Superannuation (Resolution of Complaints) Regulations (Amendment) 1995 No. 429
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 429
Issued by the authority of the Treasurer
Superannuation (Resolution of Complaints) Act 1993
Superannuation (Resolution of Complaints) Regulations (Amendment)
The Superannuation (Resolution of Complaints) Act 1993 (the Act) established, with effect from 1 July 1994, the Superannuation Complaints Tribunal. The Tribunal has the objectives of providing a fair, economical, informal and quick mechanism for:
• the conciliation of complaints made by members of regulated superannuation and approved deposit funds; and
• if conciliation is not successful at resolving the complaint - the review of the fund trustee decision to which the complaint relates.
Section 68 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
Amendments to the Act effected by the Superannuation Industry (Supervision) Legislation Amendment Act 1995 expand the jurisdiction of the Superannuation Complaints Tribunal to enable it to:
• review and make determinations in respect of insurer decisions relating to death and disability benefits provided through regulated superannuation funds; and
• refer a complaint, or part of complaint, to another body that has power to deal with such a complaint.
In summary, the regulations specify, firstly, that the prescribed period for objecting to an insurer's decision concerning the payment of a death benefit under an annuity policy is 28 days. If the person objects to the insurer's proposed payment, the insurer must then give that person written notice of the insurer's decision in respect of the person's objection to the payment. This written notice must also inform the person of the prescribed period, also 28 days, within which the person must complain to the Tribunal about the insurer's decision.
Secondly, the regulations specify the complaint-handling bodies the Tribunal may refer a complaint to where, for example, the complaint is not within the Tribunal's jurisdiction or where the complaint may be better dealt with by another complaint-handling body.
The regulations are described in detail in the attachment The regulations will commence on gazettal.
ATTACHMENT
Superannuation (Resolution of Complaints) Regulations (Amendment)
Regulation 1 - Amendment
Regulation 1 provides that the Superannuation (Resolution of Complaints) Regulations (the Principal Regulations) are amended as set out in these Regulations.
Regulation 2 - Regulation 5 (Complaints relating to payment of benefits)
Regulation 2 deletes the existing Principal Regulation 5 and inserts a new Principal Regulation 5 that prescribes for the purposes of paragraph 14(3)(b), subparagraph 15(2)(a)(ii), paragraph 15B(2)(b) and subparagraph 15C(2)(a)(ii) of the Act the prescribed period is 28 days.
Regulation 3 - New Regulation 6 and Schedule
Regulation 3 inserts a new regulation 6 into the Principal Regulations which provides that for the purposes of subsection 22A(1) of the Act a body specified in the Schedule to Regulation 6 is prescribed.
Overview
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1995 No. 429 were introduced to amend existing regulations under the Superannuation (Resolution of Complaints) Act 1993. This Act was enacted to establish the Superannuation Complaints Tribunal, which aims to provide a fair, economical, informal, and quick mechanism for conciliating complaints made by members of regulated superannuation funds and reviewing fund trustee decisions when conciliation is not successful. The amendments address the expansion of the Tribunal's jurisdiction to include insurer decisions relating to death and disability benefits provided through regulated superannuation funds, and the ability to refer complaints to other bodies with relevant powers. The regulations specify a 28-day period for objecting to insurer decisions concerning the payment of death benefits and outline the bodies to which complaints may be referred if they fall outside the Tribunal's jurisdiction. These regulations were issued by the authority of the Treasurer and are intended to enhance the efficiency and scope of complaint resolution within the superannuation industry.
Scope and Application
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1995 No. 429 amends the Superannuation (Resolution of Complaints) Regulations under the authority of the Treasurer. This regulation operates in conjunction with the Superannuation (Resolution of Complaints) Act 1993 and the Superannuation Industry (Supervision) Legislation Amendment Act 1995. It applies to regulated superannuation and approved deposit funds, specifically targeting fund members who have complaints regarding benefit payments or decisions made by fund trustees or insurers. The regulations also provide for the referral of complaints to other designated complaint-handling bodies where appropriate. The jurisdictional reach of these regulations is national, given that they are made under the Commonwealth’s legislative power. The regulations establish a 28-day period for objecting to insurer decisions regarding the payment of death benefits and outline the procedure for making complaints to the Superannuation Complaints Tribunal. The regulations will commence upon gazettal and will apply to all relevant entities and individuals within the specified scope.
Key Provisions
The main operative sections of the Superannuation (Resolution of Complaints) Regulations (Amendment) 1995 No. 429 (the Regulations) pertain to the amendment of the existing Superannuation (Resolution of Complaints) Regulations (the Principal Regulations) (Regulation 1) and the introduction of a new Regulation 5 (Regulation 2) and a new Regulation 6 and Schedule (Regulation 3). Regulation 2 modifies the prescribed period for objecting to an insurer's decision concerning the payment of a death benefit under an annuity policy, setting it at 28 days (Regulation 2). This amendment is intended to provide clarity and ensure that objections are lodged within a specified timeframe. Regulation 3 introduces a new Regulation 6 and Schedule, which specifies the complaint-handling bodies the Superannuation Complaints Tribunal may refer a complaint to (Regulation 3). These amendments are designed to ensure that complaints are handled efficiently and effectively, particularly in relation to insurer decisions concerning death benefits and referrals to other complaint-handling bodies.
The Act imposes several obligations on the parties and entities it governs. Firstly, it requires individuals who object to an insurer's decision concerning the payment of a death benefit under an annuity policy to do so within 28 days of the decision (Regulation 2). This timeframe is critical in ensuring that the complaint process is timely and efficient. Secondly, the Act requires insurers to provide written notice to the objector, detailing the insurer's decision and the prescribed period within which the objector must complain to the Tribunal (Regulation 2). These obligations are intended to streamline the complaint resolution process and ensure that all parties are aware of their rights and responsibilities.
The Regulations also establish the consequences for non-compliance with the Act. While the Explanatory Statement does not detail specific offences, penalties, or civil/criminal consequences for breach, it is reasonable to infer that failure to comply with the prescribed timeframes or obligations could result in a complaint being dismissed or other legal consequences. The primary focus of the Regulations appears to be on ensuring that the complaint resolution process is fair, economical, informal, and quick, with the potential for civil or administrative penalties for non-compliance. However, the specific penalties are not outlined in the provided text and would need to be referenced in the principal Act or further regulations.