Retirement Savings Accounts Amendment Regulations 2007 (No. 1) (104 of 2007)

Schedule 3   Amendments commencing on 1 July 2007

[32]   Subregulation 4.24 (3A)

substitute

(3A) If an RSA holder dies on or after 1 July 2007, subparagraphs (3) (b) (i) and (ii) apply to an entitled recipient only if, at the time of the RSA holder’s death, the entitled recipient:

(a) is a dependant of the RSA holder; and

(b) in the case of a child of the RSA holder:

(i) is less than 18 years of age; or

(ii) being 18 or more years of age:

(A) is financially dependant on the RSA holder and less than 25 years of age; or

(B) has a disability of the kind described in subsection 8 (1) of the Disability Services Act 1986.

(3B) If benefits in relation to a deceased RSA holder are being paid to a child of the deceased RSA holder in the form of a pension in accordance with subregulation (3A), the benefits must be cashed as a lump sum on the earlier of:

(a) the day on which the pension is commuted, or the term of the pension expires (unless the benefit is rolled over to commence a new annuity or pension); and

(b) the day on which the child attains age 25;

unless the child has a disability of the kind described in subsection 8 (1) of the Disability Services Act 1986 on the day that would otherwise be applicable under paragraph (a) or (b).