Using Superconnect: Do-it-Yourself Funds

Since employees have had a choice of Superannuation Fund to which they contribute, there has been an explosion of Do-it-yourself (DIY) Funds. Essentially anyone can establish a DIY Fund. All that is needed to open a DIY Fund is to purchase the correct documentation from a company selling DIY Funds, have your lawyer do all the legal paperwork and have your accountant do his part.

What seems to be happening is that over time employees are exercising their right to choose which fund they contribute to, and often the choice is to set up a DIY Fund. This is creating, however, a huge administrative tangle of activity one each month for employers. Logically it would be possible for an employer to have to manually send contributions to as many funds as there are employees. So if you have 500 employees you could be sending contributions to 500 Fund administrators.

This is where Superconnect Clearing House comes into its own. All you need to do is to amass all the data in your payroll system, such as the employees' choice of fund, etc., and then Superconnect does the rest. No longer do you have to forward contributions, write cheques, complete forms. Superconnect does it all, even to DIY Funds.

In fact, Superconnect prides itself on the fact that it can pay out to thousands of DIY Funds now and even more in the future. When Superconnect Clearing House is asked to pay to a DIY Fund and the DIY Fund is not listed in its register of legal Superannuation Funds, Superconnect establishes communication with the DIY Fund and verifies that the DIY Fund is a legal Superannuation Fund and can receive contributions on behalf of its owner.

So solve your increasing administrative load by using Superconnect Clearing House to get all those contributions flowing in the right direction with little to no hassle.