Superannuation Industry (Supervision) Regulations 1994

PART 9 - FINANCIAL MANAGEMENT OF FUNDS  

Division 9.6 - Solvency of accumulation funds  

REGULATION 9.35   INTERPRETATION  

9.35(1)   [Definitions]  

In this Division:

fund ' s actuary
, in relation to an accumulation fund, means a superannuation actuary whose services are secured by the trustee of the fund under subregulation 9.39(2) .

mandated employer-financed benefits
has the same meaning as in Part 5 .

member financed-benefits
has the same meaning as in Part 5 .

minimum guaranteed benefit
, in relation to a member of an accumulation fund, means an amount that is the sum of:

(a) the member-financed benefits of the member; and

(b) the mandated employer-financed benefits of the member; and

(c) any minimum benefits of the member under regulation 5.06B , that are not included in paragraph (a) or (b).

net realisable value
, in relation to the assets of an accumulation fund, means the amount calculated by deducting the estimated cost of disposing of the assets of the fund from the market value of those assets.

period of technical insolvency
, in relation to an accumulation fund, means the period starting on the first day of the year of income in which the fund becomes technically insolvent or in which the trustee makes an election under subregulation 9.38(2) and ending on:

(a) in the case where the fund is solvent at the beginning of a year of income that is earlier than the sixth year of income following the year of income in which the period starts - the first day of that first-mentioned year of income;

(b) in any other case - the first day of that sixth year of income.

9.35(2)   [Reference to accumulation fund being solvent]  

In this Division, a reference to an accumulation fund being solvent is to be read as a reference to the net realisable value of the assets of the fund being equal to or greater than the minimum guaranteed benefits of members of the fund.

9.35(3)   [Reference to fund being technically insolvent]  

In this Division a reference to an accumulation fund being technically insolvent is to be read as a reference to the net realisable value of the assets of the fund being less than the minimum guaranteed benefits of members of the fund.