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Cooper Review Report 2010

The Cooper Review Report:
How your fund could be impacted

The Cooper Review is the latest Government review into the superannuation system. It has proposed a number of changes, which will benefit members, which are currently being considered:

MySuper

Cooper suggested the introduction of a low-cost, no-frills superannuation option called MySuper which potentially would lower fees and boost Australians’ retirement savings. Under the current proposal you would remain in Russell’s MySuper fund unless you choose another fund or make an investment choice.

Features of MySuper include:

• Projections of members’ balances expressed as an annual income they can expect in retirement.
• A single investment option. Members can make a choice but will move out of the MySuper fund if they do.
• Mandatory insurance for death and TPD cover (though you will be able to opt-out) and optional income protection cover.
• No entry fees and no payments to financial planners unless the member has an agreement with the planner.
• The fund must have sufficient scale to be viable.

Whole of life

Cooper also suggested that super products should look beyond just the retirement date and a lump-sum payment. Instead, they should be designed so that members can access income streams that support their needs, lifestyle and longevity throughout their retirement years.

We are already well-positioned to meet your needs in the new environment. Our approach to engage with our members has long acknowledged the need to focus on high quality investment defaults and encouraging members to ensure their retirement savings are on track, they have adequate insurance to protect their families and to use transition to retirement strategies.

If you have any questions about your super or would like more information on these proposed changes
please contact us.