Superannuation Industry (Supervision) Regulations 1994

PART 5 - BENEFIT PROTECTION STANDARDS  

Division 5.2 - Minimum benefits  

REGULATION 5.06B   MINIMUM BENEFITS IF NEW INTEREST CREATED, OR BENEFITS ROLLED OVER OR TRANSFERRED, UNDER DIVISION 7A.2  

5.06B(1)   [Restriction on decision]  

This regulation applies if:

(a) an interest (the original interest ) in an accumulation fund is subject to a payment split; and

(b) under Division 7A.2 :

(i) a new interest is created in the fund for the non-member spouse; or

(ii) the transferable benefits of the non-member spouse are rolled over or transferred to another fund, an EPSSS or an RSA.

5.06B(2)   [Trustee ' s discretion where interests created]  

If subparagraph (1)(b)(i) applies, the trustee may decide that all the benefits held in the original interest, and in the new interest, immediately after the new interest is created are minimum benefits.

5.06B(3)   [Trustee ' s discretion where benefits rolled over, etc]  

If subparagraph (1)(b)(ii) applies, the trustee may decide that all the benefits held in the original interest immediately after the transferable benefits are rolled over or transferred are minimum benefits.

Note: Transferable benefits rolled over or transferred to another regulated superannuation fund would be minimum benefits in accordance with regulation 5.06 .

5.06B(4)   [ No decision if effect reduces minimum benefits]  

However, the trustee must not make a decision mentioned in subregulation (2) or (3) if the decision would have the effect of reducing the minimum benefits held by the other members of the fund.

5.06B(5)   [ Proportionate allocation]  

If the trustee does not make a decision mentioned in subregulation (2) or (3), the minimum benefits held in the original interest are allocated between the member spouse and the non-member spouse in proportion to the split of benefits in the original interest.