Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p52
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 52/71)
Character Range: 523295–526036

description of those actions or schemes.

Division 9.6—Solvency of accumulation funds

9.34  Application
  This Division applies only to accumulation funds other than:
 (a) funds that are part of an exempt public sector superannuation scheme; and
 (b) funds that have never been used to reduce or remove the superannuation guarantee charge imposed by section 5 of the Superannuation Guarantee Charge Act 1992.

9.35  Interpretation
 (1) In this Division:
fund's actuary, in relation to an accumulation fund, means a superannuation actuary whose services are secured by the trustee of the fund under subregulation 9.39(2).
mandated employer‑financed benefits has the same meaning as in Part 5.
member financed‑benefits has the same meaning as in Part 5.
minimum guaranteed benefit, in relation to a member of an accumulation fund, means an amount that is the sum of:
 (a) the member‑financed benefits of the member; and
 (b) the mandated employer‑financed benefits of the member; and
 (c) any minimum benefits of the member under regulation 5.06B, that are not included in paragraph (a) or (b).
net realisable value, in relation to the assets of an accumulation fund, means the amount calculated by deducting the estimated cost of disposing of the assets of the fund from the market value of those assets.
period of technical insolvency, in relation to an accumulation fund, means the period starting on the first day of the year of income in which the fund becomes technically insolvent or in which the trustee makes an election under subregulation 9.38(2) and ending on:
 (a) in the case where the fund is solvent at the beginning of a year of income that is earlier than the sixth year of income following the year of income in which the period starts—the first day of that first‑mentioned year of income;
 (b) in any other case—the first day of that sixth year of income.
 (2) In this Division, a reference to an accumulation fund being solvent is to be read as a reference to the net realisable value of the assets of the fund being equal to or greater than the minimum guaranteed benefits of members of the fund.
 (3) In this Division a reference to an accumulation fund being technically insolvent is to be read as a reference to the net realisable value of the assets of the fund being less than the minimum guaranteed benefits of members of the fund.

9.36  Prescription of standards—accumulation funds
  For the purposes of subsection 31(1) of the Act, the standards contained in regulations 9.37, 9.38 and 9.39 are prescribed as standards applicable to the operation of accumulation funds to which this Division applies.

9.37  Accumulation funds solvency standard
 (1) Subject to subregulation (2), in a year of income the trustee