SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 6.16 Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee

SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 6.16

  (1)   For the purpose of subregulation   (2), the following are categories of benefits:

  (a)   preserved benefits, as defined in Subdivision   6.1.2;

  (b)   restricted non - preserved benefits, as defined in Subdivision   6.1.3;

  (c)   unrestricted non - preserved benefits, as defined in Subdivision   6.1.4.

  (2)   For the purposes of this Part, the governing rules of a fund, or the trustee of a fund, may alter the category of any of a member's benefits in the fund but, subject to subregulation   (3), not so as to:

  (a)   decrease the amount of the member's preserved benefits in the fund; or

  (b)   increase the amount of the member's unrestricted non - preserved benefits in the fund.

  (3)   The trustee may alter the category of benefits in a fund from preserved benefits to unrestricted non - preserved benefits if:

  (a)   before the commencement of regulation   6.15A and during the transitional period of the fund, there arose in relation to the benefits a circumstance that would have resulted in the satisfaction of a condition of release and a 'Nil' cashing restriction if these regulations applied; or

  (b)   before the commencement of regulation   6.15A, both:

  (i)   the benefits were rolled over or transferred to the fund from:

  (A)   a superannuation fund ( Fund A ) during its transitional period; or

  (B)   a regulated superannuation fund or an approved deposit fund to which the benefits were rolled over or transferred from a superannuation fund ( Fund B ) during its transitional period; and

  (ii)   the trustee is reasonably satisfied that:

  (A)   during the transitional period of Fund A or Fund B, there arose in relation to the benefits a circumstance that would have resulted in the satisfaction of a condition of release and a 'Nil' cashing restriction if these regulations applied; or

  (B)   before the benefits were rolled over or transferred to Fund A or Fund B from a regulated superannuation fund or an approved deposit fund, the relevant cashing restriction set out in Schedule   1 in respect of the benefits was 'Nil'.