(1)  The Board is to establish a compulsory preservation account in the name of the relevant contributor for each benefit entitlement which is to be compulsorily preserved under regulation 54 and is to credit to that account any benefit entitlement which under that regulation is to be transferred to that account.

(2)  The benefit entitlements preserved under this regulation include all benefit entitlements or proportion of benefit entitlements which are to be preserved in accordance with regulation 54 .

(3)  The benefit entitlements compulsorily preserved in an account established under this regulation are to be indexed at a rate declared by the Board as being equal to whichever is the greater of –

(a) movements in the AWOTE; or

(b) movements in the Consumer Price Index.

(4)  For the purpose of subregulation (3) , the indexation rate declared by the Board is to be reviewed as at 1 January and 1 July in each year in accordance with the AWOTE or Consumer Price Index figure most recently published before that review.

(5)  Except as provided by regulation 72 or 118 , where a person in whose name a compulsory preservation account has been established reaches his or her preservation age, the balance of that account is to be transferred, after deduction of any tax liability –

(a) to an account in the name of that person in the accumulation scheme; or

(b) where the benefit entitlement was preserved under regulation 43(4)(b) of the Retirement Benefits Regulations 1994 or regulation 54(5)(b) of these regulations, to an investment account in the name of that person.

(6)  An amount standing to the credit of a compulsory preservation account may be paid by the Board only where regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances.

(7)  Where a person holding a compulsory preservation account dies, the Board is to pay the balance of that person's account in accordance with regulation 130 .