Big industry super unites in political lobbying power play
A new “big eight” of superannuation funds will dominate the $3.5 trillion retirement savings system by uniting under a soon-to-be announced policy and lobby group that will court both sides of politics.
The shape of the group’s governing body has yet to be finalised, but The Australian Financial Review understands each of the eight funds will appoint a board director.
Cbus chairman Wayne Swan. Ben Appleton
Sources said funds were likely to nominate either their existing chair or chief executive, which means the pool of contenders includes former Labor treasurer Wayne Swan, ex-federal Labor MP Nicola Roxon, former Labor deputy premier in Victoria, James Merlino, and former Queensland Labor treasurer Andrew Fraser.
Formation of the new group – tagged NewCo amid debate over a name – comes as non-profit super funds emerge as the leaders of the mammoth retirement industry and a key force in shaping politics andcapital markets after several high-profile mergers and ructions with retail funds.
To quell disquiet over a potential dilution of union power over superannuation, which grew out of Labor industrial policy, the Australian Council of Trade Unions will have a non-voting seat at the table. Employer groups will also be represented by a nominee.
Smaller not-for-profit super funds will also share three voting seats on the board, which sources said was needed to get sign-off on the new group as it combines two industry bodies – Industry Super Australia and Australian Institute of Superannuation Trustees – and diminishes their power compared to the big eight.
Nicola Roxon is heavily involved in the superannuation industry. Louise Kennerley
The AIST has four times as many members as ISA, including several not-for-profit but
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