The Guardian 10 August, 2005
Thousands robbed in super rort
Over 17,000 bosses stole workers' retirement funds last year as the Howard government moved to
undermine the country's best-performed super schemes. Independent figures show that union-
backed industry superannuation delivered double-digit returns last year.
Nine of the top 10 superannuation funds over the last five years were industry funds, according to
the latest figures from independent analyst SuperRatings.
It is a figure backed up by rival researcher, Rainmaker Information. Its research shows that seven
of the top 10 funds were not-for-profit industry plans.
The Australian Financial Review described the not-for-profit industry funds as "stars of the
show".
Michael Rice from independent actuary Rice Walker told the AFR: "It is remarkable how
industry funds, statistically, have always been good performers since they started in
1985.
"When the stockmarket has been down, they have tended not to have very big downturns. They
have also been prepared to take punts like reducing exposure to international shares. And so far
they have been pretty right. I think, given the record, you'd have to say that it is good management
rather than luck."
Rice says industry funds can charge fees that are as much as one per cent a year lower than
commercial rivals.
Industry funds now control $104 billion of the nation's retirement savings. The government's "super
choice" campaign allows employers to shift their employees' superannuation into the fund of the
bosses' choice unless workers specify otherwise.
One of the key reasons the federal government has advanced for sweeping workplace change is to
limit the rules small business has to abide by!
"Choice" not only brings on more paperwork for employers, for workers it adds to the complexities
and dangers inherent in private retirement schemes, especially compared with the alternative — a
universal, public age pension provided by state.