and sets a relatively low bar as the first stage of the system wide account consolidation process. AIST clarification on the definition of ’interest’ and submits that intra fund consolidation should be based on members separate accounts, rather than total interest.
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