Superannuation Guarantee (Administration) Act 1992

PART 3 - LIABILITY OF EMPLOYERS OTHER THAN THE COMMONWEALTH AND TAX-EXEMPT COMMONWEALTH AUTHORITIES TO PAY SUPERANNUATION GUARANTEE CHARGE  

Division 2 - Superannuation guarantee charge payable by employers  

Subdivision E - Loading for failing to comply with choice of fund requirements  

SECTION 20B   DEFINED BENEFIT SCHEMES - CERTAIN CASES WHERE MEMBERS CANNOT CHOOSE ANOTHER FUND  

20B(1)    
This section applies for the purposes of paragraph 20A(3)(b) .

Scheme in surplus

20B(2)    
This subsection applies 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 during the period (the membership period ):

(i) starting on 1 July 2005; and

(ii) ending at the end of the QE day; 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 a period including the QE day, 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 during the membership period 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 QE day.

Member has accrued maximum benefit

20B(3)    
This subsection applies if, on the QE day, 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 by the regulations.

Member ' s benefit not affected

20B(4)    
This subsection applies 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 QE day; 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

20B(5)    
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:

(a) future economic conditions; and

(b) 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.