Choosing your own super fund

With each Australian averaging just over two super funds, a good way to keep this number down is to choose your own when you start a new job and keep it for life.

It will reduce the number of fees you’re paying and concentrate your super in one fund.

Who can make the choice?

Employees belonging to a Federal award, a former State award, under a different award or agreement that does not require superannuation support, and those not covered by any award or industrial agreement, can generally choose the complying fund they want their Superannuation Guarantee (SG) contributions to be paid into. (A complying superannuation fund is one that is regulated in a way that gives the fund special tax treatment.)

Employees who have contributions being made for them under certified agreements or Australian Workplace Agreements, or who are entitled to defined retirement or leaving service super benefits, generally don’t come under this regime.

Ask your Human Resources department whether you are eligible to choose your own super fund.

How does choice work?

When you start a new job, you will be given a Standard Choice Form and some brochures describing your employer’s default fund.

1. To choose your own fund, complete the Standard Choice form. It’s just one page long.
2. You will also need a Letter of Compliance which you will find on your preferred fund’s website.
3. Give these to your Human Resource department. You don’t have to make a choice. If you don’t, your SG contributions will be automatically paid into the default fund chosen by your employer or specified in your award.

Roll up

This might be a good time to review your funds and consolidate.
Bluefin’s Super Consolidation Service is designed to take the hassle out of finding and consolidating all your super funds into one.

Questions to ask

How good is my current super fund?  What has their performance been over the last five years? Being last year’s winner is not a reliable guide to next year’s performance.

What are the fees and charges for each fund? You need to compare them.

Which insurance cover is best? It is worth comparing the extent of the cover in your current fund and with a potentially new fund.

Will I lose any insurance cover in my existing fund? If you leave some money in the fund, and nominate where they can debit your premium from, you may be able to keep your insurance cover.

How good are the services I receive? Check out your fund’s website or call them and ask some basic questions.

If I change funds will I get all the benefits in the new fund that I have in the current one? Your employer may offer to pay more than 9% on the condition you use their default fund. Or your fund might have some extras worth keeping.

If you are an employer

We can help make your Choice of Fund easy for your business

At a glance

• Most employees can choose the fund their SG contributions go into.
• You should compare your existing fund with your new employer’s fund.
• It’s always a good time to review how your fund is performing.
• It may be a good time to consolidate your funds.