Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p28
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 28/66)
Character Range: 295623–298447

to be paid before that day.

6.16  Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee
 (1) For the purpose of subregulation (2), the following are categories of benefits:
 (a) preserved benefits, as defined in Subdivision 6.1.2;
 (b) restricted non‑preserved benefits, as defined in Subdivision 6.1.3;
 (c) unrestricted non‑preserved benefits, as defined in Subdivision 6.1.4.
 (2) For the purposes of this Part, the governing rules of a fund, or the trustee of a fund, may alter the category of any of a member's benefits in the fund but, subject to subregulation (3), not so as to:
 (a) decrease the amount of the member's preserved benefits in the fund; or
 (b) increase the amount of the member's unrestricted non‑preserved benefits in the fund.
 (3) The trustee may alter the category of benefits in a fund from preserved benefits to unrestricted non‑preserved benefits if:
 (a) before the commencement of regulation 6.15A and during the transitional period of the fund, there arose in relation to the benefits a circumstance that would have resulted in the satisfaction of a condition of release and a 'Nil' cashing restriction if these regulations applied; or
 (b) before the commencement of regulation 6.15A, both:
 (i) the benefits were rolled over or transferred to the fund from:
 (A) a superannuation fund (Fund A) during its transitional period; or
 (B) a regulated superannuation fund or an approved deposit fund to which the benefits were rolled over or transferred from a superannuation fund (Fund B) during its transitional period; and
 (ii) the trustee is reasonably satisfied that:
 (A) during the transitional period of Fund A or Fund B, there arose in relation to the benefits a circumstance that would have resulted in the satisfaction of a condition of release and a 'Nil' cashing restriction if these regulations applied; or
 (B) before the benefits were rolled over or transferred to Fund A or Fund B from a regulated superannuation fund or an approved deposit fund, the relevant cashing restriction set out in Schedule 1 in respect of the benefits was 'Nil'.

6.16A  When non‑preserved benefits may be reduced
 (1) This regulation applies if, on or after 1 July 1999, the amount of a negative investment return for a period after 30 June 1999 to be debited against a member's benefits is more than the amount of the member's preserved benefits.
 (2) The negative investment return must be debited in the following order:
 (a) first, against the member's preserved benefits; and
 (b) second, against the member's restricted non‑preserved benefits; and
 (c) third (if required), against the member's unrestricted non‑preserved benefits.

Division 6.2—Payment of benefits

6.17  Restriction on payment
 (1) For the purposes of