How to rollover or transfer your superannuation between superannuation funds
When you are talking superannuation, the term “rollover” or “transfer” is the process of transferring your superannuation benefit from one superannuation fund to another. By rolling over to another super fund doesn’t mean you can withdraw or access your benefits. Whilst, you can rollover your super to another fund at anytime, you can only access or withdraw it when you meet a condition of release, for example you have reached your preservation age retired from the workforce or when you turn 65 years old.
Unlike the old days, you’re not forced to stay with any one super fund.
As you’re not actually receiving your super benefit, no tax is payable on a rollover but you may have to pay an exit fee or withdrawal fee. Many superannuation funds charge a withdrawal fee when you leave them and the amount depends on each super fund. A retail fund may charge you an exit fee if you leave them before your retirement. Please check before you rollover.
How to rollover your superannuation benefit to the fund of your choice
Rollover your account balance from one super fund to another is a simple process. Since 1 July 2013, the rules have changed to make it easier for super fund members transfer their benefits between funds or to consolidate their accounts where they have multiple accounts. Your super fund must process your rollover request within 3 of receiving your complication application and the fund that you’re rolling over to must allocate the money within 3 days after receiving the money. Under the old rule, superannuation funds had 30 days to do this.
There are 3 ways in which you can rollover your superannuation from one fund to another:
Option 1: Australian Taxation Office (ATO)
You can register online through the ATO’s SuperSeeker website to request the rollover electronically. Firstly, you’ll need to register and then login to request the transfer, it is as simple as that. Your request will be electronically submitted to your current fund and they have 3 days to process and transfer your account balance to your new fund. Your new fund must allocate the money into your account within 3 days.
Alternatively, you can complete an ATO transfer request form by downloading it from the ATO’s website and send it to your current fund.
Use this form if you’re rolling to another super fund:
Use this form if you’re rolling over to a Self-Managed Super Fund:
The completed form must be sent to your current fund to rollover your superannuation to your new fund.
You can only use Option 1 to rollover the full account balance. If you only want to rollover part of the money to another fund (i.e. leaving some money in the account balance to keep it open), you cannot go through the ATO, either by submitting the request online or by completing a form.
For a partial rollover, you need to approach either your current super fund or your new super fund and complete their form.
Option 2: Complete your current superannuation fund rollover form
The quickest way to rollover your superannuation to another fund is to complete your current super fund rollover form and send it to them to process. You can use this form to request a partial or full rollover to your new fund. There will be instructions how to complete the form.
Option 3: Complete your new superannuation fund form
If you prefer, you can also go directly to your new super fund and ask them to organise the rollover for you. To do this you will need to complete your new fund transfer form and they will do the rest for you.
The rollover or transfer form should be available on the super fund’s websites.
Regardless of which option you choose, your current fund must process your request within 3 days of receiving the completed form. Your new super fund must allocated your rollover amount into your account within 3 days of receiving the money from your previous fund.
What you will receive from your old and new super funds
Once your current fund has processed your rollover request and electronically transferred the money to your new super fund, together with your rollover details in a Rollover Benefit Statement (RBS), they will send a letter to you to confirm they have completed your request. They will also send you a copy of the RBS outlining the rollover details such as the date, amount etc.
Your new rollover fund has 3 days to allocate your rollover amount into your account. Once allocated, they will send you a letter confirming the receipt of your rollover amount from your old fund and the details of the rollover allocated to your account.
Employer superannuation guarantee (SG) contributions
You should note that when you rollover or transfer your superannuation from one fund to another, you’re only transfer your account balance. Any regular SG contributions paying to your old fund by your employer(s) will continue to go there unless you’ve organised with your employer to pay regular SG contributions to your new fund.
You should also note that if you have insurance cover, a full rollover of your account balance to another fund will cause you to lose this cover, unless you only rollover part of the account balance, keeping it opened so you still have insurance cover. If you intend to rollover the full balance, ensure that you’ve organised insurance cover with your new fund to avoid a situation where you’re not being covered anywhere.