Employers to offer ‘MySuper’
22 October 2013
Many of the former government’s planned changes to superannuation will remain largely intact under the new Abbott Government – with the introduction of ‘MySuper’ to come into effect from 1 January 2014.
MySuper is designed to be a simple and cost‑effective superannuation product that will replace existing default products.
MySuper products will have a simple set of product features to enable employees, employers and market analysts to compare funds more easily based on a few key differences. It will also ensure members do not pay for any unnecessary 'bells and whistles' they do not need or use.
Employees wishing to make other choices with their superannuation will still be able to opt for an alternative product, or manage their own superannuation affairs through a self managed superannuation fund.
What you need to do:
With effect from 1 January 2014 employers will need to ensure that the ‘default fund’ where they make super guarantee payments for employees who have not selected a preferred fund, offers a MySuper product.
For almost all employers, it is expected that your existing default fund will offer a MySuper product and so you will not have to make any change to the payment of superannuation guarantee contributions. Many superannuation fund providers already have MySuper products in place.
Your fund should contact you to provide you with information to transition from existing arrangements. However, it is recommended that you follow up with your default fund to ensure that the appropriate MySuper product is in place and ensure you understand the transition process.
If you would like further information, please do not hesitate to contact your local Boyce Accountant.