Can an employee join any MySuper product or super fund?
3.7 Can an employee join any MySuper product or super fund?
MySuper products can be private superannuation funds that are only offered to employees of a specific employer, or public offer superannuation funds that are open to anyone who is eligible to contribute to superannuation.
A MySuper fund can be a stand-alone product or can be offered as one of the choices within another type of superannuation fund.
The main types of superannuation funds are listed below:
|Employer (corporate) superannuation funds||generally offered to employees of a particular employer or company (although some are now open to the public). Employer-sponsored funds are established under a master trust arrangement.|
|Industry superannuation funds||were originally restricted to members of a particular trade or industry, but many have become public offer funds. Industry funds are not-for-profit entities and tend to have lower fees than other funds.|
|Retail funds||are typically offered by financial institutions or investment companies. They tend to have a large number of investment options and are open to anyone. These are intended to generate revenue for the provider. Retail funds are established under a master trust arrangement.|
|Public sector funds||are part of a scheme established under a commonwealth, state, or territory law, and are open to public sector employees.|
|Self-Managed Super Funds (SMSF)||have fewer than five members and each member is a trustee (or director of a trustee company). Trustees operate the fund in adherence to strict rules regulated by the ATO. SMSFs do not offer MySuper products.|
|Small APRA funds (SAF)||is restricted to fewer than five members, however, the trust is operated by a professional trustee (not by members). The trustee organisations must hold a Registrable Super Entity Licence (RSE) issued by APRA. SAFs do not offer MySuper products.|
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Tuesday, April 27, 2021