No super change

THE Federal Government has recently introduced changes to superannuation that provides many people with more flexibility with which super fund they choose.

The Government has estimated that the legislation will affect 4.82 million employees and 654,000 employers.

The Association of Superannuation Funds of Australia estimates that 30 per cent of employees already have fund choice and an additional 40 per cent could get choice under the new legislation.

However, there is no change for MSBS and DFRDB members. Under the current legislation, MSBS and DFRDB members will not be able to choose their own fund.

This is because the legislation identifies the following groups of individuals who will not have the right to choose their own fund:

• Employees whose contributions are or have been made to unfunded public arrangements and would be entitled to an unfunded defined benefit;
• Commonwealth employees who are members of the CSS, PSS and employees receiving productivity benefit payments;
• Employees for whom contributions are being made in accordance with certain Workplace Agreements or certified agreements under the Industrial Relations Act;
• Employees for whom contributions are being made in accordance with a state industrial award. This means that where the award requires payment of contributions at less than the 9 per cent SG rate to the award fund, all the employer contributions can be made to that fund; and
• Employees for whom contributions are made under a prescribed law. For more information visit the web sites www.militarysuper.gov.au and www.dfrdb.gov.au or call 13 23 66.

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