Superannuation Default Fund Review Process
The Fair Work Commission (Commission) review of
default superannuation fund terms in modern awards is underway. The
review process was enacted by the previous Federal government.
Activity in this space accelerated in December in preparation
for what will be a huge year for the Super industry in 2014.
What Is at Stake?
The ultimate outcome of the review process will be to reduce
employers' choice of default fund (relevant if your employees
make no individual or collective choice) to only the funds named in
the modern award – with no 'grandfathering' of
existing contribution arrangements. From the perspective of an
employee who has not exercised choice, if the employer is forced to
change the default fund, the existing fund balance must be
crystallised and transferred to the new default fund – which
may or may not advantage the employee.
