Australian government launches consultation to tighten pension performance test

1 articles · Updated · Bloomberg · May 8

Treasurer Jim Chalmers said the review targets the annual benchmark regime covering Australia’s A$4.5 trillion pension industry, after concerns it may distort investment decisions.
The test compares pension fund returns with set benchmarks and was introduced five years ago to identify and remove persistently underperforming funds.
Ministers are now examining whether the framework is discouraging investment in some sectors, potentially reshaping rules for one of the world’s largest retirement savings systems.

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