21Employer contributions to be made to default fund if no chosen fund elected by employee

21 Employer contributions to be made to default fund if no chosen fund elected by employee

(1)  For the purposes of this section, a person is a relevant employee in relation to a default fund if –

(a) where the fund is the initial default fund, the person is –

(i) a transferring member; or

(ii) an employee appointed or employed after the transfer date and before the date, if any, on which another superannuation fund becomes a default fund; or

(b) where the fund is not the initial default fund – the person is an employee appointed or employed after the date on which the fund becomes a default fund and before the date, if any, on which the fund ceases to be a default fund.

(2)  If a person who is a relevant employee in relation to a default fund has not elected a chosen fund, within the meaning of the Superannuation Guarantee Act, the Agency manager of the Agency in which the employee is employed must –

(a) make, on behalf of the Agency, employer superannuation contributions, in respect of that employee, to that default fund; and

(b) make those contributions in the manner required by the governing rules of that default fund.

(3)  The rate of employer superannuation contributions to the default fund in respect of a relevant employee is to be calculated –

(a) by reference to the salary of the relevant employee; and

(b) in accordance with the relevant "charge percentage" specified in section 19 of the Superannuation Guarantee Act.