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Bandt will amend MySuper bill to protect workers' entitlements

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Media Release

Adam Bandt MP Deputy Leader, Australian Greens Federal Member for Melbourne

21 August 2012

Bandt will amend MySuper bill to protect workers' entitlements

Greens Deputy Leader and employment spokesperson Adam Bandt says he will amend the MySuper Bill currently before the Parliament.

Mr Bandt says the amendments will prevent super funds from gouging additional fees by unilaterally moving an employee's funds from one MySuper product to another after the employee leaves the workplace.

The Industry Super Network has identified that so-called 'flipping' occurred in 12 out 13 major retail superannuation funds and exposed members to increased costs averaging 30% or $292 per year.

"The Greens are right behind the MySuper reforms, but we need to get them right," Mr Bandt said.

"My amendments will mean that if a worker leaves their job and hasn't made arrangements for their super, the fund can't move it from one MySuper account to another with higher fees unless the worker agrees."

"By 'flipping' funds between products without permission, fees could increase by up to 73%, so we need to protect workers from this sort of gouging."

"I hope Labor and the crossbench get behind these amendments and ensure MySuper is protected from fee gouging by the industry 'flipping' products."

Information: Damien Lawson 0487 900 005