Choice of Fund
Choice of fund provides your employees with the freedom to choose their own super fund. Here is what you need to do to comply.
Which employees can choose their own super fund?
The Government has legislated that most employees are able to choose to have their contributions paid into a complying fund of their choice.
The move to choice of fund is consistent with providing employees with responsibility for managing their own retirement savings.
There are three exceptions to this rule:
- An industrial agreement exists which specifies that payments must be made into a nominated super fund or funds.
- The employee is a member of a 'defined benefit fund' that meets certain conditions.
- Some public sector and government employees are excluded.
What do I need to do?
If an employee wishes to choose their own super fund, they can notify you of this when they first join the company or they may change fund at any time during their employment.
When an employee selects their own fund, you will still need to meet certain obligations, including:
- passing on the employee's TFN to their nominated super fund
- keeping accurate record
- paying the employee's super by the relevant due dates.
