Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2015
Reporting Standard SRS 710.0 Conditions of Release
Financial Sector (Collection of Data) Act 2001
I, Charles Littrell, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:
(a) REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 93 of 2013, including Reporting Standard SRS 710.0 Conditions of Release made under that Determination; and
(b) DETERMINE Reporting Standard SRS 710.0 Conditions of Release, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.
Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on 1 July 2015.
This instrument commences on the date of registration on the Federal Register of Legislative Instruments.
Dated: 10 June 2015
[Signed]
Charles Littrell
Executive General Manager
Policy, Statistics and International Division
Interpretation
In this Determination:
APRA means the Australian Prudential Regulation Authority.
financial sector entity has the meaning given by section 5 of the Act.
Schedule
Reporting Standard SRS 710.0 Conditions of Release comprises the 11 pages commencing on the following page.
Reporting Standard SRS 710.0
Conditions of Release
Objective of this Reporting Standard
This Reporting Standard sets out the requirements for the provision of information to APRA relating to membership activities relating to conditions of release in the operations of a registrable superannuation entity.
It includes Form SRF 710.0 Conditions of Release and associated specific instructions.
Authority
1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
2. Information collected in Form SRF 710.0 Conditions of Release (SRF 710.0) is used by APRA for the purposes of prudential supervision and publication.
Application and commencement
3. This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) in respect of each RSE, defined benefit RSE and eligible rollover fund (ERF) within its business operations.[1]
4. This Reporting Standard applies for reporting periods ending on or after 1 July 2015.
Information required
5. An RSE licensee to which this Reporting Standard applies must provide APRA with the information required by SRF 710.0 in respect of each reporting period.
Forms and method of submission
6. The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or, where ‘Direct to APRA’ is not available, by a method notified by APRA, in writing, prior to submission.
Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.
Reporting periods and due dates
7. Subject to paragraph 8, an RSE licensee to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each year of income of each RSE, defined benefit RSE or ERF within its business operations.
8. If, having regard to the particular circumstances of an RSE, defined benefit RSE or ERF, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 7, APRA may, by notice in writing, change the reporting periods for the particular RSE, defined benefit RSE or ERF.
9. The information required by this Reporting Standard must be provided to APRA:
(a) within three months after the end of the year of income to which the information relates; and
(b) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.
10. APRA may grant, in writing, an RSE licensee an extension of a due date with respect to one or more RSEs, defined benefit RSEs or ERFs within its business operations, in which case the new due date for the provision of the information will be the date on the notice of extension.
Quality control
11. The information provided by an RSE licensee under this Reporting Standard must be the product of systems, procedures and internal controls that have been reviewed and tested by the RSE auditor of the RSE, defined benefit RSE or ERF to which the information relates.[2] This will require the RSE auditor to review and test the RSE licensee’s systems, procedures and internal controls designed to enable the RSE licensee to report reliable information to APRA. This review and testing must be done on:
(a) an annual basis or more frequently if necessary to enable the RSE auditor to form an opinion on the reliability and accuracy of information; and
(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of SPS 310.
12. All information provided by an RSE licensee under this Reporting Standard must be subject to systems, processes and controls developed by the RSE licensee for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the RSE licensee to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.
Authorisation
13. When an officer or agent of an RSE licensee provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA.
14. If the information required by this Reporting Standard is provided by an agent who submits using the ‘Direct to APRA’ software on the RSE licensee’s behalf, the RSE licensee must:
(a) obtain from the agent a copy of the completed form with the information provided to APRA; and
(b) retain the completed copy.
15. An officer or agent of an RSE licensee who submits the information under this Reporting Standard for, on behalf of, the RSE licensee must be authorised by either:
(a) the Chief Executive Officer of the RSE licensee; or
(b) the Chief Financial Officer of the RSE licensee.
Variations
16. APRA may, by written notice to an RSE licensee, vary the reporting requirements of SRF 710.0 in relation to that RSE licensee or one or more RSEs, defined benefit RSEs or ERFs within that RSE licensee’s business operations.
Interpretation
17. In this Reporting Standard:
APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;
Chief Executive Officer means the chief executive officer of the RSE licensee, by whatever name called, and whether or not he or she is a member of the Board of the RSE licensee[3];
Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called;
defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;
due date means the relevant date under paragraph 9 or, if applicable, paragraph 10;
eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act;
reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;
RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a defined benefit RSE, pooled superannuation trust, ERF, small APRA fund or single member approved deposit fund[4];
RSE auditor means an auditor appointed by the RSE licensee to perform functions under this Reporting Standard;
RSE licensee has the meaning given in section 10(1) of the SIS Act;
SIS Act means Superannuation Industry (Supervision) Act 1993; and
year of income has the meaning given in section 10(1) of the SIS Act.
Reporting Form SRF 710.0
Conditions of Release
Instructions
These instructions assist completion of Reporting Form SRF 710.0 Conditions of Release (SRF 710.0). SRF 710.0 collects information relating to the operations of an RSE, specifically membership activities. Information reported in SRF 710.0 is primarily required for prudential, publication and statistical purposes.
Reporting level
SRF 710.0 must be completed for each RSE, defined benefit RSE and eligible rollover fund (ERF).
Reporting basis and unit of measurement
Report all items on SRF 710.0 in accordance with the Australian Accounting Standards unless otherwise specified.
Items on SRF 710.0 must be reported in respect of transactions that occurred during the reporting period.
Items on SRF 710.0 are to be reported as thousands of dollars and whole numbers.
These instructions specify the unit of measurement that applies to each item.
Specific instructions
Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.
Lump sum benefit payments by condition of release
Item 1 collects information on lump sum benefit payments from the RSE.
Reporting basis: report item 1 column 2 and item 1 column 3 in respect of transactions that occurred during the reporting period.
Unit of measurement: report item 1 column 2 as a whole number; report item 1 column 3 as thousands of dollars.
| Item 1 | Report lump sum benefit payments by condition of release type in item 1. For the condition of release reported in column 1, report the number of member accounts from which a lump sum benefit payment was made in column 2 and the value of lump sum benefits paid in column 3. The conditions of release types are: retirement, death, terminal medical condition, permanent incapacity, termination, severe financial hardship, attaining age 65, compassionate grounds, temporary incapacity, attaining preservation age, excess contributions tax (ECT) release, unclaimed money and lost members, lost member who is found, termination with less than $200 or other condition of release. Where a condition of release is not known but has been previously met resulting in members’ benefits being classified as unrestricted non-preserved benefits, report lump sum benefit payments made as ‘release of unrestricted non-preserved benefits’ in item 1.1. Report the number of member accounts from which a lump sum benefit payment was made in column 1 and the value of lump sum benefits paid in column 2. Where the condition of release is known in respect of a lump sum benefit payment, this amount must be reported in item 1. |
| Lump sum benefit payment | Represents benefit payments that have been paid as a lump sum under a condition of release, from pooled superannuation trust arrangements or classed as another benefit payment type. Includes: insurance claim benefits or proceeds first credited to members’ accounts and subsequently disbursed along with members’ benefits to the member or beneficiary. Reference: SIS Regulations, Schedule 1. |
| Member account | A distinct entry recorded in the register of member accounts (or other equivalent mechanism). |
| Unrestricted non-preserved benefits | Represents unrestricted non-preserved benefits within the meaning given in SIS Regulations, Subdivision 6.1.4. |
Pension benefit accounts commenced
Item 2 collects information on pension benefit accounts opened in the RSE.
Reporting basis: report item 2 column 2 and item 2 column 3 in respect of transactions that occurred during the reporting period.
Unit of measurement: report item 2 column 2 as a whole number; report item 2 column 3 as thousands of dollars.
| Item 2 | Report pension benefit accounts opened during the period by condition of release type in item 2. For the condition of release reported in column 1, report the number of member accounts from which a pension benefit account was opened under in column 2 and the value of pension benefit payments paid in column 3. The condition of release types are: retirement, death, terminal medical condition, permanent incapacity, termination, severe financial hardship, attaining age 65, compassionate grounds, temporary incapacity, attaining preservation age, excess contributions tax (ECT) release, unclaimed money and lost members, lost member who is found, termination with less than $200 or other condition of release. Where a condition of release has been previously met resulting in members’ benefits being classified as unrestricted non-preserved benefits, report payments from pension benefit accounts opened during the period as ‘release of unrestricted non-preserved benefits’ in item 2.1. Report the number of member accounts from which a pension benefit payment was made in column 1 and the value of pension benefits paid in column 2. Where the condition of release is known in respect of a pension benefit account, this amount must be reported in item 2. |
| Pension benefit account | Represents the member account or portion thereof, from which pension benefit payments are payable under a condition of release. Includes: complying pensions, allocated pensions, annuity payments and payments from longevity products/variable annuities. Excludes: amounts resulting from the commutation of pension benefits. Reference: SIS Regulations, r. 1.05 and r. 1.06. |
| Pension benefit payment | Represents benefit payments that have been paid as a pension under a condition of release. Includes: account based pension, transition to retirement pension, allocated pensions, annuity payments and other pension income streams. Excludes: transfers, including rollovers and successor fund transfers, within the superannuation system. Reference: SIS Regulations, Divisions 6.2 and 6.3. |
Glossary of additional terms
Conditions of release
| Retirement condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the retirement condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Death condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the death condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Terminal medical condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the terminal medical condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Permanent incapacity condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the permanent incapacity condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Termination condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the termination condition of release, within the meaning given in SIS Regulations, Schedule 1. Excludes: rollovers following a termination event and termination with less than $200. |
| Severe financial hardship condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the severe financial hardship condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Attaining age 65 condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the attaining age 65 condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Compassionate grounds condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the compassionate grounds condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Temporary incapacity condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the temporary incapacity condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Attaining preservation age condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the attaining preservation age condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Excess contributions tax (ECT) release condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the Excess contributions tax (ECT) release condition of release, within the meaning given in SIS Regulations, Schedule 1. |
| Unclaimed money and lost members condition of release | Represents benefit payments made to the ATO based on satisfaction of the unclaimed money and lost members condition of release, within the meaning given in SIS Regulations, Schedule 1, Item 103B and under the Superannuation (Unclaimed Money and Lost Members) Act 1999, Part 4A. |
| Lost member who is found condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the lost member condition of release, within the meaning given in SIS Regulations, Schedule 1, Item 111. |
| Termination with less than $200 condition of release | Represents benefit payments made to a beneficiary based on satisfaction of the termination of employment with less than $200 condition of release, within the meaning given in SIS Regulations, Schedule 1, Item 104. Excludes: rollovers following a termination event. |
Interpretation
For the purposes of these instructions:
· defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;
· eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act;
· RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a small APRA fund or single member approved deposit fund[5];
· RSE licensee has the meaning given in section 10(1) of the SIS Act;
· SIS Act means Superannuation Industry (Supervision) Act 1993; and
· SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.