Superannuation Industry (Supervision) Regulations 1994

SCHEDULE 2  

Subregulation 6.02(2)

MODIFICATIONS OF THE OSS LAWS IN RELATION TO PRESERVED BENEFITS IN REGULATED SUPERANNUATION FUNDS

PART 1 - MODIFICATIONS OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT 1987

101. Section 7 (Operating standards for superannuation funds)

101.1 After subsection 7(3), insert:

" (4) Despite any other provision of this Act, superannuation funds must comply with the standards prescribed for the purposes of this section. " .

PART 2 - MODIFICATIONS OF THE OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS

201. Regulation 3 (Interpretation)

201.1 Paragraph 3(2)(a):

Omit the paragraph.

201A. Regulation 8 (Vesting standards)

201A.1 After subregulation 8(1A), insert:

" (1B) Paragraph (1A)(a) does not apply in relation to contributions made in accordance with a prescribed agreement or award. "

202. Regulation 9 (Preservation standards)

201.1A Subparagraph 9(1)(a)(i):

Omit " subject to regulation 10, " .

202.1 Paragraph 9(1)(b):

After " the fund " , insert " before the commencement day " .

202.2 Paragraph 9(1)(c):

Omit the paragraph, substitute:

" (c) member-financed benefits must be preserved if they arise from contributions made by a member to a superannuation fund during any period during which the member did not have employer support in the fund, being a period that:

(i) commenced on or after 13 March 1989 (in the case of a private sector fund) or 1 July 1990 (in the case of a public sector fund); and

(ii) ended before the commencement day;

(d) member-financed benefits must be preserved if they arise from contributions (other than undeducted contributions) made to a superannuation fund in relation to the member on or after the commencement day;

(e) benefits must be preserved if they arise from payments from the Superannuation Holding Accounts Special Account;

(f) benefits must be preserved if they arise from eligible spouse contributions within the meaning of section 159TC of the Tax Act;

(g) benefits must be preserved if they arise from a capital gains tax exempt component rolled over to the fund because of subsection 160ZZPZF(1), 160ZZPZH(7) or 160ZZPZI(5) of the Tax Act. " .

202.3 Subregulation 9(3):

After " arising " , insert " before the commencement day, " .

202.4 Add at the end:

" (5) In paragraphs (1)(b), (c) and (d) and subregulation (3):

commencement day has the same meaning as in Part 6 of the Superannuation Industry (Supervision) Regulations.

undeducted contributions has the same meaning as in Part 6 of the Superannuation Industry (Supervision) Regulations. "

202A. New regulation 10A

202A.1 After regulation 10, insert:

" 10A. Preservation standard - interaction of subparagraph 9(1)(a)(i) and regulation 10

10A. Where, apart from this regulations, a fund must preserve, in respect of a member:

(a) the amount of benefits in compliance with subparagraph 9(1)(a)(i); and

(b) an amount of benefits in compliance with regulation 10;

it is sufficient compliance with those provisions if the fund preserves the greater of those amounts. " .

203. Regulation 11 (Preservation and portability standards)

203.1 Omit the regulation.

204. Regulation 12 (Preservation standards not to apply in certain cases)

204.1 Omit the regulation.