In a final salary Defined Benefit Fund the Fund Actuary is required to report of the anticipated solvency of the Fund on an ongoing basis. The Fund Actuary is required to produce an Actuarial Report at least once every three years.
The Actuary will make a recommendation as to whether the Principal Employer will be required to make an Employer Contribution to the common asset pool of the Defined Benefit Fund.
If the Defined Benefit Fund has a large surplus, the Principal Employer may enjoy an extended “Contribution Holiday” and may be required to make no Employer Contributions.
Members and Beneficiaries of a final salary Defined Benefit fund are entitled to obtain a copy of the “most recent” Actuarial Report “free-of-charge” under subsection 1017C(5) of the Corporations Act 2001 and Regulation 7.9.45 of the Corporations Regulations 2001.
Members and Beneficiaries are entitled to obtain earlier version of this Trust Document by paying the Trustee a “cost recovery fee” to cover the cost of retrieving, photocopying and mailing the earlier Reports (Schedule 10A 11.1 of the Corporations Regulations 2001).
It is a criminal offence under Item 297B of Schedule 3 of the Corporations Act 2001 to contravene subsection 1017C(5) of the Corporations Act 2001.
The Actuarial Reports confirm how the final salary Defined Benefit fund has been funded and what is the past and projected future size of the Fund Surplus or Deficit.
In a letter dated 17 January 2012 both incumbent Member-elected Directors on the Board of the Trustee were requested to provide copies of the period Actuarial Reports to the Membership of the Fund.
Even though it is a criminal offence to refuse to provide copies of the periodic Actuarial Report to a Member or a Beneficiary of a final salary Defined Benefit Fund, neither of the Member-elected Directors have complied with the request for copies of these important Fund Documents.
The questions all Members of this Fund should be asking is why?
Why are those who have been elected to represent the interests of the Members refusing to disclose important Fund Documents to their fellow Members of the Fund?
Why are these Member-elected representatives prepared to risk a term of imprisonment of up to two years to conceal these important Fund Documents from their fellow Members and Beneficiaries of the Fund?
The Employer’s Code of Business Ethics and Conduct requires Employees to comply with “all applicable laws and regulations“. Why have the Member-elected representatives been exempted from this requirement?
All Members should be very concerned about this conduct of their elected representatives.
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