MySuper and super choice
Super choice has been operating in Australia since 2005, meaning that for many years now most employees have been free to choose which super fund they would like their employer-paid contributions sent to.
Not employees will have a preferred super fund, employers are required to have in place a default super fund for employees who haven't made a fund choice or who aren't interested in making one.
These default funds are normally chosen by the employee, often in consultant with their employees, or they can use the fund endorsed by their employer industry association or nominated in the industrial awards that sets their employment terms and conditions.
Because many of the nation's employees who use their employer's default super fund keep most of their superannuation in the fund's default investment option, the government has integrated MySuper into these workplace arrangements by stipulating that only MySuper products will be allowed to be default super funds that can accept superannuation guarantee contributions.
In practice, this means super funds and wealth management groups that wish to compete in the workplace default superannuation market need to apply to the superannuation regulator, the Australian Prudential Regulation Authority (APRA), for authorisation to offer MySuper products.
|Tip: MySuper is what we now call the default super product an employer uses for compulsory superannuation contributions. They are simplified superannuation products containing:
As a simpler super products they usually have lower fees and are easier to compare.
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Last modified: Friday, November 13, 2020