Document ID: chunk:federal_register_of_legislation:F2013L01247:body:0:p10
Version: federal_register_of_legislation:F2013L01247
Segment Type: other
Provision Reference: 
Character Range: 24296–27455

imposed under paragraph 34.

Self-insurance
    36.         An RSE licensee that is permitted to self-insure insured benefits must[17]:

       (a)          maintain reserves or have other arrangements approved by APRA in place to fund current and future self-insurance liabilities;

       (b)          attest annually that, in formulating and maintaining its policy in relation to self-insurance, the RSE licensee continues to act in the best interests of beneficiaries[18]; and

       (c)          develop a contingency plan for an orderly transfer of insurance assets and obligations, for activation in the event that the Board has decided that, by self-insuring benefits, the RSE licensee is no longer acting in the best interest of beneficiaries as a whole.

    37.         An RSE licensee that self-insures insured benefits must ensure the ongoing actuarial oversight of the reserves and self-insurance arrangement via, at a minimum, the regular investigation required under paragraph 14. The actuarial review must provide sufficient information about the maintenance of adequate insurance reserves or other arrangements for funding of self-insured benefits. The actuarial review must also provide sufficient information on the self-insurance arrangements to demonstrate the extent and adequacy of the actuarial oversight undertaken on these arrangements.

RSE licensee to bear costs for reports

    38.         An RSE licensee must bear the costs of obtaining an actuarial investigation and preparing and submitting reports, documents and other material required by this Prudential Standard.

Transitional arrangements
    39.         If the valuation date is within the period commencing 1 July 2013 and ending on 30 June 2016, the RSE licensee must obtain the report required in paragraph 21 within nine months of the valuation date.

    40.         An RSE licensee must ensure that the first regular investigation on or after 1 July 2013 takes place no later than the time at which the next actuarial investigation carried out under regulation 9.29 or 9.29A (as applicable) of the SIS Regulations[19] would have been required to be carried out, and that subsequent regular investigations take place no later than provided for under paragraph 14.

    41.         The transitional provisions set out in Attachment B apply in relation to actions commenced prior to 1 July 2013 under Division 9.5 of the SIS Regulations, as specified in the Attachment.

Adjustments and exclusions
    42.         APRA may, by notice in writing to an RSE licensee or RSE actuary, as relevant, adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that RSE licensee or RSE actuary.[20]

Attachment A
     1. This Prudential Standard does not apply to superannuation funds that are part of:

       (a)          the scheme established by the Superannuation Act 1976;

       (b)          the scheme established under the provisions of the Superannuation Act 1990; or

       (c)          the Military Superannuation Benefits Scheme.

Attachment B
Transitional provisions

Actions undertaken prior to 1 July