I have read that most employees will be able to choose their preferred super fund from 1 July; however, not all employees will have this option. How do I know whether choice of super legislation will apply to our workers?
I have read that most employees will be able to choose their preferred super fund from 1 July; however, not all employees will have this option. How do I know whether choice of super fund legislation will apply to our workers?
– Payroll manager in real estate, Melbourne
Choice of superannuation fund legislation, commencing on 1 July 2005, will allow employees, with some exceptions, to choose an eligible choice fund into which their employer Superannuation Guarantee (SG) contributions are paid. Choice of fund has been introduced to provide employees with the freedom to select their own superannuation fund and investment option to encourage them to take control of what, for many, will be their biggest source of retirement savings. Generally, legislation will not require an employer to contribute to an employee’s chosen fund if it falls within one of the following groups:
• Employees whose contributions are made to unfunded public arrangements (such as some Commonwealth, State and local Government employees, for example).
• Public sector employees who currently have contributions made to either the Commonwealth Superannuation Scheme or the Public Sector Superannuation Scheme, or under the Superannuation (Productivity Benefit) Act 1988 until such time further legislation is enacted giving them choice.
• Employees of workplaces that are covered by Certified Agreements or Australian Workplace Agreements under either the Industrial Relations Act 1988 or the Workplace Relations Act 1996 which nominate a specific superannuation fund.
• Employees subject to certain Victorian Government employment agreements in force under the Employee Relations Act 1992 of Victoria and which continues to be in operation under section 515 of the Workplace Relations Act 1996.
• Employees who currently have all or part of their contributions made under, or in accordance with, a State industrial award.
• Employees who are receiving defined benefits (benefits which upon retirement are defined partly or wholly by referring to their salary or a specified amount) and whose benefit is not reduced because contributions are made to another fund instead of the defined benefit fund.
• Employees whose contributions are made under a law of the Commonwealth, of a State or of a Territory.
If you require further information about whether staff at your workplace are covered by choice of fund legislation, or their options if they are not, please contact your financial adviser, workplace lawyer or an industrial relations lawyer.
by Mark Pankhurst, ING head of Marketing & Channel Support, Employer Super. Tel: 1800 804 768
Mature age workers thumb nose at training
We’ve found that training enrolment tends to be significantly lower amongst our mature age employees. Why is this and what can we do about it?
– Learning and development manager in sales, Sydney
It’s crucial for organisations to do more than merely ‘offer’ training to all employees. Employers need to show workers that they are serious about skill development by making training a requirement for everyone, particularly older employees. They need opportunities to use newly acquired skills through practical application. Remember, training is only appealing if participants find it useful and relevant to their current and future roles. When communicating training opportunities to employees, keep in mind that we are all different and what might appeal to one person may sound completely uninteresting to another. For example, a client wanted to encourage mature aged employees to undertake additional customer service skills training. The publicity materials touted the course as a “great way to enhance computer and technical skills”and listed the various high-tech software that would be used in the course. Not surprisingly, they did not get a high enrolment from their mature aged employees. Many of the candidates were not interested in the technical side of the course and/or were uncomfortable with technology. It was recommended that they re-advertise on their intranet with material that focused on the people skills and strategies that the course would provide as well as the technical details. Enrolment doubled with this approach. The point is, be sure to appeal to various interests when promoting training internally in order to maximise intergenerational interest.
by Jock Noble, CEO of Diversity@work Australia. Tel: 03 9608 0900
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