Superannuation Reforms
Board Merger
Finance develops and advises on superannuation arrangements for Australian Government civilian employees and current and former Members of Parliament. On 31 October 2008, the government announced a package of reforms to improve and consolidate the governance and administration of Australian Government superannuation schemes. In particular, the government announced that the Australian Reward Investment Alliance, the Military Superannuation and Benefits Board, and the Defence Force Retirement and Death Benefits Authority would merge to form a single trustee board from 1 July 2010.
The new single board will act as trustee of the main civilian and military superannuation schemes and will fall under the responsibility of the Finance portfolio. The department has overall responsibility for developing the primary legislation to establish the single board and leads a Liaison Working Group to facilitate discussion on issues related to the merger with Department of Defence officials and executive staff from the civilian and military boards. Finance has a continuing role in managing transitional issues leading up to the commencement of the new board on 1 July 2010.
Scoping Study – Review of Superannuation Administration
The superannuation reform package released by the government on 31 October 2008 also announced that Finance would undertake a comprehensive scoping study of the administration arrangements for the main Australian Government superannuation schemes, including an examination of the long-term ICT requirements for the administration of the schemes. These superannuation administration services are currently provided by ComSuper and cover the Commonwealth Superannuation Scheme, the Public Sector Superannuation Scheme, the Public Sector Superannuation Accumulation Plan, the Military Superannuation and Benefits Scheme, and the Defence Force Retirement and Death Benefits Scheme. Together, these superannuation schemes are amongst the largest and most complex occupational superannuation schemes in Australia.
Finance examined ComSuper processes, services and ICT requirements, calling on the experience of superannuation administrators across the public and private sector and specialist advisers from PricewaterhouseCoopers. The government is expected to consider the recommendations of the scoping study in the second half of 2009.