PART 4
-
PAYMENT STANDARDS
Division 4.3
-
Cashing of benefits
REGULATION 4.24
COMPULSORY CASHING OF BENEFITS
4.24(1)
Subject to subregulation (4), an RSA holder
'
s benefits in an RSA must be cashed as soon as practicable after the RSA holder dies.
History
Reg 4.24(1) substituted by SLI No 104 of 2007, reg 5 and Sch 3 item 29, effective 1 July 2007. Reg 4.24(1) formerly read:
4.24(1)
[Conditions for cashing benefits]
Subject to regulation (4), the benefits of an RSA holder (other than the RSA holder's post-65 employer-financed benefits) must be cashed as soon as practicable after the occurrence of any of the following events:
(a)
where:
(i)
the RSA holder has reached age 65 but not age 75; and
(ii)
the RSA holder is not gainfully employed to at least a part-time equivalent level;
(b)
where the RSA holder:
(i)
had, on 30 June 2004, reached age 75; and
(ii)
has not, since 1 July 2004, continued to be gainfully employed for at least 30 hours a week;
(c)
the RSA holder has reached age 75, and the RSA holder's 75th birthday occurs on or after 1 July 2004;
(d)
the RSA holder dies.
Reg 4.24(1) amended by SR No 348 of 2004, reg 3 and Sch 1 item 1, by substituting para (c), effective 1 July 2004. Para (c) formerly read:
(c)
where the RSA holder has reached age 75, and is not a person to whom paragraph (b) applies;
Reg 4.24(1) amended by SR No 147 of 2004, reg 3 and Sch 1 items 4 and 5, by substituting
"
to at least a part-time equivalent level;
"
for
"
on either a full-time or part-time basis;
"
in para (a)(ii) and substituting paras (b), (c) and (d) for paras (b) and (c), effective 1 July 2004. Paras (b) and (c) formerly read:
(b)
where:
(i)
the RSA holder has reached age 75; and
(ii)
the RSA holder is not gainfully employed on a full-time basis;
(c)
the RSA holder dies.
Reg 4.24(1) amended by SR No 149 of 2002, reg 3 and Sch 1 item 3, by substituting
"
75
"
for
"
70
"
in para (a)(i) and (b)(i), effective 1 July 2002.
4.24(2)
(Repealed by SLI No 104 of 2007)
History
Reg 4.24(2) repealed by SLI No 104 of 2007, reg 5 and Sch 3 item 30, effective 1 July 2007. Reg 4.24(2) formerly read:
4.24(2)
Subject to subregulation (4), the post-65 employer-financed benefits of an RSA holder must be cashed as soon as practicable after the occurrence of any of the following events:
(a)
where:
(i)
the RSA holder has reached age 65 but not age 75; and
(ii)
the RSA holder is not gainfully employed to at least a part-time equivalent level; and
(iii)
mandated employer contributions have ceased to be made, and are not liable to be made, in respect of the RSA holder to:
(A)
the RSA; or
(B)
another RSA; or
(C)
a regulated superannuation fund; or
(D)
an EPSSS;
(b)
where:
(i)
the RSA holder has reached age 75; and
(ii)
(Repealed by SR No 147 of 2004)
(iii)
mandated employer contributions have ceased to be made, and are not liable to be made, in respect of the RSA holder to:
(A)
the RSA; or
(B)
another RSA; or
(C)
a regulated superannuation fund; or
(D)
an EPSSS;
(c)
where the RSA holder dies.
[
CCH Note: Modification Declaration No 1 of 2006
(No 1 of 2006, registered on and effective from 30 June 2006).
Regulation 4.24 is to have effect in relation to RSA providers and holders as if it was modified, by inserting after subregulation 4.24(2B) (as inserted by Modification Declaration No 1):
4.24(2C)
During the period 10 May 2006 to 30 June 2007:
(i)
the benefits of an RSA holder (other than the RSA holder
'
s post-65 employer-financed benefits) are not required to be cashed in accordance with paragraphs 4.24(1)(a), 4.24(1)(b) or 4.24(1)(c); and
(ii)
an RSA holder
'
s post-65 employer-financed benefits are not required to be cashed in accordance with paragraphs 4.24(2)(a) or 4.24(2)(b).
4.24(2D)
The cashing of an RSA holder
'
s benefits (including the RSA holder
'
s post-65 employer-financed benefits) by an RSA provider during the period 10 May 2006 to the date of registration of this modification declaration is not a breach of regulation 4.24 as modified.]
[
CCH Note: MODIFICATION DECLARATION No 1 of 2005
states that subregulations 4.24(1) and 4.24(2) of the Regulations are to have effect in relation to RSA holders as if they were modified by inserting after subregulation 4.24(2):
(2A)
During the period 1 July 2004 to 30 June 2005, the benefits of an RSA holder (including the RSA holder's post-65 employer financed benefits) are not required to be cashed in accordance with paragraph
4.24(1)(a)
or
4.24(2)(a)
.
(2B)
An RSA provider's failure to cash an RSA holder's benefits (including the RSA holder's post-65 employer financed benefits) in accordance with paragraph
4.24(1)(a)
or
4.24(2)(a)
during the period 1 July 2004 to the date of commencement of Modification Declaration No 1 is not a breach of those paragraphs.
This Declaration commences on the date it is signed.
Dated 2 May 2005
Interpretation
In this Declaration
Act
means the
Retirement Savings Accounts Act 1997
.
APRA
means the Australian Prudential Regulation Authority.
Regulations
means the
Retirement Savings Accounts Regulations 1997
.]
Reg 4.24(2) amended by SR No 147 of 2004, reg 3 and Sch 1 items 6 and 7, by substituting
"
to at least a part-time equivalent level;
'
'
for
"
on either a full-time or part-time basis;
'
'
in para (a)(ii) and omitting para (b)(ii), effective 1 July 2004. Para (b)(ii) formerly read:
(ii)
the RSA holder is not gainfully employed on a full-time basis; and
Reg 4.24(2) amended by SR No 149 of 2002, reg 3 and Sch 1 item 3, by substituting
"
75
"
for
"
70
"
in para (a)(i) and (b)(i), effective 1 July 2002.
Reg 4.24(2) amended by SR No 13 of 1999.
4.24(3)
The form in which benefits may be cashed under this regulation is:
(a)
a single lump sum in respect of each person to whom benefits are cashed; or
(b)
subject to subregulations (3A) and (3B):
(i)
1 or more pensions, each of which is a superannuation income stream that is in the retirement phase; or
(ii)
the purchase of 1 or more annuities under the SIS Regulations, each of which is a superannuation income stream that is in the retirement phase.
Note:
For the cashing requirement applying on the death of the RSA holder, see regulation
4.24.
History
Reg 4.24(3) amended by FRLI No F2017L00321, reg 4 and Sch 1 items 10 and 11, by inserting
"
, each of which is a superannuation income stream that is in the retirement phase
"
in para (b)(i) and (ii), applicable on and after 1 July 2017.
Reg 4.24(3) substituted by SLI No 104 of 2007, reg 5 and Sch 3 item 31, effective 1 July 2007. Reg 4.24(3) formerly read:
4.24(3)
The form in which benefits may be cashed under this regulation is any one or more of the following forms:
(a)
a single lump sum in respect of each person to whom benefits are cashed;
(b)
a pension or 2 or more pensions;
(c)
the purchase of an annuity or 2 or more annuities.
4.24(3A)
If an RSA holder dies on or after 1 July 2007, subparagraphs (3)(b)(i) and (ii) apply to an entitled recipient only if, at the time of the RSA holder's death, the entitled recipient:
(a)
is a dependant of the RSA holder; and
(b)
in the case of a child of the RSA holder:
(i)
is less than 18 years of age; or
(ii)
being 18 or more years of age:
(A)
is financially dependant on the RSA holder and less than 25 years of age; or
(B)
has a disability of the kind described in subsection 8(1) of the
Disability Services Act 1986
.
History
Reg 4.24(3A) and (3B) substituted for reg 4.24(3A) by SLI No 104 of 2007, reg 5 and Sch 3 item 32, effective 1 July 2007. Reg 4.24(3A) formerly read:
4.24(3A)
For subregulations (1) and (2), after the RSA holder turns 65 years:
(a)
the RSA provider must make reasonable attempts to keep itself informed about the RSA holder's ongoing employment status; and
(b)
if the RSA provider cannot find out the RSA holder's ongoing employment status, the RSA holder is taken not to be gainfully employed.
Reg 4.24(3A) inserted by SR No 176 of 1998.
4.24(3B)
If benefits in relation to a deceased RSA holder are being paid to a child of the deceased RSA holder in the form of a pension in accordance with subregulation (3A), the benefits must be cashed as a lump sum on the earlier of:
(a)
the day on which the pension is commuted, or the term of the pension expires (unless the benefit is rolled over to commence a new annuity or pension); and
(b)
the day on which the child attains age 25;
unless the child has a disability of the kind described in subsection 8(1) of the
Disability Services Act 1986
on the day that would otherwise be applicable under paragraph (a) or (b).
History
Reg 4.24(3A) and (3B) substituted for reg 4.24(3A) by SLI No 104 of 2007, reg 5 and Sch 3 item 32, effective 1 July 2007.
4.24(4)
For the purposes of subregulation (1), it is sufficient if, instead of being cashed, the benefits are rolled over as soon as practicable for immediate cashing.
History
Reg 4.24(4) amended by SLI No 104 of 2007, reg 5 and Sch 3 item 33, by substituting
"
subregulation (1)
"
for
"
subregulations (1) and (2)
"
, effective 1 July 2007.
4.24(5)
(Repealed by SLI No 104 of 2007)
History
Reg 4.24(5) repealed by SLI No 104 of 2007, reg 5 and Sch 3 item 34, effective 1 July 2007. Reg 4.24(5) formerly read:
4.24(5)
In this regulation and in regulation
4.25
:
"
post-65 employer-financed benefits
"
, in relation to an RSA holder as at a particular date, means the sum of:
(a)
the amount of the mandated employer contributions made to the RSA in respect of the RSA holder in respect of the period commencing when the RSA holder reached age 65 and ending on that date; and
(b)
the amount of the mandated employer contributions made to another RSA or to a regulated superannuation fund or an EPSSS in respect of the RSA holder in respect of that period, if the benefits arising in respect of those contributions were transferred or rolled over to the RSA during that period; and
(c)
the amount of the investment earnings on those amounts during that period;
less the costs applicable to those amounts during that period.
Reg 4.24(5) amended by SR No 352 of 2002, reg 3 and Sch 1 item 19 by substituting para (b), effective 28 December 2002. Para (b) formerly read:
(b)
the amount of the mandated employer contributions made to another RSA or to a regulated superannuation fund or an EPSSS in respect of the RSA holder in respect of that period, if the benefits arising in respect of those contributions were transferred or rolled over to the RSA during that period; and
Reg 4.24(5) amended by SR No 13 of 1999.
4.24(6)
(Repealed by SLI No 104 of 2007)
History
Reg 4.24(6) repealed by SLI No 104 of 2007, reg 5 and Sch 3 item 34, effective 1 July 2007. Reg 4.24(6) formerly read:
4.24(6)
In this regulation a person is gainfully employed at a part-time equivalent level if the person was gainfully employed for at least 240 hours during the financial year that ended on the last occurring 30 June.
Reg 4.24(6) inserted by SR No 147 of 2004, reg 3 and Sch 1 item 8, effective 1 July 2004.
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