The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Release of information paper on APRA's policy priorities||
On 31 January 2018, APRA released a paper titled "APRA's policy priorities". In this paper, APRA explains that its current policy priorities are substantially weighted toward strengthening its prudential framework. In the context of superannuation, APRA states that its prudential framework is now "well-embedded across the APRA-regulated superannuation industry". APRA's 2018 policy priorities for superannuation are:
|Department of Social Services (DSS) position paper on "Means Test Rules for Lifetime Retirement Income Streams"||
In January 2018, the DSS released a position paper which sets out its proposed new social security means test rules for pooled lifetime retirement income streams.
The proposed rules seek to:
The paper proposes that 70% of all income paid from such pooled lifetime income streams would be assessed against the social security income test. The assets test would include 70% of the nominal purchase price until life expectancy at purchase and 35% from then on.
The new rules propose that deferred superannuation income stream products will receive the same asset test assessment as products that commence payment immediately, but that the proposed income test rules will only assess deferred products once payments commence.
The Government is seeking stakeholder views on proposed changes, and enquiries and submissions to the Department are due by Friday 16 February 2018.
|Federal Parliament||Bills to be debated||
Federal Parliament resumed this week, and a number of superannuation and financial services Bills are scheduled for debate including:
|SCT||SCT Quarterly - Q4 2017||
On In January 2018, the SCT released the latest edition of the SCT Quarterly for Q4 2017. This edition focuses on rejected total and permanent disablement (TPD) claims on the basis of medical evidence.
The newsletter notes that "a common area of confusion regarding TPD complaints is the receipt of some disability payments and not others. For example, if a member is in receipt of a Centrelink disability pension or a workers' compensation benefit, or has received a payment from another fund or insurer, they may not understand that a new claim with a different provider might still be rejected".
Another common area of complaint relates to applicants not meeting the technical definitions outlined in a policy, despite the fact that they are unwell. The SCT acknowledges that complaints are often compounded by emotion, overall vulnerability of the applicant, and perceived complexity of insuranceand superannuation.