Minister for Superannuation and Corporate Law
3 December 2007 - 8 June 2009
Joint Media Release
The Hon Lindsay Tanner MP
Minister for Finance and Deregulation
Streamlined Administration Arrangements for Australian Government Superannuation Schemes
The Hon Lindsay Tanner MP, Minister for Finance and Deregulation and Senator Nick Sherry, Minister for Superannuation and Corporate Law, today announced a package of reforms to improve and consolidate governance and administration of Australian Government superannuation schemes.
On 1 July 2010, the boards of Australian Reward Investment Alliance (ARIA), the Military Superannuation and Benefits Scheme (MSBS) and the Defence Force Retirement and Death Benefits Scheme (DFRDB) will merge to form a single trustee board. The new board will be trustee of the main civilian and military super schemes and will have the requisite skills to govern in the best interests of all members. Importantly, civilian and military interests will continue to be represented on the new board.
Minister Sherry said: "The Government is committed to ensuring governance arrangements for its superannuation schemes are effective and consistent with the broader super industry."
"The reforms will not affect members' superannuation benefits in any way. Each scheme will retain its own legislative base and provisions."
Minister Tanner said: "The outcome will be a more efficient trustee operation and improved service delivery to members."
"Consolidation will bring more than 650,000 members and pensioners under a single trustee board, establish a greater pool of assets for investment purposes and apply best practice management approaches across all the schemes."
The Department of Finance and Deregulation will also undertake a comprehensive review of the current administration arrangements relating to the main civilian and military schemes, including long-term IT requirements for administration of the schemes.
The study will incorporate specialist advice and identify scope for any further improvements to deliver sustainable and effective administration services for the Government's superannuation schemes in the future.
As a consequence, ComSuper's current IT procurement is to be terminated. The Government will strategically assess future IT needs following conclusion of the study.
31 October 2008