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Non-member spouse

APRA fund protocols for unclaimed superannuation money protocol for non-member spouses.

Last updated 4 March 2020

The law

The provisions governing the reporting and payment of unclaimed money – non-member spouse to the Commissioner are contained within Part 3 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (SUMLMA).

Under subsection 12(2) of the SUMLMA, if all the following conditions apply, the amount payable is taken to be unclaimed money:

  • A payment split applies to a splittable payment for an interest a person has as a member of a fund.
  • As a result, the non-member spouse (or their legal personal representative if they have died) is entitled to be paid an amount.
  • After making reasonable efforts and after a reasonable period has passed, you are unable to ensure the non-member spouse or their legal personal representative receives the amount.

Payment split

A payment split is generally, for a super interest, either:

  • when a splittable payment becomes payable and the non-member spouse is entitled to be paid an amount
  • where a splitting order applies.

Splittable payment

A splittable payment for a super interest of a non-member spouse includes a payment to:

  • the spouse
  • another person for the benefit of the spouse
  • the legal personal representative of the spouse, after the death of the spouse
  • a reversionary beneficiary, after the death of the spouse
  • the legal personal representative of a reversionary beneficiary, after the death of the reversionary beneficiary.

Acceptable risk factors when paying out benefits

The term 'unable to ensure' does not mean you need to be 100% certain the non-member spouse or their legal personal representative will receive the amount.

As with any processes involving money transactions, there is no 100% guarantee that it is the non-member spouse or their legal personal representative who receives the amount. However, we expect that you already have processes and procedures with acceptable risk factors in place in relation to paying out benefits.

Example: Member commences account-based income stream

Jane commences an account-based income stream in the XYZ super fund. Her account is subject to a splitting order, so her non-member spouse, Barry, is entitled to an income stream payment.

Barry has lost touch with XYZ super fund and no new contact details have been found, despite extensive efforts to trace him.

Barry's money is unclaimed.

Although Jane's account is active, the money belonging to Barry is unclaimed money because, after making a reasonable effort, XYZ super fund is unable to ensure Barry receives his entitlement.

End of example

 

Example: Member with account in pension phase

Zeb is a member of XYZ super fund and has an account in pension phase. A family law payment split applies to a payment from this account.

XYZ super fund is unable to contact his non-member spouse, Victor.

After a reasonable period of time has passed and after further reasonable attempts to contact Victor, XYZ super fund is unable to ensure that Victor receives the amount he's entitled to.

Victor's money is unclaimed.

End of example

See also:

QC61050