RETIREMENT SAVINGS ACCOUNTS REGULATIONS 1997

PART 4 - PAYMENT STANDARDS  

Division 4.3 - Cashing of benefits  

REGULATION 4.24   COMPULSORY CASHING OF BENEFITS  

4.24(1)  


Subject to subregulation (4), an RSA holder ' s benefits in an RSA must be cashed as soon as practicable after the RSA holder dies.

4.24(2)  
(Repealed by SLI No 104 of 2007)

4.24(3)  


The form in which benefits may be cashed under this regulation is:


(a) a single lump sum in respect of each person to whom benefits are cashed; or


(b) subject to subregulations (3A) and (3B):


(i) 1 or more pensions, each of which is a superannuation income stream that is in the retirement phase; or

(ii) the purchase of 1 or more annuities under the SIS Regulations, each of which is a superannuation income stream that is in the retirement phase.
Note:

For the cashing requirement applying on the death of the RSA holder, see regulation 4.24.

4.24(3A)  


If an RSA holder dies on or after 1 July 2007, subparagraphs (3)(b)(i) and (ii) apply to an entitled recipient only if, at the time of the RSA holder's death, the entitled recipient:


(a) is a dependant of the RSA holder; and


(b) in the case of a child of the RSA holder:


(i) is less than 18 years of age; or

(ii) being 18 or more years of age:

(A) is financially dependant on the RSA holder and less than 25 years of age; or

(B) has a disability of the kind described in subsection 8(1) of the Disability Services Act 1986 .

4.24(3B)  


If benefits in relation to a deceased RSA holder are being paid to a child of the deceased RSA holder in the form of a pension in accordance with subregulation (3A), the benefits must be cashed as a lump sum on the earlier of:


(a) the day on which the pension is commuted, or the term of the pension expires (unless the benefit is rolled over to commence a new annuity or pension); and


(b) the day on which the child attains age 25; unless the child has a disability of the kind described in subsection 8(1) of the Disability Services Act 1986 on the day that would otherwise be applicable under paragraph (a) or (b).

4.24(4)  


For the purposes of subregulation (1), it is sufficient if, instead of being cashed, the benefits are rolled over as soon as practicable for immediate cashing.

4.24(5)  
(Repealed by SLI No 104 of 2007)

4.24(6)  
(Repealed by SLI No 104 of 2007)




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