OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) 1990 NO. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) 1990 NO. 150 - TABLE OF PROVISIONS 1. Commencement 2. Principal Regulations 3. Interpretation 4. Approved auditor 5. Vesting or paying standards: funds in operation on certain dates 6. Vesting standard: funds established on or after certain dates 7. Vesting standard: contributions under prescribed agreements or awards 8. Preservation standards: prescribed agreements or awards etc. 9. Preservation standard: relevant arrangements or agreements 10. Standards relating to trustees: large funds 11. Standard relating to decisions by trustees 12. Standards relating to trustees: small funds 13. Investment standards 14. Financial reports and disclosure of information standards 15. Minor amendments SCHEDULE 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 1 Commencement 1. These Regulations commence on 1 July 1990. 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 2 Principal Regulations 2. In these Regulations, "Principal Regulations" means the Occupational Superannuation Standards Regulations. 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 3 Interpretation 3. Regulation 3 of the Principal Regulations is amended by inserting in subregulation (1) the following definitions: "'fully funded fund' means a defined benefit superannuation fund that is funded in advance in accordance with actuarial advice at a level that is intended to be reasonably adequate to provide for present and prospective liabilities in respect of benefits relating to the fund; 'private sector fund' means a superannuation fund other than a public sector fund;". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 4 Approved auditor 4. Regulation 4 of the Principal Regulations is amended by inserting after paragraph (1) (a) the following paragraph: "(ab) persons who are the Auditor-General of the Commonwealth or of a State or Territory;". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 5 Vesting or paying standards: funds in operation on certain dates 5. Regulation 6 of the Principal Regulations is amended: (a) by omitting from subregulation (1) "superannuation funds in operation on 30 June 1986:" and substituting "a private sector fund in operation on 30 June 1986 or a public sector fund in operation on 30 June 1990:"; (b) by omitting from paragraph (1) (a) "11 June 1986," and substituting "11 June 1986 in the case of a private sector fund or 1 July 1990 in the case of a public sector fund,"; (c) by omitting from subregulation (1) "1 July 1987" (wherever occurring) and substituting "the applicable day"; (d) by omitting sub-subparagraph (1) (a) (i) (a) and substituting the following sub-subparagraph: "(a) 30 June 1987 in the case of a private sector fund or30 June 1990 in the case of a public sector fund; or"; (e) by omitting sub-subparagraph (1) (a) (ii) (a) and substituting the following sub-subparagraph: "(a) 30 June 1987 in the case of a private sector fund or30 June 1990 in the case of a public sector fund; or"; (f) by adding at the end the following subregulation: "(3) In this regulation, 'the applicable day' means: (a) in the case of a private sector fund - 1 July 1987; and (b) in the case of a public sector fund - 1 July 1990.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 6 Vesting standard: funds established on or after certain dates 6. Regulation 7 of the Principal Regulations is amended by omitting "superannuation funds established on or after 1 July 1986," and substituting "a private sector fund established on or after 1 July 1986 or a public sector fund established on or after 1 July 1990,". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 7 Vesting standard: contributions under prescribed agreements or awards 7. Regulation 8 of the Principal Regulations is amended by adding at the end the following subregulation: "(2) In the case of a public sector fund, subregulation (1) applies only in respect of benefits referred to in that subregulation accruing on or after 1 July 1990 or the date of the prescribed agreement, whichever is the later.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 8 Preservation standards: prescribed agreements or awards etc. 8. Regulation 9 of the Principal Regulations is amended by omitting from paragraph (c) "made on or after 13 March 1989, shall be preserved." and substituting "made: (i) in the case of a private sector fund - on or after 13 March 1989; and (ii) in the case of a public sector fund - on or after 1 July 1990; must be preserved.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 9 Preservation standard: relevant arrangements or agreements 9. Regulation 10 of the Principal Regulations is amended by omitting from subregulation (2) "made on or after 22 December 1986 (other than a prescribed agreement or award)" and substituting "made: (a) in relation to a private sector fund - on or after 22 December 1986; or (b) in relation to a public sector fund - on or after 1 July 1990; other than a prescribed agreement or award,". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 10 Standards relating to trustees: large funds 10. Regulation 13 of the Principal Regulations is amended: (a) by omitting all words from and including "each superannuation fund" to and including "large fund")" and substituting "each private sector fund established on or after 16 December 1985 and each public sector fund established on or after 25 May 1988, being in either case a large fund"; (b) by adding at the end the following subregulation: "(2) In this regulation, 'large fund' means a superannuation fund having 200 or more members.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 11 Standard relating to decisions by trustees 11. Regulation 14 of the Principal Regulations is amended: (a) by omitting from subregulation (1) "each large fund" and substituting "a private sector fund or public sector fund of a kind referred to in subregulation 13 (1)"; (b) by omitting from subregulation (1) "13 (a)", "13 (c)" and "13 (b)" and substituting "13 (1) (a)", "13 (1) (c)" and "13 (1) (b)" respectively; (c) by omitting subregulation (2). 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 12 Standards relating to trustees: small funds 12. Regulation 15 of the Principal Regulations is amended: (a) by omitting from subregulation (1) all words from and including "each superannuation fund" to and including "small fund"):" and substituting "each private sector fund established on or after 16 December 1985 and each public sector fund established on or after 25 May 1988, being in either case a small fund:"; (b) by omitting from subparagraph (1) (a) (i) "13 (a)," and substituting "13 (1) (a),"; (c) by adding at the end the following subregulation: "(4) In this regulation, 'small fund' means a superannuation fund having fewer than 200 members.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 13 Investment standards 13. Regulation 16 of the Principal Regulations is amended: (a) by omitting from paragraph (1) (b) "by way of overdraft with an eligible bank"; (b) by omitting subregulation (2) and substituting the following subregulation: "(2) If under the governing rules of a superannuation fund: (a) in the case of a private sector fund - established before 16 December 1985; and (b) in the case of a public sector fund - established before 25 May 1988; the trustees of the fund, on or before 16 December 1985 in the case of a private sector fund or 25 May 1988 in the case of a public sector fund: (c) had express power to lend money to members; or (d) lent money to members and that lending was not expressly prohibited; then: (e) paragraph (1) (a) does not apply to the fund; and (f) the power of the trustees to lend money to members must not be varied except to limit that power or to remove it."; (c) by omitting subregulation (3) and substituting the following subregulations: "(3) If: (a) the trustees of a private sector fund had, on or before 11 June 1986; or (b) the trustees of a public sector fund had, on or before 1 July 1990; borrowed money in a manner that does not comply with the standard set out in paragraph (1) (b), the trustees must, as soon as practicable but in any event not later than the end of the applicable day, make such arrangements as are necessary to comply with that standard and, until such arrangements are made or the end of the applicable day, whichever happens first, that standard does not apply to the fund in respect of the money borrowed by the trustees on or before the day specified in paragraph (a) or (b), as the case requires. "(3a) In subregulation (3), 'the applicable day' means: (a) in relation to a private sector fund - 30 June 1995; or (b) in relation to a public sector fund - 30 June 2000."; (d) by adding at the end the following subregulation: "(5) In subregulation (1), 'temporary finance' means finance arranged by borrowing in order to overcome cash flow problems in the payment of superannuation benefits.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 14 Financial reports and disclosure of information standards 14. Regulation 17 of the Principal Regulations is amended: (a) by omitting subparagraphs (1) (a) (i), (ii) and (iii) and substituting the following subparagraphs: "(i) in the case of a private sector fund in operation on 22 December 1987 into which an actuarial investigation has been made within the immediately preceding 2 years - as at a date within the period of 3 years beginning on the day on which the last actuarial investigation was so made; and (ii) in the case of a private sector fund in operation on 22 December 1987 to which subparagraph (i) does not apply - as at a date not later than: (a) 3 years after the day on which the fund began to operate; or (b) 1 January 1989; whichever is the later; and (iii) in the case of a public sector fund in operation on 1 July 1990 into which an actuarial investigation has been made within the immediately preceding 2 years - as at a date within the period of 3 years beginning on the day on which the last actuarial investigation was so made; and (iv) in the case of a public sector fund in operation on 1 July 1990 to which subparagraph (iii) does not apply - as at a date not later than: (a) 3 years after the day on which the fund began to operate; or (b) 1 July 1991; whichever is the later; and (v) in any other case - as at a date within the period of3 years beginning on the day on which the fund began to operate;"; (b) by omitting from paragraph (1) (b) "containing the matters specified in subregulation (2)" and substituting "containing: (i) in relation to a private sector fund or a fully funded public sector fund - the matters specified in subregulation (2); or (ii) in relation to a public sector fund (other than a fully funded public sector fund) - the matters specified in subregulation (3);"; (c) by omitting from paragraph (1) (e) "1 July 1988 and of each succeeding year" and substituting "1 July 1988 in the case of a private sector fund and 1 July 1990 in the case of a public sector fund, and of each succeeding year"; (d) by omitting from paragraph (1) (f) "1 January 1989," and substituting "1 January 1989 in the case of a private sector fund, or on or after 1 July 1990 in the case of a public sector fund,"; (e) by inserting in subregulation (2) "in relation to a private sector fund or a fully funded public sector fund" after "paragraph (1) (b)"; (f) by adding at the end the following subregulation: "(3) A report referred to in paragraph (1) (b) in relation to a public sector fund (other than a fully funded fund) must contain, in addition to any other matter: (a) a statement of the value of the assets of the fund; (b) a statement of any liability for benefit payments not expected to be covered by: (i) the assets of the fund; or (ii) any future contributions to, or earnings of, the fund; or (iii) a guarantee by the government or other body that established the fund; or (iv) an appropriation in respect of the fund.". 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 15 Minor amendments 15. The Principal Regulations are further amended as set out in the Schedule. 1990 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - SCHEDULE SCHEDULE Regulation 15 MINOR AMENDMENTS The Principal Regulations are amended by omitting from each of the following provisions "trust deed" (wherever occurring) and substituting "governing rules": Subregulation 3 (1) (definition of "defined benefit superannuation fund"), subregulation 3 (1) (paragraphs (a) and (c) of the definition of "member-financed benefits"), subregulations 3 (3) and 6 (2), regulation 13, paragraphs 13 (b), (c), (d) and (e), paragraph 15 (1) (b), subregulation 16 (2), subparagraph 17 (1) (d) (i), sub-subparagraph 17 (1) (e) (i) (d), subparagraph 17 (1) (f) (i) and paragraphs 17 (1) (h) and 21 (b). - NOTES 1990 No. 150*1* OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS*2* (AMENDMENT) *1* Notified in the Commonwealth of Australia Gazette on 25 June 1990. *2* Statutory Rules 1987 No. 322 as amended by 1988 No. 255; 1989 Nos. 24, 281 and 356; 1990 No. 149.