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.

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 from the day they started working for you. If your new employee does not want to choose a fund, you must pay their contributions to your nominated 'default' fund.

Which employees are eligible to choose their own fund?

To find out if your employees are eligible for Choice of Fund visit the ATO website.

How often can employees change super funds?

If an employee is eligible to choose their 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.

An existing employee

If an existing employee request a Choice Form you must provide the form to them within 28 days, and commence paying contributions to their new fund within two months of receiving the request.

Keep records of your contributions

As an employer, you need to keep the following:

• records showing the Standard Choice form has been provided to all eligible employees;
• details of employees who do not have to be offered a Choice of Super form;
• documents issued by the super fund showing you have made superannuation contributions to an employee's chosen fund; and
• records confirming that your employer nominated fund is a complying fund.

The records must be in English and kept for at least 5 years.