Australia Floats Shake-Up of $2 Trillion Pension System, ‘Zombie’ Insurance

Australia Floats Shake-Up of $2 Trillion Pension System, ‘Zombie’ Insurance
Stacks of new style five Australian dollar note are seen from September 1, 2016.STR/AFP/Getty Images
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SYDNEY—Fund managers who perform poorly face being locked out of Australia’s A$2.6 trillion pension industry if recommendations from the government’s top economic advisory body are implemented.

The Productivity Commission said in a report on Tuesday that a shortlist of up to 10 strong-performing pension products, chosen by an independent panel, should be presented to workers from which to choose when they enter the workforce.