Australian Government, The Treasury -

Review of Pensions in Small Superannuation Funds

Draft Regulations

Attached for public comment are exposure drafts of the following regulations:

These regulations aim to give effect to the Government's decision, announced on 27 September 2005, on the outcome of the review of pensions in small superannuation funds. The regulations are intended to take effect from 1 January 2006.

The regulations:

The regulations specify a few matters that were not covered in the Government's announcement on the review. The smoothing mechanism has been extended to existing market linked income streams. The amendments define account balance for market linked and allocated pensions to include attributable fund reserves. Providers will also have the opportunity to use old allocated pension and annuity factors until 30 June 2006, avoiding the need for systems and documents to be updated by 1 January 2006. The drafts also contain a number of minor technical matters to ensure consistency between pension standards for retirement savings accounts and superannuation funds.

Please provide comments on the draft regulations by Wednesday 16 November. Comments can be made about errors, omissions, clarity, coherency, consistency and implementation matters. Your comments will be taken into account before the regulations are finalised.

Please email comments to:

dbpensionreview@treasury.gov.au

Alternatively, forward comments to:

The Manager
Retirement Income and General Rules Unit
Superannuation, Retirement and Savings Division
The Treasury
Langton Crescent
PARKES ACT 2600