ASIC issues retirement estimates guidance

The Australian Securities and Investments Commission (ASIC) has released a regulatory guide and class order relief to assist superannuation funds in delivering retirement estimates.

As part of CO 11/1227, 'Relief for providers of retirement estimates', super funds will be given class order relief from the licensing, conduct and requirements for general and personal advice under the Corporations Act 2001.

The regulator stated that the class order relief, along with Regulatory Guide (RG) 229 aims to help members engage more with their superannuation and retirement planning and allow people to better understand their options and get the most out of their retirement income.

For superannuation trustees to meet the requirements of RG 229 and the class order relief, ASIC stated that a retirement estimate must be given at the same time as the member's periodic statement and is included in, or accompanies, the statement.

An estimate must specify the member's estimated retirement benefit by taking into account all of the required variables, and using the default assumptions set out by the Australian Government Actuary. A trustee must also ensure that an estimate sets out the mandatory content explaining how the retirement estimate has been calculated and its purpose, ASIC stated.

RG 229 also sets out and explains provisions for providers of superannuation calculators in Class Order (CO 05/1122) 'Relief for providers of generic calculators'.