Automatic rollover of your super
Fund flipping warning
If you lose or change your job you need to keep track of your
super. In some instances your super may be transferred without your
knowledge when you leave your employer. This 'automatic rollover'
is sometimes known as 'fund flipping'.
Leaving your job
If you lose your job or move to a different job, there are
implications for your super. You can:
- Keep your super in the same fund as long as your new employer
can pay your super into it
- Move your super to a new super fund
Compare your options carefully and seek financial
advice if you need it. Before you make a decision, find out the
best way to manage your financial situation and make sure you're
happy with the fund you choose.
If you move your super to a new fund, consider consolidating all
your super accounts into one. See consolidating super
Automatic rollover when
you leave your job
The super fund that your employer pays your super contributions
to may have an 'employer-sponsored division'. The division may have
special features for people working for the one employer.
This means that if you leave your job, you may not be able to
stay in the employer-sponsored division and may be automatically
transferred to another division of the fund.
The other division of the fund may be less attractive as:
- There may be higher ongoing management fees because your
employer is no longer subsidising these fees
- There may be higher life insurance premiums because your
employer is no longer subsidising these premiums
- Your life insurance cover may stop entirely
- The investment strategy in the new account may be different,
resulting in a different risk-return profile
Contact your super fund as soon as you know that you are leaving
your employer and ask what the potential impact will be for your
It's extremely important to stay in control of your super,
especially when it comes to fees. Even paying 1% extra in fees each
year can mean 20% less super when you stop working.
Your super fund should notify you as soon as possible before a
transfer of benefits takes place. Take some time to understand the
effects of the transfer and familiarise yourself with any changes
that may result. Your super fund is required to notify you 30 days
before any increase in fees - but don't rely on them to tell you,
find out for yourself.
Make sure you know exactly what's happening to
your super when you lose or change jobs. Don't assume your super is
being treated the same way simply because it's still in the same
super fund (with the same name) because there are different
divisions within super funds.
Last updated: 21 Aug 2015