State Superannuation Amendment Regulations (No. 5) 2004 (WA)

$9 1 GOVERNMENT GAZETTE, WA 10 December 2004

SUPERANNUATION BOARD

(Z3() 1 *

State Superannuation Act 2000

State Superannuation Amendment

Regulations (No. 5) 2004

Made by the Governor in Executive Council.

1.            Citation

These regulations may be cited as the State Superannuation
Amendment Regulations (No. 5)2004.

2.            The regulations amended

The amendments in these regulations are to the State
Superannuation Regulations 2001*.

[* Reprint 1 as at 7 November 2003.

For amendments to 12 November 2004 see Western p. 367, and Gazette 25 June 2004.]

3.            Regulation 3 amended

(1) Regulation 3 is amended as follows:

(a)	by inserting before "In these" the subregulation designation "(1)";
(b)	by deleting the definitions of "accumulation account" and "accumulation Member";
(c)	in the definition of "earning rate" by deleting "under regulation 69F, 188 or 216 (as the case requires)";
(d)	in the definition of "Member" after "Income Member by inserting -

regulation 196;

44

,a Term Allocated Pension Member ";

(e) by inserting the following definitions in the appropriate alphabetical positions -

M.

"Term Allocated Pension Member" means a

Member of the Term Allocated Pension Scheme;

"Term Allocated Pension Scheme" means the
superannuation scheme established by

10 December 2004 GOVERNMENT GAZETTE, WA 5895

(f) at the end of the regulation by inserting the following

subregulation -

M.

(2) In these regulations a reference to a benefit that is

immediately payable to a person does not include a

benefit that is payable -

(a)	from another scheme in circumstances where, if the SIS Regulations applied, the benefit would be payable; or
(b)	from another superannuation fund,

because the person has satisfied a condition of release
in respect of which there is a cashing restriction that
precludes the transfer of that benefit to the Fund.

4.            Regulation 5 amended

After regulation 5(1) the following subregulation is inserted -

(1 a) The "payments, benefits and allowances" referred to in the definition of "remuneration" include a payment, benefit or allowance that is payable only in particular circumstances if—

(a)	it will be paid to the Member whenever those circumstances arise; and
(b)	the Employer reasonably expects those circumstances to arise in relation to the Member from time to time.

',

5.            Regulation 179 amended

Regulation 179(2) is amended by deleting "sub-account." and inserting instead -

sub-account,

at the time the sub-accounts are established.

"

6.            Regulation 187 amended

Regulation 187(2) is repealed and the following subregulation is inserted instead -

M.

(2) For a Retirement Income Member who selects a

personalised investment plan the Board must invest the Member's assets as at the time the selection was made in accordance with the asset allocation selected by the Member, but the Board is not required to ensure that

the investment of the Member's assets remains in
accordance with that asset allocation.

5896 GOVERNMENT GAZETTE, WA 10 December 2004

7.            Part 4A inserted (r. 196 to 196V)

After Part 4 the following Part is inserted -

Part 4A - Term Allocated Pension Scheme

Division 1 - Establishment and preliminary

196.        Establishment of Term Allocated Pension Scheme

The Term Allocated Pension Scheme is established as a superannuation scheme under section 28 of the Act.

196A. Interpretation

In this Part—

"pension day" means -

(a)	for a Member who has selected monthly pension payments - the 15th of each month;
(b)	for a Member who has selected quarterly pension payments - the 15th of January,

April, July and October; and

(c)	for a Member who has selected annual pension payments - the 15th of the month
selected by the Member under regulation I 96Q( 1 )(b);

"Term Allocated Pension" means a pension payable

under this Part;

"Term Allocated Pension account" means an account

kept under regulation 196E.

Division 2 - Membership and purchase

196B. Members

(1) A person may apply to become a Term Allocated

Pension Member if he or she is -

(a)	a Member;
(b)	in receipt of, or entitled to receive, a pension under the Pension Scheme;
(c)	a former member, or a person who is or was a partner of a former member; or
(d)
and is entitled to immediate payment of—	a Term Allocated Pension Member applying for Pension,
(e)	a benefit from another scheme or another superannuation fund; or

(1) any other eligible termination payment.

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(2)	The Board is to accept an application under this regulation unless the Board considers that the applicant, if accepted as a Term Allocated Pension Member, will not comply with regulation 196D.
(3)	If a person becomes a Term Allocated Pension Member for a second or subsequent Term Allocated Pension, these regulations apply as if he or she were, in respect of each Term Allocated Pension, a separate person.

196C. Cessation of membership

A person ceases to be a Term Allocated Pension
Member when the balance in the Member's Term

Allocated Pension account is reduced to zero.

196D. Transfer of benefit or ETP

(1) When a person becomes a Term Allocated Pension

Member he or she must transfer to the Term Allocated Pension Scheme all or part of the benefit, lump sum or eligible termination payment referred to in

regulation 196B.

(2) The person may also transfer to the Term Allocated

Pension Scheme all or part of any other -

(a)	benefit that is immediately payable to the person from another scheme or another superannuation fund; or
(b)	eligible termination payment immediately payable to the person.

(3) A transfer under subregulation (1) or (2) must be made before the person's first pension day.

(4) The total amount transferred under subregulations (1)

and (2) must not be less than -
(a)	$30 000 for a person's first Term Allocated Pension; or
(b)	$10 000 for a second or subsequent Term Allocated Pension,

unless the Board agrees to accept a lesser amount.

(5) A transfer under this regulation must be made to the
Term Allocated Pension Scheme directly from the
other scheme or superannuation fund or the payer of
the eligible termination payment.

Division 3 - Term Allocated Pension accounts

196E. Term Allocated Pension accounts

(1) The Board is to establish and maintain in the Fund a
Term Allocated Pension account for each Term
Allocated Pension Member.

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(2) The Board may divide a Term Allocated Pension

account into 2 or more sub-accounts.

196F. Member may divide account into sub-accounts

(1) A Term Allocated Pension Member may request the

Board to divide the Member's Term Allocated Pension account into a cash sub-account and an investment sub-account.

(2) The Member must set Out in a request under

subregulation (1) -

(a)	the amount that is to be allocated to each sub-account (the sum of which must be equal to the balance of the Member's account); or
(b)	the proportion of the balance of the account that is to be allocated to each sub-account,

at the time the sub-accounts are established.

(3) A Member whose Term Allocated Pension account has

been divided into sub-accounts under this regulation
may request the Board to -

(a)	transfer a specified amount from one sub-account to the other;
(b)	change the proportion of the balance of the Member's account that is held in each sub-account; or
(c)	combine the sub-accounts into a single account.

(4) The Board is to comply with a request under

subregulation (1) or (3) but is not otherwise required to
ensure that the balances of the sub-accounts remain in

accordance with the requested amounts or proportions.

196G. Amounts to be credited to Term Allocated Pension

accounts

(1) The Board is to credit to a Term Allocated Pension
Member's Term Allocated Pension account -

(a)	the amounts transferred to the Term Allocated Pension Scheme under regulation 1961); and
(b)	earnings in accordance with regulation 1961.

(2) The Board may temporarily keep amounts transferred for a Term Allocated Pension Member, together with amounts transferred for other Term Allocated Pension Members, in an account maintained for that purpose

until those amounts are credited to the appropriate
benefit accounts.

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196H. Amounts to be debited to Term Allocated Pension

accounts

(1) The Board is to debit to a Term Allocated Pension

Member's Term Allocated Pension account any amounts paid as benefits to, or in respect of, the Member under Division 5.

(2) The Board may debit to a Term Allocated Pension

Member's Term Allocated Pension account -

(a)

administrative costs to the extent that they have determination of earning rates under regulation 1961; and

(b) any tax or other amounts required by a written law or a law of the Commonwealth to be paid by the Board in respect of the Member.

(3) The Board may only debit an amount to a Term

Allocated Pension account under subregulation (2)(a) if an actuary has advised that it is appropriate for that amount to be debited to that account.

(4) If a Member's Term Allocated Pension account has

been divided into sub-accounts under regulation 196F,
then to the extent that the balance of the relevant
sub-account is sufficient to allow it to do so, the Board

is to debit—

(a)	Term Allocated Pension payments made under regulation 196R to the Member's cash sub-account; and
(b)	any other amount that is to be, or may be, debited to the Member's Term Allocated Pension account, to the Member's investment

sub-account,

unless the Member requests otherwise.

1961. Earnings

(1) The Board is to credit earnings to each Term Allocated Pension Member's Term Allocated Pension account at a rate equal to the Member's earning rate on the

balance of the account -

(a)	at least once every year; and
(b)	when a lump sum benefit is to be paid, or an amount transferred, from the Member's Term Allocated Pension account under Division 5.

(2) The Board is to decide whether the earning rate is to be applied to daily balances, average balances or on some other basis.

(3) If a Member's Term Allocated Pension account has

been divided into sub-accounts under regulation 196F
the Board is to credit earnings to each sub-account as if
it were a separate Term Allocated Pension account.

5900 GOVERNMENT GAZETTE, WA 10 December 2004

Division 4— Member investment choice

196J.	Interpretation
In this Division - "default plan" means the readymade investment plan

selected by the Board under regulation 196L as the default plan for Term Allocated Pension Members;

"personalised investment plan" means an investment

plan established under regulation 196K(4);

"readymade investment plan" means an investment

plan established under regulation 196K(l).

196K. Board to establish investment plans

(1)	The Board is to establish one or more investment plans for Term Allocated Pension Members with asset allocations determined by the Board.
(2)	One of the investment plans established under subregulation (1) must provide for investment in cash only.
(3)	Subject to subregulation (2), the Board may alter the asset allocation for a readymade investment plan whenever the Board considers it appropriate to do so.
(4)	The Board may establish an investment plan under which a Term Allocated Pension Member who selects that plan may select the Member's own asset allocation subject to any conditions determined by the Board.
(5)	The Board must notify all Term Allocated Pension Members of—

(a) the establishment of a new investment plan for Term Allocated Pension Members including, in the case of a readymade investment plan, the

asset allocation for that plan;

(b)	any material change in the asset allocation of a readymade investment plan; and
(c)	any material change in the conditions applying to a personalised investment plan,

before, or as soon as practicable after, the

establishment or change occurs.

196L.	Default plan
(1)	The Board is to select one of the readymade investment plans as the default plan for Term Allocated Pension Members.
(2)	The Board may change the plan selected as the default plan whenever the Board considers it appropriate to do
SO.

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(3) The Board must notify all Term Allocated Pension Members of any change of the selected default plan before, or as soon as practicable after, the change

occurs.

196M. Member to select investment plan

(1)	A Term Allocated Pension Member is to select an investment plan to be used in determining the Member's earning rate and give notice of that selection to the Board.
(2)	If a Member selects a personalised investment plan the Member must also select the asset allocation to be applied to the Member's assets and give notice of that selection to the Board.
(3)	A Member may change his or her selection under subregulation (1) or (2) at any time by giving notice to the Board, and the Board must give effect to the notice as soon as practicable.
(4)	Until a Term Allocated Pension Member selects otherwise the Member is taken to have selected the default plan.

196N. Board to invest assets to reflect Member's choice

(1) For each Term Allocated Pension Member who selects a readymade investment plan the Board must, as far as is practicable -

(a)	invest the Member's assets in accordance with the asset allocation determined under regulation 196K for that investment plan; and
(b)	ensure that the investment of the Member's assets remains in accordance with that asset
allocation until the Member selects a different
investment plan.

(2) For a Term Allocated Pension Member who selects a

personalised investment plan the Board must invest the Member's assets as at the time the selection was made in accordance with the asset allocation selected by the Member, but the Board is not required to ensure that

the investment of the Member's assets remains in

accordance with that asset allocation.

(3) If a Member's Term Allocated Pension account is

divided into sub-accounts under regulation 196F, the Board is to invest the Member's assets in accordance with this regulation as if—

(a) each of the sub-accounts were a Term

Allocated Pension account maintained for a separate person;

5902 GOVERNMENT GAZETTE, WA 10 December 2004

(b)	the person for whom the investment sub-account is maintained had selected, under regulation 196M, the investment plan selected by the Member under that regulation; and
(c)	maintained had selected, under

the person for whom the cash sub-account is to in regulation 196K(2).

(4) In this regulation -

"Member's assets" means the assets of the Fund that

represent the Term Allocated Pension account of a

Term Allocated Pension Member.

1960. (1) At the end of each financial year and at any other time	Determination of earning rates
when the Board considers it desirable to do so, an earning rate is to be determined for -

(a)	each readymade investment plan; and
(b)	each Term Allocated Pension Member who has selected a personalised investment plan.

(2) The earning rates are to be determined -

(a)	by the Board; or
(b)	on behalf of the Board in accordance with procedures or formulae determined by the Board.

(3) In determining an earning rate, or the procedures or

formulae to be used to determine an earning rate, the

Board must have regard to -

(a) the nett rate of return achieved by the investment of the assets of the Fund that represent the Term Allocated Pension accounts of the Members to whom the earning rate will

apply;

(b)	administrative costs; and
(c)	the desirability of averaging returns in order to reduce fluctuations in earning rates.

(4) An earning rate may be positive or negative.

Division 5 - Pension and other benefits

196P.	Selection of pension period
(1)	A Term Allocated Pension Member is to select the period for which the Member's Term Allocated Pension is to be paid and give notice of that selection to the Board before the Member's first pension day.
(2)	Subject to subregulation (3), the period selected must be a whole number of years that is -

(a) not less than the Member's life expectancy; and

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(b) not more than what would be the Member's life expectancy if he or she were 5 years younger.

(3) If—

(a)	the Member has selected a reversionary pension under regulation 196T;
(b)	the selected reversionary pensioner is the Member's partner; and
(c)	the partner's life expectancy is greater than the Member's,

then the period selected by the Member may be a

whole number of years that is -

(d)	not less than the partner's life expectancy; and
(e)	not more than what would be the partner's life expectancy if he or she were 5 years younger.

(4) In this regulation -

"life expectancy", in relation to a person, means the

ascertained when the person became a Term number of years in the person's expectation of life recent Australian Life Tables published by the Australian Government Actuary, rounded up to the nearest whole number.

196Q.	Selection of payment frequency
(1)	A Term Allocated Pension Member is to select -

(a)	whether the Member's Term Allocated Pension is to be paid monthly, quarterly or annually; and
(b)	if the Member selects annual payments, the month in which the Member's Term Allocated
Pension is to be paid,

and give notice of those selections to the Board. (2) A Member may change his or her selection under

subregulation (1) at any time by giving notice to the
Board.

(3) Until a Term Allocated Pension Member selects otherwise the Member is taken to have selected monthly pension payments.

196 R. (1) The annual pension amount for a Term Allocated	Payment of Term Allocated Pension
Pension Member is -

(a) in the financial year in which he or she

becomes a Term Allocated Pension Member -
the SIS annual amount calculated as at the day

5904 GOVERNMENT GAZETTE, WA 10 December 2004

he or she becomes a Term Allocated Pension
Member; and

(b) in each subsequent financial year - the SIS annual amount calculated as at 1 July in that year.

(2)	If a Term Allocated Pension Member commutes part of his or her Term Allocated Pension the annual pension amount for the period from the commutation date to the end of the financial year in which the commutation occurs is the SIS annual amount calculated as at the commutation date.
(3)	On each pension day the Board is to pay to a Term Allocated Pension Member an amount equal to the Member's annual pension amount divided by the
number of the Member's pension days in the financial year.
(4)	If, on a pension day, the balance of a Member's Term Allocated Pension account is less than the amount due to be paid under subregulation (3), the amount to be
paid is an amount equal to that balance.
(5)	If after a Term Allocated Pension Member's last pension day there is still an amount in the Member's Term Allocated Pension account, the Board is to pay the Member a lump sum benefit of an amount equal to that amount within 28 days after the end of the pension period selected by the Member.
(6)	In this regulation - "SIS annual amount" means the amount prescribed

under the SIS Act as the total amount of payments that a superannuation fund's rules must require to be made in a year in order for a market linked

pension payable for a term equal to the pension

period selected by the Member to be taken to be a

pension for the purposes of the SIS Act.

196S. Commutation

(I) A Term Allocated Pension Member may request the

Board to commute some or all of his or her Term

Allocated Pension if—

(a) the request -

(i)     is made within 6 months after he or she became a Term Allocated Pension Member; and

(ii) transferred to the Term Allocated
Pension Scheme under regulation 196D does not relate to any amount SIS annuity or pension;

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(b)	the commuted amount is to be used to pay contributions tax; or
(c)	the commuted amount is to be used to purchase -

(i)     another Term Allocated Pension; or

(ii)     another SIS annuity or pension.

(2) Subject to subregulation (3), the Board is to comply

with a request under subregulation (1) and pay or
transfer the commuted amount, in the case of a request

under -

(a)	subregulation (1)(a) - to, or as requested by, the Member;
(b)	subregulation (1)(b) - to the Member for payment to the Commonwealth Commissioner of Taxation;
(c)	subregulation (1)(c)(i) - to a new Term Allocated Pension account for the Member; or
(d)	subregulation (1 )(c)(ii) - to the provider of the SIS annuity or pension.

(3) The Board must not commute a Term Allocated

Pension unless, or until, any applicable SIS minimum amount has been paid.

(4) In this regulation -

"contributions tax" means tax imposed by the

Superannuation Contributions Tax Imposition Act 1997 or Superannuation Contributions Tax (Members of Constitutionally Protected
Superannuation Funds) Imposition Act 1997 of the

Commonwealth;

"SIS annuity or pension" means a benefit that is

taken to be an annuity or pension for the purposes

of the SIS Act;

"SIS minimum amount" means the amount

prescribed under the SIS Act as the minimum
amount that a superannuation fund's rules must
require to have been paid before a market linked
pension can be commuted in order for the pension
to be taken to be a pension for the purposes of the

SIS Act.

196'!'. Death benefit options

(1) A Term Allocated Pension Member is to select -

(a) whether the benefit to be paid on the Member's

death (if he or she dies while still a Term
Allocated Pension Member) is to be -

(i) a lump sum benefit under

regulation 196U; or

5906 GOVERNMENT GAZETTE, WA 10 December 2004

(ii) a reversionary pension under
regulation 196V;

and

(b) if the Member selects a reversionary pension,
the person to whom that pension is to be paid,

and give notice of those selections to the Board before

the Member's first pension day.

(2)	The person selected under subregulation (1)(b) must be a partner or dependant of the Member.
(3)	If a Term Allocated Pension Member has not given notice of the Member's selection to the Board before the Member's first pension day, or the Member's selection under subregulation (1)(b) does not comply with subregulation (2), the Member is taken to have selected a lump sum death benefit.
196U.	Lump sum death benefit
If a Term Allocated Pension Member who selected a lump sum death benefit dies while there is still an amount in the Member's Term Allocated Pension account, the Board is to pay a benefit of an amount equal to the balance of the account to the executor or administrator of the Member's estate.
196V.	Reversionary pension

(1) On and after the death of a Term Allocated Pension

Member who selected a reversionary pension (the

"primary Member") -

(a)	the Term Allocated Pension that would have been payable to the primary Member had he or she not died is to be paid to the reversionary pensioner; and
(b)	these regulations apply as if the reversionary

pensioner were the primary Member.

(2) If a reversionary pensioner dies while there is still an

amount in his or her Term Allocated Pension account, the Board is to pay a benefit of an amount equal to the balance of the account to the executor or administrator of the reversionary pensioner's estate.

8.            Regulation 244 amended

Regulation 244(la) and (2) are repealed and the following subregulation is inserted instead -

44

(2) The cost to the Fund (if any) of paying a benefit under this regulation is to be assessed by an actuary and paid to the Fund by the person specified by the Treasurer in the direction.

10 December 2004 GOVERNMENT GAZETTE, WA 5907

9.            Regulation 246B inserted

After regulation 246A the following regulation is inserted in
Division 1 -

246B. Exercise of investment powers after death or for

incapacitated Member

(1) When a benefit (other than a reversionary pension) is

payable because a Member has died the investment
powers that would be exercisable by the Member if he
or she were alive and entitled to the benefit may be
exercised -

(a) if the benefit is payable to the executor or administrator of the estate of a Member -

(i)     until probate of the will, or administration of the estate, of the Member is granted, by the Board; and

(ii)     thereafter, by the executor or administrator;

or

(b) otherwise, by the Board.

(2) If, under regulation 242, the Board does not pay a

benefit to a person entitled to it, the investment powers

exercisable by that person may be exercised -

(a)	if there is a person authorised by or under a written law to administer the entitled person's affairs, by that authorised person; or
(b)	otherwise, by the Board.

(3) When exercising a power under this regulation the

Board is to act in what it reasonably considers to be the best interests of the person who is or will become

entitled to the benefit.

(4) In this regulation -

"investment powers" means the powers exercisable

by a Member under the regulations relating to
investment choice for Members of the scheme of

which the Member was a member.

Certified under section 3 8(4) of the Act -

DERMOT BALSON 15/11/04
Date

5908 GOVERNMENT GAZETTE, WA 10 December 2004

Approved under section 38(5) of the Act —

ERIC RIPPER	30/11/04
Treasurer	Date
By Command of the Governor,

M. TRAVERS, Clerk of the Executive Council.