Your obligation: To contribute into a super fund that offers a MySuper investment option unless the employee has exercised a choice of fund or provided an investment direction.
If an employee does exercise choice of fund, you don't need to check if it has a MySuper option.
What MySuper means for your employees
For existing employees who have not provided an investment direction
From 1 January 2014, two things will happen if an employee of your plan (either your employer plan or personal plan) has not provided AMP with an investment direction:
- Their future contributions will be automatically directed to AMP's new MySuper default investment option, and
- Their super account balance from before 1 January 2014 will remain invested in their current default investment option(s) but will be transferred to AMP's MySuper investment option prior to 1 July 2017 (for more details, please download our Member Brochure and refer to the section headed 'MySuper transition and accrued default amounts explained').
For employees who have provided an investment direction
Employees who have provided an investment direction will remain in their chosen investment option(s) and won't be affected by MySuper. Their existing balance and contributions will be invested into the investment options they have directed the trustee (AMP) to invest in.
For new employees
From 1 January 2014, you must pay superannuation contributions into a super fund with a MySuper investment option for employees who have not exercised choice of fund.
For your employees who are in your AMP plan and have not provided an investment direction, AMP will direct contributions automatically to AMP's MySuper investment option, which will act as your MySuper compliant default investment option.
The Government's new SuperStream legislation aims to improve efficiency.