The federal government has released new guidelines to assist superannuation funds to develop and deliver retirement income solutions for members and will track that work using a new reporting framework.
The release of the two initiatives was announced today by Treasurer Jim Chalmers and Minister for Financial Services Daniel Mulino following a month-long consultation in August last year on how the reporting would take place.
The two ministers stated the Best Practice Principles for Superannuation Retirement Income Solutions “set out clear guidance for trustees on the design and delivery of retirement income solutions, to support industry progress towards best practice”.
“They outline the steps funds can take to better understand members, design fit‑for‑purpose solutions and engage their members on retirement income decisions”, with the principles adding the guidance was non-binding on trustees.
The Retirement Reporting Framework will allow the collection of data to track progress made by funds to enter into the retirement phase of superannuation and improve member outcomes by creating greater transparency across industry.
The Australian Prudential Regulation Authority will collect and publish the data required to give effect to the framework, providing insights on fund offerings and member outcomes and helping track progress on uplift across the sector.
“These measures build on the obligations introduced by the Retirement Income Covenant. They will be reviewed regularly to ensure they remain fit for purpose and reflect evolving industry practice,” Chalmers and Mulino said.
“The reforms will ensure there is as much of a policy and product focus on the retirement phase as there is on the accumulation phase.
“They will improve transparency and drive trustees to innovate and deliver better retirement solutions for their members.
“This will help Australians retire with more confidence knowing they have access to the right product solutions, information and strategies to help them make the most of their superannuation.”
