Member Advisory Forum provides insight into member views
At the inaugural Member Advisory Forum in October 2020, members from the NSW Department of Education shared their views on two important topics
First Member Advisory Forum a success
The inaugural Member Advisory Forum in October was a virtual event that demonstrated State Super’s commitment to connecting with members and providing a platform for sharing their views.
The feedback was extremely positive, and a white paper will be prepared late in 2021 on findings from up to three Member Advisory Forums.
CEO John Livanas said about the launch of the Forum:
“This is a tremendous opportunity to hear directly from public sector employees. Bringing our members together with their peers, for an animated discussion about superannuation related issues was a first for us, and for the members.
As each person shared, others contributed their thoughts, or asked questions and all views were recorded. Members were also able to ask me their own questions directly. We’ve learned a great deal from the first Forum and will continue to bring members together in 2021 before consolidating and sharing the results.”
Nada Siratkov, General Manager, Member Engagement observed about the discussion:
“We’ve realised that this Forum is more than a vehicle for seeking member views. It’s an event that brings like-minded people together; workers from the same industry who had never met before, who were able to enjoy a robust conversation and express their own opinions. It was a success for our members and for State Super.
Some retired members said that it was like the old days at work - getting into deep discussion about important issues. For State Super to have been able to create this environment for members to unite during such a difficult year, was a wonderful thing.”
Views on public sector super
Members discussed the question “What insights from your experience as a teacher and a public sector superannuation scheme member should inform future retirement income policy?” Key themes from the discussion on this topic were:
Super was an unknown factor in choosing a career
Super was not top of mind for these members when choosing their occupation and entering the workforce, but there was a suggestion that people attracted to public service may tend to value a greater sense of security.
Young workers must take an active interest in their super
Members think there is still low awareness of super and finances generally amongst young workers today. They believe it would make a real difference to a young person’s future financial security if they understood the benefits of and how to approach their super.
High level of comfort from having a defined benefit pension
Forum attendees who were eligible for a pension believe their defined benefit pension provides comfort in times of uncertainty, and they have been able to reliably plan and adjust their lifestyle accordingly.
Limits could be placed on lump sum payments
While members value the income stream, they believe it is important that they have the choice of taking a lump sum. Some think there is value in restricting lump sums, but uncertainty around life expectancy makes this a bit difficult.
There could be some alternatives such as allowing lump sum at age 65-70 once a person has a better idea of their living situation. Or mandating that some (or all) of a lump sum be taken as an income stream, because some people will not manage their money as effectively.
Objective advice is needed pre-retirement
Members told us that the 5 years leading up to retirement is when they began to attend seminars and see financial advisers. They believe it’s important to seek objective advice that is accurate and carefully explained to inform retirement planning. Without this advice, there is a risk of people acting without understanding the gravity of their decisions.
Views on responsible investment
Members also discussed the question, “What are the special requirements for a public sector superannuation fund on matters of responsible investment?” Key themes that came out of their discussions on this topic were:
Provide easy access to information
Members told us that as a public sector fund, State Super must lead by example and ensure transparency of its investments. We need to make it easy to find investment information that is easy to understand so that members can make informed decisions.
Long-term focus on more than financial best interests
Members say there is a need to balance returns with social, environmental, and national sustainability. They know that some of these investments are long-term and this focus should include engagement with younger fund members to help them make the best decisions for their future.
Consider a broad definition of ‘responsible’
Our members at the Forum told us that super funds should take a more strategic approach to future-proofing our economy, such as investing in our national research and development sector and investing in Australian companies.
Responsible investment also means environmental sustainability, quality, and equity. Investing in companies that have good management, that genuinely care for their people and have a sense of ‘Australian-ness’ at their core.
Health sector members invited to Member Advisory Forum 2021
- Our next Member Advisory Forum will be a webinar on Tuesday 27 April 2021
- Members who are current or past employees of the NSW Department of Health or health related organisations are invited to attend.
- If you are interested in participating, email your name, and current or previous job title to info@statesuper.nsw.gov.au and we’ll reply with a link to participate.