Document ID: chunk:federal_register_of_legislation:F2013L01247:body:0:p8
Version: federal_register_of_legislation:F2013L01247
Segment Type: other
Provision Reference: 
Character Range: 18826–21879

days of receipt of the report.

Unsatisfactory financial position – actuarial requirements
    30.         Paragraph 31 applies where an RSE actuary:

       (a)          conducting an initial or regular investigation, makes a finding, in the actuarial report of the investigation, that:

           (i)            the fund is to be treated as being in an unsatisfactory financial position; or

           (ii)         the financial position of the fund is likely to become unsatisfactory; or

       (b)          conducting an interim investigation makes a finding, in the actuarial report of the investigation, that:

           (i)            the fund is in an unsatisfactory financial position; and

           (ii)         the fund is in breach of its shortfall limit

    unless a restoration plan is already in place under paragraph 32 or the fund has been declared to be technically insolvent under regulation 9.16(1) of the SIS Regulations.

    31.         An RSE actuary must, in the situations identified in paragraph 30:

       (a)          prepare a statement that, at a minimum:

           (i)            describes the recommended actions to be taken to address the financial position; and

           (ii)         contains a recommendation, or sets a date by which a recommendation will be made, in respect of a contribution rate or level that, on reasonable expectations, will restore the fund to, and maintain it in, a satisfactory financial position, within a time period that is reasonable in the circumstances of the fund but which must not exceed three years from the valuation date, or, in the case of an interim investigation, the later of the valuation date and the date the RSE licensee determined that an interim investigation was required under paragraph 17; and

       (b)          provide the statement to the RSE licensee as soon as practicable and, in any event, within 15 business days of making a finding, in the actuarial report of the investigation, that the financial position is to be treated as unsatisfactory, or is likely to become unsatisfactory or that the shortfall limit has been breached.

Unsatisfactory financial position – RSE licensee requirements
    32.         When an RSE licensee receives a statement from the RSE actuary under paragraph 31, the RSE licensee must:

       (a)          provide a copy of the statement to APRA as soon as practicable but no later than 15 business days after receipt from the RSE actuary;

       (b)          consult with each employer-sponsor (as relevant) about the content and implementation of the recommendations of the RSE actuary, which may include an increase in the contribution rate or rates or change to the pattern or frequency of contribution payments;

       (c)          appoint an RSE actuary to be responsible for provision of advice to the RSE licensee in regard to actuarial management during the period in which the fund is in an unsatisfactory financial position, including advice as to whether, under the governing rules of