Superannuation Industry (Supervision) Amendment Regulations 2004 (No. 2) (84 of 2004)

Schedule 1   Amendments

[10]   After Division 9.2

insert

Division 9.2A Size of defined benefit funds

9.04A Application

(1) This Division applies to:

(a) a defined benefit fund established after the commencement of this Division; and

(b) a fund that is converted to a defined benefit fund after the commencement of this Division; and

(c) a defined benefit fund that wishes to accept a new defined benefit member after the commencement of this Division; and

(d) a defined benefit fund that wishes to convert a member of the fund to a defined benefit member after the commencement of this Division.

(2) This Division does not apply to a fund that is part of:

(a) the scheme established by the Superannuation Act 1976; or

(b) the scheme established under the provisions of the Superannuation Act 1990; or

(c) the Military Superannuation and Benefits Scheme; or

(d) an exempt public sector superannuation scheme.

9.04B Sub-funds to be treated as funds

A sub-fund within a defined benefit fund is taken, for the purposes of this Division, to be a defined benefit fund if the sub-fund satisfies the following conditions:

(a) the sub-fund has separately identifiable assets and separately identifiable beneficiaries;

(b) the interest of each beneficiary of the sub-fund is determined by reference only to the conditions governing that sub-fund.

9.04C Operating standard

For subsection 31 (1) of the Act, a requirement set out in this Division is a standard applicable to the operation of regulated superannuation funds that are defined benefit funds.

9.04D Size of defined benefit funds

(1) A defined benefit fund established after the commencement of this Division must have at least 50 defined benefit members.

(2) A fund that is converted to a defined benefit fund after the commencement of this Division must have at least 50 defined benefit members.

(3) A defined benefit fund may accept a new defined benefit member after the commencement of this Division only if the fund will have at least 50 defined benefit members after accepting the new defined benefit member.

(4) A defined benefit fund may convert a member of the fund to a defined benefit member after the commencement of this Division only if the fund will have at least 50 defined benefit members after converting the member to a defined benefit member.

Division 9.2B Provision of defined benefit pensions

9.04E Definition for Division 9.2B

In this Division:

defined benefit pension means a pension under section 10 of the Act, other than:

(a) a pension wholly determined by reference to policies of life assurance purchased or obtained by the trustee of a regulated superannuation fund solely for the purposes of providing benefits to members of that fund; or

(b) an allocated pension.

9.04F Application of Division 9.2B

(1) This Division applies to:

(a) a regulated superannuation fund established after the commencement of this Division, the governing rules of which provide for the payment of a defined benefit pension; and

(b) a regulated superannuation fund established before the commencement of this Division, the governing rules of which are amended after the commencement of this Division to provide for the payment of a defined benefit pension.

(2) This Division does not apply to a fund that is part of:

(a) the scheme established by the Superannuation Act 1976; or

(b) the scheme established under the provisions of the Superannuation Act 1990; or

(c) the Military Superannuation and Benefits Scheme; or

(d) an exempt public sector superannuation scheme.

9.04G Sub-funds to be treated as funds

A sub-fund within a regulated superannuation fund is taken, for the purposes of this Division, to be a regulated superannuation fund if the sub-fund satisfies the following conditions:

(a) the sub-fund has separately identifiable assets and separately identifiable beneficiaries;

(b) the interest of each beneficiary of the sub-fund is determined by reference only to the conditions governing that sub-fund.

9.04H Operating standard

For subsection 31 (1) of the Act, a requirement set out in this Division is a standard applicable to the operation of regulated superannuation funds.

9.04I Provision of defined benefit pensions

(1) A regulated superannuation fund that has less than 50 members must not provide a defined benefit pension.

(2) Subregulation (1) has effect despite anything in the governing rules of the fund.