An integrated electronic payment remittance model was introduced in late 2009 by Payment Adviser for Australia’s AUD S1.4 trillion superannuation (pension) industry.
The objective was to transition payments away from traditional cheque (check) and paper remittance to an integrated electronic remittance payment model that would drastically reduce time to investment for regular superannuation contributions as a result of efficient, lean remittance administration processing.
At the time, regular compulsory superannuation payments made by employers to individual employee member accounts for investment was taking an average of 21 days.
Respected actuaries Rich Warner Actuaries, headquartered in Sydney Australia, were asked to review the ClickSuper model and estimated at the time that:
- The model would automate payment processing for employers and reduce time to account allocation ready for investment to less than 5 days.
- The model would reduce superannuation fund administration costs by AUD$ 4.6 billion over ten years if automatic contribution processing based on the model were introduced.
In 2014 the Australian Federal Government will introduce legislation that mandates the use of electronic contribution payments and fund rollovers (to more than 450 superannuation investment funds). The legislation will be based on the integrated electronic remittance model introduced by Payment Adviser in late 2009.
“Our customers easily manage superannuation payment processes, from validating fund details through to employee data upload, and payment of their employee contributions.
On payment notification, superannuation funds are able to access payment data via web services, for straight through processing (STP) or download the member account allocation information as a PDF for manual processing. Either way, the whole process is highly efficient for our clients and the superannuation industry,” Rick Verloop // CEO of HR3