The superannuation industry wants the government to cover any outstanding entitlements when a company goes broke but bureaucrats warn it is a bad idea that will cost $800 million over the next four years.
Super funds have called for an expanded taxpayer-funded safety net as part of a Senate inquiry into non-payment of the 9.5 per cent super guarantee.
The existing Fair Entitlements Guarantee covers owed wages for bankrupt and insolvent companies but it does not extend to super.
But the Department of Employment said the cost of the FEG had already increased dramatically, with $1 billion paid out over the past four years.
It said there was evidence the system had been gamed by employers a scenario that would only get worse i…
Read the full article at: http://www.afr.com/news/politics/super-funds-call-for-government-to-cover-entitlements-when-companys-goes-broke-20170227-gumrm1
Related Posts
