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How Super Choice affects you

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The Facts

Fact 1 – Eligible employees do not have to make a choice.

Most employees are eligible for Choice except for the the following individuals:

employees whose 'contributions' are made to unfunded public arrangements
commonwealth employees who are members of the CSS, PSS and employees receiving productivity benefit payments
individuals for whom contributions are being made in accordance with certain Workplace Agreements or certified agreements under the Industrial Relations Act or Workplace Relations Act
people for whom contributions are being made under a prescribed law (such as where the contributions are made to an unfunded public sector scheme or under a State industrial award, and
defined benefit fund members who would still get retrenchment and retirement benefits if their employer paid future contributions to another fund.

If you are unsure of the awards they are covered by, direct them towards their employer association, www.wagenet.gov.au or their lawyer.

Though Choice is now legislation, eligible employees are not obliged to make a choice. Your current arrangements may in fact be the best. A choice can be made at any time (note: only one Choice can be made per 12 month period) by completing a standard choice form and providing it to your employer. Your employer must then implement your choice within two months of receiving your completed form.

Fact 2 - Not all employees are eligible for Choice.

Some people are excluded, example: most public servants. For information on whether you are eligible, visit www.superchoice.gov.au.

Fact 3 - Choice does not apply to all super contributions.

Choice only applies to the SG contributions paid by your employer, which currently stands at 9 per cent. Choice does not apply to any voluntary, salary sacrifice, additional employer or spouse contributions.

Your employer can decide which super fund these additional contributions are paid into but may agree to pay these contributions into the fund chosen by you. They are not, however, obliged to do so.

Fact 4 – Only complying funds can be nominated under Choice.

As a rule, if you are seeking a new fund, we suggest you assess whether the fund:

§ is complying
§ offers a wide range of investment options
§ has competitive fees and a history of competitive returns
§ meets your insurance needs
§ provides a suite of associated products and services, and
§ offers dedicated member services such as adviser assistance, online information, telephone support, direct mailouts etc.

All of AXA’s super funds are eligible choice funds.

Fact 5 – Your employer may provide you with education on Choice

Your employer may provide you with updates on general issues regarding Choice. Additionally, your financial adviser can provide you with guidance on your personal situation.



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