RESTORING INDEPENDENCE TO INDUSTRY RETIREMENT FUNDS

David Morrison, an Associate Professor at the University of Queensland, has conducted a painstaking review of the history and rationale for greater governance of superannuation funds for the Menzies Research Centre. He concludes that the introduction of independent directors on all superannuation fund boards is sound public policy that would clearly benefit fund members. Morrison notes that times have changed since the 1980s when the superannuation system was developed. He mounts a compelling case for devising one system of governance for all funds. It is especially important for the increasing number of savers in public offer funds or dealing and for members already in retirement. Morrison concludes that the arguments against independent directors are necessarily motivated by self-interest.