Super Choice surges despite Legislative Hiatus reports Commonwealth Bank

9 August 2001

The Commonwealth Bank Group reports that support for superannuation choice has surged in the last year despite choice legislation being stalled and finally defeated in the Senate last night.

The Group’s General Manager Investments and Insurance, Peter Beck said that, in the year to 30 June 2001, the number of employers and employees joining the Bank’s superannuation choice offering increased seven fold (700%).

"It’s clear, from the enthusiasm of both employers and their employees, that the wider Australian community has adopted superannuation choice as a rapidly growing preferred way of investing their superannuation savings. The political parties acknowledge the critical importance of increasing superannuation savings. The Commonwealth Bank’s superannuation choice offering is a real and tangible means of doing just that.

"There was also an end of year rush by employers using the Bank’s superannuation choice facilities, and we now have seven times as many employees actively embracing choice of fund and investment strategy compared to a year ago.

"It would seem, from this phenomenal 700% growth in the past year, that the legislative hiatus has not stopped people from moving to their own choice of superannuation fund and investment style. Employers have the benefit of a straightforward and fast online payment system to any fund at a keystroke, while the employees have access to detailed education programs provided by the Bank," Mr Beck said.

"This is what has distinguished the Commonwealth Bank Group from other players in this industry since we launched superannuation choice late in 1999."

The Commonwealth Bank was the first financial institution to provide a fully operational online superannuation payment system for employers, linked to and provided with a detailed education program for employees.