Superannuation Industry (Supervision) Act 1993

PART 6 - PROVISIONS RELATING TO GOVERNING RULES OF SUPERANNUATION ENTITIES

SECTION 52AA RETIREMENT INCOME STRATEGY REQUIREMENTS - REGISTRABLE SUPERANNUATION ENTITIES

52AA(1)
A retirement income strategy formulated for an entity by a trustee for the purposes of subsection 52(8A) must meet the requirements in this section.

52AA(2)
The strategy must be for the benefit of beneficiaries of the entity who are retired or who are approaching retirement and must address how the trustee will assist those beneficiaries to achieve and balance the following objectives:

(a) to maximise expected retirement income over the period of retirement;

(b) to manage expected risks to the sustainability and stability of retirement income over the period of retirement of the following kinds:

(i) longevity risks;

(ii) investment risks;

(iii) inflation risks;

(iv) any other risks to the sustainability and stability of the retirement income;

(c) to have flexible access to expected funds over the period of retirement.

Determining the class of beneficiaries who are retired or who are approaching retirement

52AA(3)
The trustee must determine the class of beneficiaries of the entity who are retired or who are approaching retirement for the purposes of the strategy. The class may be determined excluding beneficiaries who:

(a) only hold a defined benefit interest in the entity; and

(b) are not eligible to commute that benefit (whether during the period of retirement or otherwise).

52AA(4)
The strategy may divide the class of beneficiaries into sub-classes and make different provision in respect of those sub-classes.

Determining meaning of retirement income and period of retirement

52AA(5)
The trustee must determine the meaning of retirement income for the purposes of the strategy, which:

(a) must include income, net of tax, received during the period of retirement of the following kinds:

(i) income paid from, or supported by, a superannuation interest in the entity;

(ii) income from an age pension under the Social Security Act 1991 ; and

(b) may include income from any other source if the trustee determines that it is appropriate to include income from that source.

52AA(6)
The trustee must determine the meaning of period of retirement for the purposes of the strategy.

View history note

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.