Document ID: chunk:federal_register_of_legislation:F2024C01248:clause:1a_48:p1
Version: federal_register_of_legislation:F2024C01248
Segment Type: clause
Provision Reference: sch 1A cl 48 (pt 1/3)
Character Range: 248163–250841

48                              100    1.000

3.10  Taxed and untaxed benefits
  If the rules of the fund provide for benefits to be paid on either a taxed or an untaxed basis, the actuary is to assume that the employer component of the fund benefit is paid as a taxed benefit.
Note: This situation applies to a small number of funds where the employer component of the fund benefit is generally met by a last‑minute contribution to the superannuation fund.

3.11  Other assumptions to be set by the actuary
 (1) Any other assumptions which may be necessary are to be set by the actuary responsible for calculating the new entrant rate.
 (2) The assumptions are to be based on the assumptions used in the most recent actuarial valuation of the fund, unless the actuary believes, having regard to the expected future experience of the fund, that they are no longer appropriate.
 (3) If the actuary believes that the assumptions used in the most recent actuarial valuation are no longer appropriate, the assumptions should be set on a best estimate basis.

Part 4—Exercise of discretion to pay a benefit greater than the benefit assumed in calculating the new entrant rate

4.1  Method of working out the increased exit benefit adjustment amount in the formula in clause 1.8
  For the purposes of the formula in clause 1.8:
 (a) for a financial year in which the trustee of the defined benefit fund pays, as a result of an exercise of a discretion, a benefit to the member on:
 (i) voluntary exit; or
 (ii) redundancy that is not bona fide;
  which exceeds the benefit assumed in calculating the new entrant rate for the benefit category to which the member belongs at the time the benefit is paid—the increased exit benefit adjustment amount equals an amount worked out on advice from an actuary that represents the amount of the excess; and
 (b) for any other financial year—the increased exit benefit adjustment amount equals zero.
Note: If the trustee decides to pay an untaxed benefit rather than a taxed benefit, any excess of the amount of the untaxed benefit over the amount of the taxed benefit that would otherwise have been payable is not to be included in the increased exit benefit adjustment amount.

Part 5—Member has changed benefit category

5.1  Method of working out the category change or discretion adjustment amount in the formula in clause 1.8
 (1) For the purposes of the formula in clause 1.8:
 (a) for a financial year in which the member's accrued retirement benefit increases as a result of:
 (i) a change of benefit category; or
 (ii) an exercise of discretion;
  the category change or discretion adjustment amount equals an amount worked out on