Document ID: chunk:federal_register_of_legislation:F2017L00435:body:0:p7
Version: federal_register_of_legislation:F2017L00435
Segment Type: other
Provision Reference: 
Character Range: 16489–19724

period:

        (a)                further funding must be arranged within 60 days to meet any shortfall between the value of assets and the funding requirement; and

        (b)               funds in excess of the funding requirement can be released from the trust.

3.             For the Equitas fund:

        (a)                the rebalancing period is each quarter; and

        (b)               the funding requirement is:

            (i)            on 1 July 2000—the amount worked out in accordance with paragraph 4 of this Attachment for the last quarter that ended more than 30 days before 1 July 2000; and

            (ii)          for a quarter ending after 1 July 2000—the amount worked out in accordance with paragraph 4 of this Attachment for that quarter.

4.             The funding requirement for a quarter is:

        (liabilities  scaling factor%) + $2 million

where:

liabilities means the reported gross of reinsurance outstanding claims liabilities on the last day of the rebalancing period.

scaling factor is an amount determined by APRA so that the result of the formula is a reasonable estimate of the value of aggregated secured liabilities on the last day of the rebalancing period:

        (a)                gross of reinsurance;

        (b)               discounted to allow for the time value of money; and

        (c)                including liabilities incurred but not reported.

Interim fund
5.             For the interim fund:

        (a)                the rebalancing period is each year; and

        (b)               the funding requirement is:

            (i)            on 1 July 2000—the amount worked out in accordance with paragraph 6 of this Attachment for the last year that ended more than 30 days before 1 July 2000; and

            (ii)          for a year ending after 1 July 2000—the amount worked out in accordance with paragraph 6 of this Attachment for that year.

6.             The funding requirement for a period is:

        (liabilities  scaling factor1%) + (premium income  scaling factor2%)

where:

liabilities means the reported gross of reinsurance outstanding claims liabilities on the last day of the rebalancing period.

premium income means premium income, net of brokerage but gross of reinsurance ceded, for the years of account for which the liabilities are secured by the fund.

scaling factor1 and scaling factor2 are amounts determined by APRA so that the result of the formula is a reasonable estimate of the value of aggregated secured liabilities on the last day of the rebalancing period:

        (a)                net of reinsurance;

        (b)               discounted to allow for the time value of money; and

        (c)                including liabilities incurred but not reported.

New business fund
7.             For the new business fund:

        (a)                the rebalancing period is each quarter;

        (b)               the funding requirement is:

            (i)            on 1 July 2000—the amount worked out in accordance with paragraph 8 of this Attachment for the last quarter that ended more than 30 days before 1 July 2000; and

            (ii)          for