The Productivity Commission has released a draft report calling for a major shakeup of the superannuation industry after it was revealed members are losing billions in savings every year.

The Commission has recommended sweeping reforms, including a system where a worker would choose a default account from a list of top-performing funds rather than being automatically placed into their employer’s chosen fund.

Industry Super Australia CEO David Whiteley is rejecting the “empirical evidence” presented by the Commission and tells Ross Greenwood the current system is working.

“The design of the current system… is that an expert panel chooses between 10 and 15 funds and of those an employer chooses what they think is the best fund for their employees.

“That’s how the system should work.”

Mr Whiteley says the proposed reforms would place choice in the hands of young people who aren’t close to thinking about their retirement.

“I don’t think you could find a cohort of our working population less interested in… retirement than teenagers just starting their working careers.”

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