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Friday, 28 March 2014

SUPERANNUATION Clarifications on MySuper System

On the ATO website there is some confusing language regarding the MySuper system. We received some clarification from the ATO Superannuation section.

The website states that the employer must choose a default fund that “offers MySuper products”:
What this really means is that the default fund or product MUST be a MySuper product. It is not enough to choose a fund that offers MySuper products—the employer must nominate an approved product.

If an employer is swapping their default fund from a ‘non-compliant’ product to a MySuper product, a super choice form must be provided to those employees who have not chosen a fund and the default fund has been used.  The employee using the existing default fund has the choice to stay with the fund or move to the new Mysuper default fund.  If the employee does not return the super choice form within 28days then the New MySuper default fund must be used.

The employee can of course choose to stay with the previous default product, but would have to complete the super choice form to indicate this.  If the employee ends up with two super funds because of the employer having to swap over to a new default product, it remains the worker’s responsibility to initiate the rollover of multiple super funds into one of their choice

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