Choice of Fund for Members

Excited about choosing a super fund?  SPEC Super can assist you in understanding whether choice of fund applies to you?

Choice of Fund means that employers must nominate a default fund for their employees’ superannuation payments. The default fund they choose must be a complying superannuation fund and must offer a minimum level of life insurance.  SPEC Super is eligible to act as a default fund.  To choose SPEC Super as your superannuation fund of choice, you should complete the Standard Choice Form.

The general requirements for Choice of Fund are summarised below.  For more complete information view the information below or alternatively, visit the ATO’s choice of fund website.

 

What is Choice of Fund?

From 1 July 2005 certain working Australians are able to choose which fund their superannuation contributions are paid into.  The Choice of Fund legislation applies to Superannuation Guarantee (SG) contributions made by employers on behalf of their employees. 

Eligible employees are able to choose any complying superannuation fund (which includes SPEC Super), scheme or retirement savings account. Such funds are known as 'eligible choice funds'. If you are eligible for Choice, and you do not choose a fund your employer must pay your SG contributions to a default fund of your employer's choosing.

 

Employer obligations under Choice of Fund

If you are eligible for Choice of Fund your employer is required to do the following:

  • Provide you with a ‘Standard choice’ form within 28 days of you starting work
  • Once you have advised your employer of your chosen fund, your employer must begin making contributions to that fund within two months of receiving your written notification.

You can only make one choice in a twelve month period unless your employer agrees to accept more frequent choices.

Penalties can apply if your employer fails to make SG contributions to your chosen fund.

 

Can your employer refuse to accept your nomination?

Yes. Your employer can refuse to accept your nomination if:

  • you don't provide all the necessary information;
  • you have chosen another fund within the previous 12 months. This 12 month period begins on the date that you first provide your employer all of the relevant information about your chosen fund;
  • the nomination is outside the 28 day time frame;
  • to contribute to your chosen fund your employer is required to become a "participating employer".

Please note: SPEC Super does not require an employer to become a "participating employer".  However, sufficient details are required that will enable an employer to be set up on our computer system; such as name, address, telephone number(s) and a contact name.

 

What are you required to do?

You are not required to make a choice. If you wish to exercise your choice you must provide your employer:

  • the full name of the fund and the fund’s ABN;
  • your account number in the fund;
  • the contact details of your chosen fund;
  • a written statement from the Trustee of the fund stating that the Fund is a complying superannuation fund;
  • written evidence that the fund will accept the contributions that your employer makes on your behalf;
  • details of any number or other unique identifier the fund may use to refer to its superannuation products (e.g. Superannuation Product Identification Number – SPIN).

You must notify your employer in writing of your preferred fund. If you are completing the Standard Choice Form that has been provided to you by your employer, this form must be returned within 28 days of your receiving it. A choice made after 28 days will not be effective unless your employer chooses to accept it.

 

Which funds can you choose?

You may choose a complying super fund, scheme or retirement savings account. SPEC Super is an eligible choice fund.

 

What happens when you have choice, but do not use it?

If you are eligible to choose your super fund, but do not exercise that choice, one of two things can happen:

  • If you are covered under a federal award that nominates a fund, then your employer must continue to pay contributions to that fund, in accordance with the award.
  • If you are not covered by a Federal award, your employer may choose any 'eligible choice fund' as the default fund and your SG contributions will be paid into it.

 

If you have any queries, please call us on 1300 366 648.