Actuarial investigations — regular and iActuarial investigations — regular and initial investigations

Actuarial investigations – regular and initial investigations

14. An RSE licensee must appoint an RSE actuary to make an actuarial investigation in relation to a defined benefit fund:

(a) at least every three years if the fund is not paying a defined benefit pension;

(b) at least annually if the fund has fewer than five members and is paying a defined benefit pension;

(c) if the fund has more than four members, and is paying a defined benefit pension, within one year of the RSE licensee commencing to pay the pension. APRA may determine another date by which the initial investigation must be carried out which will be not less than one year and not more than three years after the commencement of the pension; and

(d) if the fund has more than four members, and is paying a defined benefit pension, for second and further investigations after the RSE licensee commences paying the pension, annually or with a frequency determined by APRA which will be not less than one year and not more than three years after the most recent regular investigation.

For the purposes of this Prudential Standard, investigations required under this paragraph are referred to as ‘regular investigations’.

15. Where an RSE licensee establishes a new defined benefit fund, the RSE licensee must appoint an RSE actuary to carry out a first investigation as at the date of the establishment or conversion to defined benefit status of the fund. For the purposes of this Prudential Standard, investigations required under this paragraph are referred to as ‘initial investigations’.