Calculation of value A or B of accrued benefits
12.07 Calculation of value A or B of accrued benefits
For the purposes of regulations 12.05 and 12.06, the value of the benefits payable to a member in respect of a period after 30 June 1988 is the total of the amounts in respect of each financial year, or part of a financial year, in the period that are determined by a superannuation actuary:
in respect of each kind of benefit that the member is, or may be, entitled to receive from the superannuation fund; and
by using the following formula:
where:
P1 is the probability, determined by the superannuation actuary, of the member being paid a benefit in each financial year, or part of a financial year; and
Net present value is the value of each benefit to the fund, being an amount that is determined by the superannuation actuary as at 30 June 1988:
in the case of the calculation of value A of accrued benefits—using the earning rate of the fund used in the actuarial investigation of the fund mentioned in subregulation 12.05(3); and
in the case of the calculation of value B of accrued benefits—using the earning rate of the fund referred to in paragraph 12.06(2)(d); and
P2 is a proportion that is calculated:
in the case of the calculation of value A of accrued benefits—using the method applied in the actuarial investigation of the fund mentioned in subregulation 12.05(3); and
in the case of the calculation of value B of accrued benefits—as follows:
where a reference to completed period of fund membership in relation to the member at a particular time is a reference to the period from the time at which the member joined, or last joined, the fund to the particular time.
This Act’s bill:Explanatory statement
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.