Product and super changes - November 2020
A recent change to super laws will allow members to choose their super fund from January next year, while the 2020 Federal Budget aims to change the way super works for new members and those changing jobs.
Choice of Fund
The Treasury Laws Amendment (Your Superannuation, Your Choice) Act 2020 has amended the Superannuation Guarantee (Administration) Act 1992, allowing employees in the higher education sector to choose their super fund, except members who’ve been in the Defined Benefit Division (DBD) for more than 2 years.
While the change introduced by the Act is effective from 1 January 2021, the law will only apply to new enterprise agreements (EAs) made on or after 1 January 2021. Until then, there are no changes and default arrangements remain in place.
Choice of Fund and existing UniSuper members
Once a new EA has been made and ratified, the following will apply to each of our member categories:
Accumulation 1 and 2: Members will be able to choose their super fund, after EAs made on or after 1 January 2021 come into effect.
Existing DBD members: There’s no impact if you’ve been in the DBD for more than 2 years. You’re generally required to remain in the DBD until your employment terminates, with no change to the current rules.
If you’ve been a DBD member for less than 2 years: You can choose to move to Accumulation 2 or stay in the DBD. Under the new rules, if you move to Accumulation 2 you have the option of moving to another super fund (following the introduction of a new EA). Make sure you read about which product is right for you before deciding to transfer to Accumulation 2.
If you’d like more information, call us on 1800 331 685.
With the Budget’s aim to kickstart the economy after COVID-19, the proposed measures centred around jobs and support for Australians, along with some changes to the way super works for new members and those changing jobs. The Budget also formally includes the previously announced ‘COVID-19 early release of super’ scheme.
Read more about the key announcements and the potential impacts for you.
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