Document ID: chunk:federal_register_of_legislation:F2020C00740:reg:4
Version: federal_register_of_legislation:F2020C00740
Segment Type: reg
Provision Reference: reg 4
Character Range: 7949–10775

4  Simplified outline of this instrument

      This instrument establishes the Australian Defence Force Superannuation Scheme (ADF Super), and the ADF Super Fund. The Fund:
             (a) receives contributions (including rollovers and transfers) made to CSC for ADF Super members' superannuation, and proceeds of investments; and
             (b) is used to pay superannuation benefits in respect of ADF Super members, and administrative and investment costs; and
             (c) is held in trust by CSC.
      CSC must perform its functions, and exercise its powers, relating to ADF Super in accordance with the SIS Act so that ADF Super is a complying superannuation fund.
      The SIS Act contains extensive provisions (which apply to ADF Super and CSC) about when and how benefits may or must be paid. This instrument supplements those provisions by dealing with:
             (a) payment of benefits on death; and
             (b) letting CSC arrange for provision of income products bought with benefits; and
             (c) letting CSC provide ADF Super members with account‑based pensions bought with benefits.
      To work out the value of a person's interest in the ADF Super Fund, CSC must keep a personal accumulation account for the person.
      The account is credited with either:
             (a) contributions by or for the ADF Super member concerned; or
             (b) the value of an interest created for a former spouse of an ADF Super member by splitting the ADF Super member's interest under the Family Law Act 1975.
      The account is also credited with earnings from investment of the balance of the account through the ADF Super Fund (which may be invested using a strategy chosen by the person).
      The account is debited with:
             (a) payments of benefits in respect of the person; and
             (b) losses from investment of the balance of the account through the ADF Super Fund; and
             (c) fees for administration costs.
      Similarly, CSC must keep a pension account from which an account‑based pension is paid.
      There are special rules for MySuper products provided through ADF Super, to ensure that all holders of such products are treated alike and money held in those products is invested consistently.
      This instrument makes provision for CSC to offer certain ADF Super members permanent incapacity and death cover and includes rules about crediting amounts received in response to insurance claims to the personal accumulation account of the ADF Super member concerned and debiting insurance premium amounts from that account.
      This instrument also deals with other administrative matters, such as reconsideration of CSC's decisions, correcting accounts, providing information to the Minister and delegation of functions and powers.