The Commonwealth's legislation for employee choice of superannuation funds takes effect from 1 July 2005.

The new arrangements will not apply to NSW public sector employees who are members of defined benefit schemes such as the State Superannuation Scheme (SSS), State Authorities Superannuation Scheme (SASS) and Police Super Scheme (PSS).

The Commonwealth's choice of fund legislation does not override State awards nor does it apply to contributions made in compliance with any state law prescribed in the Commonwealth's choice of fund regulations. The First State Superannuation Act 1992 will be prescribed in those regulations. This means that employers do not have to follow the particular requirements of the Commonwealth's choice of fund legislation for those employees who are eligible for membership of First State Super.

Although most NSW public sector employers are exempt from the Commonwealth's choice of fund legislation, you are reminded that under the First State Superannuation Act 1992 potential FSS members are already entitled to choose to join another complying superannuation fund. This is the employee's choice and the Act makes no provision for the employer to decline an employee request to join another complying fund.

Your organisation may receive inquiries from employees when the Commonwealth's new arrangements are publicised. To assist you in handling these inquiries the Public Employment Office and the FSS Trustee Corporation (FTC) have organised an information session for Employers. I ask that you nominate a Senior Executive to attend this session on 9 December 2004. Another session will be run in early 2005 for payroll managers and staff.

Speakers from the Public Employment Office (PEO), the Association of Superannuation Funds Australia (ASFA), and FTC will provide information on how fund choice works in the NSW public sector, how to handle employee inquiries, payroll administration issues, and Superannuation Guarantee compliance issues where an employee chooses a fund other than First State Super.

The Executive Information Session will be held from:
10.30am to Noon followed by lunch
Thursday 9 December 2004
NSW Trade and Investment Centre
Level 44, Grosvenor Place
225 George Street SYDNEY.

C Gellatly
Director-General