Superannuation

Following the announcement that BT Super did not pass the Australian Prudential Regulatory Authority (APRA) annual performance assessment (APA) for the second consecutive year, BT Super will no longer be able to accept new members from 1 September 2022. Adobe has been working with BT Super and Mercer (whom BT Super will be merging with) and Mercer have agreed to accept new Adobe members under a transitional arrangement. Under the terms of this transitional arrangement, Mercer will effectively replicate the BT Super fund such that new members will be entitled to the same insurance coverage as existing members in the BT Super fund. There are no direct impacts to existing BT Super members about this change – BT super will continue to operate and will continue to receive contributions for existing accounts. Adobe will also continue to pay insurance premiums and superannuation administration fees for Adobe employees who have either an Adobe sponsored BT Super or Adobe sponsored Mercer super fund. For further information regarding this transition, please refer to the transition document [PDF].

Effective July 2022, Adobe contributes 10.5% of your salary up to A$300,000 to your super account. You may contribute additional funds through a salary sacrifice arrangement. A further increase of 0.5% per year is legislated to a target of 12% in 2025.

How much can you contribute to your super fund?

The general concessional contribution cap (CCC) will be A$27,500 for the 2021-2022 Financial Year. Concessional contributions consist of employer contributions plus salary sacrifice contributions plus personal deductible contributions plus insurance premium reimbursements.

Your personal CCC may vary depending on your carry forward contributions (from 2018-2019 financial year onwards). You can check your current CCC and carry forward CCC on ATO online services (accessed via myGov).

Any contributions paid above this amount will incur additional tax at your marginal (average) tax rate. It is your responsibility to ensure that you do not exceed this concessional cap.

If you are on a 457 visa, you can access your superannuation funds when you permanently leave Australia. However, this will be subject to the Departing Australian Superannuation Payment (DASP). This should be considered before making voluntary contributions. For further information, please visit the ATO Website.

How can you join or change super funds?

You will need to complete a Standard Choice Form [PDF] and return this to ERC. You may change your preference of superannuation funds at any time.

A Mercer Super account is opened for all new employees (unless you opt out) for the purpose of insurance coverage (or BT Super prior to 1 September 2022). There is no obligation to direct your Superannuation Guarantee Contribution (SGC) to the Mercer Super account and this will not affect the insurance benefit. When you join Mercer Super you will receive a New Member Welcome Pack with your account details and information to access your account online.

Please note:

  • If a new Super Choice Form is received after the payroll cutoff (typically the last day of the prior month), your contributions will be paid into your new superannuation fund in the month following. For example, if a Super Choice Form (directing Adobe to contribute superannuation into a new fund) is received on 5 April, the April contributions will be paid into your old account (or in the case of a new starter, into a new Mercer default account). From May onwards, the contributions will be paid into the fund as per your nomination.
  • If the superannuation fund we have on our record is made inactive or closed, it is your responsibility to notify ERC of your new fund information as soon as possible. If we do not receive your new superannuation information by the payroll cut off in the following month, Adobe will make the mandatory contribution deposit into your Mercer Super account.
  • A reminder that if you do a full rollover from any super fund to Mercer Super fund (or any other super fund you choose), this will automatically close your original account—including any insurances you may have held in that account—where the funds have been transferred from. A partial transfer will not automatically close your original account.

Back to top

What benefits do I get with Mercer or BT Super?

Once you have the Mercer or BT account set up, you will receive online portal access details from Mercer or BT, and you can update your personal details, nominate beneficiaries, and check the contribution transactions via the online portal.

Mercer and BT have waived the fixed administration fees ($9/month) and Adobe pays the asset-based administration fees (0.15% per annum for MySuper (default), and 0.1% per annum for all other investment options).

In addition, you are automatically covered for the following insurances with Mercer or BT super, of which the premiums are paid by Adobe:

  • Life and Total & Permanent Disability (TPD) insurance based on 3 times your base salary. Please refer to the Life and TPD page for further information.
  • Salary Continuance which pays 75% of your base salary for up to 2 years with a 30-day waiting period. Please refer to the Salary Continuance page for further information.

As stated above, there is no requirement for employees to contribute into the Mercer or BT Super Account. If you would prefer to direct your superannuation contributions to a different superannuation fund, we suggest you consider maintaining your Mercer or BT Super account in order to retain the employer-paid insurance benefits. You would also need to retain a small balance in the account; Adobe pays the insurance premiums each month following the deduction from Mercer or BT Super. A reminder that if you do a full rollover from BT or Mercer Super (or any super fund) to any other super fund, this will automatically close your original account—including any insurances held in that account—where the funds have been transferred from. A partial transfer will not automatically close your original account.

Back to top

How can you contribute through salary sacrifice?

Log in to My Adobe Benefits and follow the instructions under Benefits > Superannuation > Voluntary Superannuation Contributions (Salary Sacrifice).

Back to top

How are pre-tax contributions taxed?

Contributions up to the concessional cap will be taxed at 15%, as opposed to your marginal tax rate of up to 45% plus Medicare Levy. Employees earning more than A$250,000 will also have an additional 15% tax on their contributions under division 293, unless modified by ATO.

Earnings on your superannuation investments will be taxed at a maximum of 15%.

Back to top

What if you do not complete a Super Choice Form when you join Adobe?

Adobe is legally required to contribute superannuation funds in a timely manner on your behalf. If we do not receive your Super Choice Form by your first payroll cut off, we will direct your superannuation contributions into your stapled superannuation account as per the records held by the ATO.

As we open a Mercer super account (or BT account prior to 1 September 2022) upon you joining Adobe (for insurance purposes unless you opt out), it is likely that this is the account for which we will be requested to direct your superannuation funds to. You may elect to redirect your superannuation contributions to any superannuation fund of your choice, at any time, by completing a Standard Choice Form [PDF] and returning this to the ERC.

Back to top

Your investment options

When you join Mercer super you will be defaulted into the Mercer Smart Path corresponding to your age.

When you join BT super, you will be defaulted into the BT MySuper Lifestage investment option that corresponds to the decade you were born in. This option is designed to get more conservative as you get older. You may choose an alternative investment strategy for your super investments via your BT online account.

Find out more about your investment options.

For individuals who wish to access a larger choice of investment options, Adobe also provides employees the option to access the BT Super Invest retail product. Further information can be found in the Super Invest presentation [PDF] and Investment Options Booklet [PDF].

If you are a member with BT Super and are interested in joining the BT Super Invest platform or have any questions, please contact Ben Chosid at BT or Cherry Lai at Financial Decision.

Important Notes:

  • The annual A$540 account-based administration fee within BT Super Invest is payable by you, the member. Adobe will continue to pay the asset-based administration fees of 0.15% per annum of your account balance (depending on your balance and investments). 
  • In order to be covered for Death, TPD and Salary Continuance insurance, you must retain a positive balance within the default BT superannuation account.
  • The BT Super Invest account needs to be set up through Ben Chosid at BT to ensure that the fee discounts are passed on.

Back to top

I want to know more