Download Albany International

Phil Patterson BEc FIAA
Level 14, 60 Margaret Street
Sydney
NSW 2000
Australia
T +61 2 9253 3333
D +61 2 9253 3106
M +61 417 534 826
F +61 2 9253 3199
[email protected]
towerswatson.com
FUNDING AND SOLVENCY CERTIFICATE
Albany International Defined Benefit Superannuation Plan
within the OnePath MasterFund (“the Plan”)
1
This Certificate is provided for the purposes of Regulation 9.09 of the Superannuation Industry
(Supervision) Regulations and has been prepared in accordance with Professional Standard 407
issued by the Institute of Actuaries of Australia.
2
This Certificate has been prepared at the request of OnePath Custodians Pty Limited (the Trustee
of the Plan).
3
This Certificate takes effect from 1 July 2014 and applies until 30 June 2019, unless one of the
following events occurs:
a
an amount is paid from the Plan to an employer under Section 117 of the Superannuation
Industry (Supervision) Act 1993,
b
this Certificate is replaced by another Funding and Solvency Certificate,
c
a notifiable event, as specified in the Appendix, occurs,
d
an employer fails to pay the minimum contributions certified in paragraph 7 below, or
e
this Certificate is withdrawn.
4
This Certificate replaces the previous certificate dated 3 September 2013.
5
This Certificate must be replaced by 30 June 2018.
6
Pursuant to Regulation 9.06(2) of the SIS Regulations, the Plan is "solvent” if the net realisable
value of the assets of the Plan exceeds the Minimum Requisite Benefits (MRB) of all members
of the Plan. The MRB for a member is that part of a benefit being used to meet part or all of an
employer’s Superannuation Guarantee obligation and is defined in the Benefit Certificate I prepared
dated 14 January 2015, which expires on 30 June 2019.
7
In my opinion:
a
at 1 July 2014, the Plan was solvent as defined under Regulations 9.06(2) and 9.15 of the
Superannuation Industry (Supervision) Regulations, and
b
based on reasonable assumptions adopted at the last actuarial valuation of the Plan as at
30 June 2012, the Plan is likely to remain solvent to the expiry of this Certificate provided the
Company pays at least the certified minimum contributions from 1 July 2014 as follows:
i
0.0% of Category 1 member’s and Category 2 member’s salaries; plus
ii
additional contributions at the rate of 4.7% of defined benefit member’s salaries where the
member’s contributions are paid by the employer on the member’s behalf; plus
Towers Watson Australia Pty Ltd
ABN 45 002 415 349 AFSL 229921
G:\Clients\salba - 533331\Actuarial Certificates\cc3 FSC Jan 2015.docx
Page 1 of 3
Funding and Solvency Certificate
5 July 2013
iii
contributions of 0% for accumulation benefit members (including contributions for
expenses where applicable) with regular contributions funded from defined benefit surplus;
iv
any voluntary salary sacrifice contributions (grossed up for 15% contributions tax), in
respect of defined benefit or accumulation members.
These contributions are the same as those required to finance vested benefits accruing to
members, not just the minimum requisite benefits.
The contributions should be remitted no later than 28 days after the end of the quarter in which
they were due. Under the SIS Act, contributions deducted from members’ salaries must be
remitted no later than 28 days following the end of the month in which they were due.
In making the statement in b above, MRBs after 30 June 2019 (the expiry date of the current
Benefit Certificate) are assumed to be calculated in the same manner as the current Benefit
Certificate.
8
I am not aware of any events that have occurred since 1 July 2014 to the date of this certificate that
would affect the contents of the certificate.
Dated: 14th January 2015
Phil Patterson
Fellow of the Institute
of Actuaries of Australia
G:\Clients\salba - 533331\Actuarial Certificates\cc3 FSC Jan 2015.docx
Review:
Page 2 of 3
Funding and Solvency Certificate
5 July 2013
Appendix: Definition of Notifiable Events
Notifiable events are events identified by the Actuary as requiring the solvency of the Plan to be
re-examined. If a notifiable event occurs, the Funding and Solvency Certificate ceases to have effect,
and a new Certificate must be obtained by the Trustee within three months of the occurrence of the
notifiable event.
The Trustee must informally advise the Actuary if any of the events listed below occur and discuss the
implications with the Actuary. If, after such discussion, the Trustee believes the event could have a
significant adverse effect on the Plan’s financial position, which the Actuary considers warrants
replacement of this certificate, the Trustee must formally notify the Actuary in writing.
The following are notifiable events:
a
An amendment of the governing rules of the Fund in a way that affects the level, or method of
calculation, of the benefits of the Fund;
b
The receipt by the Trustee of the Fund of a written direction from the Regulator under sub-regulation
9.09(1A) of the SIS Regulations.
c
The replacement of the Benefit Certificate which was current as at the date this Certificate was
signed, with a Benefit Certificate which specifies the Fund’s minimum requisite benefits on a different
basis to that assumed in this Certificate.
d
Any other event the Actuary advises in writing to the Trustee as being a notifiable event.
e
there is a change in the investment policy adopted by the Trustee for defined benefit members'
assets such that the portfolio of investments no longer represents a balanced investment portfolio;
f
an enhanced benefit payment is made to a defined benefit member, where such enhancement
exceeds 10% of the value of the benefit due in accordance with the terms of the Plan Summary at
the date of benefit payment and the employer does not make additional contributions to the Plan;
g
the crediting rate of interest used to add interest to defined benefit members' account balances is
greater than the actual Plan earning rate for the corresponding period in respect of defined benefit
members' assets; and
h
the level of the Vested Benefit Index for defined benefit members at a Plan Review Date falls below
110% or the level of the Accrued Benefit Index for defined benefit members at a Plan Review Date
falls below 90%.
However, after reviewing the details of a specific event which would otherwise be classified as a
"notifiable" event, the Actuary may advise the Trustee that such an event does not constitute a "notifiable"
event for the purpose of this Certificate.
G:\Clients\salba - 533331\Actuarial Certificates\cc3 FSC Jan 2015.docx
Page 3 of 3