Commonwealth Numbered Regulations

1987 No. 322 OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS - REG 17

17. (1) 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, the reduction of benefits and
the disclosure of information to members of superannuation funds:

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

        (i)    where the fund is in operation on the date of commencement of
               this regulation and an actuarial investigation has been made
               into the fund within the preceding period of 2 years-as at a
               date within the period of 3 years commencing on the date as at
               which the last actuarial investigation was made;

        (ii)   where the fund is in operation on the date of commencement of
               this regulation and an actuarial investigation has not been
               made into the fund within the preceding period of 2 years-as at
               a date not later than:

                (A)  3 years after the date on which the fund came into
                     operation; or

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

        (iii)  in any other case-as at a date within the period of 3 years
               commencing on the date on which the fund comes into operation;
               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 the
        matters specified in subregulation (2);

   (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)  except with the written approval of the Commissioner or of all of the
        members of a superannuation fund:

        (i)    the trust deed of the fund shall not be amended so as to reduce
               any benefits that have accrued to any of its members, or affect
               the basis for calculating the amount of retirement benefits of
               any of its members in a way that reduces that amount with
               respect to the period of membership before the date of the
               alteration of the deed; and

        (ii)   a retrospective reduction in benefits accrued or payable to any
               of its members shall not otherwise be permitted;

   (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 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 trust deed 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 and the rate at which those earnings
                     were allotted;

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

        (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, 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 trust deed to be preserved
               in relation to the member;

        (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 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";

   (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 trust deed of a superannuation fund is 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.

(2) A report referred to in paragraph (1) (b) shall contain, in addition to
any other matter:

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

   (b)  a statement of the actuary's opinion on whether the value of the
        assets of the fund 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 that employer-contributions made at the recommended rate
        or rates referred to in paragraph (c), together with the assets of the
        fund and any contributions to be made by members, will provide
        adequately for expected liabilities of the fund during that 3-year
        period.