Choosing a default fund

Choosing the right default fund for your employees is an important decision as it will affect their savings for retirement. 

All employers must pay super contributions to their employees and employees can choose which super fund they would like their contributions to be paid into.

Before you offer your employees a Choice of fund form to nominate their chosen super fund, you must first have in place a default fund. A default fund is a super fund you can pay your super guarantee contributions to if your employee does not nominate a super fund of their choice.

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Rules around choosing a default fund

There are a number of rules around choosing a default fund:

  • It must be a complying fund (a fund that meets specific requirements and obligations under super law)
  • It must be registered by the Australian Prudential Regulation Authority (APRA) and offer a MySuper product
  • The Modern Awards (by Fair Work Commission) specify the super fund/s that an employer can choose to nominate as their company default fund. 

The Modern Awards may limit your choices in choosing a super fund. REI Super is a complying super fund and MySuper authorised. It is also named as the main super fund for Real Estate under the Real Estate Industry Award. REI Super is also listed under the Clerical Award.

If your business is not listed under Modern Awards

If your business is not listed under the Modern Awards you can check complying funds through the government’s super fund look up tool.