Access Super Question

[Adam]

Hi All,

Got a question regarding access to my super.
I have recently setup a self managed super fund and when I rang the super fund that our company uses and asked them to transfer over my existing super, they said that they didn't allow people to do that while they are employees of the company.

I know that there is a 1st of July law that will come in that says that they will have to pay into any fund I nominate.

I don't need to get my payments changed just yet, I just need to access the money that is in there and have it rolled into my new super fund.

Appreciate any help, suggestions, ideas etc

 

[Garry K]

Hi Adam

From 1 July your employer will need to offer you a choice of where you want your 9% SG contributions to go. That is, unless the employer is "exempt", where their employees are covered by a Australian Workplace Agreement or Certified Agreement.

So, first step, check with your employer whether they will be offering a choice.

If so, you essentially have unrestricted choice of a complying super fund, including a Self Managed Super fund.

In the mean time, you should enquire if your employer fund will allow you to rollover most of the fund balance, leaving your existing fund open with a small balance, to accept their employer contributions.

A word of warning. Often Employer super funds provide automatic (without health checks) insurance cover eg Death Cover, Total Permanent Disablement, Salary Continuance for 2 years.
If yours does, make sure that if you want this type of cover, that you get it underwritten by another insurance company before you close your employer fund. You may do this in your super fund or outside your super fund...and that's a whole other lot of advice.

GarryK



GarryK