22BCompulsory preservation of benefits

22B Compulsory preservation of benefits

22B Compulsory preservation of benefits

(1) The trustees must, when a lump sum becomes payable under this Act, preserve all or so much of the lump sum as is required to be preserved so as to be consistent with a relevant Commonwealth superannuation standard.

(2) The amount of the lump sum that must be preserved under this section in respect of a former member is the amount determined by the trustees, after obtaining actuarial advice.

(3) The amount of a benefit that must be preserved under this section is to be preserved in the Fund together with interest from the member’s exit date to the date of payment at a rate determined by the trustees.

(4) The trustees may establish and maintain within the Fund such accounts and reserves as, in the opinion of the trustees, are necessary or convenient for the administration of this section.

(5) The trustees may, from time to time, adjust any account or reserve established under this section by—

(a) deducting amounts for the trustees’ administration costs in respect of the preserved benefit, and

(b) adjusting it for interest at a rate determined by the trustees, having regard to the income of the Fund and such other matters as the trustees consider relevant.

s 22B: Ins 1993 No 111, Sch 7. Am 1995 No 99, Sch 1; 1996 No 92, Sch 1.4 (4); 1997 No 42, Sch 1.2 [8]–[10]; 1997 No 149, Sch 1.2 [9]. Subst 1999 No 89, Sch 1 [14].