Choice of superannuation fund (choice of super) for State Government employees
Most Australian employees can now choose the fund into which their employer deposits their 9% superannuation guarantee contributions, and this choice is soon to be introduced for Western Australian State Government employees.
What is choice of super?
Currently, in nearly all cases, superannuation guarantee (SG) contributions made by State Government employers must be paid into a Government Employees Superannuation Board (GESB) superannuation fund. Once choice of super is introduced, State Government employees will be able to choose to have their SG contributions paid to another fund, or to remain with GESB.
If employees don’t make a choice, their employer SG contributions will continue to be made to GESB, as it will be the employer (or default) fund for State Government employees.
Who will have choice of super ?
Choice of super will apply to current State Government employees who receive their employer SG contributions in a West State Super or GESB Super account.
New State Government employees will also be offered choice of super when they commence.
Choice of super will not apply to employees whose employer contributions are made to Gold State Super or the Pension Scheme. This is the case for other State and Commonwealth defined benefit schemes. These schemes will continue to be regulated by the State and will not be affected by the changes.
When will choice of super be introduced?
On 15 June 2011 the Treasurer, the Hon Christian Porter introduced the State Superannuation Amendment Bill 2011 into Parliament where it was second read.
Once the legislation is passed it is anticipated that choice of super will be introduced at the earliest opportunity for State Government employees. A communication campaign to inform State Government employers and employees about choice of super will be implemented at the same time.