MySuper in practice
For the majority of employers and employees who use their default super fund's investment option and who have that fund's standard insurance cover, MySuper will not impact them much at all. They will simply become a member of that fund's MySuper option - which in most cases was the default investment option they were already using.
All the usual provisions of super fund choice also apply, so employees who are not happy with the MySuper product chosen by their employer can choose another fund. The only condition is that the employee needs to already be a member of that fund or MySuper product and that the fund can accept contributions from their employer.
Similarly, because MySuper products are in most cases a specially designated investment option within a regular super fund they can also have their balance spread across the MySuper option and other investment options offered by the same super fund.
In these cases members will still receive a single annual account statement from their super fund each year. If they have money only in the MySuper product, the annual member statement and member information they receive will be simpler because it will only need to describe the MySuper product.
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: Friday, November 13, 2020