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The Government will prevent public offer funds from requiring that new employers sign "participating employer" agreements before accepting contributions on behalf of fund members. The measure will have effect from 1 July 2007. Currently, funds may require employers to become a ‘participating employer’ in order to make contributions to an employee’s existing fund.

This measure will generally allow employees to choose to remain in a fund following a change of employer, rather than having contributions paid to another fund.

See Budget Paper No 2 pp 22-3

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