The exposure draft of the Superannuation Legislation Amendment (Further Measures) Bill 2012 contains the fourth tranche of legislation for the Government’s Stronger Super (MySuper and governance) reforms.
The majority of the provisions take effect from 1 July 2013.
The Bill’s provisions include: trustees providing reasons for their decisions; an increase in the time limit for members to lodge complaints with the Superannuation Complaints Tribunal; restricting voting prohibitions; seeking leave from the Court before bringing action against an individual director for a breach of their duties.
Reasons for trustees’ decisions
Trustees will be required to provide reasons for decisions in relation to death benefit complaints.
In relation to other complaints, trustees will be required to provide reasons for decisions when requested.
Time limit to lodge complaints
The time limit for members to lodge a complaint with the Superannuation Complaints Tribunal in respect of TPD claims will be increased to six years after the decision.
Where a person has permanently ceased employment, and lodged a claim within two years of ceasing employment, they will have four years from the decision to make a complaint.
Actions against directors
Before being able to bring an action against an individual director for a breach of a director duty or MySuper obligation, a member must be granted leave by the Court. In making its decision, the Court will take into account whether the member is acting in good faith and that there is a serious question to be tried.
Trustees and directors have a defence to a contravention of a duty or MySuper obligation if the contravention was due to reasonable mistake or due to the fault of another and they acted with reasonable precaution and applied due diligence.
Voting by a director or trustee
Provisions in a corporate trustee’s governing rules that prohibit a director or individual trustee from voting on a matter relating to the superannuation fund (except where a conflict of interest or duty exists) will be made ineffective.
