Document ID: chunk:federal_register_of_legislation:C2025C00134:section:68aaa:p1
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 68AAA (pt 1/2)
Character Range: 465624–468225

68AAA  Benefits provided by taking out insurance—inactive accounts
 (1) Each trustee of a regulated superannuation fund must ensure that a benefit is not provided by the fund to, or in respect of, a member of the fund under a choice product or MySuper product held by the member by taking out or maintaining insurance if:
 (a) the member's account is inactive in relation to that product for a continuous period of 16 months; and
 (b) the member has not elected under subsection (2) that the benefit will be provided to, or in respect of, the member under the product by taking out or maintaining insurance, even if the member's account is inactive in relation to that product for a continuous period of 16 months.
Note: This section does not apply in relation to regulated superannuation funds with no more than 6 members (see section 68AAD).
 (2) Each trustee of the regulated superannuation fund must ensure that each member of the fund who holds a choice product or MySuper product offered by the fund may elect, in writing, that a benefit specified in the election is to be provided to, or in respect of, the member under the product by taking out or maintaining insurance, even if the member's account is inactive in relation to that product for a continuous period of 16 months.
 (2A) A member's election:
 (a) that:
 (i) is given under subsection (2); or
 (ii) because of a previous application of this subsection, is taken to have been given under subsection (2);
  to the trustee of a regulated superannuation fund (the original fund); and
 (b) that is in force immediately before the transfer of the benefits of the member from the original fund to another regulated superannuation fund (the successor fund);
continues in force (and may be dealt with) as if it had been given under subsection (2) to the trustee of the successor fund, if:
 (c) the successor fund confers on the member equivalent rights to the rights the member had under the original fund in respect of the benefits; and
 (d) before the transfer, the trustee of the successor fund had agreed with the trustee of the original fund that the successor fund will confer such equivalent rights on the member.
 (3) For the purposes of this section, a member of a regulated superannuation fund has an account that is inactive in relation to a choice product or MySuper product for a period if the trustee, or trustees of the fund, have not received an amount in respect of the member that relates to that product during that period.
 (4) The prohibition in subsection (1) ceases to apply to benefits provided to, or in respect of,