Sunday , March 26 2023

The work legend tells us to shorten to face the Super industry


"I probably don't use Bill's language, but what we say is the same," he said. "You can't justify putting people in chronically disadvantaged funds, industry, or retail, we need to start exploring them."

Mr Combet said that the Australian advisory body should seek to achieve lower results by forcing them to unite or transfer their members, while a fair work commission should be based on a quality filter to stop poor fund failures.

Mr Combet's thread paves the way for Mr Shorten and his shadow heir, Chris Bowen, to aggressively address the industry after years of coalition claims that they have defended the roots of the Labor Union. Many former deputies, including Combets and former Victorian Labor Bonus Steve Bracks and John Brumby, have gone on a lucrative role in the industry.

"No matter how loud you are, if you tell people that they are in a super fund that is 2% behind each year, that is, 20% over ten years," said Kelty.

"If you are continually inadequate, you should not have a license and you should really ask yourself why you are still there."

Union-backed industries Super funds generally outperform their retail partners, but some smaller funds continue to generate lower returns by paying up to $ 500,000 to a new employee while they retire in the worst-case scenario developed by the Productivity Commission.

Despite the differences, the productivity commission's main recommendation from the three-year review, the "best indicator" for the top 10 old-age pension funds list, was both Combet and Kelty.

"This is the result of a high school project," said Cyby, a former board member of the Reserve Bank. "It would be better suited for cats and dogs competing in the royal agriculture exhibition."

He said that the real issues in this industry would not be solved by deciding on the top 10, but by eliminating the 10 land plots he accused members of using the fee and insurance.

Industry Super Australia Chairman Greg Combets.

Industry Super Australia Chairman Greg Combets. Credit:Louie Douvis

"If you invest in bonds and the stock market and charge 1.5 percent to perform a task that would have to pay f – everything, then you have too much," he said.

Choosing the top 10 movement that the coalition has warmed up but faced with resistance to working conditions would endanger high-performance funds located just outside it and create an audible investment mentality, said Kelty.

"It's like saying just 10 fastest runners per 100 meters," he said. "The only people who can compete are the top 10 runners and Usain Bolt comes together and he's not the top 10, but you've run him this year or four years."

When asked about the list of 10 top age funds, Mr Combets said that those who will miss will be "simply left to die on the vines".

"Everyone will be geared to doing everything they need to do to be in the top 10, whether it is an absurd amount of marketing or an investment in a loss-making product," he said.

Darren Stevens, Mercer's corporate age manager, warned of a top 10 list that would create a copying cat investment situation where funds mimic the assets of leading funds by over-displaying millions of Australians on specific investment classes such as stocks or property.

"It will expose large parts of our members and industry to the same investment cycles [global financial crisis] that you cannot foresee a "black swan event" that could negatively affect a large number of Australians, "he said.

The figures given Sydney morning and Age to show billions of dollars in assets that would have been destroyed if all the funds had been led by the MTAA Super, which in the fifteen years preceding the global financial crisis before refueling pushed the SuperRatings tables to fifteen percent.

The Fund and its 280,000 members invest heavily in infrastructure and commercial property that led to the GFC. According to SuperRatings, over the last five years it has increased by 10, reaching 8.1% annual profitability.

Mr Stevens, a former CFO of ING Bank, denied that the industry was wrong.

"It's a bit like a royal commission. When you look at the violations. What will you find? The offense," he said.

It is understood that Morrison's government is also considering authorizing a government-managed future fund to manage a default old-age pension scheme that competes with industry and retailers.

This step, which was first noted by former Treasurer Peter Costello, is the support of Mrs Kelty, but the productivity commission did not analyze it in her final report.

"The Future Fund is a better solution, I don't know why they excluded it," he said.

Eryk Bagshaw is an economic correspondent for Sydney's morning herald and era.

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