Retirement Savings Accounts Regulations 1997

PART 4A - RSA INTERESTS SUBJECT TO PAYMENT SPLIT  

Division 4A.3 - Options available for certain RSA interests  

REGULATION 4A.24   PAYING A LUMP SUM  

4A.24(1)   [Application]  

This regulation applies if, to give effect to a request under regulation 4A.18 , the RSA provider pays to the non-member spouse, as a lump sum, the amount to which the non-member spouse is entitled under the payment split.

4A.24(2)   [Value of lump sum]  

Subject to subregulations (3) and (4), the value of the lump sum to be paid to the non-member spouse must be:

(a) if the payment split is a base amount payment split and an adjusted base amount applies to the non-member spouse at the date of the payment - the adjusted base amount less the amount of any fees payable by the non-member spouse in respect of the payment split; or

(b) if the payment split is a base amount payment split and an adjusted base amount does not apply to the non-member spouse at the date of the payment - the base amount allocated to the non-member spouse, within the meaning of regulation 45 of the Family Law (Superannuation) Regulations 2001 , less the amount of any fees payable by the non-member spouse in respect of the payment split; or

(c) if the payment split is a percentage payment split:

(i) for an entitlement in respect of an interest in the growth phase - the amount in relation to the interest at the time of the payment, determined in the way in which a court would determine an amount in accordance with regulation 28 and subregulation 31(2A) of the Family Law (Superannuation) Regulations 2001 multiplied by the percentage specified in the relevant superannuation agreement, flag lifting agreement or splitting order, less the amount of any fees payable by the non-member spouse in respect of the payment split; or

(ii) for an entitlement in respect of any other interest - the amount in relation to the interest at the time of the payment, determined in the way in which a court would determine an amount in accordance with the relevant method in Part 5 of the Family Law (Superannuation) Regulations 2001 , multiplied by the percentage specified in the relevant superannuation agreement, flag lifting agreement or splitting order, less the amount of any fees payable by the non-member spouse in respect of the payment split.

4A.24(3)   [Application of splittable payment]  

For a base amount payment split, if a splittable payment becomes payable in respect of the member spouse ' s interest before the lump sum is paid to the non-member spouse, the value of the lump sum to be paid to the non-member spouse must be the amount applying under paragraph (2)(a) or (b) less the amount the non-member spouse is entitled to be paid in respect of the splittable payment.

4A.24(4)   [Value of lump sum not to exceed member spouse withdrawal benefit]  

The value of the lump sum to be paid to the non-member spouse must not be more than the value of the withdrawal benefit in relation to the member spouse immediately before the lump sum is paid.

4A.24(5)   [Value of member spouse benefits to be reduced]  

The value of the benefits that the member spouse has in his or her interest must be reduced by:

(a) the value of the lump sum paid to the non-member spouse; and

(b) the amount of any fees payable by the non-member spouse in respect of the payment split.

4A.24(6)   [Proportions]  

In paying the lump sum to the non-member spouse:

(a) a proportion must be taken from the unrestricted non-preserved benefits, the restricted non-preserved benefits and the preserved benefits of the member spouse; and

(b) the proportion taken from each category of benefits must be the same as the proportion that the category bears to the member spouse ' s interest immediately before the payment split.

4A.24(7)   [Timing]  

The RSA provider must pay the lump sum within:

(a) 30 days after receiving the request under regulation 4A.18 ; or

(b) any longer period allowed by the Regulator.

4A.24(8)   [Notice]  

The RSA provider must give a notice to the non-member spouse and the member spouse, within 28 days after the lump sum is paid, stating:

(a) that a lump sum has been paid to the non-member spouse; and

(b) the amount that was paid; and

(c) if the payment split is a base amount payment split, any adjustment that has been made to the base amount since:

(i) if the RSA provider had previously provided information to the non-member spouse under regulation 2.18C - the end of the last completed reporting period; or

(ii) in any other case - the operative time.