CTHRepealedLegislation
Banking (prudential standard) determination No. 4 of 2007 - Prudential Standard APS 111 - Capital Adequacy: Measurement of Capital
Surpluses on employer-sponsored defined Surpluses on employer-sponsored defined benefit superannuation funds
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Surpluses on employer-sponsored defined benefit superannuation funds
- An ADI must deduct from Tier 1 capital any surplus in an ADI (or member of the ADI’s group) employer-sponsored defined benefit superannuation fund unless it has already been excluded from Tier 1 capital or unless otherwise agreed with APRA. An ADI may make representations to APRA to include a surplus as an asset for capital adequacy purposes where the ADI (or member of the ADI’s group) employer-sponsor is able to demonstrate unrestricted and unfettered access to a fund surplus in a timely manner. Where APRA is satisfied about such access, an ADI may include the surplus in its risk-weighted assets at a 100 per cent risk weight. This surplus will no longer be required to be deducted from Tier 1 capital.