Superannuation Industry (Supervision) Regulations 1994

PART 9 - FINANCIAL MANAGEMENT OF FUNDS  

Division 9.5 - Actuarial standards relating to defined benefit funds that are self-managed superannuation funds  

REGULATION 9.31   CONTENTS OF ACTUARIAL REPORT  

9.31(1)    
For regulation 9.30 , an actuarial report must contain, in addition to any other required information:

(a) a statement of the value of the assets of the fund or sub-fund at the valuation date; and

(b) a statement of the SMSF actuary ' s opinion on whether, at the valuation date, the value of the fund ' s or sub-fund ' s assets is adequate to meet the value of the fund or sub-fund ' s liabilities in relation to the accrued benefits of members of the fund or sub-fund; and

(c) for a regulated superannuation fund that has at least one defined benefit member who is being paid a defined benefit pension from the fund, but which has no defined benefit sub-funds - a statement of the SMSF actuary ' s opinion on whether, at the valuation date, there is a high degree of probability that the defined benefit fund will be able to pay the pension as required under the fund ' s governing rules; and

(d) for a defined benefit sub-fund from which at least one defined benefit member is being paid a defined benefit pension - a statement of the SMSF actuary ' s opinion on whether, at the valuation date, there is a high degree of probability that the defined benefit sub-fund will be able to pay the pension as required under the fund ' s governing rules.

(e) a statement recommending, in relation to the 3-year period immediately following the valuation date:

(i) the rate at which, or the range of rates within which, the SMSF actuary considers employer contributions should be made; or

(ii) if the SMSF actuary considers employer contributions should be made at different rates or within different ranges in respect of 2 or more periods within the 3-year period - those rates or ranges of rates; and

(f) a statement, made in accordance with subregulations (3) and (4), regarding the financial position of the fund or the sub-fund; and

(g) if the fund or sub-fund, has been used to reduce or remove the superannuation guarantee charge imposed by section 5 of the Superannuation Guarantee Charge Act 1992 :

(i) a statement that all funding and solvency certificates required under this Part during the period of the investigation to which the report relates were obtained; and

(ii) a statement of the SMSF actuary ' s opinion regarding the likelihood of an actuary being able to certify the solvency of the fund or sub-fund in any funding and solvency certificate that may be required under these regulations during the 3-year period immediately following the valuation date; and

(h) if a prescribed event for paragraph 342(4)(a) has occurred in relation to the grant or transfer of a pre-1 July 1988 funding credit - a statement that the prescribed event has occurred.

9.31(2)    
In forming an opinion mentioned in paragraph (1)(b), (1)(c) or (1)(d), the SMSF actuary must consider:

(a) the position of the fund or sub-fund at the valuation date; and

(b) the likely future position of the fund or sub-fund during the 3 years immediately following the valuation date, based on the SMSF actuary ' s reasonable expectations.

9.31(3)    
In making a statement regarding financial position under paragraph (1)(f), the SMSF actuary must indicate whether the financial position of the fund or sub-fund, is treated as unsatisfactory under regulation 9.04 and whether that position may, in the SMSF actuary ' s opinion, be about to become unsatisfactory, taking into consideration the matters referred to in regulation 9.03 .

9.31(4)    
If, in a statement made under paragraph (1)(f), the SMSF actuary considers that the stated financial position of the fund or sub-fund is dependent on certain actions being taken, or certain schemes being implemented, the SMSF actuary must indicate this and must include in the statement a detailed description of those actions or schemes.