Re: What’s the Correct procedure to repay an Admin Fund deficit

THANK YOU SCOTTY!!!

Your post just landed ahead of mine but …..

Thanks Peter and Kanga – I’m coming from an angle based on my interpretation of the S76(4), whereby a Special Levy is to be raised (only) in circumstances where an expense arises, the payment of which “cannot at once be met from either fund”.

Again based on my interpretation, an amount to be raised in order to recoup a distribution from one fund to another is not an expense of the type to which a Special Levy may be applied.

In my opinion, what should happen is for the administrative fund levies to be set at an amount sufficient to meet the expected expenses of that fund PLUS an amount sufficient to recoup the past distributions from the sinking fund.

As Peter said that would produce a “reserve”, which would in the case of my friend’s Plan be transferred to the sinking fund to recoup those past distributions, and depending upon how his O/C resolved to “determine” under S71(3), that could be a once-off recoup or comprise several such recoups over a number of years in order to ease the pain.

Am I up the wrong tree of what?