Super leaders want help from outside the fold
The heads of some union-backed superannuation funds have made a surprising announcement, saying they would like more independent outsiders on their executive teams.
Bringing in external experts would provide the funds with knowledge-bases they do not currently have, as well as reduce the amount of union control exerted over billions of dollars worth of industry savings.
The claims are reportedly made in a submission by the Australian Institute of Superannuation Trustees for changes to be made to the Superannuation Industry Supervision Act. A draft of the submission has allegedly been obtained by Fairfax Media outlets.
The federal government wants the changes to go even further than third, saying it would like to see a majority of industry retirement funds overseen by a majority independent board.
Under rules currently in place, the super funds have to appeal to the prudential regulator if they want to put on more than one independent director.
The Australian Institute of Superannuation Trustees’ submission has praised the expertise that outsiders can bring, while denying that the move for a third independent directors is a response to the government’s request for a majority.
Financial media outlets claim several unions have struggled to find suitable skills within the limited scope allowed.
It is a dearth that has been seized upon by Prime Minister Tony Abbott and Assistant Treasurer Arthur Sinodinos in their attacks on unionism and industrial relations conditions.
It is speculated that Mr Abbott and the Federal Government will announce new measure to try to collapse union control in other areas, citing misuse of funds and criminal involvement as key factors eroding the basis of the movement.