Superannuation Industry (Supervision) Regulations 1994

PART 5 - BENEFIT PROTECTION STANDARDS  

Division 5.1 - Preliminary  

REGULATION 5.02B   PRIORITY IN DEDUCTING SURCHARGE OR INSTALMENT  

5.02B(1)   [Application]  

This regulation applies if a trustee has decided to reduce a member's benefits in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge.

5.02B(2)   [When reducing benefits]  

In reducing the member's benefits, the trustee must:

(a) if possible - deduct an amount equal to the whole of the amount of the reduction from the preserved benefits; and

(b) if the required deduction cannot be met under paragraph (a) - deduct the balance from the restricted non-preserved benefits; and

(c) if the required deduction cannot be met under paragraphs (a) and (b) - deduct the balance from the unrestricted non-preserved benefits.