Employer Making Me Use Their Selected Superfund?

Lsteveyaziz on 23/11/2015 - 19:53

Hi there. Long time lurker and first time posting dude etc.

I'm a student and recently got a new job for over the summer, as my other casual jobs wind down around the end of the year. This new job gave me a whole bunch of the usual documents to fill out and sign. One such document was the standard super choice form which you get at the start of any new job. However, the version they gave me had already been pre-filled with the details of their selected superfund and had the part where you would normally put your own superfund details crossed out. Obviously I was a bit confused and gave them a call, and they told me I couldn't select my own (I was told this was part of the EBA, although it was a little vague) but I could merge them later on.

I haven't had my first shift yet so I am not super (heh) keen on rocking the boat, especially if this is something normal that I had just never encountered before. But the job only lasts for a few months so I won't be getting much in the form of super anyway, so anything going into it would presumably be eaten up by admin fees and then a transfer fee when I want to add the funds into my favoured account at a later date.

Any ideas?

Financial

Comments

  • RobMel on 23/11/2015 - 20:09
    +2

    Hi,
    Correct. This is part of the union movement.
    The fund will be an industry (union controlled) superfund.
    The main aim of mandatory union superfund is to provide ex union bosses an alternative to retirements funds as overpaid directors in case they can't make it into parliament.
    Check out who's director in I'll these superfunds.

    • mskeggs on 23/11/2015 - 20:41
      +1

      While the directors of industry super funds are often ex-union reps, the criticism is somewhat blunted in that the funds tend to perform better than for-profit funds, and also typically charge lower fees.
      I'm not in a union or an industry fund, but I don't think they are any more evil than the for profit funds whose directors are bankers etc.
      This article:
      http://www.smh.com.au/business/call-for-stop-to-union-choice…
      puts the argument for competition.
      I tend to agree that there should be free choice, especially after forcing employer directed super to be opened to choice, but it appears that your enterprise agreement can mandate the fund.

      • RobMel on 24/11/2015 - 04:57

        Hi,

        Agree some superfunds perform well. Others are really bad.
        But since they have a captured audience those have no need to improve.

        If you are locked into one of those your retirement is on shacky ground.
        Mind you yours not the funds greedy directors.

  • djones145 on 23/11/2015 - 20:12

    which superfund is it?
    might be ok
    if not its pretty easy these days to transfer out

    • steveyaziz on 23/11/2015 - 20:19
      +1

      The superfund they selected automatically is fine, I just am already happy with the one I currently use. Seems ridiculous to open up another account for a job I'll have for a few months where all the contributions will be eaten up by administration fees and the inevitable transfer fee anyway.

      • [Deactivated] on 23/11/2015 - 21:13

        There shouldn't be a transfer fee. Once you finish your job, give the super fund details to your preferred super fund and they should be able to get all of the money transferred without any fees.

      • Hunter80 on 23/11/2015 - 22:30

        Which superfund is it?
        Well, if you want to discuss something on a forum you need to give some context.
        What's the name of super fund?

        • Cheeper on 23/11/2015 - 23:14
          +1

          No need to name it.

    • mskeggs on 23/11/2015 - 21:37

      Superchoice was about changing the situation where employers decided which fund. The OP is a part of an enterprise bargaining agreement where the employees (well, their representatives) have decided to choose a specific super fund.

      • Cheeper on 23/11/2015 - 23:15

        An EBA can dictate where your super goes?

  • Cheeper on 23/11/2015 - 23:24

    As you say.. you don't want to rock the boat now and you will only be there for a few months anyway.
    Best thing to do is to wait until your term is up and then choose your own super acct and they will transfer all the funds from your old one for you. This is a very common practice and usually incurs no fee.

    Tip… Some shonky super funds will deduct an amount for "insurance" at your cost.
    Look for it on your super fund application, sometimes they use tricky wording or place the option in an obscure place hoping you will not notice it. If possible, do not opt for it. It is not mandatory but shonky operators may try to convince you otherwise.

    It seems an employer can stipulate which super fund to use under a EBA… :-(
    http://workplaceinfo.com.au/payroll/superannuation/q-a/does-…

    BTW.. later when you are looking for your own super fund check out Australian Super.

    • spychiatrist on 23/11/2015 - 23:47

      Hey, that's what happened to a colleague. I was thinking of switching but he told me when he changed funds, apart from the exit fee (less than $50), there's an insurance fee deducted worth $250.

      • Cheeper on 23/11/2015 - 23:51

        I have heard of many people who have no idea they are being skinned by this con. Some have been able to claim it back on the grounds that it was done without their authorisation.
        Some employers get nice kickbacks from super funds, even more if they play this insurance scam.
        It all stinks to high heaven and should not happen but with our lazy politicians and sneaky employers/union reps/ super funds it does.

    • steveyaziz on 24/11/2015 - 01:16
      +2

      Thanks for the link. I was just unsure if the EBA stipulating the fund was something shonky or not, but I guess it (technically) isn't.

      Will definitely cancel any insurances options I get signed up for automatically. My main concern was just having to pay the monthly account fees and the possibly exit fee. I know a few people commented that this doesn't normally incur a fee, but this has not been my experience when I moved all my accounts I had as a teenager into my current fund. One fund charged me $50 to move a measly $250 over.

  • Cheeper on 24/11/2015 - 01:59
    +1

    The worst thing I see with super is that the young people who contribute to it now will most likely have less benefits through scheme changes thanks to the politicians who determine the rules.

    What rubs salt into that wound is that those politicians contribute nothing to their own guaranteed pension (and perks) for life yet they decide what happens to ours. Ironic..

  • bobwokeup on 24/11/2015 - 19:49

    I thought they have to offer you the choice of super fund as per this article https://www.ato.gov.au/Business/Super-for-employers/Setting-…

    Call the Fair Work Australia if you are not sure :)

    • mskeggs on 24/11/2015 - 20:02

      That is correct, the employer has offered the choice, and the OP (via their representative at the EBA table) has decided on a certain fund as part of accepting the EBA.
      Unfortunately, it isn't the fund the OP would have picked if there was no EBA.

      • bobwokeup on 24/11/2015 - 20:11

        Oh yes sorry I did read the ATO info wrong. They get to choose it if they are "not employed under any state award or industrial agreement ". I personally wouldn't work there if I wasn't given the choice of super fund as it just shows how they would treat me as an employee but then again I'm not a student.

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