Document ID: chunk:federal_register_of_legislation:F2024C01248:schedule:1a:p4
Version: federal_register_of_legislation:F2024C01248
Segment Type: schedule
Provision Reference: sch 1A (pt 4/5)
Character Range: 238766–241397

applicable to the benefit category provide for a maximum benefit accrual, the new entrant rate is to be calculated on the basis that the benefit is funded over the period to when maximum accrual is attained.
Note: This means that, for the purpose of calculating the present value of future salaries payable to the new entrant, the superannuation salary is to be assumed to be zero at those ages after reaching maximum benefit accrual.
Example: If maximum accrual is attained after 20 years of membership, the superannuation salary for a 30‑year‑old new entrant will be assumed to be zero at age 50 and above for the purpose of calculating the present value of future salaries payable to the new entrant.

2.3  New entrant rate to be rounded down
  The new entrant rate is to be rounded down to the lower 1 percentage point.
Example: 10.6% would be rounded down to 10%.

2.4  No allowance for administration expenses or income tax on assessable contributions
  The new entrant rate is to be calculated ignoring:
 (a) administration expenses; and
 (b) income tax on assessable contributions.
Note: These items are allowed for in the formula in clause 1.7 by multiplying by 1.2.

2.5  Certain discretions to be allowed for
 (1) The new entrant rate is to be calculated assuming that certain discretions are always exercised.
 (2) Subject to subclause (3), if the fund rules provide a discretion to pay, on voluntary exit, a benefit that is higher than the standard benefit, the actuary must assume that a higher benefit is always paid on voluntary exit on or after age 55.
 (3) If the higher benefit mentioned in subclause (2) exceeds the accrued retirement benefit, the actuary may assume that the benefit is an amount:
 (a) greater than or equal to the accrued retirement benefit; and
 (b) less than or equal to the higher benefit.
 (4) If the actuary believes that there is a reasonable expectation that a higher benefit than either the standard benefit or the accrued retirement benefit will be paid, then the actuary should assume that the benefit paid on voluntary exit on or after age 55 is always equal to the benefit reasonably expected to be paid.
Note: In considering whether there is a reasonable expectation that a higher benefit will be paid, it would generally not be appropriate to assume payment unless such an assumption was adopted in the most recent actuarial review.

2.6  Method of working out new entrant rate for a member
 (1) If a member belongs to exactly one benefit category at a particular time, the new entrant rate for the member at that time is the new entrant rate for that benefit category.
 (2) If a