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The Cooper review and you

September 2010

Many stories have recently appeared in the media about the Cooper review and a possible shake up of super. But, what exactly is the Cooper review and what does this shake up mean for your super?

Well firstly, the Cooper review was a complete review of the super system and how it operates. Its aim was to provide recommendations that would help streamline and improve super for members. At this stage, the Cooper review recommendations have not been legislated.

The review received input from many key super industry players and the recommendations were released on 5 July 2010. There were 117 recommendations, and if implemented, they could change the super landscape for members.

What are the main recommendations and how will they affect my super?

• My Super
  MySuper is a product that would replace default super funds. So, if you don’t elect a super fund when you join a new employer, MySuper would be the default option for your super.
  
  MySuper is intended to be a simple product and would provide only basic services including:

  • only one investment option for your super;
  • access to simple, limited financial advice;
  • a retirement income (pension) product;
  • automatic death and TPD insurance that members can cancel at any time; and
  • income protection insurance as an option.
  
  If MySuper becomes law, all employers will need to offer a MySuper product to their employees as the default fund.
  
  
• SuperStream
  

  SuperStream is a proposal aimed at increasing the administrative effectiveness of super and eliminating manual, paper-based processing. This may mean lower fees and more efficient service for all members.
  
  It would encourage employers to provide more detailed and accurate employee data to super funds, including employee Tax file numbers (TFN’s) to reduce the number of lost super accounts. It would also encourage employers to make electronic Super Guarantee (SG) contributions.

  
  
• Other recommendations
  

  The remaining proposals focus on safeguarding super for members. These proposals include new rules for Trustees requiring super funds to hold operational risk reserves, and strengthening the super regulatory framework.

It's still too early to tell which, if any, of the Cooper review recommendations will become law, but rest assured that we will keep you updated on any important changes that are made to super.