Superannuation Industry (Supervision) Act 1993

PART 2C - MYSUPER  

Division 3 - Authority  

SECTION 29TC   CHARACTERISTICS OF A MYSUPER PRODUCT  

29TC(1)  
This section is satisfied in relation to a class of beneficial interest in a regulated superannuation fund if, under the governing rules of the fund:


(a) a single diversified investment strategy is to be adopted in relation to assets of the fund, to the extent that they are attributed to that class of beneficial interest in the fund; and


(b) all members who hold a beneficial interest of that class in the fund are entitled to access the same options, benefits and facilities except to the extent that a benefit is provided by taking out risk insurance; and


(c) amounts are attributed to members in relation to their beneficial interest of that class in the fund in a way that does not stream gains or losses that relate to any assets of the fund to only some of those members, except to the extent permitted under a lifecycle exception; and


(d) the same process is to be adopted in attributing amounts to members in relation to their beneficial interest of that class in the fund, except to the extent that a different process is necessary to allow for fee subsidisation by employers or to comply with section 99G (fee cap on low balances); and


(e) if fee subsidisation by employers is permitted, that subsidisation does not favour one member who holds a beneficial interest of that class in the fund and is an employee of a subsidising employer over another such member who is an employee of that employer; and


(f) the only limitations imposed on the source or kind of contributions made by or on behalf of persons who hold a beneficial interest of that class in the fund are those permitted under subsection (3); and


(g) a beneficial interest of that class in the fund cannot be replaced with a beneficial interest of another class in the fund, unless:


(i) the person who holds the interest consents in writing to that replacement no more than 30 days before it occurs; or

(ii) the person who holds the interest has died and the interest is replaced with a beneficial interest of another class in the fund of a kind, and in the circumstances, prescribed by the regulations; and


(h) a beneficial interest of that class in the fund (the old interest ) cannot be replaced with a beneficial interest (the new interest ) in another superannuation entity unless:


(ii) the replacement is permitted, or is required, under a law of the Commonwealth; or

(iii) the person who holds the old interest consents in writing to the replacement with the new interest no more than 30 days before it occurs; and


(i) to the extent that assets of the fund are attributed to beneficial interests of that class, a pension is not payable out of those assets by the trustee, or trustees, of the fund on the satisfaction of a condition of release of benefits specified in a standard made under paragraph 31(2)(h) by a person who holds a beneficial interest of that class, unless the payment is derived from a benefit of the kind mentioned in subparagraph 62(1)(b)(ii) provided to the fund by an insurer; and

Note:

Subparagraph 62(1)(b)(ii) is about benefits payable when a person ceases work due to ill-health.


(j) no member who holds a beneficial interest of that class in the fund is precluded from holding a beneficial interest of another class in the fund because of that fact; and


(k) no member is precluded from holding a beneficial interest of that class in the fund because the member holds a beneficial interest of another class in the fund.

29TC(2)  
A lifecycle exception is a rule under the governing rules of the fund that allows gains and losses from different classes of asset of the fund to be streamed to different subclasses of the members of the fund who hold a MySuper product:


(a) on the basis, and only on the basis, of the age of those members; or


(b) on the basis of the age of those members and other prescribed factors; or


(c) on the basis of the age of those members and other prescribed factors in prescribed circumstances.

29TC(3)  
A limitation on the source or kind of contributions made by or on behalf of persons who hold a beneficial interest of a particular class in a regulated superannuation fund is permitted for the purposes of paragraph (1)(f) if:


(a) the limitation is of a prescribed kind; or


(b) the limitation is imposed by or under the general law or another law of the Commonwealth.


 

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