Reg 4ZC omitted by SR No 463 of 1992, reg 7.1, effective 24 December 1992.
Reg 4ZC formerly read:
4ZC. The pension and annuity standards in relation to a superannuation pension or annuity are that the rules of the superannuation fund or the annuity contract must contain provisions to ensure that, or an agreement in force between the trustees of the fund and the beneficiary ensures that:
(a)
the level of the benefit is, unless the Commissioner otherwise approves, increased annually by at least 5
%
or by at least the rate of increase in the Consumer Price Index (All Capital Cities) first published by the Australian Statistician for the March quarter in the preceding year compared with the Consumer Price Index (All Capital Cities) first published by the Australian Statistician for the March quarter in the year before the preceding year, whichever increase is the lesser; and
(b)
subject to paragraph (c):
(i)
after the commencement day, the benefit is to be payable throughout the life of the beneficiary (in this regulation called
"
primary beneficiary
"
) and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary; and
(ii)
the benefit is not to have a residual capital value; and
(c)
notwithstanding paragraph (b), if the primary beneficiary dies within 10 years of the commencement day of the pension:
(i)
if there is a reversionary beneficiary, the reversionary beneficiary may receive payments after the death of the primary beneficiary equal to the payments that the primary beneficiary would have received from the day of his or her death until the end of that period of 10 years if he or she had not died and, if the reversionary beneficiary dies before the end of that period, an amount worked out under subparagraph (ii) in relation to the reversionary beneficiary may be payable to the reversionary beneficiary
'
s estate; or
(ii)
in any other case
-
an amount not exceeding the difference between the sum of the amounts paid to the primary beneficiary and the sum of the amounts that would have been so payable in that period of 10 years may be payable to the primary beneficiary
'
s estate; and
(d)
the benefit is not able to be commuted except where:
(i)
paragraph (c) applies; or
(ii)
the commutation is made within 6 months of commencement day of the pension or annuity; or
(iii)
section 15S of the Act applies; or
(iv)
if the benefit is an annuity
-
the ETP resulting from the commutation is transferred directly to the purchase of another annuity that meets the pension and annuity standards; and
(e)
the benefit does not have a reversionary component greater than 100
%
of the pension or annuity that was payable before:
(i)
the reversion; or
(ii)
any commutation of the pension or annuity;
(f)
the benefit is not able to be transferred to a person other than the primary beneficiary or a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and
(g)
the capital value of the benefit, and the income from the benefit, is incapable of being used as security for a borrowing.
Reg 4ZC amended by SR No 148 of 1991 and inserted by SR No 202 of 1990.
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