EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (PROVISION OF INFORMATION – PUBLIC SECTOR SUPERANNUATION SCHEME) AMENDMENT DETERMINATION 2005 (No.1)
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
In this instrument the Attorney-General provides, by written determination under subregulation 64(7) of the Family Law (Superannuation) Regulations 2001 (the Principal Regulations), for the matters about which the trustee of the Public Sector Superannuation Scheme (the Scheme) is required to provide information, under the family law and superannuation reforms permitting superannuation to be split on marriage breakdown, in respect of a further category of interests in the Scheme for which he has approved an alternative valuation method.
The Attorney-General, in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2005 (No. 4), approved an alternative valuation method for an additional category of interests in the Scheme.
The information relates to information requirements about interests within the additional category.
The information which the trustee is required to provide will enable spouses to value superannuation interests within the additional category in accordance with the alternative valuation method which has been approved.
When alternative valuation methods were initially approved in relation to interests in the Scheme in March and May 2004, there was no power under the Principal Regulations to make a determination about information requirements under the reforms in respect of a superannuation interest that is in the payment phase.
The power to make a determination in respect of such an interest that is paying benefits as a lifetime pension was inserted in the Principal Regulations by the Family Law (Superannuation) Amendment Regulations 2004 (No.1) in September 2004.
The power is contained in subregulation 64(7B) of the Principal Regulations.
Following on the insertion of that power, the Attorney-General, in this instrument, provides by written determination, under subregulation 64(7B), for the matters about which the trustee of the Scheme is required to provide information, under the reforms, in respect of a superannuation interest that is in the payment phase for which an alternative valuation method was approved, in March 2004, by the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2004 (No.2).
When provided to a spouse, that information will enable the spouse to value a superannuation interest in the Scheme that is in the payment phase and paying benefits as a lifetime pension in accordance with that alternative valuation method.
In the instrument, the Attorney-General also provides that the trustee of the Scheme is not required to provide information relevant to valuing a superannuation interest in accordance with the default methods under the reforms which the alternative valuation methods replace.
Finally, the Attorney-General in the instrument also makes adjustments to the matters on which the trustee of the Scheme is not required to provide information in respect of other interests for which he approved alternative valuation methods in March and May 2004. The adjustments are consequential on the inclusion by the Family Law (Superannuation) Amendment Regulations 2004 (No.1) in the Principal Regulations of default methods for valuing a defined benefit superannuation interest held by a party to a marriage as a result of employment in which the party is, at the time of valuation, no longer engaged.
The instrument incorporates by reference the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003, the instrument containing the alternative valuation methods approved under the Principal Regulations for the purpose of the family law and superannuation reforms, which can be viewed at the following website:
http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrumentCompilation1.nsf/current/bytitle/0C1BC81DBE638317CA256FAB000F0455?OpenDocument&mostrecent=1
A copy of the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003 may be purchased from CanPrint Information Services, PO Box 7456, Canberra MC ACT 2610 (telephone: 1300 656 863).
Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Commonwealth Superannuation Administration (ComSuper) by way of exchange of correspondence and discussions.