Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p35
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 35/71)
Character Range: 480498–483137

and subregulation 9.31(3), the financial position of an entity is treated as unsatisfactory if, in the opinion of a person performing an actuarial or audit function in relation to the entity:
 (a) in the case of an entity that is a defined benefit fund—the value of the assets of the fund is inadequate to cover the value of the liabilities of the fund in respect of benefits vested in the members of the fund; and
 (b) in the case of an entity that is an accumulation fund—either:
 (i) the assets of the fund are inadequate to cover the aggregate benefit accounts of members of the fund; or
 (ii) the value of the assets of the fund is inadequate to cover the value of the liabilities of the fund in respect of benefits accrued to members of the fund; and
 (c) in the case of an entity that is an approved deposit fund—the assets of the fund are inadequate to cover the obligations of the fund in respect of members of the fund; and
 (d) in the case of an entity that is a PST—the assets of the trust are inadequate to cover the obligations of the trust in respect of holders of units in the trust.

Division 9.2A—Size of defined benefit funds

9.04A  Application
 (1) This Division applies to:
 (a) a defined benefit fund established after the commencement of this Division; and
 (b) a fund that is converted to a defined benefit fund after the commencement of this Division; and
 (c) a defined benefit fund that wishes to accept a new defined benefit member after the commencement of this Division; and
 (d) a defined benefit fund that wishes to convert a member of the fund to a defined benefit member after the commencement of this Division.
 (2) This Division does not apply to a fund that is part of:
 (a) the scheme established by the Superannuation Act 1976; or
 (b) the scheme established under the provisions of the Superannuation Act 1990; or
 (c) the Military Superannuation and Benefits Scheme; or
 (d) an exempt public sector superannuation scheme.

9.04B  Sub‑funds to be treated as funds
  A sub‑fund within a defined benefit fund is taken, for the purposes of this Division, to be a defined benefit fund if the sub‑fund satisfies the following conditions:
 (a) the sub‑fund has separately identifiable assets and separately identifiable beneficiaries;
 (b) the interest of each beneficiary of the sub‑fund is determined by reference only to the conditions governing that sub‑fund.

9.04C  Operating standard
  For subsection 31(1) of the Act, a requirement set out in this Division is a standard applicable to the operation of regulated superannuation funds that are defined benefit funds.

9.04D  Size of defined benefit