Document ID: chunk:federal_register_of_legislation:C2015C00151:clause:2_68aa:p1
Version: federal_register_of_legislation:C2015C00151
Segment Type: clause
Provision Reference: sch 2 cl 68AA (pt 1/2)
Character Range: 36447–39213

68AA  Benefits for permanent incapacity and death—MySuper members

Requirement to provide permanent incapacity benefit and death benefit by taking out insurance
 (1) Each trustee of a regulated superannuation fund must ensure the following:
 (a) that the fund provides permanent incapacity benefit to each MySuper member of the fund;
 (b) that the fund provides death benefit in respect of each MySuper member of the fund;
 (c) that the benefits referred to in paragraphs (a) and (b) are provided by taking out insurance.
Note: A failure to comply with subsection (1) is a breach of a condition of the RSE licence (see paragraph 29E(1)(a)).
 (2) The trustees of a regulated superannuation fund are not required to provide permanent incapacity benefit or death benefit if the conditions determined under subsection (3) in relation to the benefit are not met.
 (3) The trustees of a regulated superannuation fund may determine reasonable conditions to which the provision of:
 (a) permanent incapacity benefit; or
 (b) death benefit;
is subject.
 (4) Without limiting subsection (3), conditions determined under subsection (3) in relation to a benefit are reasonable if they are the same as the terms and conditions of the policy of insurance taken out to provide the benefit.

Requirement to allow MySuper members to elect not to receive permanent incapacity benefit or death benefit
 (5) Each trustee of a regulated superannuation fund must ensure that each MySuper member of the fund may elect either or both of the following:
 (a) that permanent incapacity benefit will not be provided to the member by the fund;
 (b) that death benefit will not be provided in respect of the member by the fund.
Note: A failure to comply with subsection (5) is a breach of a condition of the RSE licence (see paragraph 29E(1)(a)).
 (6) The trustees of a regulated superannuation fund may require that MySuper members who wish to make an election in accordance with subsection (5):
 (a) must make the election in relation to both permanent incapacity benefit and death benefit; or
 (b) must make the election in relation to death benefit if they make the election in relation to permanent incapacity benefit.
 (7) Subsection (5) does not apply to a MySuper member of a regulated superannuation fund if the circumstances prescribed by the regulations for the purposes of this subsection are met.
 (8) If a MySuper member of a regulated superannuation fund makes an election in accordance with subsection (5) in relation to a benefit, subsection (1) does not apply in relation to the member and the benefit.
 (9) This section does not apply to a defined benefit member.

Death benefit and permanent incapacity benefit
 (10) For the purposes of this Act:
death benefit means a benefit