The federal government has given trustees greater flexibility in transitioning their existing members to a MySuper offering under the Stronger Super reforms released yesterday.

Previously, the Super System Review recommended the industry should have at least two years to transition to MySuper from 1 July 2013, when superannuation funds will be able to offer MySuper products. 

But funds will now need to transfer the existing balances of their default members to a MySuper product by 1 July 2017.

Financial Services and Superannuation Minister Bill Shorten said the extension was necessary to gain industry-wide consensus for the reforms.

"I accept there is a lot of work to be done and I'd rather have everybody on the same page and move a little later," Shorten said during the announcement of the package yesterday.

Mercer senior partner and head of retirement, risk and finance David Knox said the government had also allowed greater flexibility on new money coming in after 1 July 2013.

"The government said that from 1 October 2013, employers must make contributions for employees who have not made a choice of fund to a fund that offers a MySuper product," Knox said.

"It doesn't say it has to go into a MySuper product."

He argued this could mean that in the period from October 2013 to July 2017, funds could continue to use their default option, providing they also had a MySuper product on offer.

"I'm reading it as the government being a little more flexible," he said.

The government also indicated it would look at extending the July 2017 deadline in "certain, limited circumstances, recognising there may be instances where exisiting obligations affect a trustee's ability to transfer balances".

Trustees will also not have to transfer the existing member balances that relate to an entitlement to a defined benefit fund or certain legacy products.

The 2017 deadline also implies a number of super fund members who do not exercise choice are likely to have two accounts with the same super fund provider, as their existing accounts could be rolled over later than when their first contributions will start to go into a MySuper product from October 2013.

"Part of the reason for that is related to legal obligations under existing contracts. There needs to be a reasonable transition period," Knox said.