Home' Hotel Management : HM APL 2016 Contents DAVID ELIA, CEO, HOSTPLUS
David, what are some of the top
trends in Super at present?
There has been a lot of discussion on tax reform in
relation to superannuation, as the government plans
for the Budget. Other policy reform high on the
government's agenda is its attempt to remove super
from being an industrial matter.
Banks are also continuing to increase their efforts
to secure a bigger market share of the superannuation
sector by lobbying the government to remove super from being an industrial
matter; and there is much discussion about the importance of low costs for
super funds. Whilst important, Hostplus is concerned at the focus on low
cost alone. We believe a better measure of value is a measure that takes into
account the 'net benefit' to the member, which calculates the variance in
both investment earnings and fees (costs). Independent research shows that
over the past ten years, the average Industry SuperFund has consistently
delivered more to their members than the average retail super fund.
Why should employers place a bigger emphasis
on Super at present to benefit employees?
Super is likely to become an individual's biggest investment in their
lifetime and while employers cannot give advice on what fund they
recommend to their employees, it's important that employers understand
that the default selection they make could have a significant impact on an
employee's retirement outcome.
Employers should look closely at the fund they choose as the default
option for their staff. There are many ways to compare funds and readers
may have seen the long running 'Compare the Pair' advertisements,
which compare the industry fund and retail fund sectors.
As the national industry fund for workers in hospitality, tourism
and sport, Hostplus is happy to discuss its proven track record and
performance with you to help you assess your options. We have teams in
every state and territory willing to assist you on fund selection.
What are some of the ways your company is
encouraging employers and employees to get
more engaged when it comes to Super?
Over the years we have developed a significant program of communications
for employers and members, which is focused on engaging with them on a
personal level. Our national field team visits many workplaces during the year,
talking to members one on one or within group seminars formats. We work
with employers to review the demographic profile of a work site to ensure we
deliver easy to understand but more importantly, relevant content targeted to
that specific worksite segment. We also have the Hostplus Service Call Centre
operations for members and employers to call, should they have any queries.
In addition we run regular email and SMS-based campaigns to keep
members and employers up to date with issues that we believe are relevant
for them. At the moment, we are focusing on alerting members about
preventing their balances being transferred to the ATO as lost super.
Under current government legislation, we are required to report and
pay certain small and insoluble lost member accounts to the Australian
Tax Office (ATO) as unclaimed super. The good news is members can
permanently opt out of lost member reporting and transfers made to the
ATO and ensure their money remains in their Hostplus account, in the
event that they become uncontactable or their account becomes inactive. By
opting out, they'll also enjoy the peace of mind of knowing that even if their
circumstances change, their super will stay in their Hostplus account. That
means they'll continue to enjoy all the benefits of being a Hostplus member.
What are some of the top products employers
and employees should be aware of?
There are a number of developments happening for Hostplus in 2016.
On the product and services side, we are excited about the continued
success of our QuickSuper product. QuickSuper is an online solution to
automate and streamline employer's super payments.
Government reform means that employers of less than 20 staff will
need to make the transition to a compliant online system for making their
super payments by 30 June 2016. QuickSuper is a superannuation clearing
house which allows employers to make one contribution payment for all
of their staff, across multiple superannuation funds with a simple, online
system. It's free for Hostplus employers and it's really simple to sign up.
Aside from their investments, insurance is the other main offering
within super that many members are not aware of. Hostplus and other super
funds offer a range of insurance products that cover total and permanent
disablement, death and income protection. Insurance is important and it is
important that consumers understand the details of what they are covered
for and the associated premiums payable for that cover.
Readers may have noticed some recent headlines about the quality of
insurance. A good insurance policy is judged on when you need it most,
being at claim time. Hostplus has a solid track record of paying claims to its
members. We are member focused and run in the best interest of members.
Hostplus is also enhancing its offering through our move to a Pooled
Super Trust (PST) to enable self-managed super fund investors to invest
with us. We plan to offer this service by mid-2016.
Regular focus on your superannuation is important as 9.5 per cent of your
employees salary is contributed to superannuation, as part of the government
mandated compulsory superannuation scheme.
HM speaks to the CEOs of Australia's two leading hospitality industry
super funds to find out what's hot and what trends to expect this year.
Interviews by James Wilkinson
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