SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994

Commonwealth Consolidated Regulations

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SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994

- made under the Superannuation Industry (Supervision) Act 1993

TABLE OF PROVISIONS

PART 1--PRELIMINARY

1.01. Name of Regulations [see Note 1]
1.02. Commencement [see Note 1]
1.03. Interpretation
1.03A. Lost member
1.03AA. Defined benefit interest
1.03AB. Meaning of growth phase
1.03B. Meaning of protected member
1.04. Prescribed matters (Act, s 10)
1.04AAAA.Interdependency relationships (Act s 10A)
1.04AAA.Modified meaning of member (Act s 15B) [see Note 2]
1.04A. Specified body or person (Act s 19)
1.04AA. Self managed superannuation funds -- persons not taken to be employees (Act s 17A (8))

Division 1A.1--

1.05A. Interpretation
1.05. Meaning of annuity (Act, s 10)
1.06. Meaning of pension (Act, s 10)
1.07. Periods when beneficiary may not receive benefits
1.07A. Commutation of allocated annuities and pensions
1.07B. Commutation of other annuities and pensions
1.07C. Commutation of market linked income stream
1.07D. Commutation of superannuation income stream

Division 1A.2--Operating standards

1.08. Restriction on factors for converting pensions

PART 2--INFORMATION FOR CERTAIN PARTIES

Division 2.1--Introductory

2.01. Interpretation
2.02. Scope and application of this Part
2.03. Duties and requirements arising under this Part
2.04. Reasonable efforts are sufficient
2.05. Charges for information requested

Division 2.4--Information to be given for each reporting period

Subdivision 2.4.1--Preliminary

2.17. Interpretation
2.18. Application

Subdivision 2.4.3--Derivatives charge ratio

2.29. Specific requirements in particular cases

Division 2.5--Information on request

2.30. Application
2.31. Documents may be made available for inspection
2.32. Time for compliance
2.33. Specific requirements

Division 2.5A--Information about superannuation interest subject to payment split

2.36B. Application
2.36C. Information to be provided by trustee when interest becomes subject to payment split
2.36D. Other information to be provided by trustee
2.36E. Other information to be given by trustee -- adverse effects on benefits

PART 3--MATTERS PRESCRIBED OR SPECIFIED IN RELATION TO PUBLIC OFFER ENTITIES

3.01. Public offer superannuation fund -- member of a prescribed class
3.04. Section 54 of the Act -- prescribed percentages
3.04A. Removal of trustee of public offer entity -- s 60A (2) of the Act
3.05. Policy committees -- sections 91, 92 and 93 of the Act
3.06. Policy committees -- functions (paragraphs 91 (3) (b), 92 (3) (b) and 93 (3) (b) of the Act)
3.07. Definition of policy committee in section 10 of the Act -- matters specified for purposes of paragraph (a)
3.08. Policy committees -- duties of trustee
3.09. Dissolution of policy committees
3.10. Commission and brokerage
3.11. Payment by trustee of a public offer entity of commission or brokerage

PART 3A--MATTERS PRESCRIBED OR SPECIFIED IN RELATION TO LICENSING OF TRUSTEES AND OF GROUPS OF INDIVIDUAL TRUSTEES

Division 3A.1--Classes of RSE licences

3A.01. Public offer entity licences
3A.02. Non-public offer entity licences
3A.03. Extended public offer entity licences
3A.03A. Acting trustee licences

Division 3A.2--Grant of RSE licences

3A.04. Capital requirements

Division 3A.3--Applying for RSE licences

3A.05. Definitions
3A.06. Application fees

Division 3A.4--Conditions on RSE licences

3A.07. Conditions on RSE licences of FHSA providers

PART 4--MANAGEMENT AND TRUSTEESHIP OF SUPERANNUATION ENTITIES

Division 4.1--Prescribed matters

4.01. Covenants in governing rules of a superannuation entity -- prescribed information and documents
4.02. Covenants in governing rules of a superannuation entity -- beneficiary investment choice
4.03. Trustee of employer-sponsored fund -- prescribed direction by employer-sponsor or associate of employer sponsor
4.04. Governing rules of a superannuation entity -- prescribed exercise of discretion by non-trustee
4.05. Governing rules of a superannuation entity -- prescribed circumstances of amendment
4.06. Removal of member representatives -- prescribed circumstances
4.07. Removal of independent trustee or independent member -- prescribed circumstances

Division 4.1A--Content of risk management strategies and risk management plans

4.07A. Risk management strategies
4.07B. Risk management plans

Division 4.2--Operating standards

4.08. Operating standard -- voting rule where equal representation applies
4.08A. Operating standard -- member representation for certain regulated superannuation funds where a declaration under subsection 18 (7) of the Act applies
4.09. Operating standard -- investment strategy
4.10. Operating standard -- investment by non-complying superannuation funds
4.10A. Operating standard -- ownership of units in a PST [see Note 2]
4.11. Operating standard -- investment by non-complying approved deposit funds
4.11A. Operating standard -- acceptance of deposits by an approved deposit fund [see Note 2]
4.12. Operating standard -- acceptance by regulated superannuation and approved deposit funds of rollovers and transfers
4.13. Operating standard -- lending to members of an approved deposit fund
4.14. Operating standard -- fitness and propriety of RSE licensee
4.15. Operating standard -- adequacy of resources of, or available to, trustees of registrable superannuation entities (RSE licensees)
4.16. Operating standard -- outsourcing arrangements of RSE licensees
4.17. Outsourcing arrangements for licensing transition period

PART 5--BENEFIT PROTECTION STANDARDS

Division 5.1--Preliminary

5.01. Interpretation
5.01A. Operating standards -- determination of costs and investment return
5.01B. Trustee may provide greater protection than this Part requires
5.02. Determination of costs
5.02A. Meaning of fair and reasonable
5.02B. Priority in deducting surcharge or instalment
5.02C. Refund of costs
5.03. Investment returns

Division 5.2--Minimum benefits

5.04. Minimum benefits -- regulated superannuation funds
5.05. Mandated employer contributions -- regulated superannuation funds
5.06. Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits
5.06A. Benefits rolled over or transferred from an RSA to regulated superannuation funds taken to be minimum benefits
5.06B. Minimum benefits if new interest created, or benefits rolled over or transferred, under Division 7A.2
5.07. Minimum benefits -- approved deposit funds

Division 5.3--Treatment of minimum benefits

5.08. How minimum benefits are to be treated

Division 5.5--Member-protection standards

5.12. Interpretation
5.13. Operating standards -- member protection
5.14. Member-protection standards not to apply to certain funds
5.15. Member-protection standards not to apply to certain protected members
5.15B. Member-protection standards taken not to have applied to certain members
5.15C. Member-protection standards not to apply to pensions
5.15D. Member-protection standards not to apply to traditional life insurance policies
5.16. Application of member-protection standards to sub-fund
5.17. Member-protection standards
5.18. Costs not to be deferred

Division 5.6--Existing personal superannuation members

5.19. Interpretation
5.20. Operating standards -- existing personal superannuation members
5.21. Trustee may offer election to existing personal superannuation members
5.22. What happens if the member waives member protection?
5.23. What happens if the member elects to have benefits paid out of the fund?
5.24. What happens if the trustee pays benefits paid out of the fund?

PART 6--PAYMENT STANDARDS

Division 6.1--Introductory

Subdivision 6.1.1--General interpretation

6.01. Interpretation
6.01A. Meaning of terminal medical condition
6.01B. Conditions of release for temporary residents

Subdivision 6.1.2--Preserved benefits

6.02. Preserved benefits in regulated superannuation funds -- before 1 July 1999
6.03. Preserved benefits in regulated superannuation funds -- on and after 1 July 1999
6.05. Preserved benefits in approved deposit funds
6.06. Effect of rollover or transfer on preserved benefits

Subdivision 6.1.3--Restricted non-preserved benefits

6.07. Restricted non-preserved benefits in regulated superannuation funds -- before 1 July 1999
6.08. Restricted non-preserved benefits in regulated superannuation funds -- on and after 1 July 1999
6.09. Effect of rollover or transfer on restricted non-preserved benefits

Subdivision 6.1.4--Unrestricted non-preserved benefits

6.10. Unrestricted non-preserved benefits -- regulated superannuation funds
6.11. Unrestricted non-preserved benefits -- approved deposit funds
6.12. Movement of benefits between categories by satisfaction of conditions of release
6.13. Effect of rollover or transfer on unrestricted non-preserved benefits

Subdivision 6.1.5--Miscellaneous

6.14. Indexation
6.15. Contributions and benefits taken to be preserved benefits
6.15A. Certain benefits taken to be unrestricted non-preserved benefits
6.16. Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee
6.16A. When non-preserved benefits may be reduced

Division 6.2--Payment of benefits

6.17. Restriction on payment
6.17A. Payment of benefit on or after death of member (Act, s 59 (1A))
6.17AA. Payments prevented under Family Law Act 1975
6.17B. Duty to seek information
6.17C. Payment and commutation of pension in breach of standards

Division 6.3--Cashing of benefits

Subdivision 6.3.1--Regulated superannuation funds

6.18. Voluntary cashing of preserved benefits in regulated superannuation funds
6.19. Voluntary cashing of restricted non-preserved benefits in regulated superannuation funds
6.19A. Release of benefits on compassionate grounds
6.20. Voluntary cashing of unrestricted non-preserved benefits in regulated superannuation funds
6.20A. Compulsory cashing of benefits in a regulated superannuation fund that is not an unfunded public sector superannuation scheme -- temporary residents
6.20B. Voluntary cashing of benefits in a regulated superannuation fund that is an unfunded public sector superannuation scheme -- temporary residents
6.20C. Cashing of benefits in a regulated superannuation fund -- payment to Commissioner of Taxation
6.21. Compulsory cashing of benefits in regulated superannuation funds
6.22. Limitation on cashing of benefits in regulated superannuation funds in favour of persons other than members or their legal personal representatives
6.22A. Priority in cashing benefits in certain cases -- regulated superannuation funds
6.22B. When benefits in regulated superannuation funds may be cashed in favour of persons except members

Subdivision 6.3.2--Approved deposit funds

6.23. Voluntary cashing of preserved benefits in approved deposit funds
6.24. Voluntary cashing of unrestricted non-preserved benefits in approved deposit funds
6.24A. Compulsory cashing of benefits in approved deposit funds -- temporary residents
6.24B. Cashing of benefits in approved deposit funds -- payment to Commissioner of Taxation
6.25. Compulsory cashing of benefits in approved deposit funds
6.26. Limitation on cashing of benefits in approved de posit funds in favour of persons other than members or their legal personal representatives
6.27. Limitation on cashing benefits in approved deposit funds of less than $500
6.27A. Priority in cashing benefits in certain cases -- approved deposit funds

Division 6.4--General rules for rollover and transfer of benefits in regulated superannuation funds and approved deposit funds

6.27B. Definition
6.28. Rollover -- regulated superannuation funds and approved deposit funds [see Note 2]
6.29. Transfer -- funds [see Note 2]

Division 6.5--Compulsory rollover and transfer of superannuation benefits in regulated superannuation funds and approved deposit funds

6.30. Application
6.31. Definitions for Division 6.5
6.32. Operating standards
6.33. Request for rollover or transfer of withdrawal benefit
6.34. Rollover or transfer of withdrawal benefit
6.35. When a trustee may refuse to roll over or transfer an amount
6.36. Suspension or variation of obligation to roll over or transfer amounts by APRA
6.37. Suspension or variation of obligation to roll over or transfer amounts by APRA -- application by trustee
6.38. Trustee's obligations if APRA suspends or varies obligation to roll over or transfer amounts

Division 6.6--Additional standards for eligible rollover funds

6.39. Obligations of trustees

Division 6.7--Spouse contributions-splitting amounts

6.40. Interpretation
6.41. Meaning of taxed splittable contribution, untaxed splittable contribution and untaxed splittable employer contribution
6.42. Meaning of splittable contribution
6.43. Application of Division 6.7
6.44. Application to roll over, transfer or allot an amount of contributions
6.45. Decision on application
6.46. Receiving spouse

PART 7--CONTRIBUTION AND BENEFIT ACCRUAL STANDARDS

Division 7.1--General

7.01. Interpretation
7.02. Application of Division 7.1
7.03. Restriction on accepting contributions or granting benefit accruals
7.03A. Acceptance of contributions -- registrable superannuation entities [see Note 2]
7.04. Acceptance of contributions -- regulated superannuation funds
7.04A. Acceptance of contributions -- public offer superannuation funds
7.05. Accrual of benefits -- defined benefit funds

Division 7.2--Contributions to be allocated to members -- accumulation funds

7.06. Application of Division 7.2
7.07. Operating standard
7.08. Contributions to be allocated to members

Division 7.3--Contributions to be allocated to members -- certain other regulated superannuation funds

7.09. Application of Division 7.3
7.10. Operating standard
7.11. Contributions to be allocated to members

PART 7A--SUPERANNUATION INTERESTS SUBJECT TO PAYMENT SPLIT

Division 7A.1--General

7A.01. Purpose of Part 7A
7A.01A. Relevant condition of release
7A.02. Operating standards
7A.03. Trustee to give payment split notice

Division 7A.1A--Options for trustee in relation to interests

7A.03A. Application of Division 7A.1A
7A.03B. Trustee may create a new interest
7A.03C. Request to retain a non-member spouse interest
7A.03D. Request to roll over or transfer benefits
7A.03E. Request for lump sum payment
7A.03F. Requirements for requests
7A.03G. Giving effect to a request
7A.03H. Trustee's options if no request is received
7A.03I. Confirming that the non-member spouse has an interest in the fund
7A.03J. Rolling over or transferring the non-member spouse's interest
7A.03K. Paying a lump sum

Division 7A.2--Options available for certain superannuation interests

7A.04. Application of Division 7A.2
7A.05. Request for new interest
7A.06. Request for transfer of benefits
7A.07. Request for lump sum payment
7A.08. Requirements for requests
7A.09. Giving effect to request
7A.10. Trustee options if no request received
7A.11. Creating a new interest
7A.12. Rolling over or transferring transferable benefits
7A.13. Paying a lump sum

Division 7A.3--Splittable payments -- payment standards for non-member spouse entitlements

7A.14. Application of Division 7A.3
7A.16. Preservation of non-member spouse entitlements
7A.17. Payment of non-member spouse entitlements from pension
7A.18. Cashing of non-member spouse entitlements

Division 7A.4--Superannuation interest split under the

7A.19. Application
7A.20. Creating a new interest
7A.21. Rolling over or transferring benefits
7A.22. Paying an amount

PART 8--FINANCIAL REPORTING

8.01. Accounts -- statement of financial position and financial statement
8.02. Accounts and statements that must be prepared
8.02A. Period within which an auditor must be appointed (Act s 35C)
8.03. Period within which audit report must be given
8.04. Period within which audit report is given to the APRA (Act s 36)

PART 9--FINANCIAL MANAGEMENT OF FUNDS

Division 9.1--Introductory

9.01. Interpretation

Division 9.2--Financial position of funds

9.02. Application
9.02A. Interpretation
9.03. Subsection 130 (1) of the Act etc -- obligations of actuaries and auditors
9.04. Subsection 130 (7) of the Act -- unsatisfactory financial position

Division 9.2A--Size of defined benefit funds

9.04A. Application
9.04B. Sub-funds to be treated as funds
9.04C. Operating standard
9.04D. Size of defined benefit funds

Division 9.2B--Provision of defined benefit pensions

9.04E. Definition for Division 9.2B
9.04F. Application of Division 9.2B
9.04G. Sub-funds to be treated as funds
9.04H. Operating standard
9.04I. Provision of defined benefit pensions

Division 9.3--Funding and solvency of defined benefit funds

9.05. Application
9.06. Interpretation
9.07. Prescription of standards
9.08. Funding standard
9.09. Funding and solvency certificates -- operating standard
9.10. Contents of funding and solvency certificates
9.11. Effective date of funding and solvency certificates
9.12. Period of effect of funding and solvency certificates
9.13. Effect of notifiable events on funding and solvency certificates
9.14. Further funding and solvency certificates to be obtained
9.15. Minimum benefit index
9.16. Non-compliance with solvency requirement -- technical insolvency
9.17. Technical insolvency -- operating standard
9.18. Technical insolvency program -- special funding and solvency certificate
9.19. Technical insolvency programs -- procedure

Division 9.4--Winding-up of defined benefit funds

9.20. Application
9.21. Interpretation
9.22. Prescription of standards
9.23. Winding-up of defined benefit funds
9.24. Alternative programs approved by the Regulator
9.25. Winding-up proceedings -- priorities

Division 9.5--Actuarial standards relating to defined benefit funds

9.26. Application
9.27. Interpretation
9.28. Prescription of standards
9.29. Actuarial investigation standard
9.30. Actuarial reporting standard
9.31. Contents of actuarial report -- private sector funds and fully funded public sector superannuation schemes
9.32. Contents of actuarial report -- public sector superannuation schemes that are not fully funded
9.33. Content of actuarial report -- newly established or converted funds

Division 9.6--Solvency of accumulation funds

9.34. Application
9.35. Interpretation
9.36. Prescription of standards -- accumulation funds
9.37. Accumulation funds solvency standard
9.38. Technical insolvency of accumulation funds -- operating standard
9.39. Technical insolvency program for accumulation funds -- procedure

Division 9.7--Winding-up of accumulation funds

9.40. Application
9.41. Interpretation
9.42. Prescription of standards -- winding-up of accumulation funds
9.43. Winding-up of accumulation funds
9.44. Alternative programs approved by the Regulator for accumulation funds
9.45. Accumulation fund winding-up proceedings -- priorities

PART 10--ELIGIBLE ROLLOVER FUNDS

Division 10.1--Introductory

10.01. Definition of eligible rollover fund (Act, s 242)

Division 10.2--Prescribed matters

10.02. Interpretation
10.03. Payment of benefit to eligible rollover fund

Division 10.3--Additional operating standards applicable to eligible rollover funds

10.06. Operating standards -- eligible rollover funds
10.07. Operating standard -- restriction on acceptance of rollovers [see Note 2]

PART 11--INFORMATION TO BE GIVEN TO THE REGULATOR AND RELATED MATTERS

11.01. Definition
11.02A. Service of contravention notice (Act s 252B)
11.03. Period for giving information to the Regulator, Act, s 254 (1)
11.04. Prescribed information (subsection 254 (1)) -- regulated superannuation funds
11.05. Prescribed information (subsection 254 (1)) -- approved deposit funds
11.06. Prescribed information (subsection 254 (1)) -- PSTs
11.06A. Specified person or body (Act s 254 (1))
11.07. Operating standard -- disclosure of certain information (funds other than self managed superannuation funds)
11.07A. Operating standard -- disclosure on change of status

PART 11A--REGISTER TO BE KEPT BY APRA

11A.01. General
11A.02. Regulated superannuation funds
11A.03. Approved deposit funds
11A.04. Pooled superannuation trusts

PART 12--PRE-1 JULY 1988 FUNDING CREDITS AND DEBITS

12.01. Definitions
12.02. Pre-1 July 88 funding amounts
12.03. Shortfall-in-assets amount -- calculation
12.04. Estimation of net market value of fund assets
12.05. Value A of accrued benefits
12.06. Value B of accrued benefits
12.07. Calculation of value A or B of accrued benefits
12.08. Date before which applications to be made
12.09. Application fees
12.10. Prescribed events for the purposes of paragraph 342 (4) (a) of the Act

Subdivision 960-M--of the Tax Act.

12.11. When and how APRA to be notified of prescribed events
12.12. Transfer of PJFCs -- trustees of transferor funds
12.13. Transfer of PJFCs -- trustees of transferee funds
12.14. Transfer of PJFCs -- revocation of approval
12.15. Transfer of PJFCs -- requirements to be satisfied
12.19. Actuaries to certify in relation to determinations
12.20. Substituted accounting periods

PART 13--MISCELLANEOUS

Division 13.1A--Transitional arrangements arising out of the Superannuation Legislation Amendment Act

13.10A. Transitional arrangement -- preserved OSS Act provisions
13.10B. Outstanding annual returns
13.10C. Outstanding amounts
13.10D. Certain annual returns and amounts for 1999-2000 year of income

Division 13.2--Various operating standards

13.11. Interpretation
13.12. Assignments of superannuation interests
13.13. Charges over a member's benefits
13.14. Charges over assets of funds
13.15. Restrictions on the standards
13.15A. Charges in relation to certain derivatives contracts
13.16. Accrued benefits -- restriction on alteration
13.17. Approved deposit funds -- restrictions on loans and investments
13.17A. Public offer superannuation funds -- restrictions on loans and investments
13.17AA.Rules for certain investments by funds in related bodies corporate
13.17B. Orders etc of the Superannuation Complaints Tribunal to be complied with
13.17C. Funds that cease to be eligible rollover funds must maintain entitlements

Division 13.3--Various prescribed matters

13.18. Sole purpose test -- specified age
13.18A. Conditional offer of goods or services -- exemptions
13.19. Custodians of superannuation entities -- specified amounts
13.19A. Disqualification by Federal Court -- matters to take into account
13.20. Advertisement of scheme for winding-up or dissolution of superannuation entity
13.21. Report of inspector -- prescribed agencies
13.22. Statements made at an examination -- manner of authentication

Division 13.3A--In-house assets of superannuation funds

13.22A. Definitions for Division 13.3A
13.22B. Assets held at commencement of Division 13.3A (Act s 71)
13.22C. Assets acquired after commencement of Division 13.3A (Act s 71)
13.22D. When regulations 13.22B and 13.22C cease to apply to assets

Division 13.4--Repeal

13.23. Superannuation Industry (Supervision) (Approval of Trustees) Regulations

Division 13.5--Reconsideration and review of decisions

13.24. Notice of reviewable decisions and reasons for decisions
13.25. Reconsideration of certain decisions
13.26. Review by Tribunal of reconsidered decisions
SCHEDULE 1AAA Approved auditors -- professional organisations
SCHEDULE 1AA
SCHEDULE 1A Payment limits for annuities and pensions with a commencement day before 1 January 2006
SCHEDULE 1AAB Payment limits for annuities and pensions with a commencement day on and after 1 January 2006
SCHEDULE 1B Pension valuation factors
SCHEDULE 1 Conditions of release of benefits
SCHEDULE 2 Modifications of the OSS laws in relation to preserved benefits in regulated superannuation funds
SCHEDULE 2A Request to transfer whole balance of superannuation benefits between funds form
SCHEDULE 3 Prescribed form of advertisement of scheme for winding-up or dissolution
SCHEDULE 4 Approved bodies
SCHEDULE 6 Payments for market linked income streams
SCHEDULE 7 Minimum payment amount for a superannuation income stream

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