“From 1 January 2014, superannuation guarantee contributions need to be paid to a fund with a MySuper product or an employee chosen fund,” Alison Lendon, ATO deputy commissioner superannuation, said.
“As an employer, you should check that the default fund you’re currently using provides a MySuper product, or plans to do so by the new year deadline … if your existing default fund does not offer a MySuper product by 1 January 2014, you will need to switch to a fund that does,” Lendon said.
Many superannuation funds have already launched MySuper products, and more will launch products through to the end of the year. Super funds have been contacting employers and advising of the new arrangements.
“We expect that for almost all employers, your existing default fund will offer a MySuper product, so you won’t have to make any changes.
“However, if you haven’t heard from your super fund or want to know more about their MySuper product, contact your fund before the end of the year,” Lendon said.
The MySuper changes will deliver benefits to both employers and their staff. MySuper products will have a simple set of product features, regardless of who provides them. MySuper products will also ensure members do not pay for any unnecessary features they do not use.
3 MySuper steps for employers
Employers can be ready for MySuper by taking the following simple steps:
Check your existing default fund arrangements. Has your default fund advised you about MySuper changes?
If you have not heard from your default super fund, contact them now.
After 1 January 2014 make super guarantee contributions with your MySuper arrangements in place.
MySuper is a new, simple and cost effective super product that super funds will be offering to employers for use from 1 January 2014.