Superfund consolidation by successor fund transfer
The Australian Prudential Regulation Authority or APRA defines a successor fund transfer as "a bulk transfer of members and their benefits from one superannuation fund to another."
There are a few times when successor fund transfers occur:
- A business decides to no longer be the trustee of a superannuation fund.
- Funds combine to benefit from economies of scale; for example, lower fees, better insurance position or greater diversification.
- An employer decides to change its default registrable superannuation entity (RSE) or trustee to a successor fund.
- A superannuation fund entity winds up or becomes insolvent.
- Some members transfer to a different successor fund and others to yet another super fund entity.
As in the case of Westpac transferring its $37 billion superannuation fund business for no payday whatsoever, transferring without a penny in profit is part of the deal. Successor fund transfers are not sales for profit but a process created to benefit the fund's members. That's good news for you.
When a successor fund transfer occurs, how does that affect you?
Your superannuation monies will either be part of the new super fund as a sub-fund (using the old name or something similar), or your old fund will be merged with the new superannuation fund. Either way, your former 11-digit super fund Australian Business Number (ABN) will no longer be used to identify your retail, industry or self-managed super fund. You'll need your new super fund ABN.
How to find your new ABN?
- Look for it on the letter from your new (or existing) trustee about your new super fund.
- Contact your superannuation fund trustee.
- Look up the fund on the Australian Taxation Office's site, 'Searching for Lost Super'.
- APRA also has information on how to find lost funds and lost members.
When do you need your new ABN?
Everyone who has a superannuation fund will need to know their ABN to do two things: send your contributions to the correct fund and make pre-tax or after-tax contributions to your fund.
When you change your job, you will need your ABN when you complete the Superannuation Standard Choice form to ensure your mandatory contribution is put in the correct pot — yours.
You'll need your fund's ABN if you choose to make non-concessional (after-tax) contributions to your super fund or to complete contributions to a self-managed super fund. That ABN is an 11-digit key to your retirement future. Make sure you have it handy when you need it.