Choosing a superannuation fund
Are you eligible to choose a fund?
Most employees are able to choose which fund will receive their employer's superannuation guarantee contributions. Certain employees covered by industrial agreements and members of defined benefit funds cannot choose.
If you’re eligible to choose, your employer will give you a ‘standard choice form’ when you start work. You can also get your own standard choice form and choose at a later stage.
To find out if you're eligible to choose a fund, check with your employer or contact the ATO.
Your right to choose a fund
You don't have to choose if you don't want to. If you don't, you can do nothing and your employer will pay their contributions into a 'default' fund they choose or which is nominated in an industrial award covering your employment.
Your current fund may be different from the default fund. It is important that you take time to understand the benefits and costs of your employer's default fund. Compare it with at least two other funds, an industry fund and a retail fund. Use the worksheet to do your comparison.
You can choose a fund at any time, but you cannot make your employer change your fund more than once a year. You must also give your employer written confirmation from your chosen fund that it will accept your employer’s contributions.
Choosing or changing funds for your existing accounts, including previous employer contributions, must be done separately. Generally, it saves time and money in the long run to keep your super in as few accounts as possible. See changing super funds.
FIDO Website: Printed 02/10/2010
