Document ID: chunk:federal_register_of_legislation:F2022C01068:reg:20:p2
Version: federal_register_of_legislation:F2022C01068
Segment Type: reg
Provision Reference: reg 20 (pt 2/2)
Character Range: 33691–36075

to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable.
       Example
       On 1 March 2005, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act that is provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. The income stream has a 50% exemption from the social security assets test. On 1 September 2022, the Secretary of the Department of Social Services is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the original income stream. On 15 September 2022, P commutes the original income stream to purchase another income stream (the new income stream) that is covered by section 9A of the Act. The new income stream is covered by these Principles and retains the 50% exemption from the social security assets test.
       Note  Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary's opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream's contract or governing rules.
 (5) This subsection applies to an original income stream if:
 (a) the income stream is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and
 (b) the income stream:
 (i) is an income stream to which paragraph 9A(1)(b) or 9B(1A)(b) of the Act applies or would have applied if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply, and in relation to which the Secretary is not satisfied as required by that paragraph; or
 (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.
       Note  Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary's opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream's contract or governing rules.