Commonwealth Consolidated Acts

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Defined benefit schemes--certain cases where members cannot choose another fund

             (1)  This section applies to an employer in respect of an employee in respect of a defined benefit superannuation scheme for a quarter if the employee is a defined benefit member of the scheme and subsection (2), (3) or (3A) is satisfied.

Scheme in surplus

             (2)  This subsection is satisfied if:

                     (a)  the employee was a defined benefit member of the fund immediately before 1 July 2005 and has not ceased to be such a member since that time and before the start of the quarter; and

                     (b)  an actuary has provided a certificate in accordance with regulations under the Superannuation Industry (Supervision) Act 1993 stating that the employer is not required to make contributions for the quarter and there has been such a certificate covering all times since 1 July 2005; and

                     (c)  an actuary has provided a certificate stating that, in the actuary's opinion, at all times from 1 July 2005 until the end of the quarter, there is a high probability that the assets of the scheme are, and will be, equal to or greater than 110% of the greater of the scheme's liabilities in respect of vested benefits and the scheme's accrued actuarial liabilities.

The certificate under paragraph (c) must have been provided no earlier than 15 months before the end of the quarter.

Member has accrued maximum benefit

             (3)  This subsection is satisfied if, after the start of the quarter, the defined benefit that has accrued to the employee will not increase other than:

                     (a)  as a result of increases in the employee's salary or remuneration; or

                     (b)  by reference to accruals of investment earnings; or

                     (c)  by reference to indexation based on, or calculated by reference to, a relevant price index or wages index; or

                     (d)  in any other way prescribed for the purposes of this paragraph.

Member's benefit not affected

          (3A)  This subsection is satisfied if the employee would be entitled, on the employee's retirement, resignation or retrenchment, to the same amount of benefit from the defined benefit superannuation scheme, whether or not the employee had contributions:

                     (a)  for the quarter; and

                     (b)  made by the employer for the benefit of the employee;

to a fund (within the meaning of Part 3A) other than the defined benefit superannuation scheme.

Meaning of scheme's accrued actuarial liabilities and scheme's liabilities in respect of vested benefits

             (4)  In this section:

"scheme's accrued actuarial liabilities" , at a particular time, means the total value, as certified by an actuary, of the future benefit entitlements of members of the scheme in respect of membership up to that time based on assumptions about future economic conditions and the future of matters affecting membership of the scheme, being assumptions made in accordance with applicable professional actuarial standards (if any).

"scheme's liabilities in respect of vested benefits" , at a particular time, means the total value of the benefits payable from the scheme to which the members of the scheme would be entitled if they all voluntarily terminated their service with their employers at that time.

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