OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS 1987 (REPEALED)

PART II - SUPERANNUATION FUNDS

Division 1 - General

REGULATION 17 FINANCIAL REPORTS AND DISCLOSURE OF INFORMATION STANDARDS

17(1) [ Standards ]

For the purposes of subsection 7(1) of the Act, the following standards are prescribed in relation to the financial and actuarial reports to be prepared in relation to superannuation funds and the reduction of benefits of members of superannuation funds:

(a) in relation to a defined benefit superannuation fund, an actuarial investigation shall be made:

(i) in the case of a private sector fund in operation on 22 December 1987 into which an actuarial investigation has been made within the immediately preceding 2 years - as at a date within the period of 3 years beginning on the day on which the last actuarial investigation was so made; and

(ii) in the case of a private sector fund in operation on 22 December 1987 to which subparagraph (i) does not apply - as at a date not later than:

(A) 3 years after the day on which the fund began to operate; or

(B) 1 January 1989;
whichever is the later; and

(iii) in the case of a public sector fund in operation on 1 July 1990 into which an actuarial investigation has been made within the immediately preceding 2 years - as at a date within the period of 3 years beginning on the day on which the last actuarial investigation was so made; and

(iv) in the case of a public sector fund in operation on 1 July 1990 to which subparagraph (iii) does not apply - as at a date not later than:

(A) 3 years after the day on which the fund began to operate; or

(B) 1 July 1991;
whichever is the later; and

(v) in any other case - as at a date within the period of 3 years beginning on the day on which the fund began to operate;

and thereafter regular actuarial investigations shall be made, each of them being as at a date not later than 3 years after the previous date as at which an actuarial investigation was made;

(b) in relation to a defined benefit superannuation fund, an actuarial report shall be required to be given to the trustee or trustees of the fund, in relation to each investigation referred to in paragraph (a), within the period of 12 months commencing on the day following the day as at which each such investigation is made or within such extended period as the Commissioner allows, being a report containing:

(i) in relation to a private sector fund or a fully funded public sector fund - the matters specified in subregulation (2); or

(ii) in relation to a public sector fund (other than a fully funded public sector fund) - the matters specified in subregulation (3);

(c) an audit of the accounts and records of a superannuation fund shall be required to be carried out, after the end of each year of income of the fund but not later than the day by which the return referred to in subsection 12(1) of the Act is to be given to the Commissioner, by an approved auditor and an auditor ' s report shall be required to be given to the trustee or trustees of the fund in respect of each such audit;

(d) in relation to the benefits that may be provided by a superannuation fund:

(i) the governing rules must not be amended in a way that would have the effect of:

(A) reducing the amount of a benefit, calculated on the basis of contributions to the fund and earnings on those contributions, that has accrued, or become payable, to a member before the amendment; or

(B) reducing the amount of a benefit, other than a benefit referred to in sub-subparagraph (A), that is, or may become, payable to a member in relation to a period before the amendment; and

(ii) the benefits that have accrued, or become payable, to a member of a fund must not otherwise be reduced;

unless:

(iii) the reduction is required because of, and does not exceed the value of, any tax payable on fund income; or

(iv) the reduction is required only to enable the fund to comply with standards prescribed by these Regulations; or

(v) the member approves in writing of the reduction; or

(vi) the Commissioner approves in writing of the reduction;

(e) - (i) (Omitted by SR No 224 of 1992)

View history note

History

Reg 17(1) amended by SR No 224 of 1992, reg 5.1 and 5.2, effective 1 July 1992, by substituting " and the reduction of benefits of " for " ,the reduction of benefits and the disclosure of information to " and omitting para (e), (f), (g), (h) and (i). Para (e)-(i) formerly read:

(e) the trustee or trustees of a superannuation fund shall give to each member of the fund, as soon as practicable after the end of the year of income of the fund commencing on 1 July 1988 in the case of a private sector fund and 1 July 1990 in the case of a public sector fund, and of each succeeding year of income (but, in any event, within 6 months after the end of each such year), a written statement setting out:

(i) where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is calculated on the basis of contributions made to the fund or on the basis of such contributions together with earnings based on those contributions - the following particulars:

(A) the amount of the benefits vested in the member at the commencement of the first day of the year of income to which the statement relates;

(B) the amount of the benefits vested in the member at the expiration of the last day of that year of income;

(C) the method of determining the amount of the benefits referred to in sub-subparagraph (B);

(D) the amount of the portion of the benefits referred to in sub-subparagraph (B) that is required by the standards set out in these Regulations or by the governing rules to be preserved in relation to the member in the event of his or her withdrawal from the fund;

(E) the amount of contributions made by the member during that year of income;

(F) the amount of net earnings allotted to the member during that year of income or the rate at which those earnings were allotted or both that amount and that rate;

(G) the amount of any current death benefit of the member; and

(ii) where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is calculated on the basis of the benefits purchased under an endowment or whole of life policy - the amount of:

(A) the sum assured;

(B) any bonuses that have accrued to the member on or before the end of the year of income to which the statement relates; and

(C) contributions made by that member during that year of income; and

(iii) where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is defined in terms that include the member ' s salary at the date of his or her withdrawal from the fund, at a date prior to such withdrawal or averaged over a period of employment prior to such withdrawal - the particulars referred to in sub-subparagraphs (i)(A), (B), (C), (D), (E) and (G);

(f) where a person ceases to be a member of a superannuation fund on or after 1 January 1989 in the case of a private sector fund, or on or after 1 July 1990 in the case of a public sector fund, on a day other than the last day of a year of income of the fund, the trustee or trustees of the fund shall give, or arrange to be given, to the person as soon as practicable thereafter a written statement setting out:

(i) the amount of the benefit entitlement of the member, identifying any amounts that are required by the standards set out in these Regulations or by the governing rules to be preserved in relation to the member; and

(ii) the method of determining that entitlement; and

(iii) if the person ceases to be a member otherwise than as a result of his or her death, disablement or retirement from the workforce - the amounts and other particulars referred to in paragraph (e), as though a reference in that paragraph to the year of income to which the statement relates were a reference to the period commencing on the first day of the year of income during which the person ceased to be such a member and ending at the expiration of the day on which the person ceased to be such a member and as though the word ' person ' were substituted for the word ' member ' ; and

(iv) if the member ' s old RBM for the purposes of Part IA is greater than the base old RBM specified in paragraph 2(a) of Schedule 2 - the member ' s old RBM;

(g) where a person becomes a member of a superannuation fund, the trustee or trustees of the fund shall give to the person as soon as practicable thereafter a written statement containing details of the kinds of benefits provided to members by the fund, the conditions relating to those benefits and the method of determining entitlements of members;

(h) where the governing rules of a superannuation fund are altered, the trustee or trustees of the fund shall give to each of its members as soon as practicable thereafter a written statement explaining the nature and purpose of the alteration and the effect (if any) of the alteration on the entitlements of its members;

(i) the trustee or trustees of a superannuation fund shall give to a member of the fund, on request by that member, but not more than once in respect of each year of income of the fund unless the trustee or trustees agree to do so:

(i) a copy of, or extract from, such of the statements referred to in paragraphs (2)(a), (b), (c) and (d) as are specified in the request, being statements contained in such actuarial reports as are so specified;

(ii) a copy of such auditor ' s reports referred to in paragraph (c) as are specified in the request; and

(iii) a copy of such returns, certificates and notices referred to in sections 12 and 13 of the Act as are specified in the request.

Reg 17(1) amended by SR No 148 of 1991, reg 23, gazetted 26 June 1991, by substituting " paragraph 2(a) " for " clause 2 " in para (f)(iv) and correcting grammatical errors.

Reg 17(1) amended by SR No 275, SR No 202 and SR No 150 of 1990.

17(2) [ Actuarial report ]

A report referred to in paragraph (1)(b) in relation to a private sector fund or a fully funded public sector fund shall contain, in addition to any other matter:

(a) a statement of the value of the assets of the superannuation fund at the date of the latest valuation;

(b) a statement of the actuary ' s opinion on whether the value of the assets of the fund at the date of the latest valuation is adequate to meet the liabilities of the fund in respect of vested benefits in the fund;

(c) a statement recommending, in respect of the 3-year period immediately following the period to which the report relates, the rate at which the actuary considers employer-contributions should be made or, where the actuary considers employer-contributions should be made at different rates in respect of 2 or more periods within that first-mentioned period, such different rates; and

(d) a statement whether the sum of:

(i) all liabilities of the fund during that 3-year period that can reasonably be anticipated; and

(ii) all benefits of the fund that can reasonably be anticipated to vest at the end of that 3-year period in the persons who are members of the fund on the day as at which the actuarial investigation is made;

can reasonably be met from the sum of:

(iii) the value of the assets of the fund at the date of the latest valuation; and

(iv) the assumed member contributions during that 3-year period; and

(v) the assumed employer contributions during that 3-year period calculated at the rate or rates referred to in paragraph (c); and

(vi) the earnings of the fund assumed by the actuary with respect to that 3-year period; and

(e) a statement as to whether or not an event that is a prescribed event for the purposes of paragraph 15D(4)(a) of the Act occurred in the period to which the report applies.

View history note

17(3) [ Public sector funds ]

A report referred to in paragraph (1)(b) in relation to a public sector fund (other than a fully funded fund) must contain, in addition to any other matter:

(a) a statement of the value of the assets of the fund;

(b) a statement of any liability for benefit payments not expected to be covered by: