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State Government responds to report into future strategic direction of RBF
TODAY the State Government announced its response to the report it commissioned into the Strategic Direction of RBF. The government has indicated its support for the proposal to undertake a process to appoint an alternate default fund provider to the RBF accumulation scheme.
The stage 1 report that was authored by Price Waterhouse Coopers (PWC) is now available on the Treasury website here. It explains the reasons the government is concerned about the ability for the RBF accumulation scheme to maintain its market share in the long term in an increasingly competitive and highly regulated industry.
The government has now decided to commission PWC to undertake a stage 2 report that will consider how a new default fund would be identified and how the transfer of current accumulation fund members to a new default scheme might occur. This report is expected to be finalised in April 2014 and the government would then decide if such a process will proceed.
There are a few facts that are worth noting:
1. These decisions do not impact on the superannuation entitlements of any existing or future worker.
2. The RBF contributory scheme remains in place, unchanged and it will continue to be managed by RBF.
3. The issues being addressed by these changes are long term ones. Until the stage 2 report is finalised and the government has made a final decision on that report, RBF will continue to manage the RBF accumulation scheme in the same professional manner it has in the past and RBF members will continue to have access to all the services they have in the past.
4. Even if the government decides to proceed with these changes after consideration of the stage 2 report in mid-2014 is it likely to be years before a new default fund has been identified and any transfer of members occurs.
Treasury and RBF have developed a set of answers to common questions and these can be accessed here.
The group most impacted by this decision is the hard working and dedicated staff of RBF. They have already been through years of uncertainty following the outsourcing of member administration, the abandoning of the RSE licencing project and all the other changes they have experienced trying to operate in a highly regulated and ever changing industry. Now they have more significant change and will need to wait until mid-2014 to know what the impacts will be. The CPSU will support and assist Members through this process. We have already spoken to Minister Bacon about mitigating potential job losses by including local jobs in any tender process for a new default fund and we will work with the government to minimise any impacts.
If you have questions or concerns not covered in the Q&A document please let us know and we will seek to get them answered.