OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) 1991 NO. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) 1991 NO. 150 - TABLE OF PROVISIONS 1. Commencement 2. Amendment 3. Regulation 3 (Interpretation) 4. Regulation 5AC (Standards: ages for payment of benefits) 5. Regulation 9 (Preservation standards) 6. Regulation 13 (Standards relating to trustees-large funds) 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 1 1. Commencement 1.1 Subregulation 5.2 is taken to have commenced on 2 July 1990. 1.2 Subregulations 3.1, 3.5, 3.6, 5.1, 5.3, 5.4 and 5.5 commence on 1 July 1991. 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 2 2. Amendment 2.1 The Occupational Superannuation Standards Regulations are amended as set out in these Regulations. 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 3 3. Regulation 3 (Interpretation) 3.1 Subregulation 3 (1): After the definition of "eligible financial corporation", insert: "'eligible scheme' has the meaning given by section 159TE of the Tax Act;". 3.2 Subregulation 3 (1) (definition of "defined benefit superannuation fund"): Omit "provides", substitute "provide". 3.3 Subregulation 3 (1) (definition of "defined benefit superannuation fund"): Omit "aggregate amount.", substitute "aggregate amount;". 3.4 Subregulation 3 (1): After the definition of "fully funded fund", insert: "'large fund' has the meaning given by subregulation 13 (2);". 3.5 Subregulation 3 (1): After the definition of "member representative", insert: "'potential entitlement' has the meaning given by subregulation 9 (1C);". 3.6 Subregulation 3 (1): After the definition of "public sector fund", insert: " recognised member has the meaning given by section 159TE of the Tax Act;". 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 4 4. Regulation 5AC (Standards: ages for payment of benefits) 4.1 Omit subregulations 5AC (2), (3) and (4), substitute: "(2) Subject to subregulations (3) and (4), benefits arising from a superannuation fund that are payable to a member: (a) who: (i) is gainfully employed but not employed part time or full time; or (ii) is not gainfully employed but has not retired from the workforce; must: (iii) if the benefit is a pension, commence to be paid; and (iv) if the benefit is a lump sum, be paid; at age 65; (b) who is employed part time may: (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; on or after age 65; (c) who is employed part time must: (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; at age 70; (d) who is employed full time may: (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; on or after age 65; (e) who retires from the workforce must, subject to subparagraph 11 (1) (a) (ii): (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; when the member so retires. "(3) Benefits arising from a superannuation fund of a kind referred to in paragraph 23 (ja) of the Tax Act as in force immediately before the commencement of section 7 of the Taxation Laws Amendment Act (No. 4) 1987 that are payable to a person who is on 1 July 1991 a member of the fund must: (a) if the benefit is a pension, commence to be paid; and (b) if the benefit is a lump sum, be paid; when the person reaches: (c) age 75; or (d) an earlier retirement age, not earlier than age 55, nominated by the person in writing. "(4) Benefits arising from a superannuation fund of a kind referred to in section 23F of the Tax Act as in force immediately before the commencement of section 8 of the Taxation Laws Amendment Act (No. 4) 1987 that are payable to a member who reached age 65 before 1 July 1990: (a) may: (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; and (b) must: (i) if the benefit is a pension, commence to be paid; and (ii) if the benefit is a lump sum, be paid; when the person retires from the workforce.". 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 5 5. Regulation 9 (Preservation standards) 5.1 Paragraph 9 (1) (c): Omit the paragraph, substitute: "(c) member-financed benefits must be preserved if they arise from contributions made by a member to a superannuation fund during any period: (i) if the fund is a private sector fund-commencing on or after 13 March 1989; or (ii) if the fund is a public sector fund-commencing on or after 1 July 1990; during which the member did not have employer support in the fund.". 5.2 After subregulation 9 (1) insert: "(1A) In spite of paragraph (1) (c), member-financed benefits arising from contributions during a period to a superannuation fund the employer contributions to which, for the benefit of the member, are made only under a prescribed agreement or award need not be preserved if the trustee of the fund is satisfied, by written evidence provided by or on the authority of the member, that any employer support that the member has in another fund during that period is not in an eligible scheme.". 5.3 After subregulation 9 (1A) insert: "(1B) For the purposes of paragraph (1) (c) and subregulation (1A), a member has employer support in: (a) a superannuation fund; or (b) in an eligible scheme that is, or is part of, a superannuation fund; during a period if the member acquires during that period an entitlement, or a potential entitlement, under the governing rules of the fund to employer-financed benefits other than benefits to which regulation 8 applies. "(1C) In subregulation (1B), 'potential entitlement' means an entitlement to benefits which vest in a member of a superannuation fund only on the occurrence of an event specified in the governing rules of the fund.". 5.4 Subregulation 9 (2): Omit "standard in subregulation (3) is", substitute "standards in subregulations (3) and (4) are". 5.5 Subregulation 9 (4): Omit the subregulation, substitute: "(4) Member-financed benefits must be preserved if they arise from contributions made by a recognised member to an eligible scheme.". 1991 No. 150 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT) - REG 6 6. Regulation 13 (Standards relating to trustees-large funds) 6.1 Subregulation 13(1): Omit all words from and including "the number of trustees" to and including "governing rules of each such fund:", substitute "large funds:". 6.2 Paragraph 13 (1) (b): Omit "provides", substitute "provide". 6.3 Paragraph 13 (1) (c): Omit the paragraph, substitute: "(c) subject to paragraph (e), where: (i) a body corporate acts as the sole trustee of a large fund under the governing rules of the fund; and (ii) paragraph (b) does not apply; the board of the body corporate must comprise equal numbers of member representatives and employer representatives;". 6.4 Subregulation 13 (2): Omit the subregulation, substitute: "(2) In this regulation, 'large fund' means: (a) in relation to the period before 1 July 1995: (i) a private sector fund established on or after 16 December 1985; and (ii) a public sector fund established on or after 25 May 1988; having 200 or more members; and (b) in relation to the period beginning on 1 July 1995, a superannuation fund having 200 or more members.". - NOTES 1991 No. 150*1* OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS*2* (AMENDMENT) *1*Notified in the Commonwealth of Australia Gazette on 26 June 1991. *2*Statutory Rules 1987 No. 322 as amended by 1988 No. 255; 1989 Nos. 24, 281 and 356; 1990 Nos. 149, 150, 185, 202 and 275; 1991 Nos. 16, 58 and 148.