Treasurer Eric Ripper today announced that former Alcoa Australia managing director Wayne Osborn would be the inaugural chair of GESB Mutual Ltd, which will be the largest financial services company based in Western Australia when launched on 1 July.
"Mr Osborn's appointment is a major step forward in a set of reforms by the state government, that will allow public sector employees to choose their superannuation fund," Mr Ripper said.
"Mr Osborn has 30 years' experience in large business and is a highly-respected and outstanding business leader," the Treasurer said.
Mr Osborn is the former chairman of the Australian Business Arts Foundation (WA chapter) and sits on its national board. He is also vice president of the Chamber of Commerce and Industry (WA).
GESB, the public sector superannuation fund, manages about $9 billion in funds under management on behalf of more than 290,000 members.
Currently superannuation for public sector workers is regulated by the state and managed by the Government Employees Superannuation Board (trading as GESB).
But under legislation assented to last November, GESB will become a member-owned organisation, regulated by the Australia Prudential Regulatory Authority (APRA) and the Australian Securities and Investment Commission (ASIC). The transition will occur on July 1.
"This is a significant reform and one that I believe will be in the best interests of GESB members," Mr Ripper said.
"GESB will become public offer, allowing members to continue to contribute their employer contributions to the fund after they leave the public sector, meaning their family and friends can also become members.
"It will also oversee the accumulation scheme funds under Commonwealth regulation, in line with superannuation and wealth management industry standards.
"GESB is now operating in a rapidly-changing regulatory environment and it is appropriate that it be regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC)."
The Treasurer said research found that a mutual organisation was also the members' preferred option.
"Under this mutual structure, all value will remain with members and be returned to members through maintaining competitive fees and delivering new products and services," he said.
