Life insurers welcome paper on legislating objective of super
The Federal Government’s launch of a consultation paper over a proposal to legislate an “agreed objective” of superannuation has the backing of life insurers.
The Council of Australian Life Insurers (CALI), formed last year to represent the industry, says the economy and member outcomes are “best served” when superannuation is underpinned by life insurance.
“Having insurance in superannuation means that Australians have a safety net when faced with major illness or disability,” CALI CEO Cupitt said.
“Insurance in superannuation can step in to meet their financial need first, which helps to protect superannuation balances and enable a dignified and financially secure retirement.”
She says CALI will participate in the consultation, which was launched a week ago by the Government.
The Albanese Government says the consultation paper wants feedback on the benefits, phrasing and implementation of an objective for superannuation.
“This is about making super stronger. A stronger super system means a stronger economy,” Treasurer Jim Chalmers and Financial Services Minister Stephen Jones said in a joint release.
“Legislating an objective for super – a Labor commitment at the last election – will give confidence to the super industry and peace of mind to Australian workers that we’ll do everything we can to safeguard their savings to deliver income in retirement.”
The consultation paper makes no direct mention about insurance, but millions of working Australians have some form of group cover through their super funds.
The paper says the proposed objective of superannuation is to “preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.
“The drafting of the proposed objective attempts to remain neutral, enduring, and clear,” the paper says.
“However, it is anticipated there will be a wide range of views on the particular terms used in the objective, driven by different understandings of the most appropriate terms to capture Australians’ experience and expectations of the superannuation system.”
Closing date for submissions is March 31.
Click here for the consultation paper.
