Superannuation (Resolution of Complaints) Regulations (Amendment) 1997 No. 118
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 118
Issued by the authority of the Assistant Treasurer
Superannuation (Resolution of Complaints) Act 1993
Superannuation (Resolution of Complaints) Regulations (Amendment)
Section 68 of the Superannuation (Resolution of Complaints) Act 1993 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
The Act established, with effect from 1 July 1994, the Superannuation Complaints Tribunal (the Tribunal). The Tribunal has the objectives of providing a fair, economical, informal and quick alternative to the courts for resolution of disputes between members of certain regulated superannuation fluids and approved deposit funds and the trustees of the fund.
Amendments to the Act, effected by the Retirement Savings Accounts (Consequential Amendments) Act 1997, expand the jurisdiction of the Tribunal by allowing it to also deal with complaints concerning Retirement Savings Accounts (RSAs). As a result of those amendments to the Act, the amendments to the Superannuation (Resolution of Complaints) Regulations (the Principal Regulations) are necessary to:
* omit the regulation outlining circumstances in which disability complaints will be classified as excluded complaints (refer regulations 3 and 4);
* provide that the prescribed period for objections and complaints in relation to a decision concerning the payment of death benefits also includes such a decision by an RSA provider or insurer where premiums are paid from an RSA (refer regulation 5);
* provide that the method for calculating interest on monies that have been ordered to be repaid by the Tribunal also includes monies received under an RSA or contract of insurance, the premiums for which are paid from an RSA (refer regulation 6); and
* include the Insurance Enquiries and Complaints Limited to the list of complaint-handling bodies to which the Tribunal may refer a complaint (refer regulation 7).
The Regulations are described in detail in the Attachment.
The Regulations commence on the date of commencement of the Retirement Savings Accounts Act 1997 (RSA Act).
The RSA Act has been proclaimed to commence on 2 June 1997. The Regulations are made under section 4 of the Acts Interpretation Act 1901, which allows the Regulations to be made before the RSA Act comes into operation.
The Office of Regulation Review have advised that a Regulation Impact Statement is not necessary in respect of these Regulations.
ATTACHMENT
Regulation 1 - Commencement
Regulation 1 provides that these Regulations will commence on the date of commencement of the Retirement Savings Accounts Act 1997.
Regulation 2 - Amendment
Regulation 2 provides that the Superannuation (Resolution of Complaints) Regulations (the Principal Regulations) are amended as set out in these Regulations.
Regulation 3 - Regulation 3 (Interpretation)
Regulation 3 omits the definition of 'disability benefit' from regulation 3 of the Principal Regulations. This reflects the amendments to regulation 4 of the Principal Regulations as made by regulation 4.
Regulation 4 - Regulation 4 (Excluded complaints)
Regulation 4 omits regulation 4 of the Principal Regulations which outlines the circumstances in which disability complaints will be classified as excluded complaints (and therefore not able to be considered by the Tribunal). Regulation 4 is omitted as these circumstances are now set out in the Act.
Regulation 5 - Regulation 5 (Payment of death benefits - period for objections and complaints)
Regulation 5 amends regulation 5 of the Principal Regulations which provides that the prescribed period for objections and complaints in relation to decisions regarding the payment of death benefits is 28 days.
The amendment provides that this prescribed period will apply for the purposes of paragraph 15F(2)(b), subparagraph 15G(2)(a)(ii), paragraph 15J(2)(b) and subparagraph 15(J)(2)(a)(ii) of the Act (as amended by the Retirement Savings Accounts (Consequential Amendments) Act 1997) in respect of a decision by an RSA provider or insurer (in relation to a contract of insurance where the premiums are paid from an RSA) to pay a death benefit.
Regulation 6 - Regulation 7 (Method of calculation of interest)
Regulation 6 amends regulation 7 of the Principal Regulations which sets out the method of calculating interest on monies that have been ordered to be repaid by the Tribunal.
The amendment provides that, for the purposes of subparagraphs 37D(3)(a)(iv), 37D(5)(a)(iv), 37F(3)(a)(iv) and 37F(5)(a)(iv) of the Act (as amended by the Retirement Savings Accounts (Consequential Amendments) Act 1997), interest on any monies received under an RSA or money received under a contract of insurance, the premiums for which are paid from an RSA, is to be worked out in accordance with the formula specified in regulation 7 of the Principal Regulations.
Regulation 7 - Schedule 2 (Complaint-Handling Bodies)
Regulation 7 amends Schedule 2 of the Principal Regulations to include the Insurance Enquiries and Complaints Limited to the list of complaint-handling bodies that the Tribunal can refer complaints to under subsection 22A(1) of the Act.
This amendment is necessary as amendments made to the Act by the Retirement Savings Accounts Act 1997 will enable a complaint to be made to the Tribunal about the decision of a general insurance company in relation to an insurance policy, the premiums for which are paid from an RSA.