Superannuation Industry (Supervision) Regulations 1994

PART 9 - FINANCIAL MANAGEMENT OF FUNDS  

Division 9.4 - Winding-up of defined benefit funds  

REGULATION 9.25   WINDING-UP PROCEEDINGS - PRIORITIES  

9.25(1)   [ Liabilities of the fund ]  

If, under regulation 9.23 , winding-up proceedings in relation to a defined benefit fund are to be carried out in accordance with this Division, priority must be given to the liabilities of the fund in accordance with this regulation.

9.25(2)   [ Administration and costs of proceedings ]  

The first charge on the assets of the fund must be the liability in respect of the administration and other costs associated with the winding-up proceedings.

9.25(3)   [ Determination of priorities ]  

In determining the priorities to be given to the remaining liabilities of the fund, the trustee must ensure compliance with subregulations (4) and (5).

9.25(4)   [ Minimum benefit index equal to or greater than 1 ]  

If the fund's minimum benefit index at the winding-up date is equal to or greater than 1, the benefit entitlement allocated to each individual member of the fund at the winding-up date must be an amount that is not less than the sum of such part of:


(a) the funded minimum requisite benefit; and


(b) the benefit entitlements of former members;

as is attributable to that individual member.

9.25(5)   [ Minimum benefit index less than 1 ]  

If the fund's minimum benefit index at the winding-up date is less than 1, the benefit entitlement allocated to each individual member of the fund at the winding-up date must not be either:


(a) greater than the amount referred to in subregulation (4) in respect of that individual member; or


(b) less than an amount calculated by multiplying the amount referred to in subregulation (4) in respect of that individual member by the fund's minimum benefit index at the winding-up date.




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