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 funds.

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

Smart tip

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 super.

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.


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Last updated: 21 Aug 2015