Coal Industry Superannuation Regulations 2014 (Western Australia)

These regulations set out the operational rules for the Coal Industry Superannuation scheme administered through the designated fund. They define membership categories (A to D), the composition and operation of accumulation accounts and defined benefits, contribution rates and collection mechanics, entitlement and payment rules for a range of events including retirement, death and disablement, and the trustee’s powers and processes for addressing employer default, employer dissolution and funding shortfalls. The regulations bind participating employers to enter participation agreements (reg 10) and to remit member and employer contributions promptly (regs 18(2)(b), 20(6)(b)). They require the trustee to appoint a scheme actuary who satisfies SIS legislative standards (reg 4), and to maintain accumulation accounts for each member (reg 26(1)). The benchmark amount, which is the monetary basis for defined benefit calculations and indexed periodically, is specified and its adjustment is placed under trustee determination on an actuary’s recommendation (reg 6).

Mechanically the instrument divides contributions into defined benefit contributions and accumulation contributions (regs 3, 24, 26). For category A members the employer contribution rate is set by the trustee after receiving funding reports from the scheme actuary; the trustee must adopt a rate within specified floors and ceilings (reg 20(1)-(3)). If the actuary recommends a rate above the regulatory cap of 10% of the benchmark amount, the trustee must refer the report to the Minister and consider certain remedial or legislative steps (reg 25(1)), and may ultimately terminate the defined benefit section if stability cannot be assured (reg 25(2)). Termination of a defined benefit section (a DB termination day) stops accruals and triggers valuation and application of members’ interests under reg 48.

CrestWestern Australia

Coal Industry Superannuation Act 1989

Coal Industry Superannuation Regulations 2014

Western Australia

Coal Industry Superannuation Regulations 2014

Contents

Part 1 — Preliminary

Citation 1
Commencement 1
Terms used 1
Scheme actuary 4
Service 5
Benchmark amount 5
Total permanent disablement of category A members 6
Partial permanent disablement of category A members 7

Part 2 — Employers

Participation of employers 8
Participation agreement 8
Default by employer 8
Dissolution of employer 9

Part 3 — Members

Category A membership 10
Category B membership 10
Category C membership 10
Category D membership 11
Termination of membership 12

Part 4 — Contributions

Mandatory contributions by category A members 13
Voluntary member contributions 13
Mandatory employer contributions for category A members 13
Voluntary employer contributions 15
Acceptance of Commonwealth payments 15
Contribution splitting 16

Part 5 — Application of contributions to fund benefits

Application of defined benefit contributions 17
Funding shortfall in respect of benefits for category A members 17
Application of accumulation contributions 18

Part 6 — Benefits

Division 1 — Entitlement to benefits

Category A: calculation of accrued benefit 20
Category A: retirement benefit 21
Category A: death benefit 21
Category A: total and permanent disablement benefit 22
Category A: partial and permanent disablement benefit 23
Category A: leaving service benefit 23
Categories B and C: leaving service and death benefits 24
Categories A, B and C: benefits while in service 24
Category D: all benefits 25

Division 2 — Preserving, retaining and paying benefits

Preserving benefits 26
Retaining benefits 26
Conversion of retained defined benefits to accumulation benefits 27
Payment of retained benefits 27
Paying benefits 28

Part 7 — Miscellaneous

Application of the designated fund rules 30
Family law matters 30
Transfers from other funds 30
Transfers to other funds 31
Temporary cessation of employment and leave without pay 31
Application of regulations to category A members employed part‑time 32
Requirements for insurance 33
Termination of a part of the scheme 34

Notes

Compilation table 35

Western Australia

Coal Industry Superannuation Act 1989

Coal Industry Superannuation Regulations 2014

Part 1 — Preliminary

1. Citation

	These regulations are the *Coal Industry Superannuation Regulations 2014*.

2. Commencement

These regulations come into operation as follows —

(a) regulations 1 and 2 — on the day on which these regulations are published in the Gazette;

(b) the rest of the regulations — on the day on which the Coal Industry Superannuation Amendment Act 2013 Part 3 comes into operation.

3. Terms used

In these regulations, unless the contrary intention appears —

1943 fund means the Coal Mine Workers’ Pensions Fund established under the Coal Mine Workers (Pensions) Act 1943;

1989 fund means the Coal Industry Superannuation Fund established by section 9 of the Act as in force immediately before the scheme commencement day;

accrued benefit, for a category A member, has the meaning given in regulation 27(4);

accumulation account means —

(a) the account kept for a member under regulation 26(1); and

(b) any account kept for a member under the Coal Industry Superannuation Regulations 1990 immediately before the fund transfer day (within the meaning given in section 28A), the balance of which has not yet been transferred to the Trustee under section 28A and credited to the member’s account kept under regulation 26(1);

accumulation contributions means —

(a) contributions received under regulation 19; and

(b) contributions received under regulation 21; and

(c) payments received under regulation 22(a) which the trustee considers to relate to amounts due under regulation 21; and

(d) payments received under regulation 22(b) or (c);

benchmark amount has the meaning given in regulation 6;

category A membership period, in relation to a category A member, has the meaning given in regulation 27(1);

date of disablement, in relation to a member who becomes entitled to a benefit under regulation 30 or 31, means the last day in respect of which the member received remuneration from his or her participating employer prior to becoming entitled to the benefit;

defined benefit component means a benefit, or part of a benefit, calculated by reference to regulation 27;

defined benefit contributions means —

(a) contributions due under regulation 18; and

(b) contributions due under regulation 20; and

designated fund means the superannuation fund for the time being designated by regulations made under section 7B of the Act;

designated fund rules means the governing rules (within the meaning given in the SIS Act section 10(1)) in relation to the designated fund;

discount factor means a discount factor determined from time to time by the trustee on the advice of the scheme actuary for the purposes of the scheme;

earnings index means —

(a) the index of Average Weekly Ordinary Time Earnings for full‑time adults published by the Australian Bureau of Statistics; or

(b) if the Australian Bureau of Statistics ceases to publish that index, another index of average earnings selected for the purposes of the scheme by the trustee on the recommendation of the scheme actuary;

employer contribution rate means the annual rate of employer contributions in respect of category A members for the time being determined under regulation 20(3);

funding report means a report prepared by the scheme actuary under regulation 20(1);

in service has the meaning given in regulation 5(a);

in service with a participating employer has the meaning given in regulation 5(b);

member’s multiple, in relation to a member who has retained a benefit, means the multiple recorded under regulation 37(3) in respect of the member;

participating employer means an employer who has entered into a participation agreement under regulation 10;

partner means a spouse as defined in the SIS Act section 10(1);

recommended contribution rate means annual rate of employer contributions in respect of category A members for the time being recommended by the scheme actuary under regulation 20(2)(a);

salary day means —

(a) in relation to a participating employer, a day on which remuneration becomes payable by the employer to members who are in service with the employer; and

(b) in relation to a member, a day on which the member’s remuneration from the member’s participating employer becomes payable;

scheme actuary means the actuary for the time being appointed by the trustee under regulation 4 to advise it in connection with the scheme;

scheme commencement day means the day on which the Coal Industry Superannuation Amendment Act 2013 Part 3 comes into operation;

SIS Act means the Superannuation Industry (Supervision) Act 1993 (Commonwealth);

SIS legislation means the SIS Act and the SIS Regulations;

SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994 (Commonwealth);

splittable contribution has the meaning given in the SIS Regulations regulation 6.42;

trustee means the trustee of the designated fund.

4. Scheme actuary

(1) The trustee is to appoint an actuary to advise it in connection with the scheme.

(2) A person is not to be appointed as actuary under subregulation (1) unless the trustee is reasonably satisfied that the person meets the requirements imposed under the SIS legislation for appointment as actuary of a registrable superannuation entity (within the meaning given in the SIS Act section 10(1)).

5. Service

In these regulations —

(a) a person is in service if the person is a mine worker; and

(b) a person is in service with a participating employer if the person is in service while employed by, working on the mine of, or otherwise associated with, that participating employer.

6. Benchmark amount

(1) Subject to subregulations (2) and (3), in these regulations —

benchmark amount means —

(a) until 1 July 2014, $62 204; and

(b) on and after that date, the benchmark amount on the previous 30 June increased by —

(i) either —

(I) an amount equal to the increase (if any) in the earnings index for the year ending on the previous 31 March; or

(II) a lesser amount determined by the trustee on the recommendation of the scheme actuary;

and

(ii) any additional amount agreed between the trustee and the participating employers,

rounded to the nearest whole dollar.

(2) The trustee may, on the recommendation of the scheme actuary, determine that the benchmark amount is to be increased quarterly on 1 January, 1 April, 1 July and 1 October each year instead of annually on 1 July.

(3) If the trustee makes a determination under subregulation (2), the increase to be effected under subregulation (1)(b)(i) is to be equal to the increase (if any) in the earnings index for the quarter ending on the previous 30 September, 31 December, 31 March or 30 June respectively.

7. Total permanent disablement of category A members

(1) If —

(a) the trustee has, for the purposes of the scheme, effected a group life insurance or assurance policy providing benefits to category A members in respect of total and permanent disablement; and

(b) the policy is in force for the time being in respect of a category A member who is under 60 years of age,

that member is regarded as totally and permanently disabled for the purposes of the scheme if the member is totally and permanently disabled within the meaning of and for the purposes of the policy.

(2) If —

(a) the trustee has, for the purposes of the scheme, effected a group life insurance or assurance policy providing benefits to category A members in respect of total and permanent disablement; and

(b) the policy is not in force for the time being in respect of a category A member who is under 60 years of age by reason only of the refusal of insurance by the insurer,

that member is regarded as totally and permanently disabled for the purposes of the scheme if in the opinion of the trustee, after consideration of material evidence satisfactory to it, the member is totally and permanently disabled within the terms of the definition of total and permanent disablement contained in that policy that is relevant, having regard to the date on which that member became a category A member.

(3) In any other case, subject to the SIS legislation a category A member who is under 60 years of age is regarded as totally and permanently disabled for the purposes of the scheme if the trustee is satisfied, after considering any medical or other evidence that it considers to be relevant, that —

(a) in the case of a member who became a category A member before 1 July 2014, the member is, and until attaining 60 years of age will continue to be, physically or mentally incapable of engaging in, or working for reward in, any occupation or work for which, in the opinion of the trustee, the member is suited to undertake by education, training or experience or for which the member would be suited as a result of retraining; or

(b) in the case of any other category A member, the member is suffering permanent incapacity within the meaning given in the SIS Regulations regulation 1.03C.

8. Partial permanent disablement of category A members

A category A member who is under 60 years of age is regarded as partially and permanently disabled for the purposes of the scheme if the member —

(a) is not totally and permanently disabled; but

(b) in the opinion of the trustee, after consideration of material evidence satisfactory to it —

(i) in the case of a member who became a category A member before 1 July 2014, is physically or mentally incapable of engaging in, or working for reward in, any occupation or work for the member’s participating employer for which he or she is reasonably qualified by education, training or experience; and

(ii) in the case of any other category A member, is suffering temporary incapacity within the meaning given in the SIS Regulations regulation 6.01(2).

Part 2 — Employers

9. Participation of employers

An employer who employs mine workers in Western Australia must participate in the scheme.

10. Participation agreement

(1) Every employer required by regulation 9 to participate in the scheme must enter into an agreement with the trustee —

(a) to furnish to the trustee all information reasonably required by the trustee in relation to —

(i) the employer and its establishments and activities in Western Australia; and

(ii) mine workers employed by the employer in Western Australia;

and

(b) to perform the employer’s obligations under the scheme in a timely fashion and in a manner acceptable to the trustee.

(2) An agreement under subregulation (1) is to be in a form determined by the trustee.

11. Default by employer

Where —

(a) a participating employer fails or refuses to pay any amount of defined benefit contributions that it is obliged under the scheme to pay; and

(b) the trustee has taken all steps to enforce the employer’s obligations under the scheme which it considers to be in the best interests of members; and

(c) the trustee after consulting the scheme actuary considers that on account of the employer’s failure or refusal the financial stability of the scheme is not sufficiently assured and the rights of members are not sufficiently secured; and

(d) the trustee determines that it is not in the best interests of members that entitlements should continue to accrue under regulation 28 in respect of members employed by that employer,

the trustee on the advice of the scheme actuary is to ascertain the interest in the scheme of the members in service with that employer at the time of the trustee’s determination, and to apply that interest in the manner set out in regulation 48.

12. Dissolution of employer

(1) Subject to subregulation (2) and regulation 44, where a participating employer —

(a) is wound up or dissolved; or

(b) amalgamates with or transfers the whole of its engagements to any other person or body,

the trustee on the advice of the scheme actuary is to ascertain the interest in the scheme of the members in service with that employer at the time of the winding up, dissolution, amalgamation or transfer, as the case may be, and to apply it in the manner set out in regulation 48.

(2) Where a member referred to in subregulation (1) enters service with another participating employer as from the time of the winding up, dissolution, amalgamation or transfer of engagements of the previous employer this regulation does not apply to or in relation to that member.

Part 3 — Members

13. Category A membership

(1) A person who is a category A member of the 1989 fund on the scheme commencement day becomes a category A member of the scheme on that day.

(2) If a person who is not already a member —

(a) becomes a mine worker in service with a participating employer on or after the scheme commencement day; and

(b) does not become a category C member under regulation 15(2),

the person becomes a category A member.

(3) A member who ceases to be a category C member under regulation 15(3), (4) or (5) while remaining a mine worker in service with a participating employer becomes a category A member.

[Regulation 13 amended: Gazette 12 Aug 2014 p. 2890.]

14. Category B membership

A person who is a category B member of the 1989 fund on the scheme commencement day becomes a category B member of the scheme on that day.

15. Category C membership

(1) A person who is a category C member of the 1989 fund on the scheme commencement day becomes a category C member of the scheme on that day.

(2) If —

(a) a person who is not already a member becomes a mine worker in service with a participating employer on or after the scheme commencement day; and

(b) the person’s participating employer advises the trustee that the person is unlikely to remain in service as a mine worker for more than 6 months,

the person becomes a category C member of the scheme.

(3) Where a category C member remains in service with a participating employer as a mine worker for 6 months —

(a) if the member’s participating employer advises the trustee that the member is unlikely to remain in its service as a mine worker for more than a further 3 months, the member continues as a category C member; but

(b) in any other case, the member ceases to be a category C member.

(4) If the participating employer of a category C member advises the trustee that the terms of the member’s service have changed so that the member is likely to remain in its service as a mine worker for more than 6 months (or any longer period allowed under subregulation (3)(a)) the member ceases to be a category C member from the day on which that change occurred.

(5) If a category C member is still in service with a participating employer as a mine worker at the expiry of any extended period of category C membership arising under subregulation (3)(a), the member ceases to be a category C member.

16. Category D membership

(1) A person who is a category D member of the 1989 fund on the scheme commencement day becomes a category D member of the scheme on that day.

(2) On or after the scheme commencement day, a category A, B or C member may apply for his or her partner to become a category D member by giving written notice to the trustee.

(3) If the trustee accepts the application, the partner becomes a category D member when the application is accepted.

17. Termination of membership

A member ceases to be a member if —

(a) both —

(i) the member has ceased to be in service with a participating employer; and

(ii) all benefits which are or may be payable to or in respect of the member, have been paid or transferred;

(b) the member receives a benefit under regulation 34(1) or (2); or

(c) in the case of a category D member, the whole of the balance in the member’s accumulation account has been paid or transferred from the scheme; or

(d) in the case of a category A member, the trustee has terminated the defined benefit section of the scheme under regulation 25(2) and the interest in the scheme of the category A member has been ascertained under regulation 25(4) and applied under regulation 48.

Part 4 — Contributions

18. Mandatory contributions by category A members

(1) A category A member in service with a participating employer is to contribute to the scheme at an annual rate equivalent to 3% of the benchmark amount.

(2) The employer of a category A member is —

(a) to deduct the contribution due under subregulation (1) by instalments from the member’s remuneration on each salary day; and

(b) to remit each instalment to the trustee within 3 working days of deduction.

19. Voluntary member contributions

(1) In addition to the contributions required under regulation 18, a category A member may contribute to the scheme any further amount agreed with the trustee.

(2) A category B member, category C member or category D member may contribute to the scheme any amount agreed with the trustee.

(3) A member of any category whose partner is also a member may contribute to the scheme in respect of the partner any amount agreed with the trustee.

20. Mandatory employer contributions for category A members

(1) From time to time the trustee is to instruct the scheme actuary, after consulting the trustee and the employers, to prepare and to present to the trustee a report on the annual rate of employer contributions in respect of category A members that is required to fund the benefits for category A members which have accrued, and which are expected to accrue.

(2) In each funding report, the scheme actuary is to —

(a) recommend the annual rate of employer contributions in respect of category A members which in the opinion of the scheme actuary would ensure the financial stability of the scheme and secure the rights of members, expressed as a percentage of the benchmark amount from time to time; and

(b) if the recommended contribution rate exceeds 10% of the benchmark amount, advise on how the terms of these regulations regarding accrual of benefits for category A members might be altered so as to reduce the recommended contribution rate to 10% of the benchmark amount.

(3) The trustee is to consider each funding report presented by the scheme actuary, and is to determine an employer contribution rate, which is to be —

(a) if the recommended contribution rate is less than 7% of the benchmark amount, 7% of the benchmark amount; and

(b) if the recommended contribution rate is not less than 7%, nor more than 10%, of the benchmark amount, the recommended contribution rate; and

(4) If, in a funding report, the recommended contribution rate is more than 10% of the benchmark amount, the trustee is to take the steps set out in regulation 25(1).

(5) Each participating employer is to contribute to the scheme at the employer contribution rate determined for the time being, multiplied by the number of category A members in service with that participating employer.

(6) A participating employer —

(a) is to pay the contributions payable under subregulation (5) in instalments as at each salary day; and

(b) is to remit each instalment to the trustee within 3 working days of the salary day.

[Regulation 20 amended: Gazette 12 Aug 2014 p. 2890.]

21. Voluntary employer contributions

(1) In respect of a category A member, in addition to the contributions required under regulation 20, a participating employer —

(a) may contribute to the scheme any further amount; and

(b) is to contribute to the scheme any further amount agreed with the member.

(2) In respect of a category B member, a category C member or a category D member, a participating employer —

(a) may contribute to the scheme any amount; and

(b) is to contribute to the scheme any amount agreed with the member.

22. Acceptance of Commonwealth payments

The trustee may accept payment of any of the following in respect of a member —

(a) a shortfall component under the Superannuation Guarantee (Administration) Act 1992 (Commonwealth);

(b) an amount equal to the balance of the member’s account in the Superannuation Holding Accounts Special Account under the Small Superannuation Accounts Act 1995 (Commonwealth);

(c) a Government co‑contribution under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 (Commonwealth);

(d) any other amount offered to or received by the trustee under Commonwealth legislation providing for payments to superannuation funds in respect of superannuation entitlements of members of those funds.

23. Contribution splitting

(1) A member for whom splittable contributions have been made to the scheme may apply to the trustee to transfer some or all of those contributions for the benefit of the member’s partner in accordance with the SIS Regulations Division 6.7.

(2) The member may apply to transfer those contributions —

(a) if the member’s partner is also a member of the scheme, to the partner’s accumulation account; or

(b) if the member’s partner is a member of another superannuation fund that is able to accept the transfer, to that other fund.

(3) The trustee may accept an application under subregulation (1) if it is satisfied that the application complies with the SIS Regulations Division 6.7.

(4) On acceptance of an application under subregulation (1) the trustee is to transfer the contributions as requested.

Part 5 — Application of contributions to fund benefits

24. Application of defined benefit contributions

The trustee is to apply defined benefit contributions received as the trustee thinks fit, in accordance with the SIS legislation and the designated fund rules —

(a) in paying an equitable share of the expenses of the scheme; and

(b) in creating and maintaining reserves as it thinks fit, including a reserve for the payment of benefits calculated by reference to regulation 27 and an equitable share of the future expenses of the scheme; and

(c) in effecting insurance on the lives of category A members to secure the payment of benefits payable on the death or disablement of category A members which in the opinion of the trustee are not adequately secured by the reserve maintained under paragraph (b) or by accumulation accounts.

25. Funding shortfall in respect of benefits for category A members

(1) If, in a funding report prepared under regulation 20, the recommended contribution rate is more than 10% of the benchmark amount, the trustee is to —

(a) refer the funding report to the Minister; and

(b) invite the Minister to consider requesting the Governor to make amendments to these regulations with a view to equalising the employer contribution rate and the recommended contribution rate; and

(c) consider taking any step, or doing any thing, permitted to it under the SIS legislation with a view to equalising the employer contribution rate and the recommended contribution rate.

(2) If, after considering a funding report prepared under regulation 20 in which the recommended contribution rate is more than 10% of the benchmark amount —

(a) the trustee has completed the measures required by subregulation (1); and

(b) the employer contribution rate and the recommended contribution rate have not been equalised; and

(c) the trustee after consulting the scheme actuary considers that the financial stability of the scheme is not sufficiently assured and the rights of members are not sufficiently secured; and

(d) the trustee considers that it is not in the best interests of members that entitlements should continue to accrue under regulation 28,

the trustee is to terminate the defined benefit section of the scheme with effect from an immediate or stated future date (the DB termination day).

(3) As from the DB termination day —

(a) contributions cease to be payable under regulations 18 and 20 in respect of any period of service after the DB termination day; and

(b) any period of service after the DB termination day will be disregarded in computing a member’s category A membership period under regulation 27.

(4) The trustee is to ascertain the interest in the scheme of the category A members as at the DB termination day and to apply it in the manner set out in regulation 48.

[Regulation 25 amended: Gazette 12 Aug 2014 p. 2890.]

26. Application of accumulation contributions

(1) The trustee is to keep an account for each member.

(2) Subject to subregulation (3), the designated fund rules apply to govern —

(a) the crediting of any amount to a member’s accumulation account; and

(b) the debiting of any amount to a member’s accumulation account; and

(d) the investment or application of those assets, including the delegation of investment or insurance decisions to individual members, and the implementation of decisions made by members; and

(e) the identification and allocation of the earnings and losses attributable to those assets.

(3) The trustee is to apply accumulation contributions received as the trustee thinks fit, in accordance with the SIS legislation and the designated fund rules —

(a) in paying an equitable share of the expenses of the scheme; and

(b) in effecting insurance on the lives of members to secure the payment of benefits payable on the death or disablement of members which in the opinion of the trustee are not adequately secured by accumulation accounts or (in the case of category A members) by arrangements made under regulation 24; and

Part 6 — Benefits

Division 1 — Entitlement to benefits

27. Category A: calculation of accrued benefit

(1) In this regulation, subject to subregulations (2) and (3) —

category A membership period, in relation to a category A member, means the most recent continuous period during which the member has been in service and has —

(a) been a member of, and paid contributions to, the 1943 fund; or

(b) been a category A member of the 1989 fund; or

expressed in years and parts thereof and calculated to 2 decimal places;

post‑1988 component, in relation to a member’s category A membership period, means a part of the category A membership period which falls on or after 1 July 1988;

pre‑1988 component, in relation to a member’s category A membership period, means a part of the category A membership period which falls before 1 July 1988.

(2) A member’s category A membership period, and each component of it, are to be expressed in years and parts of years, calculated to 2 decimal places.

(3) If a category A member who has ceased to be in service but who is still a category A member returns to service with a participating employer, the trustee may include any part of the period during which the member was previously in service in the member’s category A membership period, and in any component of it, on such terms and conditions as the trustee determines.

(4) The accrued benefit for a category A member is an amount equal to the benchmark amount multiplied by the sum of —

(a) any pre‑1988 component of the member’s category A membership period multiplied by 13%; plus

(b) any post‑1988 component of the member’s category A membership period multiplied by 12%.

28. Category A: retirement benefit

(1) A category A member who leaves service with a participating employer between 55 and 65 years of age (inclusive) is entitled to a benefit equal to —

(a) the member’s accrued benefit; and

(b) the balance of the member’s accumulation account.

(2) A category A member who leaves service with a participating employer for any reason (other than death) after reaching 65 years of age is entitled to a benefit equal to the amount that would have been payable to the member if the member had —

(a) left service with that employer on the day the member turned 65 years of age; and

(b) become entitled to a benefit under subregulation (1) on that day; and

(c) retained the whole of that benefit in the scheme under regulation 37 (without making an election under regulation 38(1)) until the day the member actually left service with that employer.

29. Category A: death benefit

(1) If a category A member who is under 60 years of age dies in service with a participating employer, the trustee is to pay a benefit equal to —

(a) the member’s accrued benefit calculated as if —

(i) the member had remained in service until reaching 60 years of age; and

(ii) the benchmark amount had remained the same as it was on the date of death;

and

(b) the balance of the member’s accumulation account.

(2) If a category A member who is between 60 and 65 years of age (inclusive) dies in service with a participating employer, the trustee is to pay a benefit equal to the benefit that would have been payable to the member if the member had left service on the date of death and become entitled to a benefit under regulation 28(1).

(3) If a category A member who is over 65 years of age dies in service with a participating employer, the trustee is to pay a benefit equal to the benefit that would have been payable to the member if the member had —

(a) left service on the day the member turned 65 years of age; and

(b) become entitled to a benefit under regulation 28(1) on that day; and

(c) retained the whole of that benefit in the scheme under regulation 37 (without making an election under regulation 38(1)) until the date of death.

30. Category A: total and permanent disablement benefit

(1) A category A member who is under 60 years of age and who leaves service with a participating employer because the member is totally and permanently disabled is entitled to a benefit equal to —

(a) the member’s accrued benefit calculated as if —

(i) the member had remained in service with that employer until reaching 60 years of age; and

(ii) the benchmark amount had remained the same as it was on the date of disablement;

and

(b) the balance of the member’s accumulation account.

(2) A category A member who is over 60 years of age and who leaves service with a participating employer because the member is totally and permanently disabled is entitled to a benefit equal to the benefit to which the member would have been entitled if the member had left service on the date of disablement and become entitled to a benefit under regulation 28(1) or (2) (as applicable).

31. Category A: partial and permanent disablement benefit

A category A member who leaves service with a participating employer because the member is partially and permanently disabled is entitled to a benefit equal to —

(a) the member’s accrued benefit calculated as at the date of disablement; and

(b) the balance of the member’s accumulation account.

32. Category A: leaving service benefit

(1) Subject to subregulation (2), a category A member who leaves service with a participating employer in circumstances other than those described in regulations 28 to 31 is entitled to a benefit equal to the balance of the member’s accumulation account plus —

(a) if the member retains the whole of the defined benefit component of the benefit in the scheme, the member’s accrued benefit; or

(b) otherwise, an amount equal to the member’s accrued benefit multiplied by the discount factor.

(2) A category A member who leaves service with a participating employer by reason of ceasing to be a mine worker but who remains in employment with the same employer —

(a) is not entitled to a benefit under subregulation (1) at the time of leaving service; and

(b) is entitled to a benefit when the member ceases to be in employment with that employer equal to the amount that would have been payable to the member if the member had —

(i) become entitled to a benefit under subregulation (1) on the day the member ceased to be a mine worker; and

(ii) retained the whole of that benefit in the scheme under regulation 37 until the day the member actually left service with that employer.

33. Categories B and C: leaving service and death benefits

(1) A category B member or category C member who leaves service with a participating employer for any reason (other than death) is entitled to a benefit equal to the balance in the member’s accumulation account.

(2) If a category B member or category C member dies in service with a participating employer the trustee is to pay a benefit equal to the balance in the member’s accumulation account.

34. Categories A, B and C: benefits while in service

(1) If a category A member, category B member or category C member —

(a) is in service with a participating employer; and

(b) reaches the age at which the SIS legislation requires the trustee to pay the member’s benefit,

the trustee must pay to the member a benefit equal to the benefit that the member would have been entitled to had the member left service on the date the member reached that age.

(2) A category A member, category B member or category C member who —

(a) is in service with a participating employer; and

(b) is 65 years of age or older; and

is entitled to a benefit equal to the benefit that the member would have been entitled to had the member left service on the date of the request.

(3) A category A member, category B member or category C member who —

(a) is in service with a participating employer; and

(b) is under 65 years of age; and

is entitled to a benefit of up to the amount which the trustee is permitted by the SIS legislation to pay to the member.

(4) If a benefit paid under subregulation (3) includes a defined benefit component, the benefit payable to or in respect of the member when the member leaves service is to be adjusted by the trustee on the advice of the scheme actuary.

35. Category D: all benefits

(1) A category D member is entitled to a benefit equal to the balance in the member’s accumulation account if the member —

(a) satisfies a condition of release under the SIS legislation, other than death; or

(b) gives notice to the trustee that he or she wishes to withdraw from the scheme.

(2) If a category D member dies while still a member, the trustee is to pay a benefit equal to the balance in the member’s accumulation account.

(3) A category D member who is not yet entitled to a benefit under subregulation (1) and requests payment, is entitled to a benefit of up to the amount which the trustee is permitted by the SIS legislation to pay to the member.

Division 2 — Preserving, retaining and paying benefits

36. Preserving benefits

If a benefit becomes payable under the scheme but the SIS legislation does not permit the benefit, or part of it, to be paid, the trustee is to preserve the benefit, or the part which cannot be paid, in a manner which is consistent with the SIS legislation and in accordance with the designated fund rules.

37. Retaining benefits

(1) A member who is entitled to payment of a benefit may, prior to the benefit being paid, request the trustee to retain all or part of it in the scheme.

(2) If a member requests the retention of all or part of the accumulation component of a benefit, the trustee is to retain in the member’s accumulation account the portion of that component that the member has elected to retain.

(3) If a member requests the retention of all of the defined benefit component of a benefit, the trustee is to make a record of the multiple of the benchmark amount used to calculate the defined benefit component of the benefit.

(4) If a member requests the retention of part only of —

(a) the defined benefit component of a benefit; or

(b) the amount calculated in accordance with regulation 32(1)(b),

(as the case may be) the trustee is to credit to the member’s accumulation account, and retain in that account, an amount equal to the portion of that component or amount that the member has elected to retain.

38. Conversion of retained defined benefits to accumulation benefits

(1) A member who has retained all of the defined benefit component of a benefit under regulation 37(3) may elect to convert that component to an accumulation benefit.

(2) If a member makes an election under subregulation (1) the trustee is to credit to the member’s accumulation account an amount equal to the multiple of —

(a) the member’s multiple; and

(b) the benchmark amount as at the date of the conversion; and

(i) became entitled to the benefit under regulation 32(1)(a); and

(ii) is under 55 years of age on the date of the conversion,

the discount factor.

(3) When an amount has been credited to the member’s accumulation account under subregulation (2), the member’s multiple is reduced to zero.

39. Payment of retained benefits

(1) The trustee must pay all or part of a retained benefit to a member or transfer it under regulation 44 —

(a) subject to regulation 36, when requested to do so by the member; or

(b) when required under the SIS Act to do so.

(2) However a member who has retained a defined benefit component of a benefit under regulation 37(3) cannot request the payment or transfer of part only of that component unless the member first converts it to an accumulation benefit under regulation 38.

(3) When the whole of a retained benefit is to be paid or transferred under subregulation (1) the amount to be so paid or transferred is —

(a) the balance in the member’s accumulation account; and

(b) if the retained benefit includes a defined benefit component, an amount equal to the multiple of —

(i) the member’s multiple; and

(ii) the benchmark amount as at the date of payment or transfer; and

(iii) if the member —

(I) became entitled to the benefit under regulation 32(1)(a); and

(II) is under 55 years of age on the day on which the benefit is paid or transferred,

the discount factor.

(4) When part only of a retained benefit is to be paid or transferred under subregulation (1) the amount to be so paid or transferred is the amount requested by the member.

(5) If a member who has retained a benefit dies before the benefit is paid or transferred, the trustee is to pay —

(a) the balance in the member’s accumulation account; and

(b) if the retained benefit includes a defined benefit component, an amount equal to the multiple of —

(i) the member’s multiple; and

(ii) the benchmark amount as at the date of payment.

40. Paying benefits

(1) In this regulation, unless the contrary intention appears —

benefit means a benefit payable under these regulations.

(2) Subject to the SIS legislation, the designated fund rules apply to govern —

(a) the form, timing and other circumstances of any payment of any benefit; and

(b) the proofs which the trustee may require before paying any benefit; and

(c) the terms and conditions on which the trustee is to pay benefits to a beneficiary who is a minor or who is subject to other legal incapacity; and

(d) the terms and conditions on which the trustee is to pay benefits payable in respect of a member upon or after the member’s death; and

(e) the terms and conditions on which members may make death benefit nominations and the effect of death benefit nominations made.

Part 7 — Miscellaneous

41. Application of the designated fund rules

Subject to these regulations and to the SIS legislation, the designated fund rules apply to govern all matters connected with —

(a) the powers and functions of the trustee; and

(b) the exercise or delegation by the trustee of its powers and functions; and

(d) the allocation as between members or groups of members of the tax and other liabilities and expenses of the scheme and arrangements for discharging those liabilities and expenses.

42. Family law matters

Subject to the SIS legislation, the designated fund rules apply to govern —

(a) the splitting of members’ interests in or entitlements under the scheme following the breakdown of marriage or of a de facto relationship; and

(b) everything done by the trustees in connection with or in consequence of a split referred to in paragraph (a).

43. Transfers from other funds

If another superannuation fund or like institution (the transferor fund) offers to pay or transfer to the trustee a member’s benefit or interest in the transferor fund, the trustee may accept the payment or transfer and apply it in any manner consistent with the SIS legislation and in accordance with the designated fund rules.

44. Transfers to other funds

The trustee may pay or transfer a benefit to which a member is entitled, or a member’s interest in the scheme, to another superannuation fund or like institution in any manner consistent with the SIS legislation and in accordance with the designated fund rules.

45. Temporary cessation of employment and leave without pay

(1) In this regulation —

relevant period means any period during which a member —

(a) continues in service under subregulation (2); or

(b) has been absent on leave without pay.

(2) If a member leaves the service of his or her participating employer in circumstances where it is reasonable to expect that the member will return to service within a reasonable time, the trustee may treat the member as continuing to be in service with a participating employer on such terms and conditions as are agreed between the trustee, the member and the member’s participating employer.

(3) If a member is on leave without pay the trustee, the member’s participating employer and the member may enter into an agreement as to the terms and conditions on which the member continues to be a member during the absence of that member.

(4) The terms and conditions agreed upon under subregulation (2) or (3) may include terms or conditions inconsistent with the other provisions of these regulations.

(5) Unless otherwise agreed under subregulation (2) or (3) —

(a) no contributions are payable by or in respect of the member during the relevant period; and

(b) in the case of a category A member, the relevant period is not to be counted in determining the member’s category A membership period; and

(c) in the case of a category A member, if a benefit becomes payable under regulation 30 or 31 during the relevant period, the member is deemed to have received salary on the participating employer’s last salary day prior to the benefit becoming payable.

46. Application of regulations to category A members employed part‑time

(1) If at any time a category A member (a prescribed member) is or has been classified by the participating employer as being part‑time, these regulations apply to that prescribed member with the modifications and variations set out in this regulation.

(2) The participating employer is, in respect of any period during which a prescribed member is classified as being part‑time, to determine the percentage (the service percentage) of full‑time service being worked by that member during that period.

(3) The service percentage in respect of any period during which a prescribed member is not classified as being employed part‑time is 100%.

(4) Whenever there is a change in the service percentage of a prescribed member the participating employer is to advise the trustee and the member of that change.

(5) During any period of membership during which the service percentage of a prescribed member is less than 100% the contributions that would otherwise have been payable by the member under regulation 18 or by the employer under regulation 20 is to be reduced in the ratio that the service percentage of the member bears to 100%.

(6) Where any lump sum retirement benefit calculated under regulation 28 is payable under these regulations to or in respect of a prescribed member in respect of any period of membership during which the service percentage of the member was less than 100%, that benefit is to be reduced in the ratio that the service percentage of the member during that period bears to 100%.

(7) Where any death benefit calculated under regulation 29 is payable under these regulations to or in respect of a prescribed member and, immediately before the benefit became payable, the member was classified by the participating employer as being employed part‑time, the amount by which the amount referred to in regulation 29(1)(a), as assessed in relation to that member, exceeds the amount equal to the accrued benefit of that member is to be reduced in the ratio that the service percentage of the member immediately before the benefit became payable bears to 100%.

47. Requirements for insurance

(1) Subject to the SIS legislation, the designated fund rules apply to govern —

(a) the obligations of members —

(i) to be medically examined; and

(ii) to submit other evidence of health; and

(iii) to provide proof of age; and

(iv) to provide other information or take other steps required by the trustee for the purposes of the scheme;

and

(b) the right of the trustee to deny, adjust, suspend or terminate a member’s benefit if the member does not comply with the obligations referred to in paragraph (a).

(2) The trustee is not to effect, to acquire or to take an assignment of a group life insurance or assurance policy that contains provision for payment of benefits in respect of total and permanent disablement of category A members unless in the opinion of the trustee the definition of total and permanent disablement contained in that policy is such that a member covered by that policy who became a category A member before 1 July 2014 would be considered by the insurer with which the policy is effected to be totally and permanently disabled if in the opinion of the insurer, after considering any medical or other evidence that it considers to be relevant, that the member is, and until attaining 60 years of age will continue to be, physically or mentally incapable of engaging in, or working for reward in, any occupation or work for which, in the opinion of the insurer, the member is suited to take by education, training or experience or for which the member would be suited as a result of retraining.

48. Termination of a part of the scheme

(1) Where in accordance with regulation 11, 12 or 25 the interest in the scheme of any members is to be applied under this regulation, the trustee is to apply the interest, in a manner consistent with the SIS legislation and the designated fund rules, in the following order —

(a) in paying or providing for proper costs and expenses;

(b) in providing or securing as far as possible through the scheme or otherwise the benefits to which the members concerned would have been entitled had they voluntarily left service with that employer;

(c) as to any balance then remaining, in providing further benefits to or in respect of the members concerned in such manner as the trustee on the advice of the scheme actuary considers equitable.

(2) The benefits referred to in subregulation (1) are —

(a) to be in such form and provided or secured by such arrangements as are determined by the trustee; and

(b) to be provided to or secured for the members concerned in full discharge of all claims by or in respect of them in relation to any rights or benefits under these regulations or in connection with or arising out of the scheme.

Notes

1 This is a compilation of the Coal Industry Superannuation Regulations 2014 and includes the amendments made by the other written laws referred to in the following table.

Compilation table

Citation	Gazettal	Commencement
Coal Industry Superannuation Regulations 2014	17 Apr 2014 p. 1091-132	r. 1 and 2: 17 Apr 2014 (see r. 2(a)); Regulations other than r. 1 and 2: 30 Jun 2014 (see r. 2(b) and Gazette 13 Jun 2014 p. 1859)
Coal Industry Superannuation Amendment Regulations 2014	12 Aug 2014 p. 2890	r. 1 and 2: 12 Aug 2014 (see r. 2(a)); Regulations other than r. 1 and 2: 13 Aug 2014 (see r. 2(b))

Defined terms

[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]

Defined term Provision(s)

1943 fund 3

1989 fund 3

accrued benefit 3, 27(4)

accumulation account 3

accumulation contributions 3

benchmark amount 3, 6(1)

benefit 40(1)

category A membership period 3, 27(1)

date of disablement 3

DB termination day 25(2)

defined benefit component 3

defined benefit contributions 3

designated fund 3

designated fund rules 3

discount factor 3

earnings index 3

employer contribution rate 3

funding report 3

in service 3, 5

in service with a participating employer 3, 5

member’s multiple 3

participating employer 3

partner 3

post‑1988 component 27(1)

pre‑1988 component 27(1)

prescribed member 46(1)

recommended contribution rate 3

relevant period 45(1)

salary day 3

scheme actuary 3

scheme commencement day 3

service percentage 46(2)

SIS Act 3

SIS legislation 3

SIS Regulations 3

splittable contribution 3

transferor fund 43

trustee 3

Western Australia

Coal Industry Superannuation Act 1989

Coal Industry Superannuation Regulations 2014

Western Australia

Coal Industry Superannuation Regulations 2014

Contents

Part 1 — Preliminary

Citation 1
Commencement 1
Terms used 1
Scheme actuary 4
Service 5
Benchmark amount 5
Total permanent disablement of category A members 6
Partial permanent disablement of category A members 7

Part 2 — Employers

Participation of employers 8
Participation agreement 8
Default by employer 8
Dissolution of employer 9

Part 3 — Members

Category A membership 10
Category B membership 10
Category C membership 10
Category D membership 11
Termination of membership 12

Part 4 — Contributions

Mandatory contributions by category A members 13
Voluntary member contributions 13
Mandatory employer contributions for category A members 13
Voluntary employer contributions 15
Acceptance of Commonwealth payments 15
Contribution splitting 16

Part 5 — Application of contributions to fund benefits

Application of defined benefit contributions 17
Funding shortfall in respect of benefits for category A members 17
Application of accumulation contributions 18

Part 6 — Benefits

Division 1 — Entitlement to benefits

Category A: calculation of accrued benefit 20

The regulations operate around a small set of recurring technical concepts that determine benefit, contribution and administration outcomes. Benchmark amount, defined in reg 6 and referenced in reg 3, is the monetary base used in calculating the defined benefit accrual for category A members and underpins employer contribution rate calculations. The benchmark amount is fixed at a stated figure until 1 July 2014 then indexed annually or quarterly by reference to the earnings index unless the trustee determines a lesser increase on the scheme actuary’s recommendation (reg 6(1)-(3)). The trustee may also agree additional increases with participating employers (reg 6(1)(b)(ii)).

Category A membership and the category A membership period are central to the defined benefit rules. A category A member’s accrued benefit is calculated as the benchmark amount multiplied by a percentage applied to pre‑1988 and post‑1988 components of the most recent continuous period of service, expressed to two decimal places (reg 27(1), (2), (4)). The defined benefit component is therefore an explicit function of continuous service and the benchmark amount (reg 27(4)). The regulations allow the trustee discretion to include prior periods in a member’s category A membership period on terms it sets (reg 27(3)).

Contributions are split into defined benefit contributions and accumulation contributions by operation of the definitions in reg 3 and the rules in Parts 4 and 5. Category A members must pay a mandatory member contribution at an annual rate equal to 3% of the benchmark amount, deducted by the employer and remitted within three working days (reg 18). Employers must pay an employer contribution rate determined by the trustee after receiving a funding report from the scheme actuary, subject to a minimum of 7% and a regulatory cap of 10% of the benchmark amount (reg 20(1)-(3), (5)). The scheme actuary’s funding report must recommend a rate sufficient to ensure the scheme’s financial stability and, if the recommended rate would exceed 10%, propose how the accrual terms might be altered to reduce it to 10% (reg 20(2)).

The funding and stability mechanism is a salient concept. If a recommended rate exceeds 10%, the trustee must refer the report to the Minister and invite consideration of regulatory amendment and may pursue SIS‑legislative steps to equalise the employer rate and the recommended rate (reg 25(1)). If those measures fail and the trustee deems the scheme unstable, it may terminate the defined benefit section and apply members’ interests under reg 48 (reg 25(2)-(4)). Termination freezes accruals and requires valuation and application of members’ interests.

The designated fund rules and the SIS legislation are recurring cross‑cutting concepts. The regulations repeatedly place operational matters under those regimes, for example the governance of accumulation accounts, payment timings, proofs for payment, death benefit nominations, investment powers, and family law splits (regs 26(2), 36, 40(2), 41, 42). The trustee’s powers are therefore exercised within a framework of both the state regulations and Commonwealth prudential and compliance standards.

Other important technical constructs include the discount factor (defined in reg 3), which adjusts defined benefit payments in certain early payment contexts (regs 32(1)(b), 38(2)(c), 39(3)(b)(iii)), a member’s multiple used when retaining defined benefits (reg 37(3)), and a number of trustee discretions such as adjustment of benchmark increases (reg 6(1)(b)(i)(II)), acceptance of Commonwealth payments (reg 22), and insurance policy definitions (regs 7, 47).

The regulations allocate costs, responsibilities and decision rights across several identifiable groups. Participating employers are obliged to participate in the scheme if they employ mine workers in Western Australia (reg 9). Participation requires entering a trustee‑determined participation agreement (reg 10), supplying the trustee with employer and workforce information, performing obligations in a timely manner, and paying employer contributions and remitting member contributions within stipulated timeframes (regs 10(1), 18(2), 20(6)). The employer contribution rate is a function of trustee determination following receipt of funding reports from the scheme actuary (reg 20(1)-(3)). Employers that default in paying defined benefit contributions may trigger trustee enforcement action and possible cessation of accruals for members employed by the defaulting employer, with valuation and application of member interests under reg 48 (reg 11).

Category A members are the principal beneficiaries of the defined benefit structure. Who becomes a category A member is specified at reg 13, which brings forward legacy members and sets new entrants in service with participating employers into category A unless they qualify as category C members (reg 13(2)). Category A members pay a mandatory contribution equal to 3% of the benchmark amount, have defined benefit accruals calculated under reg 27(4), and are subject to special rules governing retirement, death, total and partial permanent disablement, benefit retention and conversion (regs 18, 27-32, 37-39). The member’s category A membership period is the unit used in calculating accruals, and the trustee has limited discretion to include past service on terms it sets (reg 27(1), (3)).

Category B and C members are accumulation‑account style members. Category B membership is preserved for legacy members from the 1989 fund (reg 14), while category C covers short‑service employees where the employer advises that the person is unlikely to remain more than six months (reg 15). Their entitlements are the balance of accumulation accounts on leaving service or death (reg 33). Category D members are partners admitted by application and trustee acceptance, and their entitlements are accumulation balances subject to SIS conditions (reg 16, reg 35).

The trustee is a central decision‑maker. It must appoint a scheme actuary who meets SIS requirements (reg 4), determine employer contribution rates within the statutory band (reg 20(3)), maintain accumulation accounts (reg 26(1)), apply contributions to expenses, reserves and insurance (reg 24), accept certain Commonwealth payments (reg 22), and apply the designated fund rules and SIS legislation in governance and payments (regs 41, 26(2)). The trustee also has discretionary powers in managing defaulting employers (reg 11), terminating the defined benefit section (reg 25), and applying members’ interests when parts of the scheme are terminated or an employer dissolves (reg 48).

The Minister and the Governor have defined procedural roles. If the scheme actuary recommends an employer contribution rate above 10% of the benchmark amount, the trustee must refer the funding report to the Minister and invite the Minister to consider requesting the Governor to amend the regulations to equalise rates (reg 25(1)(a)-(b)). This creates a formal channel for executive consideration of regulatory amendment in funding crises.

Finally, Commonwealth bodies and law interact with the scheme. The trustee may accept specific Commonwealth transfers and payments (reg 22) and must comply with the SIS Act and SIS Regulations in appointment of the actuary and in many governance and payment matters (regs 4(2), 26(2), 36, 40, 41).

The instrument specifies particular duties for employers, members and the trustee and confers defined rights to benefits and administrative actions.

Employer duties. Employers who employ mine workers in Western Australia must participate in the scheme (reg 9). Participation requires entering a trustee‑determined participation agreement that obliges them to furnish information about their operations and employees and to perform obligations in a timely manner acceptable to the trustee (reg 10(1)). Employers must deduct mandatory member contributions for category A members of 3% of the benchmark amount and remit those instalments to the trustee within three working days of deduction (reg 18(1)-(2)). Employers must also pay employer contributions at the employer contribution rate multiplied by the number of category A members in their service, in instalments as at each salary day and remit instalments within three working days (reg 20(5)-(6)). Employers may make voluntary additional contributions agreed with members (reg 21).

Member duties and rights. Category A members must pay the mandatory 3% member contribution (reg 18(1)). Members of any category may make voluntary contributions agreed with the trustee (reg 19). Members have rights to benefits defined by the regulations: category A members have defined accrued benefits calculated under reg 27(4), with entitlements on retirement, death and disablement set out in regs 28-31; category B and C members receive accumulation balances on leaving service or death (reg 33); category D members receive accumulation balances upon satisfying SIS conditions of release or on notice (reg 35). Members may request the trustee to retain all or part of a benefit in the scheme (reg 37). A member who retains the defined benefit component records a multiple which is used in later conversion or payment calculations (reg 37(3)). Members can elect to convert a retained defined benefit to an accumulation credit, subject to rules and the application of the discount factor in some cases (reg 38).

Trustee duties and discretions. The trustee must appoint a scheme actuary who meets SIS‑appointment requirements (reg 4). It must consider funding reports and set the employer contribution rate within the statutory floor and cap (reg 20(1)-(3)). The trustee is to apply defined benefit contributions to expenses, reserves and insurance as it thinks fit consistent with SIS legislation (reg 24). It is to keep an accumulation account for each member and apply accumulation contributions in accordance with the designated fund rules, subject to limited exceptions for expenses and insurance (reg 26(1)-(3)). The trustee has a duty to take steps to enforce employer obligations and, in certain failure scenarios, to ascertain and apply members’ interests under reg 48 (reg 11, 12, 25, 48). The trustee also controls acceptance of Commonwealth payments (reg 22) and the making or acquiring of insurance policies in line with specified disability definitions (regs 7, 47).

Procedural rights. Members and their partners have rights to contribution splitting in line with the SIS Regulations (reg 23). Members have entitlement and payment rights under the designated fund rules, subject to SIS limits for early payment and release conditions (regs 36, 40). Death benefit nominations, proof requirements and conditions for payments to minors or incapacitated beneficiaries are governed by the designated fund rules and SIS legislation (reg 40(2)).

The regulations create statutory obligations and supervisory mechanisms but do not create or list specific criminal sanctions or monetary penalties within the text supplied. Enforcement primarily operates through administrative mechanisms vested in the trustee and by reference to the SIS legislation.

Trustee enforcement powers. If a participating employer fails or refuses to pay defined benefit contributions, the trustee must exhaust steps it considers to be in members’ best interests to enforce obligations and consult the scheme actuary. If, after those steps, the trustee concludes that the scheme’s financial stability is not assured and member rights are insecure, and that accruals should not continue for members employed by that employer, the trustee must ascertain the members’ interests and apply them under reg 48 (reg 11). In practice the trustee’s enforcement response includes valuation, securing benefits through scheme resources or insurance, and restructuring benefits for affected members under reg 48. The regulations require the trustee to act on the advice of the scheme actuary in such cases (reg 11(c), (d), reg 48).

Funding shortfall mechanism. A funding shortfall is handled through a prescribed process. If a funding report recommends an employer contribution rate above 10% of the benchmark amount, the trustee must refer the report to the Minister and invite the Minister to consider requesting the Governor to amend the regulations to equalise rates, and must consider steps under the SIS legislation to equalise the rates (reg 25(1)). If remedial measures do not equalise the rates and the trustee concludes the scheme is insufficiently secure, the trustee may terminate the defined benefit section and effect the DB termination day, ceasing accruals for service after that day and ascertaining and applying members’ interests under reg 48 (reg 25(2)-(4)).

Timing obligations. Contributors and employers must remit instalments within three working days of deduction or salary day respectively (regs 18(2)(b), 20(6)(b)). No express statutory pecuniary penalty or criminal offence is provided in these regulations for late remittal; the instrument relies on the trustee’s powers and SIS legislative enforcement mechanisms to address non‑compliance.

SIS legislation overlay. The regulations repeatedly place governance, payment, preservation and other matters under the SIS legislation and the designated fund rules (regs 4(2), 26(2), 36, 40, 41). Enforcement of trustee duties and member protections therefore operates in practice through the compliance and supervisory framework established by the SIS Act and regulations, which are referenced throughout. The regulations themselves do not recreate SIS disciplinary or civil pathways but require consistency with SIS legislative obligations.

Ministerial and executive role. The trustee must involve the Minister where recommended contribution rates exceed 10% and invite the Minister to consider asking the Governor to amend these regulations (reg 25(1)(a)-(b)). That procedural referral is a statutory step designed to channel serious funding issues to the executive for legislative or policy responses.

In summary, the regulatory text provides trustee‑centred enforcement mechanisms, an administrative process for dealing with funding shortfalls and employer defaults, strict remittance timings and a legal overlay requiring compliance with Commonwealth SIS standards. The regulations do not, within the text provided, specify standalone fines or criminal penalties.

The regulations are explicitly designed to operate with and within the Commonwealth Superannuation Industry (Supervision) legislation and with selected Commonwealth payment schemes, and they also incorporate, by reference, elements of prior state superannuation legislation.

SIS legislation. The regulations repeatedly require compliance with the SIS Act and SIS Regulations. The scheme actuary appointment must meet the SIS legislative requirements for an actuary of a registrable superannuation entity (reg 4(2)). The designated fund rules are to be applied subject to these regulations and the SIS legislation, and those rules govern the crediting and debiting of accumulation accounts, investment decisions, allocation of earnings and losses, and the delegation of investment or insurance decisions to members (reg 26(2)(a)-(e), reg 41). Preservation and payment of benefits are governed in a manner consistent with the SIS legislation (reg 36). Payment timing, proof requirements, conditions for payment to minors or legally incapacitated beneficiaries, and the treatment of death benefits are all to be governed by the designated fund rules subject to the SIS legislation (reg 40(2)). Family law splits are also to be governed subject to the SIS legislation (reg 42). This repeated cross‑reference places the designated fund and trustee actions within the Commonwealth prudential, administrative and compliance framework established by the SIS Act.

Commonwealth payment schemes. The trustee may accept specific Commonwealth payments into the scheme, including shortfall components under the Superannuation Guarantee (Administration) Act 1992, balances from the Superannuation Holding Accounts Special Account under the Small Superannuation Accounts Act 1995, and Government co‑contributions under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 (reg 22). It may also accept any other amount offered or received under Commonwealth legislation providing payments to superannuation funds (reg 22(d)). Acceptance is discretionary for the trustee.

Pre‑existing state funds. The regulations deal expressly with legacy funds, referencing the 1943 fund and the 1989 fund (reg 3). Membership transitions from those funds to scheme categories are handled in regs 13-16, whereby legacy members become category A, B, C or D members as set out.

State regulatory and executive functions. The trustee is required to refer funding reports that recommend contributions above the 10% cap to the Minister, and to invite the Minister to seek amendment of the regulations by the Governor to equalise rates (reg 25(1)). This embeds a formal state executive interface for serious funding issues and potential regulatory amendment.

Transfers to and from other funds. The trustee may accept transfers in from other superannuation funds or similar institutions and may pay or transfer benefits to other funds in accordance with SIS legislation and the designated fund rules (regs 43, 44). Contribution splitting is expressly linked to the SIS Regulations Division 6.7 and therefore operates under Commonwealth family law and superannuation splitting rules (reg 23).

Insurance and disability definitions. Insurance policies used by the trustee to secure death or disablement benefits must have definitions of total and permanent disablement consistent with the protections in the regulations for members who became category A members before 1 July 2014 (regs 7, 47(2)). That requirement constrains the trustee’s choice of insurer and policy terms to align with the substantive disability definitions referenced in the regulations.

Overall, the regulations are a state instrument that relies heavily on Commonwealth superannuation standards for prudential, payment and member protection matters, while preserving state roles for participation, valuation and certain regulatory amendments. The appointed scheme actuary, the trustee’s exercise of discretions, and acceptance of Commonwealth payments are all situated within that hybrid legal architecture.

The compilation table included in the regulations records the instrument’s origin and a single amending instrument. The Coal Industry Superannuation Regulations 2014 were gazetted 17 April 2014 and came into operation as follows: regulations 1 and 2 upon that gazettal day, and the remaining regulations on 30 June 2014 when Part 3 of the Coal Industry Superannuation Amendment Act 2013 came into operation (reg 2, compilation table). An amending instrument titled Coal Industry Superannuation Amendment Regulations 2014 was gazetted 12 August 2014 and, aside from regs 1 and 2 which commenced on 12 August 2014, the rest of those amending regulations commenced on 13 August 2014 (compilation table).

Several specific provisions in the body of the regulations note amendment by the 12 August 2014 gazette. Regulation 13 was amended (see note accompanying reg 13), and regulation 25 was also amended as indicated at the foot of regulation 25. The compilation table records those gazette entries and commencement timings. The commencement regime itself is set out at reg 2, which phases in the instrument’s provisions in tandem with the scheme commencement day created by Part 3 of the Amendment Act.

The defined terms note at the end of the instrument reproduces the defined terms and the provisions in which they are defined. The compilation table is the only legislative history contained in the text provided. There are no other internal amendment annotations, amendment schedules, transitional rule details beyond those explicitly written into the operative regulations, nor a detailed explanatory memorandum or second reading material included here. The regulations use specific transitional constructs such as the scheme commencement day and the DB termination day to manage temporal effects of commencement and potential defined benefit termination (regs 2, 25(3)).

Practically, the recorded amendment history shows a short initial life with a prompt amending instrument in the same year, and specific provisions amended by the August 2014 instrument. The regulations themselves specify the scheme commencement depends on an Act‑level Part 3 coming into operation and fix the operational dates for regs 1 and 2 separately to the rest (reg 2). Any further amendment history after the instruments recorded in the compilation table is not included in the text provided.

The regulations as supplied contain no reported cases, no citations to judicial decisions and no internal record of litigation. The instrument does not name any litigation or list judicial interpretations. Consequently there is no litigation history contained in the text that can be cited.

That absence is notable because the regulations create discretionary trustee decisions that could in practical terms give rise to disputes. Examples of trustee discretions and member‑affecting decisions that the regulations place squarely with the trustee include determinations of total and permanent disablement or partial permanent disablement (regs 7 and 8), decisions about whether to accept Commonwealth payments (reg 22), the trustee’s exercise of enforcement steps in the event of employer default (reg 11), termination of the defined benefit section following funding shortfalls (reg 25), valuation and application of members’ interests under reg 48, and discretion to include prior service in a category A membership period under reg 27(3). The designated fund rules and the SIS legislation are also invoked in many areas (for example reg 26(2), reg 40(2), reg 41), which means that disputes could also arise under the SIS Act and its regulatory regime where trustee conduct or fund governance is challenged.

Because the regulations rely on the SIS legislation for governance and enforcement of many matters, any legal challenges in practice would likely engage Commonwealth superannuation law and its administrative and judicial pathways, rather than being resolved solely under these state regulations. The regulations do not set out dispute resolution forums or procedures other than the trustee and actuarial referral and the Ministerial referral required under reg 25 when recommended contribution rates exceed 10% of the benchmark amount.

If a practitioner is preparing for potential litigation or dispute, the statutory text to review includes the trustee’s discretions noted above, the precise formulation of members’ rights under regs 27-39, and the procedures for termination and application of interests under regs 25 and 48. Absent from the supplied text are any reported judicial treatments of those provisions, so any assessment of litigation risk must be based on the provisions as drafted and the interaction with the SIS legislative framework referenced throughout.

There are multiple provisions where the practical outcome is driven by drafting choices that create potential traps for participants and administrators.

Benchmark indexing and trustee discretion. The benchmark amount anchors the defined benefit calculation and member mandatory contributions. After 1 July 2014 it is indexed by the earnings index unless the trustee elects a lesser increase on the scheme actuary’s recommendation (reg 6(1)(b)(i)(II)). The trustee can instead choose quarterly increases on a scheme actuary recommendation (reg 6(2)-(3)). Employers and members must note that the trustee’s exercise of this discretion affects both contribution levels and defined benefit accruals.

Employer contribution floors and caps. The employer contribution rate is subject to a floor of 7% and a cap of 10% of the benchmark amount, with the trustee adopting the scheme actuary’s recommended rate so long as it falls between those bounds (reg 20(3)). If the recommended rate exceeds 10% the trustee must take formal steps including referring the report to the Minister and inviting Ministerial consideration of regulatory amendment (reg 25(1)). If corrective steps fail, the trustee may terminate the defined benefit section and cease accruals, which can materially change prospective entitlements (reg 25(2)-(4)). Employers and members must monitor funding reports because an actuary recommendation above 10% is the statutory trigger for this escalation path.

Defined benefit accrual relies on continuous service. The accrued benefit is calculated on the most recent continuous period of service that meets the definition in reg 27(1). If a member has ceased service and returns, the trustee has discretion to include prior periods on terms it sets (reg 27(3)). That creates potential variability and administrative complexity in verifying continuous service or obtaining trustee consent to include gaps.

Retention and conversion mechanics. A member who elects to retain the entire defined benefit component will have a multiple recorded by the trustee (reg 37(3)). That multiple is used to calculate payments or conversion to an accumulation account under reg 38. Conversion applies the benchmark amount as at the date of conversion, and, if the member became entitled under reg 32(1)(a) and is under 55 at conversion, the discount factor applies (reg 38(2)). Members who retain a defined benefit component cannot request partial payment of that component unless they first convert it to an accumulation benefit (reg 39(2)). These mechanics mean members seeking partial liquidity must follow a conversion step that may reduce value due to the discount factor.

Timing and remittance. Employers must remit deducted member contributions and employer contributions within three working days of deduction or salary day respectively (regs 18(2)(b), 20(6)(b)). The regulations do not set an express statutory penalty in the text for late remittance, but late remittance can trigger trustee enforcement and valuation consequences under reg 11. Practitioners should note the tight remittance windows and the trustee’s enforcement mechanisms.

Insurance definitions for pre‑2014 members. If the trustee effects group life insurance covering total and permanent disablement for category A members, the policy’s definition must be such that members who became category A before 1 July 2014 would be considered totally and permanently disabled under the insurer’s test consistent with the member’s date of entry (reg 47(2)). This constrains the insurer options and could make obtaining or renewing policies more complex or expensive.

Part‑time and leave without pay adjustments. Part‑time service is captured by a service percentage and reduces contributions and benefits pro rata (reg 46). Employers must inform the trustee and the member whenever the service percentage changes (reg 46(4)). Leave without pay and temporary cessations may result in no contributions and such periods not being counted toward a category A membership period unless specific terms are agreed with the trustee and employer (reg 45(5)). Absent agreement, members may lose service credit for such periods.

DB termination valuations and member outcomes. If the trustee terminates the defined benefit section under reg 25(2), accruals after the DB termination day cease (reg 25(3)(a)) and those periods are disregarded in computing category A membership periods (reg 25(3)(b)). The trustee must then ascertain and apply members’ interests under reg 48. The order of application in reg 48 prioritises costs and expenses, securing benefits to approximate what members would have received had they voluntarily left service, and any residual distribution on an equitable basis (reg 48(1)). That ordering may produce materially different outcomes for members than continued accrual.

SIS legislation dependency. Numerous operational matters are governed by the designated fund rules and the SIS legislation (regs 26(2), 36, 40, 41, 42, 43, 44). Outcomes for payments, preservation, and day‑to‑day governance are therefore dependent on Commonwealth legislative requirements and the designated fund rules. Parties relying solely on the state regulations should be aware that the SIS legislative overlay constrains many trustee actions.

Contribution splitting and transfers. Contribution splitting is permitted only in accordance with the SIS Regulations Division 6.7 (reg 23). Transfers from and to other funds must be applied in a manner consistent with the SIS legislation and the designated fund rules (regs 43-44). Administrators must track the interplay of Commonwealth transfer rules and the scheme’s accumulation accounts.

The regulations prescribe specific administrative steps and institutional practices for employers, members and the trustee. Below are concrete compliance actions grounded in the cited provisions.

For participating employers

Enter a participation agreement in a trustee‑determined form and furnish the trustee with requested information about the employer, its establishments and its mine workers in Western Australia (reg 10(1)(a)-(b), reg 10(2)). Ensure a signed agreement is obtained and retained.
Deduct mandatory member contributions for category A members at the annual rate of 3% of the benchmark amount, by instalments on each salary day (reg 18(1)-(2)(a)). Remit each instalment to the trustee within three working days of deduction (reg 18(2)(b)).
Pay employer contributions at the employer contribution rate determined by the trustee, multiplied by the number of category A members in service (reg 20(5)). Pay instalments as at each salary day and remit each instalment to the trustee within three working days (reg 20(6)(a)-(b)).
If agreeing to voluntary contributions with members, document the agreement and remit in accordance with reg 21.
Notify the trustee when classifying a category A member as part‑time and determine the member’s service percentage for each relevant period, and notify the member of any changes in service percentage (reg 46(2), (4)). Adjust contributions and benefit calculations pro rata during part‑time periods (reg 46(5)-(7)).
If an employee is likely to be in service for less than six months, advise the trustee so the employee can be classified as a category C member where appropriate (reg 15(2)-(3)).

For members

Category A members must ensure their employer deducts the mandatory 3% of the benchmark amount and that those instalments are remitted to the trustee (reg 18(1)-(2)). Consider making voluntary contributions under reg 19, documenting any agreement with the trustee.
If you wish to retain a benefit after entitlement, make a written election to the trustee under reg 37 prior to payment, noting that retaining a defined benefit creates a recorded multiple (reg 37(1)-(3)).
If you have retained the defined benefit component and wish to access part only, elect to convert that component to an accumulation benefit under reg 38 before requesting payment (reg 38(1)-(2), reg 39(2)).
If you intend to split splittable contributions for the benefit of a partner, apply in accordance with the SIS Regulations Division 6.7 and provide any required proofs to the trustee (reg 23).
If taking leave without pay or expecting a temporary cessation of employment, put in place a written agreement with the trustee and employer on the terms of continued membership to preserve rights where possible (reg 45(2)-(4)). Absent agreement, note that contributions are not payable and category A membership period may not count (reg 45(5)(a)-(b)).

For the trustee

Appoint a scheme actuary who satisfies the SIS legislative requirements for a registrable superannuation entity actuary and document the appointment and the actuary’s qualifications (reg 4(1)-(2)).
Instruct the scheme actuary to prepare funding reports when required, consider the actuary’s recommended contribution rate, and set the employer contribution rate within the statutory bounds (reg 20(1)-(3)). If the recommended rate exceeds 10% of the benchmark amount, follow reg 25(1) by referring the funding report to the Minister and taking steps permitted under the SIS legislation to equalise rates.
Maintain an accumulation account for each member and apply accumulation contributions in accordance with the designated fund rules, while reserving amounts for expenses and insurance as allowed by reg 26(3) (reg 26(1)-(3)). Record members’ multiples where defined benefits are retained (reg 37(3)).
Apply defined benefit contributions to expenses, reserves and insurance, and effect insurance for category A members where appropriate (reg 24). When effecting,or assigning,group life policies ensure the definition of total and permanent disablement satisfies the protection for members who became category A members prior to 1 July 2014 (reg 47(2)).
Enforce employer obligations and, where employers default in defined benefit contributions, take all practicable enforcement steps, consult the scheme actuary, and if necessary proceed under reg 11 to value and apply member interests under reg 48 (reg 11).
If terminating a defined benefit section under reg 25(2), ensure that accruals cease for post‑termination service, that membership periods after the DB termination day are disregarded where prescribed, that members’ interests are ascertained as at the DB termination day, and that those interests are applied in the order set out in reg 48 (reg 25(2)-(4), reg 48).
Apply the designated fund rules and SIS legislation for governance matters including payment proofs, death benefit nominations, family law splits and transfer processes (regs 36, 40, 41, 42, 43, 44).

Recordkeeping and reporting

Keep clear records of remittances and timing to demonstrate compliance with the three working day remittance windows in regs 18(2)(b) and 20(6)(b).
Retain documentation of actuary funding reports, trustee determinations of employer contribution rates, Ministerial referrals under reg 25(1), and any trustee determinations about inclusion of prior service under reg 27(3).
Maintain up‑to‑date records for part‑time service percentages and any agreements covering temporary cessation of employment or leave without pay, since these affect contribution obligations and service credit (regs 45, 46).

In all cases confirm actions against the SIS legislative requirements and the designated fund rules because many operational details depend on that overlay (regs 4(2), 26(2), 36, 40, 41). Where the trustee or parties contemplate acceptance of Commonwealth payments, follow the specific statutory categories set out in reg 22.

Deep Dive

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Current sections