Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012 (171 of 2012)

Schedule 6   Moving accrued default amounts

Superannuation Industry (Supervision) Act 1993

13   At the end of the Act

Add:

Part 33 - Additional transitional provisions relating to MySuper

Division 1 - Moving accrued default amounts to MySuper products

386 Object

The object of this Division is to ensure that each accrued default amount held by an RSE licensee before 1 July 2017is moved into a MySuper product.

387 Election to transfer accrued default amounts

(1) An RSE licensee of a regulated superannuation fund that makes an application before 1 July 2017 for authority to offer a class of beneficial interest in the fund as a MySuper product is taken to make an election in accordance with section 29SAA if:

(a) the RSE licensee elects that, if authority to offer the class of beneficial interest in the fund as a MySuper product is given, the RSE licensee will:

(i) attribute to the MySuper product each amount that is an accrued default amount for a member of the fund who is eligible to hold the MySuper product, unless the member directs the RSE licensee in writing to attribute the amount to another MySuper product or an investment option within a choice product in the fund; and

(ii) do so before 1 July 2017, or the end of a period of 30 days beginning on the day on which notice of authority to offer the relevant class of beneficial interest in the fund as a MySuper product is given to the RSE licensee under section 29TD (whichever is later); and

(b) the RSE licensee elects to take the action required under the prudential standards in relation to the following, and to do so before the transitional action period ends:

(i) each amount that is an accrued default amount for a member of the fund who is not eligible to hold a MySuper product offered by the fund;

(ii) each amount that is an accrued default amount for a member of another regulated superannuation fund of the RSE licensee that does not offer a MySuper product; and

(c) the election is otherwise made in accordance with paragraphs 29SAA(1)(c) and (d).

(2) The transitional action period , for the purposes of paragraph (1)(b), in relation to an application by an RSE licensee for authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product, ends on the later of:

(a) 1 July 2017; and

(b) the end of a period of 90 days beginning on:

(i) if APRA authorises the RSE licensee to offer the class of beneficial interest in the fund as a MySuper product - the day on which notice of that authority is given to the RSE licensee under section 29TD; or

(ii) if APRA refuses the application - the day on which notice of the refusal is given to the RSE licensee under section 29TE.

388 Transfer to MySuper products

(1) If:

(a) an RSE licensee of a regulated superannuation fund holds an accrued default amount for a member of the fund immediately before 1 July 2017; and

(b) no application is made before 1 July 2017 by the RSE licensee, in relation to any of the RSE licensee's regulated superannuation funds, for authority to offer a class of beneficial interest in the fund as a MySuper product;

the RSE licensee must take the action required under the prudential standards in relation to the amount before 1 July 2017.

(2) A trustee of a regulated superannuation fund is not subject to any liability to a member of the fund for an action taken in accordance with subsection (1).

Division 2 - Miscellaneous

389 Prudential standards dealing with transitional matters

A prudential standard determined under section 34C may include provisions dealing with matters of a transitional nature relating to:

(a) the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012;and

(b) the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012; and

(c) the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012.

390 Regulations dealing with transitional, savings and application matters

The Governor-General may make regulations dealing with matters of a transitional, saving, or application nature relating to the amendments made by:

(a) the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012;and

(b) the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012; and

(c) the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012.