Superannuation Industry (Supervision) Regulations 1994
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Hide history notePt 5 heading substituted by SR No 64 of 1995.
Div 5.6 repealed by SLI No 86 of 2013, reg 4 and Sch 1 item 9, effective 1 July 2013. Div 5.6 formerly read:
Division 5.6 - Existing personal superannuation members
SECTION 5.19 REGULATION 5.19 INTERPRETATION
5.19
In this Division:existing personal superannuation member
means a member of a regulated superannuation fund who:
(a) joined the fund before 1 July 1995; and
(b) at the time he or she joined the fund, was not a person in respect of whom there was in effect a contribution arrangement of the kind referred to in subsection 16(5) of the Act (which deals with the definition of standard employer-sponsored member ).HistoryReg 5.19 inserted by SR No 159 of 1995.
SECTION 5.20 REGULATION 5.20 OPERATING STANDARDS - EXISTING PERSONAL SUPERANNUATION MEMBERS
5.20
For the purposes of subsection 31(1) of the Act, a requirement set out in this Division is a standard applicable to the operation of regulated superannuation funds.REGULATION 5.21 TRUSTEE MAY OFFER ELECTION TO EXISTING PERSONAL SUPERANNUATION MEMBERSHistoryReg 5.20 inserted by SR No 159 of 1995.
5.21(1)
The trustee of a regulated superannuation fund that has existing personal superannuation members may offer in writing to each of those members the right to elect never to be treated by the fund as if he or she were a protected member.
5.21(2)
If the trustee offers a member the right to elect never to be treated as a protected member, the trustee:
(a) must also offer the member the right to elect to have the member's benefits paid to an entity of the member's choice; and
(b) may also offer the member the right to elect to have the member's benefits paid in any other way.Note:
The trustee also has the power, under Part 24 of the Act, to pay benefits to an eligible rollover fund.
5.21(3)
The trustee may specify an entity (in this regulation called the default entity ) that will be taken to be the member's choice of entity if:
(a) a member elects to have benefits paid to another entity but does not specify the entity; or
(b) a member elects to have benefits paid to another entity but that other entity refuses to accept the benefits.
5.21(4)
The default entity must be:
(a) an entity to which the member-protection standards relating to the protection of protected members apply; or
(b) an eligible rollover fund.
5.21(5)
A member to whom a trustee offers the right to make an election under subregulations (1) and (2) is not obliged to elect in favour of any of the courses set out in that subregulation.
5.21(6)
For the purposes of this Division, if:
(a) a member specifies an entity to which his or her benefits are to be paid, but that entity refuses to accept the payment; or
(b) the member elects to have his or her benefits paid to another entity, but does not specify the entity;the member is taken to have elected to have his or her benefits paid to the default entity.
5.21(7)
If a trustee offers members of the fund the right to make an election, the trustee must provide each member to whom the election is offered with the following information:
(a) the contact details (within the meaning of the Corporations Regulations 2001 ) of the default entity, if any;
(b) a statement that:
(i) states that a member is not obliged to make an election in favour of any of the courses offered; and
(ii) sets out the effect of not making an election; and
(iii) sets out the effect of making an election in favour of each of the courses offered; and
(iv) sets out the circumstances in which the member will be taken to have elected to have his or her benefits paid to the default entity;
(c) the amount, or, subject to subregulation (8), the approximate amount, of the member's benefits in the fund.HistoryReg 5.21(7)(a) amended by SR No 21 of 2002, reg 3 and Sch 1 item 36, effective 11 March 2002, by substituting " the Corporations Regulations 2001 ) " for " Part 2) " .
5.21(8)
A fund may inform a member under paragraph (7)(c) of the approximate amount of the member's benefits if, at the time the information is to be given, the trustee of the fund cannot determine the exact amount of the member's benefits in the fund.
REGULATION 5.22 WHAT HAPPENS IF THE MEMBER WAIVES MEMBER PROTECTION?HistoryReg 5.21 inserted by SR No 159 of 1995.
5.22(1)
If under regulation 5.21 a member of a fund elects to waive member protection, the member-protection standards cease to apply to the member:
(a) if the waiver takes place before 1 October 1995 - from 1 July 1995; or
(b) in any other case - from the date of the waiver.Note:
See subregulation 5.17(5) in regard to the end of the last relevant member reporting period in this case.
HistoryReg 5.22(1) substituted by SR No 200 of 2002, reg 4 and Sch 2 item 9, effective 29 August 2002. Reg 5.22(1) formerly read:
5.22(1)
If under regulation 5.21 a member of a fund elects to waive member protection, the member-protection standards have only lost-member operation in relation to the member:
(a) if the waiver takes place before 1 October 1995 - from 1 July 1995; or
(b) in any other case - from the date of the waiver.Note:
See subregulation 5.17(5A) in regard to the end of the last relevant member reporting period in this case.
5.22(2)
If under regulation 5.21 a member of a fund elects to waive member protection, the waiver ceases to have effect when the member ceases to be a member of the fund.
REGULATION 5.23 WHAT HAPPENS IF THE MEMBER ELECTS TO HAVE BENEFITS PAID OUT OF THE FUND?HistoryReg 5.22 inserted by SR No 159 of 1995.
5.23
If a member of a fund elects to have his or her benefits paid out of the fund under this Division, and the payment takes place before 1 October 1995, the member-protection standards are taken never to have applied in relation to the member's membership of the fund.REGULATION 5.24 WHAT HAPPENS IF THE TRUSTEE PAYS BENEFITS PAID OUT OF THE FUND?HistoryReg 5.23 inserted by SR No 159 of 1995.
5.24
If:
(a) the trustee of a fund has written to a member offering the right to elect under regulation 5.21 ; and
(b) the member does not elect to waive member protection; and
(c) the trustee pays benefits of the member out of the fund;the trustee must not charge an exit fee in respect of the payment.
HistoryReg 5.24 inserted by SR No 159 of 1995.
Div 5.6 inserted by SR No 159 of 1995.
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