Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds
Distributions of Assets of an approved bDistributions of Assets of an approved benefit fund
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Distributions of Assets of an approved benefit fund
- The assets of an approved benefit fund must be applied in the following order:
(a) first:
(i) to pay benefits to any person entitled to a benefit from the approved benefit fund; or
(ii) as otherwise permitted by the Act or by the approved benefit fund rules; and
(b) second:
(i) where the approved benefit fund rules of the approved benefit fund being
terminated provide for the application of assets on the termination of the fund, in accordance with those approved benefit fund rules; or
(ii) in any other case, in satisfaction of any entitlements of members of the approved benefit fund as determined in writing by the appointed actuary; and
(c) third, if any assets remain after the application of paragraphs 80(a) and 80(b), by way of transfer to the management fund of the friendly society.
- For the purposes of a determination under paragraph 80(b)(ii), the appointed actuary must take into account all the circumstances of the approved benefit fund, including:
(a) the requirements of the Act; and
(b) the applicable approved benefit fund rules; and
(c) the history, performance and financial position of the fund during its existence, whether before or after it became an approved benefit fund under the Act.