Superannuation Industry (Supervision) Regulations 1994

PART 9 - FINANCIAL MANAGEMENT OF FUNDS  

Division 9.6 - Solvency of accumulation funds  

REGULATION 9.38   TECHNICAL INSOLVENCY OF ACCUMULATION FUNDS - OPERATING STANDARD  

9.38(1)   [Trustee to initiate program or winding-up]  

The trustee of an accumulation fund that is technically insolvent must either:

(a) initiate a program in accordance with this Division that is designed by a superannuation actuary to ensure that the fund is in a solvent position not later than at the end of the fifth year of income following the year of income in which the fund became technically insolvent; or

(b) initiate winding-up proceedings.

9.38(2)   [Trustee may elect comparable program]  

The trustee of an accumulation fund to which subregulation (1) does not apply may elect to have the fund comply with a program comparable with a program referred to in paragraph (1)(a), except that the program is designed to ensure that the fund is in a solvent position not later than at the end of the fifth year of income following the year of income in which the trustee made the election.