Commonwealth Consolidated Acts Commonwealth Consolidated ActsSuperannuation Guarantee (Administration) Act 1992
1 Paragraph 32C(2)(d)
Repeal the paragraph, substitute:
(d) the fund complies with the requirements (if any) set out in the regulations in relation to the provision of a benefit in respect of MySuper members of the fund that is payable only in the event of t he death of the member; and
(e) the fund complies with the requirements (if any) set out in the regulations in relation to offering a benefit in respect of members of the fund (other than MySuper members) that is payable only in the event of the death of the member.
Superannuation Industry (Supervision) Act 1993
2 Subsection 10(1)
Insert:
"death benefit" : see section 68AA.
3 Subsection 10(1)
Insert:
"permanent incapacity" : a member of a superannuation fund or an approved deposit fund is suffering permanent incapacity if the member is taken, under the regulations, to be suffering permanent incapacity for the purposes of this Act.
4 Subsection 10(1)
Insert:
"permanent incapacity benefit" : see section 68AA.
5 After paragraph 31(2)(e)
Insert:
(ea) the kinds of benefits that must not be provided by taking out insurance, or insurance of a particular kind;
(eb) the kinds of benefits that must not be provided other than by taking out insurance, or insurance of a particular kind;
6 After section 68
Insert:
68AA Benefits for permanent incapacity and death--MySuper members
Requirement to provide permanent incapacity benefit and death benefit by taking out insurance
(1) Each trustee of a regulated superannuation fund must ensure the following:
(a) that the fund provides permanent incapacity benefit to each MySuper member of the fund;
(b) that the fund provides death benefit in respect of each MySuper member of the fund;
(c) that the benefits referred to in paragraphs ( a) and (b) are provided by taking out insurance.
Note: A failure to comply with subsection ( 1) is a breach of a condition of the RSE licence (see paragraph 29E(1)(a)).
(2) The trustees of a regulated superannuation fund are not required to provide permanent incapacity benefit or death benefit if the conditions determined under subsection ( 3) in relation to the benefit are not met.
(3) The trustees of a regulated superannuation fund may determine reasonable conditions to which the provision of:
(a) permanent incapacity benefit; or
(b) death benefit;
is subject.
(4) Without limiting subsection ( 3), conditions determined under subsection ( 3) in relation to a benefit are reasonable if they are the same as the terms and conditions of the policy of insurance taken out to provide the benefit.
Requirement to allow MySuper members to elect not to receive permanent incapacity benefit or death benefit
(5) Each trustee of a regulated superannuation fund must ensure that each MySuper member of the fund may elect either or both of the following:
(a) that permanent incapacity benefit will not be provided to the member by the fund;
(b) that death benefit will not be provided in respect of the member by the fund.
Note: A failure to comply with subsection ( 5) is a breach of a condition of the RSE licence (see paragraph 29E(1)(a)).
(6) The trustees of a regulated superannuation fund may require that MySuper members who wish to make an election in accordance with subsection ( 5):
(a) must make the election in relation to both permanent incapacity benefit and death benefit; or
(b) must make the election in relation to death benefit if they make the election in relation to permanent incapacity benefit.
(7) Subsection ( 5) does not apply to a MySuper member of a regulated superannuation fund if the circumstances prescribed by the regulations for the purposes of this subsection are met.
(8) If a MySuper member of a regulated superannuation fund makes an election in accordance with subsection ( 5) in relation to a benefit, subsection ( 1) does not apply in relation to the member and the benefit.
(9) This section does not apply to a defined benefit member.
Death benefit and permanent incapacity benefit
(10) For the purposes of this Act:
"death benefit" means a benefit provided in respect of a member of a regulated superannuation fund in, and only in, the event of the death of the member.
"permanent incapacity benefit" means a benefit provided to a member of a regulated superannuation fund if, and only if, the member is suffering permanent incapacity.
7 Elections made before commencement
(1) This item applies if:
(a) before the commencement of this item, a MySuper member of a regulated superannuation fund elected either or both of the following:
(i) that a benefit of a kind referred to in paragraph 68AA(1)(a) of the new Act will not be provided to the member by the fund;
(ii) that a benefit referred to in paragraph 68AA(1)(b) of the new Act will not be provided in respect of the member by the fund; and
(b) as at the commencement of this item, the election is in force.
(2) Subsection 68AA(8) of the new Act applies in relation to the MySuper member as if the election were an election made by the member, immediately after the commencement of this item, in accordance with subsection 68AA(5) in relation to the benefit or benefits (as the case may be).
(3) Subsection 68AA(6) of the new Act does not apply in relation to the election.
(4) In this item:
new Act means the Superannuation Industry (Supervision) Act 1993 as in force immediately after the commencement of this item.