New Retained Benefits feature for your super account

Colonial First Choice have introduced a new feature to your super account called ‘Retained Benefits’ (RB), which means you will continue to benefit from being a FirstChoice Employer Super member even if you leave your Employer.

What is Retained Benefits?

Previously if you had ceased employment with your Employer you would have been automatically transferred to FirstChoice Personal Super.

However, if you leave your Employer now, your account and any insurance cover will be transferred to an RB category of your Employer’s plan. If your spouse is also a member they will remain in the spouse category of the plan. This means you can both continue to enjoy the benefits of your FirstChoice Employer Super account if you change employers.

What are the benefits of staying in FirstChoice Employer Super if you leave your employer?

As a member you receive:
  • Value for money – FirstChoice are a market leader in offering competitive fees
  • Great choice – with access to approximately 60 investment options
  • Comprehensive insurance options and wholesale rates – upon transfer to RB, you will keep the same level of insurance cover you already have.
  • Industry leading service and support – whether you want to speak to a real person or use our secure website, you can manage your super in the way that suits you.

When will the change happen?

If your employer notifies us that your employment with them has ceased, you will automatically be transferred to an RB category.

If you do not leave your employer, or your employer doesn’t notify us when you leave, then this change won’t affect you.

What will change if you leave your Employer and you are transferred to Retained Benefits?

Your insurance cover you have on transfer to RB will become fixed and will not change. You can also apply to change your cover. Insurance cover increases are subject to medical evidence being provided and accepted by the insurer.

Your investment selection will not change.

RB members have a different level of risk than employee members, as the insurer no longer knows your occupation and can’t make an accurate assessment of occupation risk. For this reason, RB members are charged a retained benefit loading of 20%. Details of premiums will be provided on transfer to the RB category.

What do I need to do?

Nothing. If your employer notifies FirstChoice that your employment has ceased FirstChoice will automatically transfer you to an RB category, and FirstChoice will send you an information pack outlining your options.

Any change to your super arrangements, like being transferred to an RB category, can have implications to your super entitlements.

You should consider speaking to your financial adviser to ensure FirstChoice would still be appropriate for you.

If you are transferred to an RB category your account number will not change and you will be sent a Choice of Fund form which you can give to your new employer so that you are able to nominate  FirstChoice Employer Super as your super fund.