Superannuation Industry (Supervision) Regulations 1994

PART 4 - MANAGEMENT AND TRUSTEESHIP OF SUPERANNUATION ENTITIES  

Division 4.1 - Prescribed matters  

REGULATION 4.03   TRUSTEE OF EMPLOYER-SPONSORED FUND - PRESCRIBED DIRECTION BY EMPLOYER-SPONSOR OR ASSOCIATE OF EMPLOYER-SPONSOR  

4.03(1)   [Circumstances in which directions may be given]  

For the purposes of paragraph 58(2)(e) of the Act, the circumstances in which the governing rules of a superannuation entity (other than a superannuation fund with fewer than 5 members) may permit an employer-sponsor or an associate of an employer-sponsor to give a direction to the trustee of an employer-sponsored fund are:


(a) where, after the implementation of the direction:


(i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3) ; or

(ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3) ; and


(b) where the direction would not require the trustee to contravene the Act (other than section 55 ) or these regulations; and


(c) where the direction qualifies under subregulation (2).

4.03(2)   [Directions]  

A direction qualifies if:


(a) the contributions of the employer-sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5 ) and the direction relates solely to either or both of the following:


(i) those non-mandated employer contributions; or

(ii) benefits related to those non-mandated employer contributions; or


(b) whether or not paragraph (a) applies - the direction relates solely to one or more of the following:


(i) the admission of new members to the fund; or

(ii) the category of members into which a new member or existing member is to be placed; or

(iii) allowing a person to become an employer-sponsor of the fund; or

(iv) the termination of the fund; or

(v) the appointment of a trustee to an entity that does not have a trustee.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.