The former scheme is defined as the local government superannuation scheme, a defined-benefit arrangement for employees of local government and related entities in New South Wales. The successor fund is Vision Super, formally the Local Authorities Superannuation Fund (ABN 24 496 637 884). The transfer day is a date to be appointed by the Minister via Gazette notice; until that date, the transfer provisions in Part 2 are inoperative (section 4). The defined benefit division means Division B, C or D of the former scheme. These are the categories of members whose defined benefit entitlements are being moved. Transferred member means a member of a defined benefit division who is transferred under section 5. Transferred employer means an employer listed in Schedule 1, including a successor of such an employer. The Schedule includes councils and county councils under the Local Government Act 1993, entities like Australian Red Cross Lifeblood, Civic Risk Mutual Ltd, Illawarra Shoalhaven Joint Organisation, Local Government NSW, Local Government Procurement Pty Ltd, Murrumbidgee Irrigation Limited, the United Services Union, NSW Rural Fire Service, and a catch-all category: "Other employers who, immediately before the transfer day, were responsible for the payment of benefits or contributions for a defined benefit division." This catch-all means that the list is not closed; any employer with a connection to a defined benefit division on transfer day becomes a transferred employer, regardless of whether they are named.

A claim about the former scheme is broadly defined. It includes a complaint about the former scheme or its trustee, a complaint about a matter involving the former scheme or its trustee that may give rise to financial loss to a member or beneficiary, an application for a benefit or entitlement under the former scheme, and a matter that was to be treated (under a transitional provision in an Act or regulation) as if it were a claim against the trustee. The definition is limited to matters relating to a defined benefit division. This is important: it captures disputes, benefit applications, and even matters that would otherwise be deemed claims by other transitional rules.

Mobility rights are a concept under section 128 of the Superannuation Administration Act 1996. The regulation prescribes which public sector employers are recognised for the purpose of allowing employees to transfer between public sector super schemes without losing continuity. For transferred members and employees of STC schemes, the prescribed employers are those listed in Schedule 3 of the Superannuation Act 1916 and Schedule 1 of the State Authorities Superannuation Act 1987. Eligibility requirements involve continuous service with a transferred employer or an STC employer, with a maximum break of three months (the prescribed time). The regulation creates a framework for employees who move between local government, state authorities, and other prescribed employers to maintain superannuation coverage.

The primary affected group is transferred members: persons who were members of a defined benefit division of the former scheme. These members lose their entitlements, rights and obligations under the former scheme and acquire those under Vision Super (section 7). That is a significant change in legal position: their defined benefit promise is replaced by whatever entitlements exist under the governing rules of the successor fund. While the regulation does not specify the terms of Vision Super's governing rules, the member's benefits become subject to those rules rather than the former scheme's trust deed or legislation.

Transferred employers (Schedule 1 entities) are directly affected. They are deemed to no longer be employers under the former scheme for transferred members; instead they become employers under the successor fund and must make contributions in accordance with Vision Super's trust deed (section 10). This imposes a new contractual and fiduciary obligation. For employers not listed by name but caught by the catch-all provision ("other employers who, immediately before the transfer day, were responsible for the payment of benefits or contributions for a defined benefit division"), there is uncertainty about whether they are included until the transfer day is known and their precise status is confirmed. Employers must also monitor the Gazette for the transfer day and adjust payroll and superannuation systems accordingly.

Trustee of the successor fund (Vision Super) acquires responsibility for managing existing claims not finalised before transfer day (section 8) and for dealing with all claims made after transfer day (section 9). Those claims must be handled under the successor fund's procedures, which may differ from the former scheme's dispute resolution or benefit application processes. The trustee also takes on the administration of transferred members' accounts and benefit payments.

Employees of STC schemes may be affected indirectly via the mobility provisions. Section 11(2) sets eligibility requirements for employees who want to maintain continuity of coverage when moving between employers. The prescribed time for break in service is three months. Employees who change jobs between relevant public sector employers must ensure no break exceeds three months to remain within the mobility framework.

The Minister is the person who determines the transfer day and communicates it via Gazette notice. This is a discretionary power with no criteria set in the regulation. The timing of the transfer day directly affects when the substantive changes occur.

Claimants who have an existing claim about the former scheme that has not been finally dealt with before transfer day find their claim transferred to the trustee of the successor fund. They must now deal with Vision Super rather than the former scheme's trustee. Similarly, any person making a claim after the transfer day must address it to Vision Super.

Transferred members have the right to have benefits payable under the former scheme now paid in accordance with the governing rules of the successor fund (section 6). They also have the right to have their entitlements, rights and obligations under the successor fund (section 7). However, they lose all entitlements under the former scheme. The regulation does not guarantee that the successor fund's benefits are equivalent; it merely replaces one set of rules with another. Members have the right to rely on the mobility provisions if they move between prescribed employers, provided they meet the continuous service requirements (section 11). They do not have a right to remain in the former scheme; the transfer is mandatory for all defined benefit division members.

Transferred employers have a duty to make payments and contributions to the successor fund for transferred members, in accordance with the trust deed (section 10(d)). They are also bound by the terms of the trust deed establishing the successor fund (section 10(c)). This is a new contractual obligation that did not exist before the transfer. Employers have the right to be treated as having ceased to be an employer under the former scheme for transferred members (section 10(a)). They are also entitled to rely on the mobility provisions for their employees, but only if they are listed in the relevant schedules or fall within the prescribed categories.

Trustee of the successor fund has a duty to manage existing claims about the former scheme that have not been finally dealt with before the transfer day (section 8). The trustee must also deal with claims made after the transfer day, even if they relate to pre-transfer service or to former members of STC schemes (section 9). The trustee must deal with these claims in accordance with procedures under the successor fund, not the former scheme. This imposes an operational burden and legal risk if the procedures are not followed correctly. The trustee has the right to apply its own procedures, which may be less familiar to claimants used to the former scheme's processes.

Claimants (including members, beneficiaries, and others) have the right to make claims about the former scheme after transfer day to the trustee of the successor fund (section 9). They also have the right to have existing claims processed by the successor fund if not finalised. However, they do not have the right to have claims dealt with under the former scheme's procedures; only the successor fund's procedures apply.

Employers listed in the Superannuation Act 1916 Schedule 3 and the State Authorities Superannuation Act 1987 Schedule 1 are prescribed as public sector employers for mobility purposes under section 11. This gives them the right to be treated as public sector employers for the Act, section 128. It also imposes obligations for contribution responsibilities under the STC scheme framework (section 11(3)(b)).

The regulation itself does not create any specific penalties or enforcement mechanisms. It is a transitional regulation under the Superannuation Administration Act 1996, and enforcement would flow from that Act and any other applicable legislation. However, several compliance risks can be identified from the duties imposed.

If a transferred employer fails to make payments or contributions to the successor fund as required by section 10(d), the employer would be in breach of its obligations under the trust deed. The trust deed of Vision Super would likely contain provisions for recovery of unpaid contributions, including interest or penalties, and the trustee could pursue legal action for breach of contract. Additionally, the Superannuation Administration Act 1996 may impose civil penalties for non-compliance with directions or obligations under that Act.

The trustee of the successor fund has a duty to deal with claims under its procedures. If the trustee fails to properly manage an existing claim or a new claim, a complainant could potentially seek review under the trust deed's dispute resolution process, or through the Australian Financial Complaints Authority (AFCA) if the trustee is a regulated superannuation entity under Commonwealth law. The regulation does not create a private right of action for breach of the transitional provisions, but the underlying Act likely provides for enforcement of trustee duties.

The Minister's power to set the transfer day is not subject to any statutory conditions in the regulation. If the Minister were to set a transfer day in a manner that is procedurally unfair or unreasonable, there may be scope for judicial review under administrative law principles. But the regulation itself imposes no penalty for the Minister's decision.

Members who are transferred without their consent lose entitlements under the former scheme. If it turns out that the successor fund does not provide equivalent benefits, that could give rise to a claim for compensation or damages, but only if the transfer was ultra vires or procedurally flawed. The regulation appears to authorise the transfer without member consent, so the member's remedy would be limited to challenging the validity of the regulation itself or seeking relief under the Superannuation Administration Act.

The mobility provisions in section 11 use the concept of "prescribed time" of three months. If an employer or trustee incorrectly applies the break-in-service rule, an employee could lose eligibility for mobility rights. That could be challenged through internal review or administrative law. The regulation does not specify a penalty for incorrect application, but the loss of superannuation continuity could have significant financial consequences for the employee.

The regulation is made under the Superannuation Administration Act 1996 (the Act), specifically sections 127B and 128. Section 127B deals with transfer of members and benefits between schemes, and section 128 deals with mobility provisions. The regulation gives effect to those sections. The Interpretation Act 1987 applies to interpretation of the regulation, as noted in the note to section 3.

Several other Acts are referenced indirectly. The Local Government Act 1993 defines "council" and "county council", which are the primary transferred employers in Schedule 1. The Superannuation Act 1916 (Schedule 3) and the State Authorities Superannuation Act 1987 (Schedule 1) are used to identify public sector employers for the mobility provisions under section 11. Those Acts set out the superannuation arrangements for state government employees and certain authorities.

The regulation amends the Superannuation Administration (Cbus Transitional Provisions) Regulation 2022 in Schedule 2. That regulation dealt with a different transfer (Cbus) but was missing provisions to prescribe the same public sector employer schedules. The amendment inserts two new subsections (1A) and (1AA) into section 11 of the Cbus regulation, aligning it with the Vision Super approach. This creates consistency: the same employer schedules now apply for both the Cbus and Vision Super mobility provisions. If an employer is listed in either schedule, it will be recognised for mobility purposes under both transitional schemes.

The regulation does not interact with Commonwealth superannuation law directly, but Vision Super is a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 (Cth). The governing rules of the successor fund must comply with that Act. The regulation does not override Commonwealth law; it operates as a State transitional mechanism to move members to a Commonwealth-regulated fund. The treatment of claims under the successor fund's procedures must also comply with the trustee's obligations under the SIS Act and the fund's trust deed.

If a transferred member is dissatisfied with the successor fund's handling of a claim, they may have recourse under the fund's internal dispute resolution process and then the Australian Financial Complaints Authority (AFCA), which handles superannuation complaints. The regulation does not oust those external avenues.

The mobility provisions in section 11 use the phrase "STC scheme" but do not define it. The context suggests it refers to the superannuation schemes for state public sector employees, likely those governed by the Superannuation Act 1916 and the State Authorities Superannuation Act 1987. The interaction with those Acts' own mobility provisions is not specified; presumably the regulation is intended to supplement them.

This regulation, the Superannuation Administration (Vision Super Transitional Provisions) Regulation 2024 (NSW), is a standalone instrument. The source text does not show any prior amendments to it. It was made and commenced on the day of publication on the NSW legislation website, which would have been in 2024. It has not been amended as at the date of the source text.

However, the regulation itself amends another instrument. Schedule 2 amends the Superannuation Administration (Cbus Transitional Provisions) Regulation 2022. That Cbus regulation dealt with the transfer of members from the former Cbus scheme to another fund (likely the same successor fund or another). The amendment inserts two new subsections (1A) and (1AA) into section 11 of that regulation. These new subsections prescribe the same employer schedules for mobility purposes as are used in the Vision Super regulation. This is a substantive change: it ensures that for the Cbus transfer, the recognised public sector employers include those from the Superannuation Act 1916 Schedule 3 and the State Authorities Superannuation Act 1987 Schedule 1.

The need for this amendment suggests that the original Cbus regulation did not include these employer schedules for the mobility provisions, possibly because the drafter assumed different definitions or because the need for alignment was only discovered later. The amendment brings the Cbus regulation into line with the new Vision Super regulation, avoiding differential treatment of employees moving between the two schemes.

The regulation does not amend the Superannuation Administration Act 1996 itself or any primary legislation. It is a subordinate instrument subject to disallowance by the Parliament. No amendment history is provided for the regulation itself because it is likely new. Practitioners should check the NSW legislation website for any subsequent amendments not captured in this source text.

The source text does not refer to any cases or litigation history. Because this regulation is from 2024 and likely only recently commenced, there has been no reported litigation under it as at the date of the source. However, several potential areas of litigation can be anticipated.

First, the validity of the transfer itself could be challenged if a member or employer argues that the regulation exceeds the power under the Superannuation Administration Act 1996. The regulation purports to transfer all defined benefit division members automatically without consent. If the parent Act does not clearly authorise a compulsory transfer, there may be grounds for judicial review.

Second, the definition of "claim" is broad and includes "a matter that was to be treated, because of a transitional provision in an Act or regulation, as if it were a claim against the trustee of the former scheme." This could encompass matters that were deemed claims by other transitional rules. If the trustee of the successor fund refuses to accept a matter as a claim because it does not fall within the definition, that decision could be litigated.

Third, the mobility provisions depend on the "prescribed time" of three months for a break in service. Disputes over whether a break exceeds three months, or whether an employer qualifies as a transferred employer or STC employer, could lead to litigation under section 128 of the Act.

Fourth, the catch-all category of "other employers" in Schedule 1 creates uncertainty. If an employer disputes that it was responsible for contributions immediately before the transfer day, or if there is a dispute about successor liability, that could end up in court.

Fifth, claims about the former scheme that are dealt with by the successor fund under its procedures could give rise to challenges if the procedures are not applied correctly or if they are inconsistent with natural justice. While the regulation does not create a right to the former scheme's procedures, the trustee must still act fairly and in accordance with its own procedures.

Sixth, the amendment to the Cbus regulation could be litigated if there is disagreement about whether the prescribed employers under the Superannuation Act 1916 are appropriate for the Cbus transfer context.

The most significant gotcha is that the transfer day is unknown until the Minister publishes a notice in the Gazette. Part 2 has no effect before that day, but the regulation itself is published and in force. Employers and members must monitor the Gazette for the trigger date. There is no minimum notice period specified; the regulation could commence and the transfer day could be the same day. This creates planning uncertainty.

Members lose all rights under the former scheme once transferred (section 7). That includes any accrued rights under the former trust deed or legislation, even if the successor fund's governing rules are less favourable. The regulation does not protect the current value of benefits; it merely says the member has entitlements under the successor fund. If the successor fund has different defined benefit formulas, or if it converts benefits to accumulation-style accounts, the member's expected pension could change. Members should obtain independent advice before the transfer day.

The definition of "claim" is very broad and includes "a complaint about a matter involving the former scheme or the trustee of the former scheme that may give rise to a financial loss to a member or beneficiary." That could capture things like trustee negligence, administrative errors, or even breach of fiduciary duty, even if no formal application for a benefit has been made. The trustee of the successor fund must deal with these claims under its own procedures, which may not have been designed for such historical grievances.

Existing claims not finalised before transfer day become the responsibility of the successor fund's trustee (section 8). Claimants may find themselves dealing with a new entity with different processes. There is no requirement for the successor fund to adopt the former scheme's handling procedures. This could lead to delays or changes in approach.

Employers caught by the catch-all provision in Schedule 1 ("Other employers who, immediately before the transfer day, were responsible for the payment of benefits or contributions for a defined benefit division") may not know they are covered until after the transfer day. That provision could apply to any entity that paid contributions into a defined benefit division, even if they were not formally an employer under the former scheme. Those entities could inherit new obligations under the successor fund's trust deed.

The mobility provisions have a strict three-month break limit (section 11(5): "prescribed time means a period of 3 months"). Any break longer than three months in continuous service will break eligibility, even if the employee moves between prescribed employers. This is a narrow window compared to some other superannuation portability arrangements.

The amendment to the Cbus regulation may create an expectation that the same mobility provisions apply across all state super schemes. But each transitional regulation stands alone; the Cbus regulation's mobility provisions are now aligned, but only for the purposes of that particular transfer.

No transitional period for employers to adjust to the new contribution obligations under the successor fund's trust deed. The transfer happens on the transfer day, and employers must immediately start making contributions per the trust deed. If the trust deed has different contribution schedules, frequency or calculations, employers may face penalty or default if they do not adjust promptly.

For transferred employers: The primary action is to prepare for the transfer day. Employers should identify whether they are listed in Schedule 1 or fall within the catch-all provision. They must obtain the trust deed of the successor fund (Vision Super) and familiarise themselves with contribution requirements. Section 10(d) requires payments and contributions "in accordance with the trust deed." This may involve changing payroll systems to reflect the new fund's preferred methods, updating employment contracts or policies that refer to the former scheme, and ensuring that superannuation guarantee obligations are met on time from the transfer day. Employers should also review any existing agreements with the former scheme regarding liability for contributions and ensure they are novated or terminated appropriately. The transfer day may be published with little warning, so advance preparation is essential.

For the trustee of the successor fund: The trustee must establish procedures for handling existing claims about the former scheme (section 8) and new claims (section 9). These procedures must be in place before the transfer day. The trustee should communicate with known claimants and explain the new process. For transferred members, the trustee must update records and ensure benefits are paid correctly. The trustee should also confirm that it has the administrative capacity to handle the increased membership and claim volume. Given the breadth of the "claim" definition, the trustee should implement a screening process to identify matters that might not be obvious claims but fall within the definition (e.g., complaints that could give rise to financial loss).

For transferred members: Members should obtain a statement of their entitlements under the former scheme before the transfer day, so they can compare with the benefits provided by the successor fund. They should monitor communications from Vision Super and ensure their personal details are current. If they have an existing claim about the former scheme that has not been finalised, they should ensure the trustee of the successor fund is aware of it. Members who expect to change jobs should note the three-month break rule for mobility rights (section 11(5)). They should keep records of continuous service with prescribed employers.

For employers named in the Superannuation Act 1916 Schedule 3 or the State Authorities Superannuation Act 1987 Schedule 1: Those listed employers are prescribed for mobility purposes. They should ensure their human resources systems correctly track continuous service breaks for employees who move between these employers. The mobility provisions affect eligibility for superannuation continuity, not just contributions. Employers should provide employees with clear information about the three-month rule.

All parties should monitor the NSW legislation website and the Gazette for the transfer day notice. The regulation does not require the Minister to consult before setting the transfer day. Once published, the transfer day is fixed and the transitional provisions become operative. Compliance requires forward planning without certainty of timing.