Friday, November 7, 2008
How the Superconnect Clearing House Pays Contributions
One question I have been asked a number of times now relates to how the monies you pay on behalf of your employees are actually paid to the superannuation fund administrators. That is a good question.
For the majority of superannuation contributions, the monies that are deducted from the employers bank are then aggregated in the Superconnect Clearing House and are paid to each Superannuation Fund Administrator electronically. That means Superconnect credits those monies directly to a fund administrator's banking account and then provides electronic advice on what that payment consists. This is true for hundreds of fund administrators and also many hundreds of do-it-yourself funds as well.
For the minority of funds, once the monies are aggregated, Superconnect Clearing House makes payment to these fund administrators by cheque and also provides an advice slip as to what those monies are to be credited. This, we must stress is being phased out as we bring many, many more fund administrators online.