Document ID: chunk:federal_register_of_legislation:F2013L01247:body:0:p2
Version: federal_register_of_legislation:F2013L01247
Segment Type: other
Provision Reference: 
Character Range: 2764–5909

apply to RSE actuaries.[2]

    3.             For the purposes of this Prudential Standard, 'defined benefit fund' means a regulated superannuation fund that has at least one defined benefit member, including where the regulated superannuation fund is a public sector superannuation scheme.

    4.             For the purposes of this Prudential Standard, 'defined benefit sub-fund' means a sub-fund of a defined benefit fund that has at least one defined benefit member, separately identifiable assets and separately identifiable beneficiaries and the interest each beneficiary has in the sub-fund is determined wholly or partly by reference to the conditions governing the sub-fund.[3] In this Prudential Standard, unless otherwise expressly indicated:

       (a)          a reference to a defined benefit fund includes a reference to a defined benefit sub-fund; and

       (b)          a requirement applying to a defined benefit fund may be met by satisfying the requirement in relation to each defined benefit sub-fund in the fund.

    5.             An RSE licensee identified in paragraph 2 must comply with this Prudential Standard in its entirety, unless otherwise expressly indicated. An RSE actuary undertaking functions under this Prudential Standard must comply with those requirements of this Prudential Standard expressed to apply to RSE actuaries.

    6.             This Prudential Standard commences on 1 July 2013 (effective date).

Interpretation
    7.             For the purposes of this Prudential Standard, 'defined benefit member' means a member who:

       (a)          is being paid a defined benefit pension[4]; or

       (b)          is entitled, on retirement or termination of employment, to be paid a benefit defined, wholly or in part, by reference to either or both of:

           (i)            the amount of:

               1. the member's salary at the date of the termination of the member's employment or of the member's retirement or an earlier date; or

                2. the member's salary averaged over a period before retirement; or

           (ii)         a specified amount.

    8.             For the purposes of this Prudential Standard, 'unsatisfactory financial position' means the value of the assets of the defined benefit fund or defined benefit sub-fund, excluding any amount held to meet the operational risk financial requirement (ORFR)[5], is not adequate to cover the liabilities of the fund or sub-fund in respect of the benefits vested in the members of the fund or sub-fund.[6]

RSE licensees that are part of a group[7]
    9.             Where an RSE licensee is part of a corporate group, and the RSE licensee utilises group policies or functions, the Board of the RSE licensee (the Board[8]) must approve the use of group policies and functions and must ensure that these policies and functions give appropriate regard to the RSE licensee's business operations.[9]

Shortfall limit

    10.         An RSE licensee must set a shortfall limit, approved by the Board, for each defined benefit fund within its business operations.[10] For the purposes