Superannuation and Retirement Applications (SRA) Practice Questions - Superannuation and Retirement Applications (SRA) - Actuaries Institute Fellowship Program Exam - Superannuation and Retirement Applications (SRA) Practice Questions - Superannuation and Retirement Applications (SRA) - Actuaries Institute Fellowship Program Exam

Question 1

Under Section 62 of the Superannuation Industry (Supervision) Act 1993 (SIS Act), what is the 'Sole Purpose Test'?

The trustee of a regulated superannuation fund must maintain the fund solely for core purposes (providing benefits on a member's retirement from gainful employment, on attaining a prescribed age, or to dependants on the member's death) and for approved ancillary purposes The fund must invest solely in a single company's shares The fund must have solely one member and one trustee The trustee must maintain fund records solely in physical paper format

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Question 2

Under APRA Prudential Standard SPS 160 (Defined Benefit Matters), how is the 'Vested Benefits Index' (VBI) defined for a defined benefit superannuation fund?

The market value of fund assets divided by total vested benefits (the benefits payable if all members voluntarily terminated employment on the valuation date): VBI = Assets / Vested Benefits The total annual investment return divided by total employer contributions The present value of accrued benefits divided by the statutory minimum capital The number of retired members divided by the number of active members

Correct Answer:

The market value of fund assets divided by total vested benefits (the benefits payable if all members voluntarily terminated employment on the valuation date): VBI = Assets / Vested Benefits

Question 3

Under APRA SPS 160, what is the regulatory consequence if a defined benefit fund's Vested Benefits Index (VBI) drops below 100% (in an unsatisfactory financial position)?

The trustee must formulate and submit to APRA a written Funding Management Plan (FMP) agreed with the sponsoring employer, designed to restore the VBI to at least 100% within a reasonable period (normally not exceeding 3 years) The fund must immediately be wound up and all assets distributed to charity The trustee must permanently reduce all member vested benefits by 50% The sponsoring employer is legally exempt from making any further contributions

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Question 4

Under APRA SPS 160, what is the 'shortfall limit' for a defined benefit superannuation fund and who sets it?

A vested benefits coverage level, below 100%, that the RSE licensee sets on actuarial advice as the point at which a fund in an unsatisfactory financial position is treated as having a shortfall requiring a restoration program A fixed 95% level prescribed in the SIS Act that applies identically to every defined benefit fund The level at which APRA automatically cancels the fund's RSE licence The minimum cash balance a defined benefit fund must hold at all times

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Question 5

In the Australian superannuation tax framework, what are the standard headline tax rates applied to Concessional Contributions and Accumulation-Phase Investment Earnings for complying funds?

15% tax on concessional contributions; 15% tax on accumulation-phase investment earnings (with a 1/3 CGT discount on assets held >12 months, yielding an effective 10% capital gains tax rate) 30% tax on contributions; 0% tax on earnings 0% tax on contributions; 45% tax on earnings 10% tax on contributions; 20% tax on earnings

Correct Answer:

15% tax on concessional contributions; 15% tax on accumulation-phase investment earnings (with a 1/3 CGT discount on assets held >12 months, yielding an effective 10% capital gains tax rate)

Question 1

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Prepare with the Superannuation and Retirement Applications (SRA) Practice Questions - Superannuation and Retirement Applications (SRA) - Actuaries Institute Fellowship Program Exam practice quiz. This question bank includes 100 questions covering superannuation, benefit, defined, fund, and pension. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Superannuation and Retirement Applications (SRA) Practice Questions - Superannuation and Retirement Applications (SRA) - Actuaries Institute Fellowship Program Exam

This practice set contains 100 questions from the matching question bank and focuses on superannuation, benefit, defined, fund, and pension. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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Superannuation and Retirement Applications (SRA) Practice Questions - Superannuation and Retirement Applications (SRA) - Actuaries Institute Fellowship Program Exam

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