SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 9.25 Winding - up proceedings--priorities

SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994 - REG 9.25

  (1)   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.

  (2)   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.

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

  (4)   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.

  (5)   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.