Unit Pricing/Crediting Rate Pricing

The more frequently assets of a superannuation fund are valued to determine changes in value, the greater the risk of error.

Unless the trust deed of a superannuation fund contains a power to vary the value that must be applied, whether it is a crediting rate or unit price, the price as determined by the trust deed must be applied to the member accounts, including former member accounts. Any under payment, subject to the de minimis principle, must be compensated. Otherwise the trustee is in breach of trust in not paying the amount required to be paid by the trust deed. The trustee is not entitled to apply a materiality test.

Trustees will generally wish to apply a materiality test. To do this, the powers in the trust deed must permit this.