294‑130.01 Meaning of capped defined ben294‑130.01 Meaning of capped defined benefit income stream

294‑130.01 Meaning of capped defined benefit income stream

(1) For the purposes of subsection 294‑130(2) of the Act, a superannuation income stream is prescribed if subsection (2), (3), (4), (5), (6) or (7) of this section applies to the superannuation income stream.

Note: A superannuation income stream prescribed under this section is a capped defined benefit income stream (see subsection 294‑130(2) of the Act).

(2) This subsection applies to a superannuation income stream if it is a pension for the purposes of the SIS Act that is provided under rules: (a) that are in existence on 29 June 2007; and (b) that would meet the standards of subregulation 1.06(2) of the SIS Regulations except for the circumstances in which those rules allow for either or both of the following: (i) the pension to be commuted; (ii) the variation or cessation of pension payments in respect of a child of the deceased primary or reversionary beneficiary. (3) This subsection applies to a superannuation income stream if: (a) it arises as a direct result of the payment of an involuntary roll‑over superannuation benefit to a successor fund; and (b) it is a pension for the purposes of the SIS Act that is paid from the successor fund; and (c) the rules under which a pension was provided by the fund that made the payment of the involuntary roll‑over superannuation benefit satisfied subsection (2) at the time of transfer; and (d) the rules of the successor fund under which the superannuation income stream is provided satisfy paragraph (2)(b). (4) This subsection applies to a superannuation income stream if: (a) it is covered by item 2 of the table in subsection 294‑130(1) of the Act; and (b) it starts to be in the retirement phase on or after 1 July 2017; and (c) it arises as a direct result of the payment of an involuntary roll‑over superannuation benefit to a successor fund. (5) This subsection applies to a superannuation income stream if: (a) it is covered by any of items 3 to 7 of the table in subsection 294‑130(1) of the Act; and (b) it starts to be in the retirement phase on or after 1 July 2017; and (c) it arises as a direct result of the payment of an involuntary roll‑over superannuation benefit to a successor fund. (6) This subsection applies to a superannuation income stream if it is a pension for the purposes of the SIS Act that is provided: (a) on the grounds of invalidity under a public sector superannuation scheme; and (b) under rules that would meet the standards of subregulation 1.06(2) of the SIS Regulations except to the extent that those rules allow for the variation, suspension or cessation of pension payments due to any of the following: (i) the primary beneficiary’s level of incapacity being reclassified; (ii) the primary beneficiary’s personal earnings changing; (iii) the primary beneficiary being employed by a participating employer of the relevant superannuation scheme; (iv) the primary beneficiary failing to provide information as required by the rules; (v) the primary beneficiary reaching a particular age. (7) This subsection applies to a superannuation income stream if it is a superannuation income stream because of paragraph 307‑70.02(1)(ba).