Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 (155 of 2013)
Schedule 2 Amendments relating to MySuper product dashboard and other measures
Superannuation Industry (Supervision) Regulations 1994
19 Regulations 9.29 to 9.33
Repeal the regulations, substitute:
9.29 Actuarial investigation standard
(1) Subject to regulation 9.29A, a trustee of a defined benefit fund must require an initial actuarial investigation (the first actuarial investigation ) to be made in relation to the fund as a whole or each defined benefit sub-fund in the fund.
(2) If the first actuarial investigation is in relation to the fund as a whole it must be made:
(a) for a defined benefit fund in operation on 30 June 1994 - at a date no later than 3 years after:
(i) the date at which the last actuarial investigation of the fund as a whole was made; or
(ii) if no actuarial investigation has been made - the date of establishment of the fund or conversion of the fund to a defined benefit fund; or
(b) for a new fund - at the date of establishment or conversion of the fund.
(3) If the first actuarial investigation is in relation to a defined benefit sub-fund in the fund it must be made:
(a) for a defined benefit sub-fund in operation on 30 June 1994 - at a date no later than 3 years after:
(i) the date at which the last actuarial investigation of the sub-fund was made; or
(ii) if no actuarial investigation was made - the date of establishment of the sub-fund or conversion of the sub-fund to a defined benefit sub-fund; or
(b) for a new defined benefit sub-fund - at the date of establishment or conversion of the sub-fund.
(4) A trustee of a defined benefit fund or sub-fund must, after the first actuarial investigation has been made in relation to the fund or sub-fund, require regular actuarial investigations to be made in relation to the fund or sub-fund at least every 3 years.
(5) The Commissioner of Taxation may direct the trustee of the fund or sub-fund, in writing, to require an actuarial investigation to be made in relation to the fund or sub-fund, if the Commissioner of Taxation considers, on reasonable grounds, that to do so would be:
(a) in the prudential interests of the fund or sub-fund; and
(b) in the best interests of the members or beneficiaries of the fund or sub-fund.
(6) The trustee of the fund or sub-fund must comply with a written direction under subregulation (5).
9.29A Actuarial investigation standard - exemption
(1) Regulation 9.29 does not apply to a defined benefit fund or a defined benefit sub-fund to which this regulation applies.
(2) This regulation applies to a defined benefit fund or a defined benefit sub-fund that pays a defined benefit pension to at least one member.
(3) The trustee must require annual actuarial investigations to be made in relation to the fund or sub-fund, starting from the day that is 1 year after the day on which the fund or sub-fund made the first defined benefit pension payment.
9.30 Actuarial reporting standard
(1) A trustee of a defined benefit fund or a defined benefit sub-fund must obtain an actuarial report in accordance with this regulation in relation to each investigation that is required to be made under regulation 9.29 or 9.29A in relation to the fund or sub-fund.
(2) The actuarial report must be obtained within the period of 12 months commencing on the date immediately following the valuation date in relation to the fund or sub-fund.
(3) The actuarial report must contain the information mentioned in regulation 9.31.
9.31 Contents of actuarial report
(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.
(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.
(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.
(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.