CRT Alert 081/2018

MATS Transitional reporting – Retirement phase event reporting during transition

Prior to MATS on-boarding, super providers have until the 10th business day following the end of the month to report a retirement phase event (RPE) that occurred in that month via the TBAR.

Once a provider has completed its MATS on-boarding it is required to report RPEs via MATS and that timeframe is then reduced to 10 business days after the event occurs.

To minimise downstream impacts for members and providers, we are providing a blanket deferral to the MATS 10 business day requirement for reporting RPEs post on-boarding until such time as the monthly TBAR has been lodged for the pre-MATS events. After this point, a provider would only lodge a TBAR to respond to a commutation authority, as all RPEs will be reported via MATS.

This will ensure that the transactions that occurred pre-MATS on-boarding are reported prior to those that occurred post-MATS on-boarding.

Example Fund on-boarding to MATS on 15th November 2018. Member commutes a super income stream on 12th November 2018 – fund is expected to report this debit via TBAR no later than 14th December 2018. The same member starts a new income stream on 20th November 2018 – fund required to report this credit via MATS by 4th December 2018. If the fund reports according to the requirements above, the new income stream will be processed prior to the commutation which may cause negative downstream impacts including assessment ‘churn’. When the fund uses the deferral provided, the reporting will be as follows: ¦ Commutation debit is reported on the TBAR by 14th December 2018. ¦ Fund stockpiles the RPEs from the date of on-boarding until 14th December when the monthly TBAR is lodged. ¦ Fund then back-reports the new income stream credit from 20th November on 15th December 2018 via MATS