What employers must do
Your employer may not accept your choice
Your employer does not have to accept your choice if you don't provide them with all the required information and paperwork about your chosen superannuation fund.
Some funds require an employer to sign up to the fund before they will accept contributions from them. You cannot choose such a fund unless your employer has agreed to sign up before you make the choice. Talk to your HR Officer and the fund you're considering.
Your employer has two months to start
When you provide your employer with all the required information for your chosen fund, your employer has two months to organise the administrative details so they can make contributions to that fund. After the two-month period ends, any contributions your employer makes for you must be to your chosen fund.
An employer can start making Superannuation Guarantee contributions to your chosen fund at an earlier time if they choose.
Example:
Nicole gives her employer the Standard choice form on February 20. Her employer has the option of paying her contributions to her chosen fund at any time up to April 20. Any contributions to be paid after April 20 must be paid into her chosen fund.
Nicole gives her employer the Standard choice form on February 20. Her employer has the option of paying her contributions to her chosen fund at any time up to April 20. Any contributions to be paid after April 20 must be paid into her chosen fund.
Personal super contributions
The new choice of fund legislation only applies to employer (Superannuation Guarantee) contributions.
Additional super contributions made by you or your employer – such as after-tax contributions or before-tax 'salary sacrifice' contributions – can be made to any complying super fund.
If you would like your employer to pay other superannuation contributions into your chosen fund, you will need to negotiate this with your employer.
You can choose as often as you wish
As a State Government employee, there is no restriction to the number of times you can change funds through your employer. But remember that superannuation is designed to be a long-term investment and there may be consequences for changing funds frequently (exit fees or losses in insurance entitlements, for example).
If your employer disregards your choice
If you've supplied all of the required information and are eligible to join your chosen fund, your employer is obligated to accept your choice of fund. If they don't, talk to your employer, get the facts and, if you aren't satisfied with the response, contact the Australian Taxation Office (ATO) on 13 10 20 about your situation.