Barker: Do not drain superfunds

By DALE LUMA
INSTITUTE of National Affairs executive director Paul Barker says care must be taken not to overburden the superannuation funds.
Responding to questions from The National in regards to relief measures for businesses, Barker said such organisations were there to provide public and private sector employees with pensions when they retired.
“They must not jeopardise their core functions and duties,” he said.
Barker said there should be a limit to how far superfunds could:

• finance the Government’s budget deficit;
• invest in critical development industries and public infrastructure;
• Suffer from reduce property prices and rentals as a result of the Covid-19 economic downturn; and,
• provide early pay-outs and operate like an unemployment benefit provider, while acting within sound guidelines for prudent behaviour.

Barker said as part of the Government’s response to providing relief to individuals and businesses, it has given the right message to businesses requesting that:

• employees are retained and salaries paid;
• for banks and superannuation funds to be sympathetic over loans or mortgage and interest payments; and,
• possible delays in tax and superannuation payments, as well as availability of relief measures.

“So far, apart from the tax relief, or deferral, the onus has been placed on the banks and pension funds, rather than the Government, which has concentrated on sustaining the public sector payroll,” Barker said.
Meanwhile, Authorised Super Fund (ASF) members who wish to withdraw their funds early will have to wait until next month when Parliament sits to approve an amendment to the law to allow for the exercise.