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Investor Education > Superannuation > MySuper

MySuper

Stronger Super was introduced by the 2007-2013 Labor Government in response to the Super System Review.

As part of Stronger Super, funds will be able to offer a simple, low cost default superannuation product called MySuper from 1 July 2013. MySuper aims to improve the simplicity, transparency and comparability of default superannuation products. MySuper will have a number of features designed solely with the interests of members in mind.

MySuper products will be characterised by a standard set of features:

  • Standard fees
    MySuper fees will be limited to the following to enable members to better understand what they pay:
    • An administration fee
    • Investment fee
    • Transaction costs related to buying and selling (Buy and sell spreads), exit and switches.
  • Single, diversified investment strategy
    A MySuper product will offer a single strategy which must clearly articulate the targeted rate of return and level or risk that the trustee has determined is appropriate for its members. The strategy may take a lifecycle investment approach where members’ asset allocation mix is automatically adjusted based on their age.
  • Default insurance
    MySuper products are required to offer a standard, default level of life and TPD insurance on an opt-out basis.

 

Superannuation Choice

Members who have exercised their right to choose their superannuation fund or those who wish to choose their own fund will continue to be able to do so. However, any employee who does not actively select a preferred superannuation fund will have their Superannuation Guarantee contributions directed to their employer’s default MySuper product from 1 January 2014.

Existing members currently in a default option selected by their employer will also have new superannuation contributions paid into a MySuper option and trustees are required to transfer existing balances of default members to a MySuper product by 1 July 2017.

 

What do you have to do?

  1. Make an active choice
    If you are a member of a default fund your contributions will be paid into your fund’s new MySuper option effective 1 January 2014 unless you make an active choice from the range of options offered by your superannuation fund.
  1. Stay with your current option
    Even if your current fund is a default option, you can elect to stay with your current without transitioning to MySuper.
  1. Transition to MySuper
    Once transitioned to MySuper, if you do not currently have any insurance arrangements you will automatically be covered under MySuper’s default insurance unless you opt-out. If you already have insurance arrangements but it is less than the default, you may be automatically upgraded to the default level.  

 

If you are not sure whether you are in a default fund you should contact your super fund to find out. Affected members should also receive communications from their superannuation trustee.  Your fund will eventually transition your balance from your previous option into MySuper.  

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