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  • SASG minutes 24 February 2016

    Meeting Details

    Venue:

    Rooms 719 & 720, Level 12, ATO Latitude East, 52 Goulburn Street, Sydney NSW 2000

    Date:  

    Wednesday 24 February 2016

    Start:  

    10.00am

    Finish:  

    3.00pm

    Chair:  

    Cathy Cox

    Contact and Secretariat:  

    Loretta Green

    Contact phone:  

    02 4223 2032

    Please note: SASG agendas, minutes and related papers are not binding on the ATO or any of the other bodies referred to in these papers. While every effort is made to accurately record views expressed, the wording necessarily represents a summary of statements of general position only, and care should be taken in interpreting those statements. These papers reflect the position at the date of release (unless otherwise noted) and readers should note that the position on any issue may subsequently change.

    Attendees

    Industry

    AMP

    Tina Cifelli

    ASFA

    Fiona Galbraith

    Bravura Solutions

    Martin Mikulicin

    BT

    BT

    CBA (Colonial First State)

    Kelly Kerr

    Lauren Dole

    Brett McLeod

    CBA (Comminsure)

    CBA (Comminsure)

    Ari Gerasimou

    Tracey Lincolne

    Commonwealth Superannuation Corporation

    Peter Zorbas

    Financial Synergy

    Melinda White

    IOOF

    Heide Stewart

    Link Group (AAS)

    John Hardas

    Link Group (AAS)

    Sue Pearce

    Link Group (GESB)

    Sharan Panton

    Link Group (Syncsoft)

    Mary Gale

    Mercer

    Amanda Gunn

    NAB

    Janice Low

    Perpetual

    Pillar

    Kathy Calman

    Louise Hemar

    Precision Admin

    Warren Ramage

    QSuper

    SMSF Association

    Super SA

    Jayne O'Ryan

    Graeme Colley

    Anthony Steele

    Unisuper

    George Strilakos

    Zurich

    Maria Ainslag

    Guests

    Commonwealth Superannuation Corporation

    Lex Dransfield

    Link Group (SuperPartners)

    Eoin Burke

    ATO

    ATO Client Services

    Cathy Cox

     

    Louie Markovski

     

    Matt Sykes

     

    Loretta Green

    Julianne Faulks

    ATO Superannuation

    Ian Colhoun

    Tracey Crowden

     

    David Taylor

     

    Anna Pace

    Michael Connolly

    Apologies

    Link Group (SuperPartners)

    Karen Downes

    Financial Synergy

    ATO

    ATO

    Andrea Cooper

    Linda Cheesman

    Shaun Ferabend

    Agenda Items

    1. Welcome

    Cathy Cox (Assistant Commissioner, Client Account Services, Superannuation and Accounting) opened the meeting:

    • Welcomed all in attendance including new representatives and guest attendees.
    • Accepted that no declarations of conflict of interest were advised.

    2. Acceptance of previous minutes/update on action items

    Minutes of meeting held 10 November 2015 endorsed without amendment.

    All action items resolved from previous meeting.

    3. Client Relationship Team (CRT) interactions

    Based on industry feedback the CRT has implemented an improved system for managing and prioritising email interactions with APRA funds. The trial was implemented in November 2015 and has now been running for 3 months.

    Usage and acceptance of the new process has been positive. Appreciation provided to participants for their assistance in testing and providing feedback during the trial.

    Findings from the trial were conveyed to the group. Patterns and trends emerging are now more easily identifiable. This has allowed for time frames to be placed against each relevant code. We will now be prioritising the processing of the categorised emails within the time frames specified.

    It was noted that some of our larger users of the codes are also our larger non users of the codes. In an attempt to increase usage of the coding system, information packs will continue to be sent to regular users who do not use these codes to reiterate the importance of coding. SASG members will be advised so they can follow up and cascade this information from their end.

    4. Product Updates

    4.1 Quarterly Superannuation Guarantee (QSG) Decommissioning

    ATO is planning to decommission Super online legacy systems in December 2017 and move all QSG transactions into the Integrated Core Processing (ICP) system. The strategy being undertaken by the ATO to wind down and migrate data across the two systems was provided.

    ICP will provide an automated process for urgent payments moving forward, however; manual processing may be required in the interim.

    4.2 Superannuation Release Authority Statement (RAS)

    Timely processing of RAS is essential for all parties, i.e. ATO, funds and individuals.

    The following tips were provided to assist industry comply in the most effective manner when returning a RAS to the ATO:

    • You always need to send in the RAS, whether or not any amount is released.
    • You should return the RAS within the specified time frame noted in the form (which varies between products).
    • You should not attach a covering letter when you return your RAS to the ATO.
    • You send the money to the appropriate destination, be it the ATO or the individual.

    The presentation provided an analysis of 1,500 clients where the ATO had received a payment from the fund where no corresponding RAS could be located. In order to resolve debts on client accounts, the ATO agreed to treat these cases as if the RAS had been received.

    The ATO confirmed that the Release Authority Statement cannot be lodged electronically - only via paper and fax.

    4.3 Div 293/Excess Contributions/FTECC and RENCC - improving the client experience

    An overview of changes being implemented to improve the client experience was provided. Further discussions would be valuable to address the trend identified where multiple deferred debt member accounts for Div 293 liabilities exist for the same individual. A teleconference to discuss the appropriate way forward to deal with this issue will be organised by the ATO.

    4.4 Reuniting Super Campaigns

    An update regarding Reuniting Super Campaigns was provided highlighting:

    • Legislative changes and reuniting campaigns likely to have an impact on members seeking information and/or fund reporting obligations. Superannuation Law Amendment (Unclaimed Superannuation Money) Regulations 2015 (containing the definitional changes applicable to being inactive and uncontactable as well as proactive Eligible Rollover Fund rollovers) was expected to be passed late last year but has been delayed. It is now expected to go to Executive Council late February or March. The start date for this measure is now 1 July 2016.
    • The reuniting super campaign due to start mid February 2016 which deals with clients having an active myGov account and three or more active super fund memberships was discussed and supported by the handout circulated prior to the meeting.
    • The Treasury Legislation Amendment (Repeal Day 2015) Bill 2015 was debated on 1 December 2015.
    • A mid-February email campaign for clients with 3 or more super fund memberships.
    • From 1 January 2016, Electronic Portability Form (EPF) volumes have increased considerably this year with 360,000 accounts consolidated worth $ 1.65 billion, compared to 292,529 accounts consolidated for the same time last financial year worth $1,25b. Most continue to be fund to fund transfers.
    • Provision of Address (POA) volumes were discussed. Data for 475,567 members totalling approximately $4.86 billion was sent to 213 funds in early December 2015. We have also received requests for 10 additional funds to participate in POA, resulting in data being sent for an additional 3,790 members totalling approx. $102 million on 9 February 2016.

    5. Statement of Account Electronic Option

    Discussion held over the current state of the Statement of Account (SOA) process with particular reference to the new frameworks due to be released and how it would impact the need to continue issuing SOAs as per the current state.

    The move towards the SuperStream process triggered an examination of how we will transition between current and future state design, with the ATO keen not to replicate legacy state processing where value add would not exist.

    Feedback received regarding any perceived issues during the transition/state design included:

    • SOA currently used for full account reconciliation across all accounts, including GIC, not just exception based analysis.
    • Similar processing is undertaken between funds and employers.
    • SuperStream processing providing shorter processing times, reducing exceptions and GIC occurrences.
    • Funds would like to understand how GIC is applied and calculated under SuperStream standard.
    • The ATO is moving from an ATO driven payment reference number (PRN) contribution reference number (CRN) process to an industry driven process with common business standard reporting.
    • If a SOA was provided electronically, the channel delivery should be an online portal and consideration given to messaging being interactive or view only.

    6. Unclaimed Superannuation Money (USM)/Lost Members report (LMR) update & Risk Differentiation Framework

    6.1 USM/LMR Update

    A summary from the meeting held on 15 February 2016 with some SASG members was discussed to address concerns around changes to lost member and unclaimed superannuation monies law, and; an update on the progress of action items generated from this meeting.

    6.1.1 Revision of the Lost Member Statement (LMS) Protocol Document

    An updated draft protocol was circulated to the group prior to this meeting. The changes to the protocol include changing the structure of the document, incorporating guiding principles, defining legislative requirements vs guidelines, revising definitions and adding extra scenarios.

    The group were advised the protocol would not include any new regulation changes, as these impact reporting after October 2016 and hence will be part of the new reporting regime. The draft protocol has been through initial clearance but still required final technical and publishing clearance.

    Feedback on the draft protocol included:

    • Adding page numbers if issued by PDF.
    • Update the activity area to include all ATO contributions. Currently examples only reference co-contributions, but any ATO contributions would suffice to satisfy the test of activity. A change to this would provide further clarity.
    • An error on the flowchart, the Y and N for the last decision are to be reversed.
    • Duplication issues when printing the document.
    • The new examples in the documents are good.
    • Explanation of POA definition is clear.
    • A request was made to separate examples for different category types where combined, for example; lost vs inactive streams.

    Additional feedback on the protocol was encouraged. Any additional feedback on the protocol should be provided to the SASG secretariat. It is envisaged that an updated LMR Protocol would be issued to funds as a CRT Alert in early March 2016.

    6.1.2 The Provision of Address (POA) process

    Feedback from the initial meeting led to a review of the LMR POA terms and condition to determine whether we could allow a fund to verify a member where the address held by the fund is the same as that provided by the POA process. Initial internal clearance indicated that this will be acceptable, however; further clearance is required. Once this has been received the POA terms and condition will be updated on the website.

    Discussions focused on the different categories of lost members and their corresponding treatment. If the member is “lost uncontactable” they are considered “found” with an updated address. If the member is “lost inactive” the fund would need to contact the member to confirm this address.

    It was questioned whether the information provided by the ATO via the POA process would be sufficient for verification of the account, or; is the expectation that funds would do additional verification checks? The examples depicted in the draft protocol give the impression ATO notification via POA was sufficient verification. However, examples depicted in the draft protocol may no longer be accurate if clearance is not obtained. Given initial clearance has been obtained it should just be a matter of having this initial advice formalised. Once confirmation is received the examples will be updated accordingly to reflect the correct position.

    6.1.3 Provision of USM data to funds to enable them to claim USM on their member's behalf

    Due to SuperMatch2 not yet being available, the ATO has offered to provide funds with information regarding any unclaimed monies held on behalf of their active members. The information will only be provided to funds where the member only holds accounts with the requesting fund and does not hold additional accounts across other funds.

    The data provided will identify members who have a myGov account. The ATO would encourage the use of myGov for members to reunite with their money. The ATO cannot guarantee timeframes to funds where assistance is required to process consents through a return file.

    To assist funds effectively plan their contact strategies, indicative timeframes outlining when data can be expected would be beneficial. ATO agreed to discuss timing with relevant partners and provide funds with suggested suitable timeframes. A CRT Alert will issue providing further information on this topic.

    6.2 Risk Differentiation Framework (RDF) (Fund Engagement Team)

    • This year’s RDF process will commence shortly with the release of diagnostic reports to large funds planned for mid-March 2016. The ATO was still finalising its visitation list, however; if any particular fund would like a visit they could request one by emailing the large fund diagnostic mailbox (LargeFundDiagnostic@ato.gov.au).
    • A review of the information provided in Briefing Note 5(b) was discussed.
    • The 13 indicators used in the diagnostic report this year will be essentially the same as last year, with the report being redesigned. A summary of the main changes included:
    • A focus on redesigning the information regarding benchmarks provided in the report.
    • This report provides information for both 2014 and 2015 years for comparative analysis.
    • The additional categories of information being provided in the new report, and;
    • Additional information provided in the information page with the majority of formulas used for each indicator.

    7. SuperStream update

    SuperStream presentation was provided generating discussion on the following topics:

    • The key points of the final design of the Rollover MIG v2.0 published 18 December 2015 including implementation and the cutover plan.
    • Contributions MIG v2.0 scheduled to be implemented in April 2017 and those design issues still under consideration. This is currently in consultation with industry, however final version to be released soon.

    An overview of design updates and recent issues for the following systems was given:

    • SuperTICK v2
    • Fund Validation Service
    • SuperMatch2

    Although SuperTICK v3 is deployed, the service offering is currently optional. An update was given outlining:

    • The key features and when mandating will occur.
    • The implementation of SuperTICK v3 and the decommissioning of SuperTICK v1 and SuperTICK v2 in January 2017.
    • Notification of open and closed accounts will be mandatory from January 2017, allowing the ATO to derive correct destinations for individuals without the need for funds to report rollover destination information, and;
    • Additional benefits for trustees.

    Industry was asked to consider what scenarios they think should be considered as part of implementation and any specific issues to be considered as part of these scenarios. Any feedback regarding implementation scenarios to be sent to the SuperStream project team via the SASG Secretariat mailbox.

    An update regarding the Member information eXchange (MiX) design and associated fund reporting obligations were provided, advising implementation of the MiX is scheduled to commence in November 2017.

    The timing issues associated with fund reporting during the transitional period were discussed with particular emphasis on the scheduling changes for both Lost Member and Unclaimed Superannuation Monies reporting.

    A discussion about reusing the rollover message to manage unclaimed accounts occurred with changes to be incorporated into the Rollover MIG v2.0.

    Proposed changes to the APRA fund reporting experience was reviewed with a focus on identifying the benefits to funds under the following four categories:

    • An accumulative member
    • A lost member
    • An unclaimed member
    • A closed account

    Feedback requested from the group regarding any identified benefits via the SuperStream standards mailbox (SuperStreamStandards@ato.gov.au).

    8. Other Business

    No other business discussed.

    9. Close

    In closing, Cathy Cox thanked all members for their valued contributions to another very successful event. Cathy also encouraged attendees to consider any issues or irritants and provide feedback by email to the SASG Secretariat mailbox (SASGSecretariat@ato.gov.au).

    The next meeting is scheduled for Wednesday 25th of May 2016.

    10. Action Items

    Action item reference

    Issue

    Allocated to

    Completed

    24022016/01

    CRT team will advise SASG members about non-user information pack emails being sent to their staff. (From Agenda item 3).

    CRT Team

    Ongoing

    24022016/02

    Feedback from the superfunds as to whether an aggregation run every 2 months or quarterly instead of monthly run will this be an issue ? (From Agenda item 4.1)

    SASG members

    Completed

    24022016/03

    SASG Secretariat to send out meeting invites for Div 293 Deferred debt liability multiple account creation issue teleconference. (From Agenda item 4.3).

    SASG Secretariat

    Completed

    24022016/04

    Subsequent to the meeting The Treasury Laws Amendment (2016 Measures No.1) Regulation 2016 passed and a CRT alert 008/2016 was issued 1st March. (From Agenda item 4.4)

    Fund Engagement Team

    Completed

    24022016/05

    Funds to provide feedback to SASG mailbox on any other issues they might like to put forward. The ATO will provide an update at a future meeting. (From Agenda item 6)

    SASG Membership / SASG Secretariat

    Ongoing

    24022016/06

    Request for both matrix and flowchart to be included in the LMR protocol. Agreement that we would get this included in the next published version (on web). (From Agenda item 5)

    Fund Engagement Team

    Completed

    24022016/7.1

    Funds to provide feedback on the Lost Member Statement (LMS) and Provision of Advice (POA) Protocol documents together with suitable timeframes for the provision data for the USM data project. (From Agenda item 5)

    SASG members

    Completed

    24022016/7.2

    ATO to issue CRT alert regarding timing the proposed provision of USM data project to funds and terms of agreement on how information will be provided. (From Agenda item 5)

    CRT Team

    Completed

    24022016/8

    Funds requested a webinar on the design of the new diagnostic report. (From Agenda item 5)

    David Taylor

    Completed

    24022016/9

    Feedback requested from Industry regarding Implementation scenarios in the presentation SuperStream Update to the SASG Secretariat mailbox. (From Agenda item 7)

    SASG members

    Completed

    24022016/10

    Feedback requested from Industry regarding identified benefits in presentation Member information eXchange (MIX) – November 17 Changes to APRA fund reporting Fund Experience. (From Agenda item 7)

    SASG members

    Completed

      Last modified: 29 Jun 2016QC 49516