Identifying trustee voluntary payments
Trustee voluntary payments (TVP) are amounts in respect of a member, former member or non-member spouse where the trustee reasonably believes paying the amount to us would be in the best interest of the person.
Before paying the amount to us as TVP, you must ensure it does not meet the definition of another type of USM outlined in the Superannuation (Unclaimed Money and Lost Members) Act 1999 (SUMLMA) such as:
amounts where a payment split applies to a splitable payment
amounts for members who have reached eligibility age
deceased member account
unclaimed super for former temporary residents identified in a section 20C notice
small or insoluble lost member accounts
amounts held in an inactive low-balance account.
When to pay
Depending on the status of the person (member, former member or non-member spouse), the fund will need to consider a range of factors when forming a view about whether transferring an amount to us would be in the person’s best interests, including:
- the history of contributions, rollover, drawdowns or other activity of the member, former member or non-member spouse
- whether there are any insurance premiums being deducted from the account
- the history of contact with the member, former member or non-member spouse
- whether previous attempts to contact the member, former member or non-member spouse have resulted in a member-initiated change to their superannuation arrangements.
If the fund has recent contact information for a former member, they should make reasonable attempts to provide notice to that member at their last known postal address, to give them an opportunity to provide alternative instructions before transferring any amounts to us.
At the time the fund pays the TVP, the fund must give us an unclaimed superannuation money statement. The information required by the statement may include information necessary to determine the tax free and taxable components of the amount paid to us.
TVP amounts can be paid to us at any time provided at the time the payment is made, the amount does not meet another type of USM outlined in the SUMLMA. For more information see Scheduled due dates for unclaimed super.
Example: compensation amounts owed to a former member
Anna, a former member of your fund, is eligible for a compensation payment for services charged but not rendered. You no longer have Anna's contact details and, despite attempts to contact her, are unable to obtain instructions from Anna about where the amount should be paid.
After assessing the amount against the other types of USM reporting categories outlined in the SUMLMA and determining that none apply, the trustee reasonably believes that paying the amount to us is in Anna's best interest. The amount can be reported and paid to us as TVP.
Example: compensation amounts owed to a deceased member
Bob, a deceased member, is owed a compensation amount after the account was closed. Having identified the member is deceased and determining that a benefit is immediately payable in respect of Bob you use the information available to you to make reasonable attempts to contact the person who is entitled to receive the benefit. However, after making reasonable efforts and allowing a reasonable period to pass, you're unable to ensure that the benefit will be received by that person.
If the other requirements for deceased member USM under SUMLMA are also met, including that no amount has been received in respect of Bob for at least 2 years, the amount should be reported and paid as deceased member USM. Reporting the amount as TVP is incorrect because the amount already falls within another USM category.
End of example