SuperStream Data and Payment Standard Information for APRA-regulated - - PowerPoint PPT Presentation

SuperStream Data and Payment Standard

Information for APRA-regulated funds

Information current as at September 2014. For the latest information please refer to: http://www.ato.gov.au/SuperStream

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How to participate today

Make sure your computer volume is NOT on mute

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Overview

What is SuperStream? What are the benefits? SuperStream implementation timeline What are your obligations? Induction Helping employers get ready Services – Fund Validation Service and SuperTICK Questions and Answers

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• SuperStream is a government reform aimed at improving the

efficiency of the superannuation system

• It introduces standard mandatory electronic processing of

Superannuation data and payments

• Affects employers and super funds, including self-managed

superannuation funds (SMSFs)

What is SuperStream?

Once fully implemented, this should provide a simple and single channel for employers to make super contributions electronically to all funds

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What are the benefits?

SuperStream will deliver long term benefits to employers, funds and members by:

• Providing a consistent process for employers to make

contributions and for funds to receive them

• Allowing for increased automation and efficiencies
• Reducing processing costs in the long term
• Improving data quality
• Reducing reverse workflow and exceptions handling

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SuperStream implementation timeline

1 Jul 2013 1 Jul 2014 1 Jul 2015 1 Jul 2012 1 July 2016 SuperStream Rollovers begin for APRA funds SuperStream Contributions begin Trials SuperStream legislation passed

At December 2013

• Successful APRA fund rollovers using the SuperStream Standard

From 1 July 2014 to 2 November 2014

• Funds, including SMSF, get ready to receive SuperStream contributions

From 4 August 2014

• First contributions using SuperStream are sent as a part of live trials

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SuperStream implementation timeline

1 Jul 2013 1 Jul 2014 1 Jul 2015 1 Jul 2012 1 July 2016 SuperStream Rollovers begin for APRA funds SuperStream Contributions begin Small Employers Large & Medium Employers Trials SuperStream legislation passed

From 3 November 2014 to 30 June 2015

• All APRA funds become ready to receive
• Large and medium employers complete their SuperStream

Implementation, including establishing transitional arrangements 30 June 2016

• Small employers to complete their SuperStream Implementation

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How does SuperStream affect you?

From 1 July until 2 November 2014, funds must be able to

receive contributions data and payments in an electronic format that the trustee has advised the employer it can accept.

From 3 November 2014, funds must be ready to receive

contributions transactions that comply with the standard, unless they have notified us of an alternative start date.

From 2 February 2015, trustees must have the capability to

send member registration outcome and error response messages.

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Electronic payment methods

From 1 July 2014, funds must be able to accept electronic

payments from employers.

Funds must offer and accept both BECS (direct entry) and

BPAY (BPAY only at request of an employer) or a mutually agreed electronic alternative.

An employer must always provide a payment reference

number with each payment to a fund – at USI level to facilitate automated reconciliation of payment and data.

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What if I am not ready to receive SuperStream contributions by 3 November 2014?

The trustee can nominate an alternative start date for the USIs that

are not capable of receiving SuperStream contributions by 3 November 2014.

The trustee must notify us no later than 30 September 2014. The alternative start date cannot be after 1 July 2015.

Further details on the notification process, including an implementation plan template, are available on our website.

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Transition-in arrangements

Funds must be ready for SuperStream contributions from 3 November

2014.

While medium and large employers are obliged to start sending

SuperStream contributions from 1 July 2014, we announced we will provide flexibility up until 30 June 2015 for employers to complete their implementation, provided they make a genuine attempt to get ready.

Small employers are obliged to start sending SuperStream

contributions from 1 July 2015, with similar flexibility up until 30 June 2016 to complete their implementation.

During their respective transition-in periods, you can expect some

employer sending contributions using existing methods (paper and cheques).

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Employer portals after 3 November 2014

A fund can accept contributions data in an alternate electronic file

format (e.g. direct data entry or file upload) and still comply with the standard if certain conditions are met.

The conditions as set out in the Superannuation data and payment

standard 2012 include:

• terms and definitions used must align with Schedule 2 of the standard
• payment methods must conform with Schedule 3 of the standard
• data elements and business rules must align with Schedule 4(a) of the

standard

The fund and the employer must agree in writing to these alternate

arrangements.

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Minimum information requirements – new member registration

The SISR require employers to provide certain minimum information

from 1 July 2014.

Under regulation 7.07A, an employer must give the following

information to the fund for a new default member (unless the employer has made reasonable efforts to get the information and has been unable to do so)

• Employee’s full name
• Employee’s residential address
• Employee’s TFN
• Employee’s date of birth
• Employee’s sex

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Minimum information requirements – contribution

Under regulation 7.07E, an employer must give the following

information to the fund for a contribution (unless the employer has made reasonable efforts to get the information and has been unable to do so)

• Employee’s full name
• Employee’s residential address
• Employee’s TFN
• Employee’s phone number
• Payment reference number

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Incomplete information for contributions

The trustee must, within 5 business days of receiving the

contribution details, ask the employer to provide the correct and complete information.

Trustees are encouraged to use a common-sense approach.

If a shortcoming in contribution information has no impact on member allocations, trustees should not unnecessarily delay the allocation.

When the trustee sends a follow-up request, the employer

has 10 business days to make all reasonable efforts to get this information to the trustee.

Funds must allocate contributions to a member’s account within 3 business days after receipt of both the contribution payment (cleared funds) and mandatory contribution information (whichever is the latter)

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Induction

A select number of employer and funds are currently

undertaking early trials (induction) of sending and receiving SuperStream contributions.

The early trials have been successful to date with employer

and fund-side solutions being progressively cross certified.

Updates on induction progress can be found on our website: https://www.ato.gov.au/Super/SuperStream/In- detail/Contributions/Induction/Induction-process/

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What do I need to do to get ready?

Prior to induction, funds must complete:

Complete 3rd party certification If your gateway or other service provider will be

converting the XBRL into your preferred file format, your provider will obtain the third party certification on your behalf

Complete end to end testing Complete end to end testing with at least 2 employers/

employer solutions

Details on 3rd party certification and end to end induction can be accessed from http://softwaredevelopers.ato.gov.au/contributions

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Accelerated induction phase

An accelerated induction process will take place from 3

November 2014.

Funds must nominate at least one USI per unique registry/

administration system to participate in induction.

We will write to you in the first week of October detailing the process and requirements.

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How will others know I am ready to receive SuperStream contributions?

Trustees must update the certification field in the Fund

Validation Service after a fund successfully completes induction and obtains cross-certification by its peers.

The cross certification entry provides the key market signal

to senders that the USI is now in receiving mode and is ready to receive SuperStream contribution messages at volume.

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Helping employers prepare for SuperStream

Encourage you to proactively contact employers You can expect some employers will contact you to find out

more about SuperStream.

We have put together a checklist for employers and a series

• f FAQs to help them.

Trustees should make available their USI and payment

details directly to employers to help employers update their payroll system and ensure accurate and timely payment of superannuation monies.

You can do this on your website, member communication

and call centre scripting.

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Fund Validation Service

The Fund Validation Service lodged through the Business

Portal you are currently downloading from the Bulk Data Exchange will be replaced with a web service in January 2015.

The existing service will continue to operate for up to 12

weeks until the end of March 2015 while users complete their self-build or identify a third party providers solution.

This means that from 1 April 2015, funds must use the web

service to update their USI details and conduct searches based on ABN or USI.

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SuperTICK

From 1 July 2014, you must use the SuperTICK service to

validate initial registration information no later than 3 business days after receiving the information from an employer.

You don’t have to validate this information if the employer

has made a contribution to the fund for this member previously.

APRA has indicated that it does not expect trustees to report

breaches of this requirement until after 1 July 2015.

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Find out more

/atogovau @ato_gov_au

www.ato.gov.au/SuperStream Superstreamstandards@ato.gov.au SPRWebinars@ato.gov.au ato.gov.au/SuperStreamChecklist http://softwaredevelopers.ato.gov.au/contributions https://www.ato.gov.au/Super/SuperStream/In-detail/Contributions/APRA- regulated-funds-FAQs/