Commonwealth Consolidated Acts

FUTURE FUND ACT 2006 - SCHEDULE 3

Note:   See section   13.

1   Simplified outline

    The following is a simplified outline of this Schedule:

2   Designated actuary

  (1)   For the purposes of this Act, the designated actuary is an actuary specified in a written determination made by the nominated Minister under this subclause.

Note:   For variation and revocation, see subsection   33(3) of the Acts Interpretation Act 1901 .

  (2)   A determination under subclause   (1) is not a legislative instrument.

  (3)   As soon as practicable after a determination is made under subclause   (1), the Chair must cause a copy of the determination to be published on the internet.

3   Target asset level declarations

  (1)   The designated actuary may give the responsible Ministers:

  (a)   a written declaration stating that a specified amount is the target asset level for a specified financial year; and

  (b)   a written statement setting out the designated actuary's reasons for specifying the target asset level.

  (2)   A declaration under subclause   (1) is to be known as a target asset level declaration for the financial year concerned.

  (3)   2 or more target asset level declarations may be set out in the same document.

  (4)   A target asset level declaration for a particular financial year may be given before or during the financial year.

  (5)   A target asset level for a particular financial year must not be specified in a target asset level declaration unless the designated actuary is satisfied that:

  (a)   if the balance of the Fund, as at the start of the financial year, were equal to the target asset level for the financial year;

the balance of the Fund would (based on the designated actuary's best estimate) be expected to offset:

  (b)   the present value of projected unfunded superannuation liabilities in respect of services rendered before the start of the financial year.

  (6)   A target asset level declaration for a particular financial year remains in force until whichever is the earliest of the following:

  (a)   the end of the financial year;

  (b)   the occurrence of an event specified in the declaration;

  (c)   if the declaration is revoked--the time when the declaration is revoked.

  (7)   The designated actuary must take all reasonable steps to ensure that:

  (a)   the first target asset level declaration is given as soon as practicable after the commencement of this clause; and

  (b)   if a target asset level declaration for a particular financial year ceases to be in force before the end of the financial year--a new target asset level declaration for the financial year is given as soon as practicable afterwards; and

  (c)   not more than one target asset level declaration for the same financial year is in force at the same time; and

  (d)   not more than 5 target asset level declarations for different financial years are in force at the same time.

  (8)   A target asset level declaration may be revoked, but not varied, in accordance with subsection   33(3) of the Acts Interpretation Act 1901 .

  (9)   A target asset level declaration is not a legislative instrument.

  (10)   As soon as practicable after receiving:

  (a)   a target asset level declaration; and

  (b)   a statement setting out the designated actuary's reasons for specifying the target asset level;

the nominated Minister must cause:

  (c)   a copy of the declaration; and

  (d)   a copy of the statement;

to be published on the internet.

  (11)   If a target asset level declaration ceases to be in force, the cessation does not affect:

  (a)   the crediting of an amount to the Fund Account; or

  (b)   the transfer of a financial asset to the Board; or

  (c)   the debiting of an amount from the Fund Account;

before the cessation.

4   Reliance on projections when making target asset level declarations etc.

    In making a target asset level declaration, the designated actuary may:

  (a)   rely on, or have regard to, the projections, findings, estimates, opinions or conclusions of any other actuaries who have conducted, or are conducting, actuarial reviews of:

  (i)   a scheme under which superannuation benefits are payable; or

  (ii)   a South Australian railways arrangement; or

  (iii)   a Tasmanian railways arrangement; and

  (b)   make such assumptions and estimates as the designated actuary considers reasonable; and

  (c)   have regard to such other matters as the designated actuary considers relevant.