Super outsourcing faces bottleneck

Companies will need to get a move on if they are planning to outsource administration before choice of fund starts - that's the warning from superannuation consultants The Heron Partnership. Heron managing director Christopher Butler said the amount of firms wanting to outsource far outweighs the amount able to assist with outsourcing.

"There's a limited number of people that have got the competency and expertise to help companies with the outsourcing process," Butler said.

He said most companies don't realise the time it takes to outsource.

"I think companies need to realise the process takes five to six months".

The choice of fund regime comes into effect July 1 this year.

"If you haven't started by now, you'll need to move quickly," Butler said.

Outsourcing super programmes are increasingly popular with firms, and Butler predicts if just 15 per cent of company funds outsourced simultaneously, the industry would be stretched.

The Association of Superannuation funds of Australia (ASFA) estimates corporate funds with combined assets totalling about $17 billion will outsource to master trusts or industry funds over the next couple of years.