Hi and welcome to our first ever Blog on superannuation administration!

A blog on superannuation administration…. why I hear you say?  That is, if you are still reading.  Most new people I meet at (school) BBQs, (school) trivia nights and what seems like a never ending run of (school) fundraising functions, seem to run off for another drink or some more food when they hear the word super, let alone followed by administration.

Now is the time…..

Yet, there has never been a more important time in the recent history of superannuation administration than now with many reviews into Australia’s superannuation system having been completed (Harmer, Henry and Ripoll spring to mind) or about to be completed (the all important Cooper review).  Armed with a large, diverse and far reaching set of recommendations, the government will soon be ready to embark on the implementation and execution phase.

The super industry has taken the reviews very seriously and it was great to see the number of terrific submissions made, and in particular in respect of the Cooper Review.  If anything, the Cooper Review has already achieved a level of collaboration that we have not always seen before.  We have seen joint submissions between different interests groups and even competitors! That is great for super and, in particular, great for members when this leads to greater efficiencies and reduced costs.

But, the debates are far from over.  The Cooper Panel reported that by making our system more efficient, we could strip between $700M and $1B of costs from the super system, every year!  Wouldn’t that be great?  So, how are we going to make this a reality?  When it comes to implementation and execution, we need more debate about the benefits and costs, as well as who is going to pay.

Super admin….everyone’s concern

Super administration is by and large segment agnostic, meaning that most issues or concerns in super administration will generally apply to all segments, industry super, retail SMSF etc and affect all members, eg: how contributions are paid by employers to superannuation funds.  Currently, a third of the total administration cost goes towards managing contributions.  As this is everyone’s problem, we have to work together on finding better ways to make super more efficient. This is where you come in…

Your help…please

So, what would I like from you?  Thanks for asking!  I would like your thoughts, ideas and comments on how we can make an already great superannuation system  – yes our retirement income system is considered one of the best in the world – an even better one.  This is a forum for everyone who has an interest in anything super admin. This could include topics like: what best practice is (either here or overseas) how we can improve efficiency (electronic data and money transfers) and topical issues like Lost Super Account,  Intra Fund advice, longevity risk etc but also your wish list (TFN as unique primary ID would be high on my list).  When we say super admin this obviously includes important areas like insurance and investment administration (eg unit pricing or crediting rates).

Your valuable contribution can either be a suggestion for a topic you want to see discussed or a post (or two) on the topics that have been raised by others.  As this is the first one, you can send your topics (with a brief explanation and your solution…if you have one of course) directly to me via email or via this blog.

My Commitment…

I will be sending a new blog every fortnight with a new topic selected by you.  Super is my passion and I know that I am not the only one out there (or am I…?).  I am excited and am looking forward to engaging discussions and debates with you, online or offline.

Thanks for participating,

Yours in super

Hans