Choice of fund

Federal Government legislation required choice of superannuation fund to be implemented from 1 July 2005. The legislation means that employers are required to offer their employees choice of fund, depending on the employee’s particular employment arrangements.

To help you identify which employers are obliged to offer choice of super fund to your employees we have prepared the following chart. For more information, please contact the CSF helpline on 1300 550 273.

If not covered by the above industrial arrangements, how will I know if I am eligible for fund choice?

Those eligible are mainly employees covered by Federal Awards, and those not covered by any registered agreement or state award.

Who will not be eligible?

• those covered by federal Certified Agreements or Australian Workplace Agreements that specify the super fund/s for employer contributions
• those covered by state Awards or Agreements that specify the super fund/s for employer contributions
• those in certain defined benefit funds
• those in certain public sector funds
• those covered by certain Agreements under the Victorian Employee Relations Act

All employers should have received an information pack from the Australian Tax Office. A website www.superchoice.gov.au and an information line 13 28 64 are also available to provide assistance to both employers and employees.

What must employers do to comply with the Federal Choice of Fund legislation?

If no employees are eligible for choice of fund under the new Federal legislation, the employer does not have to provide a standard choice form. The following does not apply to these employers.

Employers who have employees eligible for choice under the legislation must give a standard choice form to a new eligible employee within 28 days of commencing employment (unless they have already advised the employer of their chosen fund in writing within that time).

The Employer will also need to provide a standard choice form to affected employees within 28 days of:

• a written request from an employee asking for a standard choice form (unless one has been provided to that employee within the previous twelve months)
• becoming aware that it is unable to contribute to an employee’s chosen fund
• becoming aware that the employee’s chosen fund has ceased to be a complying fund, or
• a change of the employer's fund since the last contribution.

If an employee has chosen a fund, the employer has two months to give effect to that choice. If the employee does not choose a fund, the employer must pay the superannuation guarantee contributions for that employee into the fund the employer has identified as the employer fund.

Employers should not advise employees on which fund to choose. Unless they are licensed to do so, employers cannot provide financial product advice.

How do eligible employees choose a fund other than the employer fund?

Employees should fill in Part B of the standard choice form and must provide their employer with certain information in writing about the fund they have chosen. This must include:

• the employee’s account name with their chosen fund and membership number if applicable
• the number or identifier used by the chosen fund to refer to the employee’s account if available
• the full name of the chosen fund
• the Australian Business Number of the chosen fund where available
• written advice from the fund trustee that the fund is a complying fund
• information about contribution payment methods and the information needed to make payments
• written evidence that the fund will accept contributions from any employer on the employee’s behalf
  

Details about Catholic Super an employer will need to complete the standard choice form.

Employer section. Part A. Point 2.

Employee section. Part B. Point 2.

Employee section. Part B. Point 3.

Download the compliance letter from the trustee (PDF - 33kb) and attach it to the standard choice form.

Choice of Fund for Victorian Catholic Schools and Catholic Education Offices.

Below is a link to a Word document to assist you with questions you may have.

Download File	Description
(Word - Size 30k)	'Your questions answered' on Choice of Fund for Victorian Catholic Schools and Catholic Education Offices