Superannuation Industry (Supervision) Regulations 1994

PART 9 - FINANCIAL MANAGEMENT OF FUNDS  

Division 9.3 - Funding and solvency of defined benefit funds  

REGULATION 9.15   MINIMUM BENEFIT INDEX  

9.15(1)   [Calculation of index]  

The minimum benefit index in respect of a defined benefit fund is the index calculated in accordance with the following formula:

NRV − BEF FMRB

9.15(2)   [Definitions]  

In this regulation:

adjusted minimum benefit index
, in relation to a defined benefit fund, means:

(a) if the index calculated as at the initial date in accordance with the following formula:

NRV − BEF MRB

is less than l - that index; and

(b) in any other case - an index of 1.

BEF
, in relation to a defined benefit fund, means the value of the benefit entitlements of former members of the fund.

benefit entitlements of former members
, in relation to a defined benefit fund, means the beneficial interests in the fund (including any amount that would be payable out of those interests to the spouse, or former spouse, of the former member under a payment split) of beneficiaries (including pension beneficiaries and deferred beneficiaries) who are not standard employer-sponsored members of the fund.

FMRB
means the funded minimum requisite benefit.

funded minimum requisite benefit
, in relation to a defined benefit fund, means the amount that is the sum of:

(a) the value of the pre-initial date component of the MRB multiplied by the adjusted minimum benefit index; and

(b) the value of the post-initial date component of the MRB.

initial date
means whichever is the earlier of the following dates:

(a) the date on which the first funding and solvency certificate in relation to the defined benefit fund takes effect in accordance with subregulation 9.11(1) ;

(b) 1 July 1994.

MRB
means the total amount of the minimum requisite benefits (including any amount that would be payable out of those benefits to the member's spouse or former spouse under a payment split) of all current members of the fund.

net realisable value of the assets
, in relation to a 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.

NRV
, in relation to a defined benefit fund, means the net realisable value of the assets of the fund.