What to do If the employee does not choose a Super Fund?
14 Apr 17
Employers must nominate a default fund to which the employee's SG contributions must be paid if the employee does not choose a fund. From 1 January 2014, employers must contribute to a MySuper product on behalf of employees who have not exercised choice.
The default fund must be a complying super fund and must offer minimum life insurance coverage as set out in the regulations. The minimum life insurance coverage that must be offered is as follows:
- The amount of cover provided by a premium of at least $0.50 per week for those under age 56; or
- Minimum life insurance coverage commensurate with their age range as detailed in the table below:
| Age |
Amount |
| 0 - 19 |
Nil |
| 20 - 34 |
$50,000 |
| 35 - 39 |
$35,000 |
| 40 - 45 |
$20,000 |
| 45 - 49 |
$14,000 |
| 50 - 55 |
$ 7,000 |
| 56 or older |
Nil |
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