Commonwealth Numbered Regulations

1997 No. 116 RETIREMENT SAVINGS ACCOUNTS REGULATIONS - REG 1.07

1.07. (1) A benefit is taken to be a pension for the purposes of the Act if it
is a benefit that is provided under terms and conditions of an RSA that meet
the standards of subregulation (2).

(2) Terms and conditions of an RSA meet the standards of this subregulation if
they at least ensure that:

   (a)  the pension is not able to be transferred to a person other than a
        reversionary beneficiary on the death of the primary beneficiary or of
        another reversionary beneficiary; and

   (b)  the capital value of the pension, and the income from it, cannot be
        used as security for a borrowing; and

   (c)  payments are made at least once in each financial year; and

   (d)  the payments in a year, except a payment by way of commutation, are
        not larger or smaller in total than, respectively, the maximum and
        minimum limits calculated in accordance with Schedule 1; and

   (e)  before full commutation or transfer of the pension, a payment at least
        equal to the minimum limits calculated in accordance with Schedule 1
        must be made.

(3) For the purpose of determining whether the terms and conditions meet the
standards in paragraphs (2) (c) and (d), it is immaterial:

   (a)  that:

        (i)    the commencement day occurs on or after 1 April in a financial
               year; and

        (ii)   the terms and conditions do not provide for the payment of an
               amount in that financial year that meets the standard for the
               minimum limit in paragraph (2) (d); or

   (b)  that the terms and conditions do not ensure that the payments in the
        year in which the pension is to end meet the standard for the minimum
        limit in paragraph 2 (d).