What are the employer goals in relation to superannuation?
The views of many employers appear to have changed over recent years. There has been a shift from paternalism to viewing superannuation as more of a commodity. This has been fed by a range of issues. The increase in the level of compulsory SG contributions from 3% of an employee’s salary in 1992 to 9% of salary a decade later has reduced an employer’s scope for differentiating its superannuation arrangement and for using superannuation to attract and retain staff. Further, the move to salary packaging has meant that employees often prefer flexibility to either reduce or increase their own superannuation in excess of the SG level. Flexibility has become more important than generosity. Increasing complexity in legislative requirements has significantly increased the costs and time involved in running employer sponsored funds. Consequently, the majority of organisations have “contracted out” their corporate superannuation arrangements to wholesale master trusts or industry funds in order
