New South Wales Consolidated Acts

FUNERAL FUNDS ACT 1979 - SECT 29

29 Basis of valuations

(1) The basis of valuation adopted by an actuary in any valuation of the liabilities of a funeral contribution fund under section 28 shall be such as:

(a) to place a proper value upon the liabilities of the fund, having regard to:

(i) the mortality experience among the persons who are contributors to the fund,

(ii) the average rate of interest from investments,

(iii) the expenses of management (including commission), and

(iv) where the fund undertakes to provide contributors with funeral services, the movement in the prices of those services, and

(b) to ensure that no agreement to contribute to the fund is treated as an asset.

(2) The value placed on the aggregate liabilities of a funeral contribution fund by reason of the adoption of any basis of valuation shall not be less than it would have been if it had been calculated on the prescribed minimum basis of valuation.