Up to 20 per cent of employers have not yet nominated a default fund for their employees under the new choice of the superannuation fund regime.
That is the bottom line of a survey conducted by the Superannuation Trust of Australia (STA), which is also claiming that many employers are still struggling to understand the new choice regime.
What is more, of those employers who have chosen a default fund, 92 per cent have done so on the basis of pre-existing relationships.
STA chief executive, Mark Delaney said the survey of 400 employers conducted between July 28 and August 2 found that while 99 per cent of employers were aware that choice had been introduced on July 1, 36 per cent said their level of understanding of the changes was limited.
He said that the survey also revealed that 44 per cent of employers believed choice would increase their administrative burden, while 34 per cent were unaware of the regulations restricting them from giving employees financial advice.
Delaney said it was clear employers were still finding their way with respect to choice and it was important that they became more proactive about where they put their superannuation.
“With 92 per cent having chosen a default fund based on a pre-existing relationship, it is possible the nominated fund may not necessarily suit each employee’s needs,” he said.
