On 20 April 2010, the Super System Review panel chaired by Jeremy Cooper released its second Phase One - Preliminary Report entitled "MySuper: Optimising Australian superannuation". This preliminary report provides more detail on the choice architecture outlined by the Review Panel in its Phase One preliminary report "Clearer Super Solutions" released late last year. "MySuper" is the new name for the universal fund concept proposed in that report.
In media release No 2010/002 issued 20 April 2010, Mr Cooper said: "MySuper would be a simple, cost-effective product that redefines what Australians should be able to expect from their super in the twenty-first century.”
Some of the proposed features of MySuper include:
- A ban on trailing commissions;
- No contribution fees;
- A new duty on trustees to manage the overall cost to members;
- A default post-retirement product;
- Trustee duties focused entirely on looking after the member.
The Panel emphasises that, if the MySuper proposals were implemented, those Australians who elect to have a fund that offers more choices and options, or want to manage their own super in a self-managed super fund (SMSF), would be entirely free to do so. MySuper would be just one offering in the super landscape. However, it is probable that a number of MySuper features – such as the trailing commission ban – will also be recommended to apply across the board.
The Panel's final report will be delivered to the Government by 30 June 2010.