Operating standard—self‑insurance
4.07E Operating standard—self‑insurance
This regulation is made for subsection 31(1) of the Act.
See also paragraph 31(2)(eb) of the Act.
If, on 1 July 2013, a regulated superannuation fund does not self‑insure, in relation to a particular risk, a trustee of the fund may, on and after 1 July 2013, provide an insured benefit, in relation to that risk, to members of the fund only if the provision of the benefit is fully supported by an insurance policy provided by an insurer.
Subregulation (2) does not apply, on or before 1 July 2016, to a member who is transferred from a fund that self‑insured, in relation to the member and the risk, into:
a successor fund that, immediately before the transfer, did not self‑insure in relation to the risk; or
under Part 33 of the Act—a fund that, immediately before the transfer, did not self‑insure in relation to the risk.
If, on 1 July 2013, a regulated superannuation fund self‑insures, in relation to a particular risk, a trustee of the fund may, on and after 1 July 2016, provide an insured benefit, in relation to that risk, to members of the fund only if the provision of the benefit is fully supported by an insurance policy provided by an insurer.
If the governing rules of the fund mentioned in subregulation (4) do not allow the trustee to obtain the insurance policy mentioned in that subregulation, the trustee must, before 1 July 2016, amend the rules of the fund to allow the trustee to do so.
If the trustee cannot amend the rules, the rules are taken to be amended to allow the trustee to obtain the insurance policy.
Subregulation (4) does not apply if the Commonwealth Government, or the government of a State or Territory:
provides an insured benefit to members of the fund; or
guarantees the provision of an insured benefit to members of the fund.
Subregulation (4) does not apply, in relation to defined benefit members of the fund, if:
on or before 1 July 2013, APRA has not imposed, under subsection 29EA(1) of the Act, a condition on the licence of the RSE licensee of the fund that prohibits self‑insurance in relation to defined benefit members; and
on 1 July 2013, the fund self‑insures in relation to the members.
Despite subregulation (4), a beneficiary of the fund who is mentioned in column 2 of the table has the entitlement mentioned in column 3 of the table.
Entitlements of beneficiaries | ||
|---|---|---|
Item | If one of the following applies to the beneficiary immediately before 1 July 2016 ... | the beneficiary is entitled, on and after 1 July 2016, to ... |
1 | receives an insured benefit | continue to receive the insured benefit |
2 | lodges a claim for an insured benefit | (a) have the claim determined; and (b) receive an insured benefit, if the trustee so determines |
3 | is eligible to make a claim for an insured benefit | (a) lodge a claim; and (b) have the claim determined; and (c) receive an insured benefit, if the trustee so determines |
In this regulation:
fund includes a sub‑fund.
This Act’s bill:Explanatory statement
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