Response to consultation - Proposed technical determination for combining MySuper product performance histories
To: All RSE licensees
APRA has today released:
- final Superannuation technical determination: Actual and benchmark return formulae modifications (the technical determination) and
- updated Information paper: Combining MySuper product performance histories – APRA’s approach (the information paper).
The technical determination will apply to the upcoming 2023 Performance Test.
Background
The Government has recently released amendments to the Superannuation Industry (Supervision) Regulations 1994 (the Regulations) relating to the legislated superannuation performance test.
These amendments include new rr. 9AB.12(4A) and 9AB.14(9A), which permit APRA to make a legislative instrument to combine product performance histories for MySuper lifecycle products. This removes the need for APRA to make individual determinations for every affected product by modifying the actual return formula in r. 9AB.12(2) and the benchmark return formula in r. 9AB.14(2) for lifecycle MySuper products to ensure that any changes to the product are reflected in the performance history used in the performance test.
The information paper has been updated to reflect the introduction of the technical determination. It also includes an amended worked example to address feedback from the submission, and to assist in understanding the operation of the technical determination.
Consultation overview
On 20 April 2023, APRA released the draft technical determination for consultation.1 APRA received one submission which provided minor comments relating to the technical operation of the instrument.
The final technical determination reflects changes to how the actual return formula is to be modified for MySuper lifecycle products. Additional points of clarification will be included in the explanatory statement when it is registered.
If you have any queries in relation to this letter, please contact your APRA supervisor.
Yours sincerely,
Carmen Beverley-Smith
Executive Director, Superannuation
APRA
Footnote
1 Proposed technical determination for combining MySuper product performance histories.