SMSFs better placed to monitor employer contributions
Members of self-managed super funds (SMSFs) have a number of advantages over other superannuation funds via their direct involvement with their own fund to ensure they receive all employer contributions, says SMSF Association Managing Director/CEO Andrea Slattery.
In the wake of industry concerns about large amounts of compulsory superannuation not being paid to employees, Slattery says non-payment of contributions is far less likely to be an issue for the SMSF sector.
“SMSF trustees and members have direct access and knowledge of their fund’s bank account, allowing them to directly monitor employer contributions to their SMSF.
“Based on significant research and empirical evidence, SMSF members are generally more engaged with the direct administration and management of their superannuation, and as a consequence are more aware of the contributions being made to their fund.
“Discussing this issue with SMSF specialists would certainly suggest non-payment of employer contributions is not a problem in the SMSF sector to the degree it is for members of APRA-regulated funds as outlined recently by the industry funds sector. And if there is an issue, it is usually identified very quickly,” she says.
There has been significant concern by the industry funds sector about the large amounts of compulsory superannuation not being paid to employees. The issue is currently subject to an inquiry by the Senate Standing Committee on Economics.
Slattery says compulsory superannuation is a key pillar of the Australian retirement income system, and together with voluntary contributions, contributes to people achieving a secure and dignified retirement.
“As the non-payment of compulsory superannuation to employees can have a severe impact on people’s capacity to save for retirement, it’s imperative that this issue is addressed immediately. Certainly the Association will support moves to tighten up the system to ensure employers meet their legal obligations.”