Condition of release
6.01(7) of the SIS Regulation contains two definitions of retirement:
- Where a member has reached their preservation age and this is less than 60. In these circumstances, the member was gainfully employed has come to an end and the RSE licensee is reasonably satisfied that the member intends never again to become gainfully employed either on a full-time or a part-time basis (ie. for 10 or more hours per week).
- The second definition of retirement applies when a member has reached the age of 60. In these circumstances, a member's retirement is considered to have occurred if an arrangement under which the member was gainfully employed has come to an end on or after the member attained the age of 60, or the super fund is reasonably satisfied that the member intends never again become gainfully employed either on a full-time or a part-time basis.
The above definitions of retirement have slightly different tests applicable to them. Under the first definition of retirement (where preservation age is less than 60), a super fund must be reasonably satisfied that the member intends never again to become gainfully employed on a full-time or part-time basis. Under the second definition of retirement (where preservation age is 60), the super fund only needs to be satisfied of the same matter where the member ceased gainful employment prior to age 60 (i.e. where the member ceased gainful employment after age 60, this is sufficient evidence of retirement and the member's intentions for future employment are not a consideration in these circumstances). In either case, proof of age will be required. Where the superfund must be reasonably satisfied that the member intends never again to become gainfully employed, additional evidence will be required to support this. Proof of retirement may be satisfied by obtaining evidence that the member's gainful employment has ceased (e.g. a statement fro the employer) and of the member's intention, at the time of the clam, to never again be gainfully employed either on a full-time or part-time basis (e.g. a statutory declaration from the member)
Where a member has reached the age of 60, is in two or more employment arrangements at the same time, and ceases one of these employment arrangements, this is a valid condition of release in respect of all preserved and restricted non-preserved benefit accumulated up until that time. A member will not be able to cash any further benefits or investment earnings accrued from another existing employment arrangement, or any benefits or investment earnings from a new employment arrangement, until a further condition of release occurs.
Source: SPG 280 - Payment Standards June 2017
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Last modified: Wednesday, September 16, 2020