Choice of fund questions
Choice of fund gives eligible employees the option to choose the super fund into which their future Superannuation Guarantee (SG) contributions will be paid.
Choice of fund applies to the compulsory 9.5% super contributions that your employer is required to pay on your behalf.
However your employer may also allow you to direct the following contributions to the fund of your choice:
- salary sacrifice contributions (above the 9.5% SG contribution);
- additional employer contributions; and
- post-tax employee contributions.
One of the benefits is your ability to keep your super with Plum Super after leaving your current employer. Another is:
- Consolidation: you may have several superannuation fund memberships that you want to combine. Having your super all in one fund could make it easier to manage and save you paying multiple administration fees. Make sure you find out if there are any insurance cover and exit fees applicable from your other funds before proceeding.
- Member service: not all super funds provide easy access to education, personalised investment and account balance information and financial planning services. Check whether your super fund has been recognised for providing quality member services.
If you're an existing employee and you're eligible, you may request a Standard choice form from your employer.
If you're a new employee and you're eligible, your employer will give you a Standard choice form within 28 days of commencing employment.
- Your employer must give you a Standard choice form within 28 days of requesting one if you are eligible to participate but have not previously exercised a choice.
- You are allowed to exercise choice at least once every 12 months. Some employers allow this to occur more frequently.
- If you have chosen a fund that is no longer a complying super fund, your employer must, within 28 days of becoming aware of this, give you a Standard choice form and advise you to make another choice.
- If you originally selected the default fund and your employer changes the default fund, your employer must give you a Standard choice form within 28 days of the change being made.
The default fund is chosen by your employer to receive the SG contributions, for those employees who do not complete a standard choice form and have not asked for their SG to be contributed to their personal superannuation fund.
Your employer can confirm whether you are eligible for Choice of fund.
Although many employees are eligible, some employee groups are excluded, for example employees under Certified Agreements or Australian Workplace Arrangements which nominate a particular fund and certain members of defined benefit funds.
You should contact your employer to find out whether the above options are available to you.
No. Many people decide to stay where they are. If you do not elect an alternative super fund, your employer will direct your super contributions into a default fund selected by them.
Any decisions about your super should be made carefully, ensuring that you have enough information to make an informed decision. Things like fees and charges, the range of investment options, availability of additional services like financial planning and the extent of insurance cover should be assessed.
If you're eligible for Choice of fund, your employer must provide you with a Standard choice form.
You should complete the form, if you wish to elect an alternative super fund of your choice, or complete your employers fund application form.
Once you have completed and submitted the form to your employer, your employer must begin directing contributions to this fund within two months of receipt of the correctly completed Standard choice form. Remember, the fund you select must be a complying superannuation fund – read on for further details.
The fund you select must be a complying super fund.
A complying super fund is one that has elected to be regulated under the Superannuation Industry (Supervision) Act 1993. If you are unsure whether your fund is a complying super fund, you can search the Register of Complying Super Funds via the Australian Taxation Office (ATO) website www.ato.gov.au or call the ATO on 13 10 20.
When you complete the Standard choice form, you must attach a letter from the Trustee confirming that the super fund you have chosen is a complying super fund (usually referred to as a Letter of compliance).
You can change your fund choice once every 12 months unless your employer allows you to change funds more frequently. However, you may like to check your insurance arrangements before doing so as they may not necessarily transfer to a new arrangement.
To move any of your previous or old super accounts into your existing Plum Super account click here for instructions on how to use your new online form.
Please note: You should check whether you will lose any benefits or entitlements from your previous fund if you choose to transfer your super to another superannuation account.
If you would like help with this process, please contact a Member Services Consultant on 1300 55 7586 any business day, 8.00am to 7.00pm AEST (8.00pm daylight savings time).
General Advice Warning
- Any advice contained on this website has been prepared without taking into account your objectives, financial situation or needs. Because of that, before acting on any advice on this website, you should consider whether the advice is appropriate for you having regard to your objectives, financial situation and needs.
- A Product Disclosure Statement (PDS) is available for products described on this website. Refer to forms and publications or phone a Member Services Consultant on 1300 55 7586 , to obtain a relevant PDS. You should consider the PDS before making any decisions regarding a product. All products described on this website are issued by the trustee of the superannuation fund of which you are a member.
- The general advice on this website is provided by NULIS Nominees (Australia) Limited, ABN 80 008 515 633, AFSL 236465.
Yes, under certain conditions.
'Portability' legislation allows you to withdraw your accumulation benefit and move that money between super funds without ceasing employment.
Please contact your super fund for more information as trustees of super funds may also specify additional rules applicable to portability transfers. If you are a defined benefit member, you can only request to roll over or transfer the accumulation component of your super under "portability".
Generally, the portability provisions do not apply to:
- the defined benefit component of a superannuation benefit;
- pensions (apart from allocated pensions);
- self managed superannuation funds; and
- unfunded public sector funds.
As a member of a super fund, you usually have access to insurance cover for death and other benefits. Obtaining insurance in this way is often easier than applying for cover directly from an insurance company because super funds purchase insurance on behalf of many members and therefore they may be able to obtain more competitive premiums for those members.
Members generally are automatically provided, and may apply for additional, cover (up to certain predetermined levels) without having to undergo a medical examination. When looking at a new fund it is important you consider the level of insurance available and the cost of premiums for that cover.
Your employer's default fund will need to provide a minimum amount of death insurance cover.
If you are considering Choice, you should seek advice about the type of insurance and level of cover you need, as the insurance cover provided by your new super fund may be inadequate for your own particular needs.
Yes, in most circumstances, provided that you remain eligible for membership of the fund. It's important to note that your insurance cover (unless otherwise agreed by the insurer) is subject to the provision of satisfactory evidence of health and may not be automatic on rejoining. Former defined benefit members may not be able to rejoin defined benefit schemes.
Certain members of defined benefit funds are excluded from participating in Choice by law. Your eligibility will depend on a number of things including the provisions of the trust deed and the benefit design of the particular fund and whether you've reached the maximum benefit available.
If you are a defined benefit member and unsure if you are eligible to participate in Choice, you should speak to your employer for clarification.