Retirement Savings Accounts Regulations 1997

PART 1 - PRELIMINARY  

SECTION 1.08   COMMUTATION OF MARKET LINKED PENSION  

1.08(1)    
This regulation applies in relation to the terms and conditions of an RSA mentioned in paragraph 1.07(3A)(d) for a market linked pension.

1.08(2)    
The terms and conditions meet the standards of this regulation if they ensure that the pension cannot be commuted, in whole or in part, unless:

(a)    the commutation results from the death of a pensioner or a reversionary pensioner; or

(b)    

the sole purpose of the commutation is:

(i) to pay a superannuation contributions surcharge; or

(ii) to give effect to an entitlement of a non-member spouse under a payment split; or

(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001 ; or

(iv) to comply with section 136-80 in Schedule 1 to the Taxation Administration Act 1953 ; or

(ba)    

for a commutation in part - the account balance of the pension, immediately after the commutation in part, would be equal to or would exceed the total payment amount calculated in accordance with Schedule 4 , as reduced by the amount of payments (excluding amounts paid by way of commutation) to the RSA holder already made in the financial year in which the commutation in part would occur; or

(c)    

the pension has paid, in the financial year in which the commutation is to take place, at least the minimum amount under subregulation (3); or

(d)    

for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953 , or section 292-80C of the Income Tax (Transitional Provisions) Act 1997 , to give effect to a release authority in respect of the primary beneficiary.

1.08(3)    
For paragraph (2)(c) , the minimum amount is calculated using the formula:

annual   amount

×

Days in payment period     Days in financial year

where:

annual amount
for the financial year means the amount worked out in accordance with Schedule 4 for the pension, rounded to the nearest 10 whole dollars.

days in payment period
means the number of days in the period that:

(a) starts on:

(i) if the pension commenced in the financial year in which the commutation is to take place - the commencement day; or

(ii) in any other case - 1 July in that financial year; and

(b) ends at the end of the day on which the commutation is to take place.

days in financial year
means the number of days in the financial year in which the commutation is to take place.

1.08(4)    

In this regulation:

rolled over
means paid as a superannuation lump sum within the superannuation system.