Under current Choice of Fund legislation most employees can choose another eligible complying super fund to which they want their employer's superannuation contributions paid into.
Employees of Australia Post or an Associated Employer who have defined benefit entitlements in the APSS have the following superannuation options:
IMPORTANT: If you choose to exercise Choice of Fund and 'opt out' of the APSS defined benefit super, you won't be able to opt back into the APSS defined benefits in future. So make your choice carefully, and consider getting some advice from a licensed financial adviser.
If you choose to opt out of the APSS, the Defined Benefit you have accrued up to the time you exercise Choice of Fund will remain in the APSS until you cease employment with Australia Post or your Associated Employer. Your Defined Benefit will only grow in line with FAS increases, not with additional years of service, and you will not be entitled to any additional APSS Death or TPD benefits (if applicable). From the date you opt out of the APSS, only your employer's future superannuation contributions for you will be paid to your chosen fund.
Should you exercise Choice of Fund and opt out of the APSS defined benefit arrangements, your employer will pay your future superannuation contributions (based on a percentage of your salary as advised to you by your employer, subject to the minimum Superannuation Guarantee requirements) to an eligible complying superannuation fund nominated by you.
When choosing your own super fund it is a good idea to check whether the super fund accepts before-tax (salary sacrifice) personal contributions, in case you want to boost your super savings in the future.
You should also check your super fund's product disclosure statement. This document sets out the details of your membership and benefits, including whether you have any death and disablement insurance cover (and the premiums associated with this cover), any ongoing membership fees (i.e. monthly deductions), and any entry or exit fees.
It’s worth remembering that the APSS provides most employee members with additional death benefits (and disablement benefits for the 14.3% membership category) at no cost, and does not directly deduct any fees or charges from Member Savings accounts. Furthermore, if you joined the APSS before 12 May 2009, you may have grandfathering on your Notional Taxed Contributions, which will no longer apply if you opt out of the APSS.