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Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019

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8761

2019

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Treasury Laws Amendment (Putting Members’ Interests First) Bill 2019

 

 

(1)     Schedule 1, item 1, page 4 (after line 31), at the end of section 68AAB, add:

             (7)  This section is subject to section 68AACA.

[dependent child ren]

(2)     Schedule 1, item 1, page 5 (after line 29), at the end of section 68AAC, add:

             (5)  This section is subject to section 68AACA.

[dependent children]

(3)     Schedule 1, item 1, page 5 (after line 29), after section 68AAC, add:

68AACA   Restoration of benefits for permanent incapacity and death for certain MySuper members with dependent children

             (1)  This section applies if a MySuper member (an affected member ) of a regulated superannuation fund would not be provided death benefit and permanent incapacity benefit ( relevant benefits ) because of sections 68AAB and 68AAC.

             (2)  A trustee of the fund may cause an affected member to be provided relevant benefits by taking out or maintaining insurance if all of the following apply:

                     (a)  the trustee knows the affected member has one or more dependent children;

                     (b)  a notice has been given to the affected member under subsection (3) of this section;

                     (c)  a period of 28 business days beginning after the date on which the notice was given to the affected member has ended;

                     (d)  the affected member has not made the election mentioned in the notice before the end of that period.

Notices

             (3)  If a trustee of the fund knows an affected member has one or more dependent children, the trustee may give an affected member a notice in writi ng:

                     (a)  stating:

                              (i)  the trustee is considering providing relevant benefits to the affected member by taking out or maintaining insurance because the affected member has one or more dependent children; and

                             (ii)  the provision of those benefits will begin after the end of a period of 28 business days beginning after the date on which the notice was given; and

                            (iii)  if the affected member does not want to be provided those benefits, the affected member must elect to not receive those benefits before the end of that period; and

                     (b)  setting out the method by which the member can make such an election in writing.

             (4)  If a trustee of the fund does not know whether an affected member has one or more dependent children, the trustee may give an affected member a notice in writing that:

                     (a)  asks the affected member to give the fund written notice as to whether the member has any dependent children; and

                     (b)  explains that a notice may be given to the affected member under subsection (3) if the trustee is considering whether to provide relevant benefits to the affected member.

Record keeping

             (5)  Each trustee of the fund must ensure that:

                     (a)  a record is kept of:

                              (i)  each notice given under subsection (3) or (4) to an affected member; and

                             (ii)  each election made by an affected member; and

                     (b)  the record is retained for at least 5 years beginning after the notice was given or the election was made; and

                     (c)  the record is made available for APRA to inspect.

             (6)  A trustee of the fund commits an offence of strict liability if the trustee contravenes subsection (5).

Penalty:   50 penalty unit s.

Miscellaneous

             (7)  This section does not apply to:

                     (a)  a defined benefit member; or

                     (b)  an ADF Super member (within the meaning of the Australian Defence Force Superannuation Act 2015 ); or

                     (c)  a person who would be an ADF Super member apart from the fact that the regulated superannuation fund is or was, for the purposes of Part 3A of the Superannuation Guarantee (Administration) Act 1992 , a chosen fund for contributions for the person’s superannuation by the Commonwealth; or

                     (d)  a member to whom the employer-sponsor contribution exception applies (see section 68AAE).

             (8)  A dependent child , in relation to an affected member, is a person in relation to whom:

                     (a)  both of the following apply:

                              (i)  the person is less than 16;

                             (ii)  the affected member is legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the person; or

                     (b)  both of the following apply:

                              (i)  the person is at least 16 and less than 18;

                             (ii)  the person is financially dependent on the member.

[dependent children]

(4)     Schedule 1, page 9 (after line 13), after item 9, insert:

9A  Application of section 68AACA

Section 68AACA of the Superannuation Industry (Supervision) Act 1993 , as inserted by item 1 of this Schedule, applies in relation to a person who is a MySuper member of a regulated superannuation fund on or after 1 February 2020.

[dependent children]