The FWC is preparing to make changes to the superannuation provisions in modern awards to comply with recent amendments to the FW Act consequent upon the introduction of MySuper.
Early in the new year, the FWC will update awards to ensure they include only funds offering a MySuper product (other than defined benefit funds).
In addition, from 1 January 2014, a term of an enterprise agreement is an unlawful term if it requires or permits contributions to be made to a fund that does not offer a MySuper Product (subject to limited exceptions).
Employers with employer-sponsored superannuation funds or tailored MySuper products in public offer funds should now:
- Get ready to apply to the FWC in early 2014 to have their product included on the Default Superannuation List or the Schedule of Approved Employer MySuper Products
- Gather information in support of the application in order to demonstrate to the FWC expert panel that the fund should be included on the applicable list (such as fund performance and returns, risk profile, benefits and fees)
- Review enterprise agreements expiring after 1 January 2014 to identify superannuation terms that will need to be amended in upcoming EA negotiations to comply with the new requirements of s194(h) of the FW Act