Unclaimed superannuation money protocol

Is an amount unclaimed superannuation money?

An amount payable to a member of a fund is taken to be unclaimed superannuation money if one of the following three tests is satisfied.

Test 1

The member has reached eligibility age (currently 65 years old), and:

• the super provider has not received an amount in respect of the member (and, in the case of a defined benefits superannuation scheme, no benefit has accrued in respect of the member) within the last two years
• after the end of a period of five years since the super provider last had contact with the member, the provider has been unable to contact the member again after making reasonable efforts.

Test 2

A payment split applies to a splittable payment in respect of an interest that a person has as a member of a fund, and:

• as a result, the non-member spouse (or their legal personal representative if they have died) is entitled to be paid an amount
• after making reasonable efforts and after a reasonable period has passed, the super provider is unable to ensure that the non-member spouse or their legal personal representative receives the amount.

Test 3

The member has died, and:

• the super provider determines that, under the governing rules of the fund or by operation of law, a benefit (other than a pension or annuity) is immediately payable in respect of the member
• the super provider has not received an amount in respect of the member (and, in the case of a defined benefits superannuation scheme, no benefit has accrued in respect of the member) within the last two years
• after making reasonable efforts and after a reasonable period has passed, the super provider is unable to ensure that the benefit is received by the person who is entitled to receive the benefit.

A member does not need to be defined or reported as 'lost' (as defined in regulation 1.03A of the Superannuation Industry (Supervision) Regulations 1994 and regulation 1.06 of the Retirement and Savings Accounts Regulations 1997) for their money to become 'unclaimed'. For example, 'inactive members' can also have unclaimed superannuation money.

Example

In reviewing a member's account, a super provider (trustee of a super fund) determines:

• they have an address for the member and have had no mail returned unclaimed
• the member set up the account themselves, and it only received personal contributions and a rollover (these were not employer sponsored).

The member therefore does not meet the lost member definition; however:

• according to the provider's records, the member has reached 65 years of age
• the provider has not received any amounts or had any contact from the member for over five years.

At this point, the provider is required to try and contact the member. Where they are unable to contact the member after making reasonable efforts, the account will become unclaimed superannuation money and the super provider will be required to report and, generally, pay the member's account balance to the Commissioner.

For further information regarding lost members, see the Lost Members Register - protocol document.

Sections within Unclaimed superannuation money

• The law
• General principles
• Is an amount unclaimed superannuation money?
• Explanation of unclaimed superannuation money test 1
• Explanation of unclaimed superannuation money test 2
• Explanation of unclaimed superannuation money test 3
• The concept of reasonable
• Examples of when a member's money is or is not unclaimed
• Reporting and payment
• Penalty