After the Default Superannuation List and the Schedule of Approved Employer MySuper Products are made by the Expert Panel, a Full Bench of the Fair Work Commission will review the default fund terms in modern awards.
Before making a determination varying the default term of a modern award, prescribed persons will be invited to make submissions to the Commission for its consideration in relation to the review of the term.
After reviewing the default fund term of a modern award, the Commission must:
- remove every superannuation fund specified in the term
- specify between 2 and 15 superannuation funds in relation to standard MySuper products that:
- are included on the Default Superannuation List, and
- the Commission is satisfied are in the best interests of the default fund employees to whom the modern award applies
- ensure the default fund term also provides that superannuation contributions for a default fund employee may be made to:
- an Employer MySuper Product that relates to them and that is on the Schedule of Approved Employer MySuper Products
- a superannuation fund of which the employee is a defined benefit member, and
- a fund that is an exempt public sector superannuation scheme or a relevent state public sector scheme.
More than 15 superannuation funds may be included where the Commission is satisfied it is warranted due to the range of occupations in a particular award.
The Commission may also choose to make a transitional authorisation to allow an employer to continue to pay superannuation contributions for a default fund employee into a fund that the award previously included in its default fund term.
Determinations varying default fund terms must not take effect before 1 January 2015.
The Commission will publish further information about the timetable for this process and any relevant forms when they are available.