Welcome to the April 2006 edition of Cbus News, a monthly newsletter designed to update employers on a range of superannuation issues.

If you would like a colleague to receive this newsletter please forward it to them and they can subscribe by clicking on the left column subscribe button.

If you have any feedback about the content of the newsletter please email Gordon Noble at gnoble@cbusmail.com.au.

The Federal Government has introduced legislation to override state awards to require that employers that are constitutional corporations are required to offer their employees choice as to which superannuation fund compulsory superannuation contributions are to be paid to from 1 July 2006.

Cbus wil provide more clarification on what employers will need to do to satisfy choice rules for employees previously covered by state awards once the Australian Taxation Office issues formal guidelines.

To download a pre-populated Standard Choice Form click here.

Information released by the Australian Taxation Office reveals that many Australians are paying exorbitant fees to run their own self managed super fund.

According to answers to Questions on Notice supplied to the Australian Parliament from the Commissioner of Taxation in the 2003-2004 financial year the average cost of managing a Self Managed Super Fund with a balance of $50,000 - $100,000 was in the range of 2.2% - 4.5%, for $100,000 to $200,000 the cost was 1.7% to 3.5% while for funds of between $200,000 and $300,000 the cost was 1.9% to 2.9%

According to the Investment and Financial Services Association's February 2006 Investment Trends Self Managed Super Funds Report, 28% of self managed super funds have balances of less than $100,000 and the average cost of running a SMF is $3,500. IFSA's research cites the main reasons for establishing a SMF as including greater control over investment decisions and costs and concern about the poor performance of existing super funds.

Cbus has introduced a new product Cbus Self Select to provides an alternative for those who want greater control of their super without the costs and hassles of running their own self managed super fund.

Cbus Self Select gives members access to a diverse range of investment options including individual investment managers and the top 100 ASX listed companies. Cbus Self Select's cost structure is related to the account balance with larger account balances having a lower percentage administrative fees. The minimum investment for Cbus Self Select is $50,000. For more information on Cbus Self Select click here.

To download a Cbus briefing on Self Managed Super Funds click here.

Cbus and Manchester Unity have tailored a range of health cover options to meet the needs of Cbus members and their families, whatever their lifestage. Manchester Unity offers members of Cbus extra value health cover with:

Reduced rates
No waiting on some benefits usually requiring six months membership
No waiting on some extras usually requiring two months membership.

Like Cbus, Manchester Unity returns all profits to its members through improved services and benefits.

To go to the special Manchester Unity website for Cbus members click here.