Rollovers and defined benefit funds
Your members can send a request to roll over a defined benefit account. It is up to the trustee whether to choose to roll over the member's account when the account is not subject to the compulsory portability legislation. We have expanded the 2013 and later years MCS labels to capture accounts reported as not accepting inward rollovers or not allowing outward rollovers to improve the online service.
This information is used to prevent a defined benefit account being selected, as the 'from' account and the member will be instructed to use a paper form and send it to the super fund. Any paper form requesting the transfer of super benefits received by a super fund will not be an approved form under the recent changes to the legislation. This means that you can still discuss with your member, prior to actioning the form, to ensure that it is in their best interests to proceed.
Are new member accounts shown online?
If your member opened a new account recently, it isn't displayed online until you report it to us. We will generally not know about accounts your member has opened unless you report them in an MCS. Alternatively, you can also use SuperTICK to advise us of any new member accounts. We then update the information shown on our online services so that members can initiate electronic rollover requests to you.
To transfer super money into a new account for which we hold no information, your member can use a paper rollover request form.
Are you going to receive more ATO-held super?
Your members can see the super we hold for them and can transfer this amount into their account with you online. There is nothing you need to do – we will pay this amount to you. You should receive this money the next month after your member has chosen to do this, as part of our monthly aggregation runs.
Which accounts will members choose to roll their super into?
It is entirely up to your members to choose which accounts to roll their super into. Their super accounts are shown online by the fund name in ascending alphabetical order. We are not making any one fund more prominent on screen than another. The information is there for your members to decide what to do.
What happens if a member is requesting a transfer to their SMSF?
Super benefits can only be rolled over to a complying SMSF that is regulated. As the transferring fund, you must:
- check an SMSF’s complying status, and whether it is regulated by using Super Fund Lookup
- verify that the member is a member of the SMSF using the SMSF Member Verification service on the Business Portal.
You may request further written information from the member if:
- you can’t verify the status of the member through the Business Portal
- any mandatory information isn’t provided to your on the paper form
- there are multiple requests to transfer to the same SMSF.
Because SMSFs are subject to the same rules and restrictions as other super funds, the transferred super benefits must be preserved. Members are generally not able to access their super benefits until a condition of release is met.