Australians to benefit from greater fund governance

9 July 2015

LGsuper is backing draft legislation that will require the boards of all APRA-regulated super funds to have an independent chair and at least one-third independent directors on trustee boards.

In 2013, LGsuper became the first profit-for-members’ super fund to voluntarily adopt this board structure.

The Queensland-based fund is the super fund for current and former Queensland local government employees and their spouses. Its nine-member board features an equal mix of independent directors, and member and employer-representative directors.

LGsuper Chair and independent director Bronwyn Morris said the proposed reforms were in the best interests of all super fund members as they would bolster fund governance.

“We have already seen the advantages this balanced leadership creates, as each independent director brings their own specialist skills and expertise,” she said.

“In our case, the additional finance, investment and actuarial experience they bring to the table make an already good board stronger.

“Furthermore, this complements the indepth local government knowledge our member and employer representatives bring to the table.

“LGsuper first appointed an independent director and chair back in 1995, which on reflection was quite forward-thinking given this concept is now considered best-practice in the industry,” she said.

“From a good governance perspective, I’m proud to say LGsuper has led by example with its strong independent representation. It is this member-first approach during the past 50 years that has also delivered quality, value-for-money products and services to our members.”

“At the end of the day, strong governance is critical in properly funding the retirement of our members. That is why we believe these best-practice governance standards need to be implemented industry-wide.”

Founded in 1965, LGsuper is the super fund for current and former Queensland local government employees and their spouses. Today LGsuper looks after nearly $10 billion in retirement savings for 85,000 members.

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For more information please contact: 
Matthew Hart / Celeste Greinke, BBS Communications, 07 3221 6711