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Tuesday, 17 February 1987
Page: 4

(Question No. 941)

Senator Messner asked the Minister representing the Treasurer, upon notice, on 20 February 1986:

What assurances would an employee have that he or she would not have to go through an expensive legal process to have accumulated funds transferred to a fund of the employee's choice if a person elects to leave a union and was a member of the union scheme.

Senator Walsh —The Treasurer has provided the following answer to the honourable senator's question:

A person leaving a union or an employer would not necessarily have to leave a union scheme. The announced superannuation standards reflect the Government's view that funds should be encouraged to allow, where possible, inwards and outwards portability of benefits. The standards provide for benefits to be held (subject to observance of the preservation requirements) in one of the following:

a superannuation fund which an employee is leaving;

another superannuation fund which the employee is joining, where the fund is prepare to accept a transfer payment;

a section 23FB superannuation fund of the employee's choice;

an approved deposit fund of the employee's choice; and

a deferred annuity.

Whether a fund releases a member's benefits for preservation in one of the ways listed above would be dependent on the provisions in the fund's trust deed. It is not envisaged that, in the normal course, any of these arrangements to facilitate portability would involve legal expense for the employee.