What’s in a name? Plenty, say industry funds

Trade union and employer groups should be able to comment about changes to the names of superannuation funds before they occur, according to industry funds group, the Super Members Council (SMC).

The SMC has told the Fair Work Commission (FWC) that it should have regard for the maintenance of fund brand names after a merger and that, indeed, the ultimate name of a fund can be an important factor in mergers.

As well, the SMC told the FWC that the commonly understood brand names used by funds should be used by the FWC alongside other names.

“To enable employers to more readily recognise the default fund into which they may be required to make contributions into and to aid employees understanding of their entitlements, SMC recommends that where registered fund names misalign with or complicate commonly understood brand names, that the brand names also be presented alongside the registered or formal name,” the SMC submission to the FWC said.

“The Commission should also have regard for the maintenance of fund brand names after a merger for cohorts of members from the precursor fund. Such arrangements may be an important consideration in a merger to ensure members continue to have access to tailored products or service offerings relevant to their industry,” it said.

“Prior to finalising any change of fund named in a modern award SMC suggests that the industrial parties and the impacted funds be provided with an opportunity to comment,” it said.

The FWC is conducting an audit of superannuation fund names in the context of recent mergers, and SMC said it supported such a move, including removing those funds that can no longer offer a MySuper Product.

“Notwithstanding stapled fund reforms, the nomination of funds in awards is still an important system safeguard to connect employees to quality funds, particularly in their first job or when changing industries where insurance arrangements in super may be important,” the SMC said.

“The increasing pace of industry consolidation and mergers as well as regulatory interventions under the Your Future Your Super Performance (YFYS) test means updating or correcting superannuation fund names may need to occur frequently.”