Practice areas
Litigation Support
Litigants often need to determine the value of damages that they have suffered. These damages include loss of income, the cost of rectification and the cost of subsequent care. The practice assists litigants, their solicitors and barrister in matters relating to personal injury and commercial disputes to quantify these damages.
Mortgage Commission Valuation
Employee Benefits Valuation AASB19
Under Australian Accounting Standard 119 (AASB19), reporting entities are required to value their liabilities for employee benefits. These liabilities typically include those related to long service leave, annual leave and may include those related to current or former “defined benefit” superannuation schemes. Most long service leave benefits are directly financed by the employer but some are provided through special purpose, typically industry specific, funds.
Family and Estate
Families need to determine values of assets held by family members for either family law or estate wind up purposes. Valuations can also be required in connection with Binding Financial Agreements under the Family Law Act
Retirement Villages
Contracts between retirement village residents and owners and managers generally involve payment of a deferred management fee (DMF) on vacation. The manager’s interests are commonly called “contingent interests” or “embedded value”. Actuarial involvement in this area focuses on determining and maximising the value of these interests.
Self Managed Superannuation Funds (SMSFs)
Self managed superannuation funds are an efficient vehicle for families to provide their superannuation benefits. They are restricted to four members, have lower disclosure requirements than larger funds and are regulated by the Australian Tax Office. If they pay lifetime pensions, they are subject to more stringent actuarial standards than larger funds.
Complying Pensions
Funds paying lifetime and fixed term pensions are required to have annual actuarial certificates. These certificates must show whether there is a high (70%) probability of their being sufficient. These certificates can be used to “segregate” assets into those supporting “current pension liabilities” If assets are not segregated, an annual actuarial certificate is needed to determine the proportion of income that applies to current pension liabilities. This portion is tax free.
General Insurance
Federal legislation mandates the appointment, by general insurers, of “appointed actuaries”. Appointed actuaries are required to certify general insurers’ outstanding claim and premium liabilities. Actuaries can also assist the management of general insurers in premium setting, underwriting, re insurance strategies and the general risk management of the company. The practice pioneered the payments per outstanding claim method of determining general insurance claim liabilities. Actuaries can also assist employers wishing to self insure their workers’ compensation risks.
UK And Foreign Pension Transfer
Members of foreign pension or superannuation funds can transfer their entitlements to Australian superannuation funds subject to the laws of governing the foreign funds. In particular, Members of United Kingdom (UK) pension funds who become Australian residents can transfer their UK pension equities to Australian superannuation funds which are registered as Qualifying Recognised Overseas Pension Schemes (QROPS).