Choice of fund
Did you know that many Australian workers can choose their own super fund? As part of ‘super choice’ employers have certain obligations. The information below will help you meet your obligations under the ‘choice of fund’ rules.
1. When a new employees starts
When a new employee starts, if they're eligible to choose their own super fund, you need to provide them with a Standard Choice Form within 28 days. Your can download a copy of the Standard Choice Form here. If your new employee doesn't want to choose a fund, you can then make contributions to your nominated 'default' fund.
2. Which employees are eligible to choose their own fund
To work out if your employees are eligible for Choice of Fund visit www.superchoice.gov.au/employers/obligations
3. How often can employees change super funds?
If an employee is eligible to choose his or her own super fund, they are able to change funds once every 12 months. You are obliged to fulfill this request. However, if an employee requests this more than once in a 12 month period you are able to use your discretion as to whether you accept the request.
3. An existing employee
If an existing employee provides you with their completed Choice Form you must act on this and commence paying to their new fund within two months of receiving the request.
4. Keep records of your contributions
As an employer, you need to keep records of who you have given Choice of Fund forms to, as well as records of all super transactions, for at least 5 years.