Document ID: chunk:federal_register_of_legislation:F2024C01248:schedule:1a:p5
Version: federal_register_of_legislation:F2024C01248
Segment Type: schedule
Provision Reference: sch 1A (pt 5/5)
Character Range: 241191–243413

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 member belongs to more than one benefit category at a particular time, the new entrant rate for the member at that time is the sum of the new entrant rates for each benefit category to which the member belongs.
Note: The new entrant rate for a member is relevant to sections 291‑170.05 and 291‑170.07.

Part 3—Valuation parameters

3.1  Application of economic, decrement and other parameters
  For the purpose of working out the new entrant rate for a benefit category mentioned in Part 1 or 2, the actuary is to apply the economic, decrement and other parameters set out in this Part.

3.2  Discount rate
 (1) The discount rate to be used to discount projected future benefits and salaries is 8% per year.
 (2) The discount rate is not to be adjusted for investment expenses or investment‑related taxation or for any other reason.

3.3  Fund earning rate and crediting rate
 (1) If necessary, the fund earning rate to be assumed is 8% per year.
 (2) If necessary, the assumed crediting rate is to be based on the assumed fund earning rate.

3.4  Rate of future salary or wages growth
 (1) The rate of salary or wages growth to be applied is 4.5% per year.
 (2) This rate is to be used:
 (a) to project the value of future salary or wages; and
 (b) to project benefits that increase in accordance with a general wage index (for example, average weekly earnings).

3.5  Rate of increase in price indices
  If a benefit is linked to an increase in a price index (for example, the Consumer Price Index), the rate of increase in the price index to be applied is 2.5% per year.

3.6  New entrant age
 (1) The age of new entrants to be assumed is based on the average age of entry to the fund of the persons who were defined benefit members of the fund at 1 July 2007.
 (2) The following table sets out the age of new entrants that is to be assumed.

New entrant age
Item             Average age last birthday at commencement in fund of defined benefit members of the fund at 1 July 2007  New entrant age to be assumed