Many employers find dealing with their staff superannuation frustrating and time consuming.
A good corporate super plan is one that is both easy to administer and competitive. It will ensure you reap the rewards of your years in the workplace and can even be used to attract new staff and reward loyal employees.
What should we consider when choosing a corporate super fund?
- What is the most appropriate superannuation solution for my employees?
- What is Choice of Fund and how does it affect employees?
- Does it meet the MySuper requirements?
- Is insurance cover automatically provided as part of the plan?
- What is a policy committee and do I need one?
- How do I make superannuation contributions for my employees? Can this be done electronically
- What is a clearing house facility and do I need one?
What is Choice of Fund?
Since July 2005 many employees have had the right to choose which fund their superannuation guarantee contributions will be paid into. Employers are required to nominate a ‘default fund’ for the super contributions for any employees who do not make a choice.
What is MySuper?
MySuper is a new, simple and cost-effective super product for people who haven’t made and active choice about their how their super is to be invested. MySuper replaces existing default superannuation products. MySuper products offer:
- Lower fees (and restrictions on the type of fees you can be charged)
- Simple features so you don’t pay for services you don’t need
- Single or life stage investment options
What is a policy committee and when is it required?
A policy committee is a communication forum for members and employers to inquire about and provide their views on their superannuation plan’s operation, performance and investment strategy.
A policy committee is required for all corporate superannuation plans with 50 or more members. Corporate plans with 5-49 members can establish a policy committee but are not obligated to do so, unless five members request a policy committee in writing.
What is a clearing house?
A clearing house is a facility which enables you, the employer to make one consolidated electronic payment of superannuation contributions. The clearing house then distributes the contributions to the individual employees chosen funds on behalf of you, the employer.
How can a financial planner help?
Consulting with a financial planner can help you:
- Review your current superannuation arrangements
- Establish a corporate superannuation plan that best suits your circumstances
- Assist with establishing a policy committee and provide ongoing support
- Assess your insurance requirements
- By providing financial planning services to your employees as members of your corporate superannuation fund
- Provide ongoing member education and communications.
Are you ready to secure your financial future?
Your initial, no-obligation consultation with a Knowledge IQ Financial Planner is complimentary. Make an appointment for a time that suits you.