OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS 1987 (REPEALED)

PART 3B - PRE-1 JULY 1988 FUNDING CREDITS AND DEBITS  

REGULATION 23PE   VALUE A OF ACCRUED BENEFITS  

23PE(1)   [ " Value A " ]  

Value A of accrued benefits in relation to a superannuation fund is the total value of accrued benefits in respect of all members of the fund as at 30 June 1988 that is calculated in accordance with regulation 23PG .

23PE(2)   [ Assumptions ]  

For the purposes of calculating value A of accrued benefits, the following assumptions apply:

(a) that a member of the superannuation fund will not die or become disabled before his or her normal retirement from the workforce;

(b) that the governing rules of the fund providing for benefits and the amounts of the benefits vested in members of the fund are those rules and amounts as at 25 May 1988;

(c) that the value of the accrued benefits in the fund in respect of a member of the fund is not less than the amount of benefits vested in the member on 30 June 1988;

(d) if the governing rules of the fund provide for adjustment of pension benefits to compensate for changes in the cost of living at the discretion of the trustees of the fund, that the rules providing for adjustment are disregarded, unless:

(i) all pension benefits have been increased under that rule on at least 3 occasions before 30 June 1988; and

(ii) at least 1 of those increases occurred in the period from the beginning of 1 July 1985 to the end of 30 June 1988.

23PE(3)   [ Actuarial investigation to be used ]  

Subject to this regulation, the elements of the actuarial basis for the calculation of value A of accrued benefits in respect of a superannuation fund are taken to be those used in the last actuarial investigation of the fund that was completed before 25 May 1988.

23PE(4)   [ Where there is no pre-25 May 1988 investigation ]  

If an actuarial investigation of a superannuation fund was not completed before 25 May 1988, an actuary must submit to the Commissioner in writing the elements that the actuary proposes to use in respect of the fund:

(a) for the purposes of subregulation 23PG(2) ; and

(b) in substitution for the elements referred to in that subregulation.

23PE(5)   [ When Commissioner must approve proposed element ]  

The Commissioner must approve a proposed element of the actuarial basis for the calculation of value A of accrued benefits in respect of a superannuation fund if he or she is satisfied that the proposed element corresponds reasonably closely to the element that would have been used if an actuarial investigation had been made into the fund.

23PE(6)   [ When Commissioner has discretion ]  

In special circumstances, the Commissioner may approve a proposed element of the actuarial basis for the calculation of value A of accrued benefits in respect of a superannuation fund if he or she is satisfied that application of the proposed element is reasonable in those circumstances.

23PE(7)   [ Special circumstance ]  

Liability to pay taxation on income of the fund is not a special circumstance for the purposes of subregulation (6) if the liability results directly from an amendment of the Tax Act made by the Taxation Laws Amendment (Superannuation) Act 1989 .