Scope of the review
The review is directed at defined benefit pensions and other pensions that small superannuation funds provide. A small superannuation fund for the purposes of this review has fewer than 50 members.
The review will take into account the defined benefit pension integrity measures announced in the 2004-05 Budget. However, the review has not been asked to consider other superannuation integrity measures announced in the 2004-05 Budget (for example, the requirements that accumulation funds allocate all contributions to a member’s account and fully vest benefits in a given member) or other measures affecting small superannuation funds.
Purpose of the discussion paper
An initial round of consultation, involving taking initial submissions from interested parties, has helped Treasury in developing this discussion paper. These initial submissions are posted on the review’s website (see below) except where consent to make them publicly available has not been obtained.
Consistent with the terms of reference, the discussion paper outlines key issues with pensions in small funds and canvasses strategies to address the issues.
The paper is intended to help individuals and organisations prepare further submissions to the review, drawing attention to key issues on which the review is seeking comment.
After Treasury receives the next round of submissions, the review team may convene consultations with groups to further discuss key issues and options.
Treasury will take into account the outcomes of its consultations before reporting to Government by April 2005.