Australia: Pensions Bill Extends Fund Choice to Enterprise Agreements

Connecticut Enacts Paid Family and Medical Leave

Employees subject to Australian workplace determinations or enterprise agreements could choose the superannuation fund to which compulsory employer contributions are paid under the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019. The bill was reintroduced after a previous bill lapsed prior to the May 2019 federal election, and the senate’s economics legislation committee is expected to publish a report by 21 Feb 2020. 

Highlights

The bill would apply to new workplace determinations and enterprise agreements made on or after 1 Jul 2020, and sets out how fund choice would be treated under existing enterprise agreements. 

Treatment of existing agreements. Currently, employers satisfy the “choice of fund” requirement if they make contributions according to the terms of an enterprise agreement or workplace determination. Under the new bill, existing agreements and workplace determinations agreed to before 1 Jul 2020 could continue to restrict or exclude “choice of fund” until their expiration.

Existing employees, agreements concluded after 30 Jun 2020. Under the bill, if the employee hasn’t chosen a fund, employers wouldn’t breach the “choice of fund” requirement if they continue to contribute to the employee’s existing fund in accordance with the pre-1 Jul 2020 agreement or determination. However, if a pre-1 Jul 2020 agreement or determination is replaced by a post-30 Jun 2020 agreement or determination, employers must provide employees with a standard choice form, if requested.

New employees, agreements concluded after 30 Jun 2020. New employees starting work under the terms of an agreement concluded after 30 Jun 2020 must be given a standard choice form. If an employee doesn’t choose a fund, default fund arrangements would apply.  

Related resources

Paul Shallue
by Paul Shallue

Principal, Mercer Wealth

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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