Trustee of employer‑sponsored fund—prescribed direction by employer‑sponsor or associate of employer sponsor
4.03 Trustee of employer‑sponsored fund—prescribed direction by employer‑sponsor or associate of employer sponsor
For the purposes of paragraph 58(2)(e) of the Act, the circumstances in which the governing rules of a superannuation entity (other than a superannuation fund with no more than 6 members) may permit an employer‑sponsor or an associate of an employer‑sponsor to give a direction to the trustee of an employer‑sponsored fund are:
where, after the implementation of the direction:
the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3); or
the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3); and
where the direction would not require the trustee to contravene the Act (other than section 55) or these regulations; and
where the direction qualifies under subregulation (2).
A direction qualifies if:
the contributions of the employer‑sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the direction relates solely to either or both of the following:
those non‑mandated employer contributions; or
benefits related to those non‑mandated employer contributions; or
whether or not paragraph (a) applies—the direction relates solely to one or more of the following:
the admission of new members to the fund; or
the category of members into which a new member or existing member is to be placed; or
allowing a person to become an employer‑sponsor of the fund; or
the termination of the fund; or
the appointment of a trustee to an entity that does not have a trustee.
This Act’s bill:Explanatory statement
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