What is an employer fund?
An employer fund is the fund selected by the employer as the fund into which to pay superannuation guarantee contributions for employees if they do not exercise choice. If an employee is eligible to choose a fund for their employer contributions but does not exercise their right or they make an invalid choice, the employer can continue to pay their employer contributions to the employer fund. The employer fund can be any complying superannuation fund or retirement savings account.
Generally, the Employer fund can be any complying superannuation fund chosen by the employer, provided it offers life insurance of a kind specified in the regulations. The Employer fund will generally be one that is nominated in the applicable award – unless for some reason a business nominates another Employer fund.
