Report – Member-first representation: The profit-to-member governance advantage

Australia’s super system is the global standard for retirement income frameworks. It is now one of the largest, most inclusive and successful pension savings pools in the world.

Central to its success is the governance model used by profit-to-member super funds – the representative trustee model – which puts the fund’s members at the very centre of its purpose and draws on employer and employee voices in board decision-making.

Australia’s retirement income system is built on three pillars — the Age Pension, compulsory super, and private savings. Super is now the largest of these pillars – and its system design, strong regulation and effective corporate governance are at the heart of its success.