Superannuation

CHOICE OF FUND - What will it mean for you?

The introduction of new Commonwealth legislation, effective 1 July 2005, will enable certain employees choose which superannuation fund their employer will pay the compulsory 9% employer contributions into on their behalf. These new provisions are known as "Choice of Fund."

The Choice of Fund provisions are only available to staff where their relevant Enterprise Agreement does not nominate specific superannuation requirements.

Staff Eligible to Access "Choice of Fund" Provisions
The Multi-Employer Certified Agreement (MECA) for TAFE Teachers does not contain a superannuation clause or provisions which nominates specific superannuation arrangements.

Therefore the only University staff who are eligible to access the "Choice of Fund" arrangements are TAFE teachers (full-time, part-time and casual/sessional) who are members of VicSuper.

Academic and General Staff
All academic and general staff are bound by the University of Ballarat Enterprise Agreement 2000-2003 which nominates specific superannuation requirements and as such enshrines or preserves existing superannuation arrangements. Therefore staff covered by this Agreement are not eligible to access the "Choice of Funds" provisions.

Government Superannuation Office (GSO) Revised and New Scheme Members
In addition employees who are members of defined benefit superannuation schemes such as the GSO Revised and New Schemes are not eligible to participate in the "Choice of Fund" provisions.

To access the "Choice of Fund" Provisions
TAFE teachers will be provided with a Standard Choice Form before 29 July 2005,. The Standard Choice form is an approved form issued by the Australian Tax Office. This form provides employees with information about "Choice of Fund" and clearly sets out the information that needs to be provided to the University should staff wish to exercise "Choice of Fund". To access the Standard Choice form click here.

Eligible TAFE Teachers wishing to access the "Choice of Fund" provisions should complete and return the Standard Choice Form to the Payroll and Benefits office.

Once an employee provides the University with all the required information for their chosen complying fund, the University has two months in which to prepare for contributions to be made to that fund.

After this, any contributions made will be to the chosen fund. There is no time limit for eligible employees to access the choice of fund provisions.

If eligible staff do not make a choice, ie. do not return the Standard Choice Form, the superannuation guarantee contributions will continue to be made into the VicSuper Scheme which is the employer or default fund.

Enquiries can be directed to Glenn Bench, Team Leader, Payroll and Benefits, phone (03) 5327 9517, or email g.bench@ballarat.edu.au