Superannuation Industry (Supervision) Regulations 1994

PART 6 - PAYMENT STANDARDS  

Division 6.5 - Compulsory rollover and transfer of superannuation benefits in regulated superannuation funds and approved deposit funds  

REGULATION 6.31   DEFINITIONS FOR DIVISION 6.5  

Defined benefit component

6.31(1)   [ defined benefit component ]  

Subject to subregulation (2), a defined benefit component of a superannuation interest is a component of the interest in which the benefits are defined by reference to 1 or more of the following:

(a) the amount of:

(i) the member's salary at the date of the termination of the member's employment, the date of the member's retirement, or another date; or

(ii) the member's salary averaged over a period; or

(iii) salary, or allowance in the nature of salary, payable to another person (for example, a judicial officer, a member of the Commonwealth or a State Parliament, a member of the Legislative Assembly of a Territory);

(b) a specified amount;

(c) specified conversion factors.

6.31(2)   [Death or disability]  

A component of a superannuation interest is not a defined benefit component if the only benefits defined by reference to any of the amounts or factors mentioned in subregulation (1) are benefits payable on death or disability.

Illiquid investment

6.31(3)   [ " illiquid investment " ]  

An investment is an illiquid investment in relation to a member's interest in a superannuation fund if it is of a nature that produces either of the following outcomes:

(a) it cannot be converted to cash in less than the time required to rollover or transfer a withdrawal benefit under subregulation 6.34(3) or regulation 6.34A ;

(b) converting it to cash within the time period specified in subregulation 6.34(3) or regulation 6.34A would be likely to have a significant adverse impact on the realisable value of the investment.