Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 2 - Interpretation
Overview
2.1 Part 2 of this Bill sets out the interpretation provisions of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (the Act). [Clauses 8 to 10]
2.2. The purpose of the provisions is to provide definitions of expressions and terms used in the Act.
2.3 Definitions of expressions and terms used in this Bill have been drawn from existing superannuation legislation and are self-explanatory. [Clause 8]
Meaning of accrual of benefits
2.4 A reference in this Bill to an accrual of benefits for a member of a defined benefits superannuation scheme does not include allocations of investment earnings or the charging of costs [Clause 9] . This meaning is consistent with the meaning attributed to an accrual of benefits for the purposes of sub-regulation 7.01(1) of the Superannuation Industry (Supervision) Regulations. The question of whether there has been an accrual of benefits is relevant for determining whether a person has unclaimed money in accordance with clauses 12 and14 of this Bill. A pre-condition for unclaimed money in respect of a member of a defined benefits superannuation scheme is that there has been no accrual of benefits in the last 2 years.
2.5 The effect of clause 12 of this Bill is that a member must have reached the eligibility age before they are considered to have unclaimed money. A reference to eligibility age is a reference to 60 years for a woman and 65 years for a man unless a different age is prescribed in the regulations. This meaning of eligibility age under this Bill is the same as its meaning in section 10 of the Superannuation Industry (Supervision) Act 1993 (the SISAct) and section16 of the Retirement Savings Accounts Act 1997 (the RSAAct) [subclause 10(1)] .
2.6 If a superannuation provider does not know whether a member is a man or a woman or the age of a member, this Bill provides guidance for the superannuation provider [subclause 10(2)] . The term superannuation provider means a trustee of a regulated superannuation fund or approved deposit fund or a retirement savings account provider [Clause 8] .
2.7 If a superannuation provider does not know whether a member is a man or a woman (eg. does not have any record indicating the sex of the member), the member is taken to be a man. [Paragraph 10(2)(a)]
2.8 If a superannuation provider does not know the members age (eg. does not have any record indicating the age of the member), the superannuation provider may determine that the member is the following age:
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- the age the superannuation provider reasonably believes to be the members age (this method would allow the superannuation provider to use a method that they considered was a reasonable approximation of the members age); or
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- the age based on the member turning 18 on any of the following dates: the date the member joined the fund, the date an amount was first received by the fund in respect of the member or the date the members eligible service period commenced [Paragraph 10(2)(b)] . The term fund means a regulated superannuation fund, approved deposit fund or retirement savings account [Clause 8] .
Statutory duty to obtain date of birth and sex of member of fund and keep records
2.9 A superannuation provider should make reasonable attempts to obtain the date of birth or the sex of a fund member if the provider does not have that information. This duty is a statutory duty and failure to fulfil the duty is a breach of statutory duty. [subclause 10(3)]
2.10 A superannuation provider should keep records of the date of birth or sex of a fund member if it knows that information. This duty is a statutory duty and failure to fulfil the duty is a breach of statutory duty. [subclause 10(4)]