Superannuation trustees have hit out at the federal government’s planned reforms to the boards of not-for-profit super funds.

Tom Garcia, the chief executive of the Australian Institute of Superannuation Trustees said there was no evidence to support the view that the proposed changes would produce better outcomes for members.

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“We question the need to mandate change to the boards of not-for-profit funds, particularly when these funds have such a strong track record of out-performance,” Mr Garcia said.

Under the current trustee representation model adopted by most industry super funds unions and employers nominate people to sit on boards.

AIST CEO Tom Garcia.

However, under changes announced earlier this year by Assistant Treasurer Josh Frydenberg, all super funds will be required to have one third of their boards composed of independent directors.

The reform program also includes a requirement for all chairpersons of super funds to be independent.

Mr Garcia said the proposed reforms would undermine the trustee representative model for super fund boards.

The AIST commissioned legal firm Hall & Wilcox to assess the likely implications of the reforms on the regulation of super funds.

The firm concluded that the reform package would effectively remove the requirement for members and employers to exercise influence over their funds.

Mr Frydenberg rejects this argument and insists that the representative structure will coexist with the requirement for the appointment of some independent directors.

“The Government is in no way preventing trustees from enshrining equal representation in their constitutions,” he said.

“The draft legislation does not refer to the composition of the remaining two-thirds of board members, leaving capacity for boards to split these directors between member and employer representatives.”

Mr Frydenberg this week announced amendments to the reform package that he first unveiled in June, including a definition of who can qualify as an “independent director”.

Previously, the Australian Prudential Regulation Authority had been expected to formulate the eligibility criteria.

Super funds will be given three years to comply with the new governance rules if the reform bills are passed in the Senate.