Answer
When a superannuation fund's USI (Unique Superannuation Identifier) changes, employers often wonder whether to create a new fund entry in Lightning Payroll or simply edit the existing one. The answer is: either method works, but there are important pros and cons to consider.
Option 1: Create a new super fund entry
This is the preferred and more accurate method moving forward.
Pros:
- Preserves historical records: Past super contributions remain linked to the original USI and fund name. This ensures that reports, audit trails, and contribution files reflect what actually occurred at the time.
- Improves clarity: It's easy to distinguish between old and new fund data when reviewing employee history or preparing reports.
- Aligns with industry best practice: Since a changed USI often represents a new fund product or post-merger structure, treating it as a new entity avoids confusion.
Cons:
- Slightly more setup: You'll need to reassign the new fund to the employee and ensure the correct fund is selected when processing future pays.
Option 2: Edit the existing fund entry
This is a quicker method, but with some downsides.
Pros:
- Faster setup: Simply update the USI, ABN, or other changed details in the existing fund entry without needing to reassign anything.
Cons:
- Historical inaccuracy: Past super payments will now appear as if they were made to the new fund, which may not be correct. This can cause issues with reporting, audits, or reconciling past contributions.
- Potential confusion: Editing the old fund makes it harder to track when the change occurred, especially across financial years or reporting periods.
Option 3: Let Lightning Payroll move the fund for you
Where a fund closes through a successor fund transfer, the ATO fund register names the replacement fund. Lightning Payroll detects this when it validates the fund for a super payment and shows a Super Fund USI Has Changed prompt. Choosing Update Now moves the existing fund onto the successor USI and refreshes its ABN, name, bank account and electronic service address from the register.
Pros:
- Nothing to reassign: the fund record is updated in place, so employees, deposits and existing history stay attached to it.
- Uses official data: the successor USI comes from the ATO fund register rather than being typed in by hand.
Cons:
- Only for published successors: the prompt appears only when the register actually names a replacement fund. A rebrand or a retired product with no named successor still needs one of the options above.
- No undo: the old USI and bank details are overwritten, and the fund's past contributions will display under the new fund name.
Recommended Approach
If Lightning Payroll offers to move the fund onto a successor USI, take that option, because it uses the ATO's own record of the replacement fund. Otherwise, while both remaining options are technically valid, we recommend creating a new fund entry in Lightning Payroll whenever the USI changes. This approach protects the integrity of your payroll history and aligns with superannuation reporting standards.
Summary
- Create new fund: More accurate, preserves history, ideal for USI or fund product changes.
- Edit existing fund: Faster, but overwrites historical fund data and can create confusion.
- Let Lightning Payroll update it: Best where the ATO fund register names a successor fund, because the replacement USI comes from official data and nothing needs reassigning.
Need to check a USI? Use our USI Validator Tool to confirm up-to-date fund details before making changes.
