“The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 will also improve the transparency of superannuation”. Outline the salient features of MySuper (10...

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INTRODUCTION
The employers make a mandatory contribution to for their employees to the superannuation
and they do not have any access to these funds are the superannuation funds. For such
employees, the employers select a special default fund or nominate it through an enterprise
agreement or industrial award. In Australia, over 12 million people (Australians) hold a
superannuation account and approximately 80% have to make a mandatory payment to it.
The cu
ent framework of regulation of the Superannuation system is designed on the basis
oe recommendations made in the year 1997 in the Financial System Inquiry (Wallis) Report.
The Wallis report said that the members of the superannuation should have the right to be
ationale and independent about making their own decisions about investing in the funds of
superannuation. But it has been found by the Super system Review that the consumers are
either not interested in understanding the superannuation system or do not have complete
information about the superannuation funds.
The solution to these problems were suggested and it was the introduction of new a
superannuation product that is safe and has low cost and simpler for the people to understand
and it is expected that introduction of such a product will help Australians in their
etirements. Although there is no bill posted to the Australians but they can afford to pay
around $85 per month as superannuation fees.
Introduction of “MYSUPER”
The Australian government introduced a low cost and a simple default product of
superannuation that replaces the existing complex product and this product is known as
MYSUPER.
The Australian Prudential Regulatory Authority (APRA) is the authority that is responsible to
set out the legislations for the standards that should be met by the MySuper product. But
these new standards will not be imposed on the funds apart from default funds for example
the self-managed superannuation funds (SMSFs) or choice products.
With effect from 1
st
July 2013, the MySuper product will be enforced in the superannuation
funds scheme and any employee has the right to elect this product and chose to pay thei
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superannuation into a MySuper product. But this product is not imposed on any employee
and it is their own wish to use this product. It is expected that maximum members of the
superannuation funds will opt for the MySuper product, but will have to meet the new
equirements as laid down by the government.
Salient features of the MySuper Product
The features offered by the new default superannuation product- The MySuper will be as
follows:
 New duties have been introduced for the trustees which include their definite duty to
deliver value for money as measured by long term net returns and to keep a check of
the scale of the funds so that they sufficient,
 a solo differentiated investing...