The apportionment of income between pension and non pension assets. Income from assets required to support the payment of pensions of any sort is tax exempt. Unless the assets of the Fund are “segregated”. Tax law requires annual actuarial certification of the proportion of income attributable to the pension assets. Income from assets comprising reserves is not tax exempt and needs to be separately identified.
The Family Law (Superannuation) Regulations 2004 specify the way in which pensions and defined benefit rights are valued for the purposes of family law property splits. The Regulations specify the method of calculation and the assumptions to be used and provide for individual funds to set their own methods and assumptions. Some funds, generally Government have done this.
AAS25 certificates are produced as a by product of the certificates for complying pensions and are incorporated in the fees for those certificates.