Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 (No. 3)

Overview

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (3) was enacted to amend the Superannuation (PSSAP) Unit Pricing Determination 2005, addressing the need to adjust unit pricing for various investment options. This Determination was introduced by the PSS Board in accordance with PSSAP Rules 5.2.1, 5.4.2, and 5.4.3, which allow for investment choice among members. The principal instrument, the Superannuation (PSSAP) Unit Pricing Determination 2005, provides for the buy and sell prices of units within different investment strategies, with the amendment specifically updating the pricing for the date specified in the new schedule. The policy objective is to ensure that unit prices are accurately and transparently applied, facilitating fair and informed investment decisions by superannuation fund members.

Scope and Application

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (3) serves to amend the Superannuation (PSSAP) Unit Pricing Determination 2005, introducing modifications to the unit pricing schedules within the specified superannuation fund. This Determination applies to all members of the fund who are eligible to make investment choices, thereby impacting those who participate in the fund's various investment strategies. The unit pricing amendments specifically address the buy and sell prices of units in the fund, which are critical for determining the number of units allocated to members and the value of units redeemed. The Amendment operates by updating the unit pricing schedules, with Schedule 2 being revised to include new buy and sell prices effective from a specified date. This ensures that members are informed of the current unit prices and can make informed decisions regarding their investments. The changes are effective from the date specified in the Amendment, thus directly affecting the fund’s operations and the rights of its members.

Key Provisions

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (3) amends the Superannuation (PSSAP) Unit Pricing Determination 2005, primarily by adjusting the unit prices for each investment option. Specifically, it modifies Schedule 2 of the principal instrument to reflect new buy and sell prices for each of the 11 investment options available, applicable from a specified date (sections 3 and 4). These buy and sell prices are essential for calculating the number of units allocated to members when they contribute to or withdraw from their superannuation funds. The obligations imposed by this Determination on the PSS Board include ensuring that the new unit prices are correctly applied and communicated to all relevant parties. This involves accurately setting and publishing the buy and sell prices for each investment option as detailed in Schedule 2 of the amended instrument (section 4). The PSS Board must also ensure that these prices are used in the calculation of the units purchased or redeemed based on the amounts contributed to or withdrawn from the investment strategies. Breaching the provisions of this Determination can lead to civil and criminal consequences. While the specific penalties are not detailed in the explanatory statement, such breaches typically fall under the broader superannuation laws, which can include fines and other civil penalties for non-compliance. Additionally, in severe cases, criminal penalties may apply, including imprisonment, depending on the nature and severity of the breach. The precise penalties would be determined in accordance with the governing superannuation legislation, such as the Superannuation Industry (Supervision) Act 1993.