Rice Warner’s submission to the Productivity Commission: Superannuation – Alternative Default Models

The purpose of Stage 2 is to identify an alternate default model that will then be compared against the current system in Stage 3 of the Inquiry.
We recognise that there are inefficiencies in the current superannuation system. However, we make no assertion that the best of the Commission models selected by us in this report is better than modifying the current system incrementally, to reduce inefficiencies and enhance competition. We acknowledge that the work should be deferred to Stage 3 of this inquiry.
Our submission considers:

• The criteria for selecting funds under any of the models.
• The relative merits of each of the four models.
• The merits of the Commission’s proposal to restrict the new default models to people who do not yet have a superannuation account.