21 January 2005

Treasury Discussion Paper Released: Review of the Provision of Pensions in Small Superannuation Funds

The release of the Treasury discussion paper on the provision of pensions by small superannuation funds was announced today by Minister for Revenue and Assistant Treasurer, Mal Brough.

The purpose of the discussion paper is to assist a Treasury review of the provision of pensions by small superannuation funds.

The review arose following concerns that small funds were gaining unintended access to tax and social security benefits (particularly through the use of 'RBL compression') as well as the prudential concerns about small funds providing defined benefit pensions.

'The paper outlines key issues associated with small funds providing defined benefit pensions and canvasses options to address these concerns,' Mr Brough said.

Details of the review and a copy of the discussion paper are available from the review's website at http://dbpensionreview.treasury.gov.au.

Submissions are welcomed until Friday, 11 March 2005.