On 10 August 2012, the Government released for public consultation draft legislation for the intra-fund consolidation of multiple superannuation interests owned by the same member and the accompanying explanatory materials. This consultation is a follow-on to the earlier draft legislation released in March 2012.
The proposed amendments are designed to expand the duties of superannuation trustees in the Superannuation Industry (Supervision) Act, broadly requiring trustees to merge multiple interests within their fund where this is in their members’ interests. It is designed to stop members from paying multiple fees and charges, and paying for multiple insurance policies, in cases where these are not necessary.
Essentially, the amendments will place a general duty upon trustees to identify members with multiple interests within their fund, on an annual basis, and to consider whether it would be appropriate to merge them. This will apply regardless of the balances of the interests concerned.
COMMENTS are due by 16 August 2012.
[LTN 155, 13/8]