Thursday, October 2, 2008
Super Fund Choice
Most workers are entitled to choose the super fund they want to join. Sometimes your employees don't make an active choice. In most cases, you are then obliged to put their super contributions into a "default" fund, which is the fund you have identified as your employer-nominated fund.
However, since July 2005, most Australian employees have been able to choose the super fund their Superannuation Guarantee contributions are paid into.
Choice of fund is different from investment choice. With investment choice the fund member chooses from a range of different investment portfolios and risk profiles within a fund.
Choice of fund has given employees the opportunity to choose a fund that best suits their needs while accumulating benefits for their retirement, as well as life, and disability insurance options that fit within their needs.
Under Choice of Fund rules, you, the employer, are obliged to provide new employees with a "Standard Choice Form" within 28 days of starting employment. You can get a copy of the "Standard Choice Form" by downloading it from the Australian Taxation Office site.
There is much more we can say about super fund choice that we will continue this in the next post tomorrow. Of course you can find more about this topic on the on the ASIC Site.