Level of Reserves and actuarial advice

(1) The minimum level of the Short–term Benefits Contingency Reserve shall be equivalent to six months average benefit expenditure of the Branch over the preceding three financial years: Provided that for the first three years of operation of the Act, the Reserve may be fixed at six times the average monthly contribution income of the Branch. (2) The minimum level of the Employment Injury Benefits (Short–term) Reserve shall be equivalent to twelve months’ average expenditure of the Branch on benefits other than periodically payable disablement and death benefits over the preceding three financial years; Provided that this level may be reached by the end of the third year of operation and during the period the level of the Reserve shall be computed with reference to the actual period of operation. 222 Social Security (3) The Reserves specified in paragraphs (1) and (2) shall be used to meet any unforeseen or abnormal expenditure which the current income of any other Branch may not be sufficient to cover: Provided that if either of the said reserves falls below the level specified in paragraphs (1) and (2) and the trend of reduction continues, actuarial advice shall be sought in accordance with the Act, and necessary action shall be taken so that contribution income available to the Branch concerned may be sufficient to cover the expenditure of that Branch and to restore the Reserve concerned to the prescribed (4) Where it is anticipated that the current income of the Long– term Benefits Branch will become insufficient to meet the current expenditure of that branch, actuarial advice shall be sought in accordance with the Act.