[Index] [Search] [Download] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
House of Assembly—No 33
As laid on the table and read a first time, 25 October 2004
South Australia
Parliamentary
Superannuation (Scheme for New Members) Amendment Bill 2004
A Bill For
An Act to amend the Parliamentary Superannuation
Act 1974 and to make a related amendment to the Parliamentary
Remuneration Act 1990.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Amendment provisions
Part 2—Amendment of
Parliamentary Superannuation Act 1974
4 Amendment of section 5—Interpretation
5 Amendment of section 6—Voluntary and
involuntary retirement
6 Amendment of section 7—Computation
of service
7 Insertion of sections 7C, 7D and 7E
7C Arrangement of schemes
7D Membership
of schemes
7E Special provisions relating to
rollovers for PSS1 and PSS2 members
8 Amendment of section 13—The Fund
9 Insertion of section 13AB
13AB Rollover accounts
10 Amendment of section 13B—Accretions to
members' accounts
11 Insertion of section 13C
13C Rollover of money from other funds or
schemes
12 Substitution of Part 3
Part 3—Contributions
Division 1—Preliminary
14 Preliminary
Division 2—Contributions by
members of PSS 1 or PSS 2
14A Contributions by members of PSS 1 or
PSS 2
Division 3—Contributions by
members of PSS 3
14B Contributions by members of PSS 3
Division 4—Government
contributions with respect to PSS 3
14C Government contributions
14D Government contribution accounts
13 Insertion of section 15
15 Application of Division
14 Amendment of section 16—Entitlement to
a pension on retirement
15 Amendment of section 17—Amount of
pension for PSS 1 member pensioners
16 Amendment of section 17A—Amount of
pension for PSS 2 member pensioners
17 Amendment of section 18—Invalidity
retirement
18 Amendment of section 19—Reduction of
pension in certain circumstances
19 Amendment of section 19A—Preservation
of pension in certain cases
20 Amendment of section 20—Suspension of
pension
21 Amendment of section 21—Commutation of
pension
22 Amendment of section 21A—Application
of section 21 to certain member pensioners
23 Amendment and relocation of section
21AA—Commutation to pay deferred superannuation contributions surcharge—pension
entitlements
24 Insertion of Part 4 Division 2A
Division 2A—Superannuation
benefits for PSS 3 members
21AB Application of Division
21AC Interpretation
21AD Retirement at or above age 55
21AE Cessation of membership before age 55
21AF Preservation of components
21AG Cessation of membership on ground of
invalidity
21AH Death of PSS 3 member
21AI Determination of invalidity/death
insurance
25 Substitution of heading to Part 4
Division 3
26 Amendment of section 22—Other benefits under PSS 1
27 Amendment of section 22A—Other benefits under PSS 2
28 Substitution of section 23
23 Pension paid for limited period
29 Insertion of sections 23AAB, 23AAC and
23AAD
23AAB Commutation to pay deferred superannuation
contributions surcharge—lump sum entitlements
23AAC Commutation to pay deferred superannuation
contributions surcharge following death of member
23AAD Withheld amount
30 Amendment of section 23B—Interpretation
31 Amendment of section 23C—Accrued
benefit multiple
32 Amendment of section 23D—Value of
superannuation interest
33 Amendment of section 23E—Non-member
spouse's entitlement
34 Substitution of section 23J
23J Benefit not payable to spouse on
death of member if split has occurred
35 Amendment of section 24—Pension for
spouse of deceased PSS 1 member pensioner
36 Amendment of section 25—Pension for
spouse of deceased PSS 1 member
37 Amendment of section 25A—Pension for
spouse of PSS 2 member pensioner
38 Amendment of section 25B—Pension for
spouse of deceased PSS 2 member
39 Amendment of section 25C—Interpretation
40 Insertion of section 26AAB
26AAB Application of Division
41 Substitution of heading to Part 5A
42 Amendment of section 31A—Benefits
payable to member's estate (PSS 1 or PSS 2)
43 Repeal of Part 6A
44 Repeal of section 36
45 Amendment of section 36B—Power to
obtain information
46 Amendment of section 37—Payment of
benefits
47 Insertion of Schedule 1
Schedule
1—Transitional provision
1 Transitional provision
Part 3—Amendment of
Parliamentary Remuneration Act 1990
48 Insertion of section 4AA
4AA Salary sacrifice for superannuation
purposes
Schedule 1—Transitional provisions
1 Continuity of entitlements
2 Other provisions
The Parliament of South Australia enacts
as follows:
This Act may be cited as the Parliamentary Superannuation
(Scheme for New Members) Amendment Act 2004.
(1) Subject
to subsection (2), this Act will come into operation on a day to be fixed
by proclamation.
(2) Section
46 will be taken to have come into operation on 3 July 2003.
In this Act, a provision under a heading referring to the
amendment of a specified Act amends the Act so specified.
Part 2—Amendment of Parliamentary Superannuation
Act 1974
4—Amendment of section 5—Interpretation
(1) Section 5(1)—after the definition of child
benefit insert:
complying superannuation fund has the meaning given by section 45
of the SIS Act;
(2) Section 5(1)—after the definition of contribution
insert:
death insurance benefit is the death insurance to which a PSS 3
member is entitled by virtue of his or her membership of PSS 3;
deferred superannuation contributions surcharge in relation to a member means the amount
that the member is liable to pay the Commissioner of Taxation under section
15(6) of the Superannuation Contributions Tax Act;
(3) Section 5(1), definition of eligible
child, (a)—delete paragraph (a) and substitute:
(a) of a deceased PSS 1 or PSS 2 member or deceased PSS 1 or PSS
2 member pensioner;
(4) Section 5(1), definition of eligible
child, (b)—delete "member or deceased" and substitute:
PSS 1 or PSS 2 member or deceased PSS 1 or PSS 2
(5) Section 5(1), definitions of former
new scheme member and former old scheme member—delete the
definitions and substitute:
former PSS 1 member means a person who was a PSS 1 member
immediately before ceasing to be a member;
former PSS 2 member means a person who was a PSS 2 member
immediately before ceasing to be a member;
(6) Section 5(1)—after the definition of the
Fund insert:
invalidity insurance benefit is the invalidity insurance to which a
PSS 3 member is entitled by virtue of his or her membership of PSS 3;
judge means a judge of the Supreme Court
nominated by the Chief Justice to exercise the powers of a judge under this
Act;
(7) Section 5(1), definition of member
pensioner—after "pension under this Act" insert:
by virtue of being a PSS 1 member or a PSS 2 member
(8) Section
5(1), definitions of new scheme member and new scheme
member pensioner—delete the definitions
(9) Section 5(1), definition of notional
pension, (a)—after "to a deceased" insert:
PSS 1 or PSS 2
(10) Section
5(1), definitions of old scheme member and old scheme
member pensioner—delete the definitions
(11) Section 5(1), after the definition of prescribed
office insert:
PSS 1—see section 7C(1);
PSS 2—see section 7C(2);
PSS 3—see section 7C(3);
PSS 1 member means a member of PSS 1—see section 7D(2);
PSS 1 member pensioner means a member pensioner who was a PSS 1
member immediately before ceasing to be a member;
PSS 2 member means a member of PSS 2—see section 7D(3);
PSS 2 member pensioner means a member pensioner who was a PSS 2
member immediately before ceasing to be a member;
PSS 3 member means a member of PSS 3—see sections 7D(4)
and 7E;
(12) Section 5(1)—after the definition of service
insert:
SIS Act means the Superannuation Industry (Supervision) Act 1993
of the Commonwealth;
(13) Section 5(1), definition of spouse
pension, (b)—after "of a deceased" insert:
PSS 1 or PSS 2
(14) Section 5(1)—after the definition of the
State insert:
Superannuation Contributions Tax Act means the Superannuation Contributions
Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and
Collection Act 1997 of the Commonwealth;
superannuation salary sacrifice means any salary that a member is
sacrificing for the purposes of superannuation under section 4AA of the Parliamentary
Remuneration Act 1990;
surcharge notice means a notice issued by the Commissioner
of Taxation under section 15(7) of the Superannuation Contributions Tax Act.
(15) Section 5(3)—after "(as contemplated by
section 4A(2) of that Act)" insert:
and the amount of any superannuation salary sacrifice (as
contemplated by section 4AA of that Act for the relevant period)
5—Amendment of section 6—Voluntary and involuntary retirement
(1) Section 6—after subsection (1) insert:
(2) In addition, a former member will be taken
to have retired involuntarily if—
(a) at
the conclusion of his or her last term of office as a member of the Parliament
(the preceding term of office) the former member stood as a
candidate for re-election to the same House at the ensuing election but was
defeated; and
(b) both at the time of his or her election for the preceding
term of office and at the ensuing election the former member was—
(i) endorsed by the
same political party; or
(ii) an independent candidate.
(2) Section 6(3)(b)—delete
paragraph (b) and substitute:
(b) on
the grounds of invalidity or ill health that prevents the member from being
able to carry out the duties of office to a reasonable degree;
(3) Section 6(c)—after "subsection
(1)" insert:
or (2)
(4) Section
6(4)—delete subsection (4)
6—Amendment of section 7—Computation of service
(1) Section 7—after "the length of a
member's service" insert:
for the purposes of PSS 1 or PSS 2
(2) Section 7(d)—delete "unless by virtue
of section 20 or 36 that former period of service is to be counted as service
for the purposes of this Act" and substitute:
(subject to paragraph (f) and to the
operation of section 20)
(3) Section
7(e)—delete "and section 36"
(4) Section 7—after paragraph (e) insert:
(f) actual service may include previous service if so provided
by another section of this Act (including a section that made provision as to
service before its repeal by the Parliamentary Superannuation (Scheme for
New Members) Amendment Act 2004).
7—Insertion of sections 7C, 7D and 7E
After section 7B insert:
7C—Arrangement
of schemes
(1) The
scheme of superannuation established by this Act in relation to persons who
first became members of either House of Parliament of the State before the
commencement of the Parliamentary Superannuation (New Scheme) Amendment Act
1995 (disregarding members who have transferred out of that scheme) will
continue as PSS 1.
(2) The
scheme of superannuation established by virtue of the enactment of the Parliamentary
Superannuation (New Scheme) Amendment Act 1995 will continue as PSS 2.
(3) The
scheme of superannuation established by virtue of the enactment of the Parliamentary
Superannuation (Scheme for New Members) Amendment Act 2004 will be known as
PSS 3.
7D—Membership
of schemes
(1) In this section—
relevant date means the date of the election held to
determine membership of the fifty-first Parliament of the State.
(2) Subject
to this section, a member who first became a member of either House of
Parliament of the State before the commencement of the Parliamentary
Superannuation (New Scheme) Amendment Act 1995 (other than a member who
transferred to PSS 2 by virtue of an election of the kind referred to in
subsection (3)(b)) will be a member of PSS 1.
(3) Subject to this section, a member—
(a) who first became a member of either House of Parliament of
the State on or after the commencement of the Parliamentary Superannuation
(New Scheme) Amendment Act 1995 and before the relevant date; or
(b) who has made an election in accordance with section 35A of
this Act (as enacted by the Parliamentary Superannuation (New Scheme)
Amendment Act 1995 and as repealed by the Parliamentary Superannuation
(Scheme for New Members) Amendment Act 2004),
will be a member of PSS 2.
(4) A member—
(a) who first becomes a member of either House of Parliament of
the State on or after the relevant date; or
(b) who,
on or after the relevant date, again becomes a member of either House of
Parliament of the State after a break in membership of the Parliament (disregarding
for the purposes of this paragraph any case where a member's term comes to an
end on the dissolution of the House of which he or she is a member or expires
by the effluxion of time and the member is then returned at the election that
next follows that dissolution or expiry),
will be a member of PSS 3.
(5) Despite a preceding subsection, if—
(a) a
PSS 1 or PSS 2 member stands for re-election but is not returned as having been
re-elected; and
(b) the
Court of Disputed Returns subsequently declares the member to have been duly
elected at that election or it declares the election void and the member is
elected at the subsequent by-election; and
(c) the member, within 3 months—
(i) after a
declaration by the Court that the member has been re-elected; or
(ii) after re-election following a declaration by the Court that
the election was void,
or within such further period as the Board (in its absolute
discretion) allows, makes an election under subsection (6),
then the member may continue as a member of PSS 1 or
PSS 2 (as the case may be).
(6) An election under this subsection—
(a) must be made in writing in a manner determined by the Board;
and
(b) subject to any other determination of the Treasurer, must be
accompanied by a payment to the Treasurer of—
(i) an amount equal to 11.5 per cent of the
salary that was lost by reason of the fact that the member was not returned as
elected in the first instance; and
(ii) an
amount equal to the amount (if any) paid to the member pursuant to this Act
(whether by way of a pension or a lump sum, or both, or by way of a payment
pursuant to Part 4 Division 3) following the return made at the
original election.
(7) For the purposes of this Act, the period of
service of a member who continues as a PSS 1 or PSS 2 member under
subsection (5) will be taken to include—
(a) previous service that the member was, at the termination of
the member's immediately preceding period of service, entitled to have counted
as service under this Act; and
(b) the period during which the member was unable to take his or
her seat in Parliament by reason of not being returned as elected in the first
instance.
(8) If
the Treasurer allows a further period to pay an amount under
subsection (6), the Treasurer may impose such conditions (including a
condition requiring payment of interest on any outstanding amount) as the
Treasurer thinks fit, and the member will not be regarded as having complied
with that subsection unless the member complies with those conditions.
(9) The
Treasurer may vary or revoke a condition under subsection (8).
(10) If—
(a) a PSS 3 member stands for re-election but is not
returned as having been re-elected; and
(b) the Court of Disputed Returns subsequently declares the
member to have been duly elected at that election or it declares the election
void and the member is elected at the subsequent by-election,
then the member must, in accordance with a determination of the
Board, pay to the Treasurer—
(c) an
amount equal to the contributions that the member would have paid under
Part 3 Division 3 assuming that the member had been returned in the
first instance and been liable to make contributions at the rate that applied
to the member immediately before the original election; and
(d) an amount equal to the amount (if any) paid to the member
pursuant to this Act following the return made at the original election.
(11) When
a member makes a payment under subsection (10)(c),
the Treasurer must pay into the PSS3-Government Contributions Division of the
Fund, and the Board must credit to the member's Government contribution
account, an amount equal to the amount that would have been payable under
Part 3 Division 4 assuming that the member had been returned in the
first instance and applying such other assumptions as the Board, with the
agreement of the Treasurer, determines.
(12) The
fact that a former PSS 1 or former PSS 2 member who returns to
Parliament then becomes a PSS 3 member under this section does not
prejudice any entitlement that he or she may have under this Act with respect
to his or her former membership of PSS 1 or PSS 2 before the break in
membership of the Parliament.
7E—Special
provisions relating to rollovers for PSS1 and PSS2 members
(1) The Board must, on application under this
section, permit—
(a) a PSS 1 or PSS 2 member for whom an amount of
money may be carried over from another superannuation fund or scheme; or
(b) a former PSS 2 member who has a lump sum preserved
under Part 4,
to become a PSS 3 member in order to establish a
rollover account for the person under this Act.
(2) The following provisions apply in
connection with the operation of subsection (1):
(a) in
the case of a former PSS 2 member under subsection (1)(b)—the
preserved lump sum amount will, when paid into the rollover account, be taken
to be a rollover component under Part 4 Division 2A (and will cease
to be a preserved amount under another Division of Part 4);
(b) Part
3 Divisions 3 and 4 will not apply to a person who is a PSS 3 member
by virtue of this section;
(c) a person who is a PSS 3 member by virtue of this
section will not be entitled to any of the following under Part 4
Division 2A:
(i) a
Government-funded component of benefits;
(ii) a member-funded component of benefits;
(iii) an invalidity/death insurance benefit;
(d) the Governor may, by regulation, make any other provision as
the Governor thinks fit, including by providing that other provisions of this
Act do not apply to a person who is a PSS 3 member by virtue of this
section, or apply to such a member subject to any modifications prescribed by
the regulations.
8—Amendment of section 13—The Fund
(1) Section 13—after subsection (3) insert:
(3a) The
Superannuation Funds Management Corporation of South Australia must establish a
distinct part of the Fund under the name PSS 3—Government Contributions
Division.
(2) Section 13(4)(b)—delete
paragraph (b) and substitute:
(b) periodic contributions to ensure that the entitlements of
PSS 1 and PSS 2 members are fully funded as required; and
(c) any
amount that is received by the Treasurer under this Act on account of money
carried over from another superannuation fund or scheme and to be paid into a
rollover account of a member; and
(d) the contributions required under section 14C (to be held in
the PSS 3—Government Contributions Division); and
(e) any amount that is required to be paid to satisfy the
payment of an invalidity/death insurance benefit; and
(f) any other amount that must be credited to the Fund by the
Treasurer under another provision of this Act.
After section 13A insert:
13AB—Rollover
accounts
(1) The Board must maintain a rollover account
in the name of—
(a) a PSS 3 member (including such a member who is also a
PSS 1 or PSS 2 member who has made application under section 7E)
for whom an amount of money has been carried over from another superannuation
fund or scheme; or
(b) a PSS 3 member who is a former PSS 2 member who
has made application under section 7E in relation to a preserved amount.
(2) A
PSS 3 member's rollover account must be credited with the relevant amount
under subsection (1) and must be debited with any payment that is, in
pursuance of this Act, to be charged against the account.
(3) The
Board may debit against a PSS 3 member's rollover account an administrative
charge fixed by the Board.
(4) The
Board may, for the purposes of subsection (3), fix different charges
depending on the balance of members' accounts or any other relevant factor.
10—Amendment of section 13B—Accretions to members' accounts
(1) Section 13B(1)—after
"contribution account" insert:
and rollover account (if any)
(2) Section 13B(2)—delete
subsection (2) and substitute:
(2) In determining a rate of return for the
purposes of subsection (1), the Board should have regard to—
(a) the net rate of return achieved by investment of the Fund
over the relevant financial year; and
(b) if a PSS 3 member has made a nomination under
subsection (2a), the net rate of return achieved by the classes of
investments, or the combination of classes of investments, nominated by the
member.
(2a) If the Fund is invested in different classes of investments,
the Board must permit a PSS 3 member, on such terms and conditions as the Board
thinks fit, to nominate the class of investments, or combination of classes of
investments, for the purpose of determining the rate of return under this
section.
(2b) A
PSS 3 member cannot nominate a class of investments, or a combination of
classes of investments, under subsection (2a) if he or she does not at the
same time nominate the same class or combination of classes of investments
under section 14D(4) (unless he or she is a PSS 3 member by virtue of
section 7E).
(3) Section 13B(3)—delete
"subsection (2)(b)" and substitute:
subsection (2)(a)
After section 13B insert:
13C—Rollover
of money from other funds or schemes
Money that is rolled over to PSS 3 from another superannuation
fund or scheme must be paid to the Treasurer.
Part 3—delete the Part and substitute:
Part 3—Contributions
Division 1—Preliminary
14—Preliminary
Every member is liable to make contributions to the Treasurer in
accordance with this Act.
Division 2—Contributions
by members of PSS 1 or PSS 2
14A—Contributions
by members of PSS 1 or PSS 2
(1) Subject
to subsection (2), the contributions payable by PSS 1 or PSS 2 members will be
11.5 per cent of the basic salary and additional salary (if any) payable to
each member and must be deducted by the Treasurer when paying salary to
members.
(2) The
contribution payable by a PSS 1 or PSS 2 member whose period of service as a
member of Parliament is equal to or exceeds 20 years and 1 month is 5.75 per
cent of the member's basic salary and 11.5 per cent of the member's additional
salary (if any).
Division 3—Contributions
by members of PSS 3
14B—Contributions
by members of PSS 3
(1) Subject to this Act, a PSS 3 member may
elect to make contributions to the Treasurer at 1 of the following percentages
of the combined value of the basic salary and additional salary (if any)
payable to the member and must be deducted by the Treasurer when paying salary
to the member:
0% |
1% |
2% |
3% |
4% |
4.5% |
5% |
6% |
7% |
8% |
9% |
10% |
(2) A
PSS 3 member may, from time to time, elect to vary a rate of contribution under
subsection (1).
(3) An
election under subsection (2) must be made to the Board in writing and
will operate from a date to be fixed by the Board.
(4) In
addition, a PSS 3 member may make additional monetary contributions to the
Treasurer under this subsection that are not related
to the member's salary.
(5) The
amount of each contribution under subsection (4) must be equal to or
exceed the amount prescribed by the regulations for the purposes of
subsection (4).
Division 4—Government
contributions with respect to PSS 3
14C—Government
contributions
(1) Within 7 days after basic salary and
additional salary (if any) is paid to a PSS 3 member, the Treasurer must
pay into the PSS 3—Government Contributions Division of the Fund an amount
calculated as follows:
A
is the amount to be paid.
S
is the amount of basic salary and additional salary (if any) paid to (or in relation
to) the member (including the amount of any salary sacrifice under the Parliamentary
Remuneration Act 1990 that applies for the relevant period).
CP is—
(a) in the case of a member whose superannuation contribution
rate for (or in relation to) the period to which the salary relates is a rate
that is less than 4.5%—9;
(b) in the case of a member whose superannuation contribution
rate for (or in relation to) the period to which the salary relates is a rate
that is equal to or greater than 4.5%—10.
(2) In
addition, if a PSS 3 member has elected to make a superannuation salary
sacrifice that applies in relation to the relevant period, the Treasurer must
pay into the PSS 3—Government Contributions Division of the Fund the
amount so sacrificed.
14D—Government
contribution accounts
(1) The
Board must maintain Government contribution accounts in the names of all PSS 3
members.
(2) A
PSS 3 member's Government contribution account must be credited with amounts
that are equivalent to the amounts paid under section 14C in respect of the
member.
(3) At the end of each financial year, each PSS
3 member's Government contribution account will be adjusted to reflect a rate
of return determined by the Board—
(a) having regard to the net rate of return achieved by
investment of the PSS3—Government Contributions Division of the Fund over the
relevant financial year; and
(b) if the member has made a nomination under
subsection (4), having regard to the net rate of return on the nominated
class of investments, or combination of classes of investments, determined by
the Board under section 13B(2)(b).
(4) If
the PSS 3—Government Contributions Division of the Fund is invested in
different classes of investments, the Board must permit a PSS 3 member, on such
terms and conditions as the Board thinks fit, to nominate the class of
investments, or combination of classes of investments, for the purpose of
determining the rate of return under subsection (3).
(5) A
PSS 3 member cannot nominate a class of investments, or a combination of
classes of investments, under subsection (4) if he or she does not at the
same time nominate the same class or combination of classes of investments
under section 13B(2a) (and any variation of a
nominated class under that section will then have effect for the purposes of
this section).
(6) If,
when the Government component is to be paid under Part 4 Division 2A with
respect to a PSS 3 member, the rate of return for the relevant financial year
has not been determined under this Act, the rate of return will be equivalent
to the rate of return on investments of the PSS 3—Government Contributions
Division of the Fund estimated by the Board for that year (and there will be no
adjustment when the rate of return is subsequently determined).
(7) An
administrative charge to be fixed by the Board must be debited against the
Government contribution accounts of PSS 3 members (and different charges may be
fixed depending on the balance of members' accounts, the level of
invalidity/death insurance benefit that may apply to members under this Act, or
any other relevant factor).
(8) A
charge to be fixed by the Board may also be debited against the Government
contribution account of a PSS 3 member who, after nominating a class of
investments under subsection (4), subsequently varies the nomination.
(9) A
reference in this section to "rate of return" is a reference to a
positive or a negative rate of return.
Before section 16 insert:
15—Application
of Division
This Division applies in relation to PSS 1 and PSS 2 members.
14—Amendment of section 16—Entitlement to a pension on retirement
Section 16—After
"A former" insert:
PSS 1 or PSS 2
15—Amendment of section 17—Amount of pension for PSS 1 member pensioners
(1) Section 17(1)—delete "old scheme"
and substitute:
PSS 1
(2) Section 17(2)—delete "old scheme"
and substitute:
PSS 1
16—Amendment of section 17A—Amount of pension for PSS 2 member pensioners
(1) Section 17A(1)—delete
"new scheme" and substitute:
PSS 2
(2) Section 17A(2)(a)—delete
"new scheme" and substitute:
PSS 2
(3) Section 17A(2)—delete
"new scheme" and substitute:
PSS 2
(4) Section 17A(6)—delete
"new scheme" and substitute:
PSS 2
17—Amendment of section 18—Invalidity retirement
(1) Section 18(1)—after "Where a"
insert:
PSS 1 or PSS 2
(2) Section 18(1)—after "invalidity"
insert:
that prevents the member from being able to carry out the
duties of office to a reasonable degree
(3) Section
18(3)—delete subsection (3)
18—Amendment of section 19—Reduction of pension in certain circumstances
Section 19(2a)—delete "new
scheme" and substitute:
PSS 2
19—Amendment of section 19A—Preservation of pension in certain cases
Section 19A—after
subsection (3) insert:
(4) Section
19(1) will not apply in relation to a pension payable under subsection (3)(a).
20—Amendment of section 20—Suspension of pension
(1) Section 20(1)—delete "shall cease and
determine" and substitute:
will be suspended during the period for which the member is
again a member of the Parliament (and will then become payable again after he
or she ceases to be a member of the Parliament on the basis of his or her
previous service)
(2) Section
20(2)—delete subsection (2)
21—Amendment of section 21—Commutation of pension
(1) Section 21(1)—delete "old scheme"
and substitute:
PSS 1
(2) Section 21(1a)—delete "new
scheme" and substitute:
PSS 2
22—Amendment of section 21A—Application of section 21 to certain member pensioners
Section 21A—delete "old scheme"
and substitute:
PSS 1
(1) Section 21AA(1)—delete
"old scheme or new scheme" and substitute:
PSS 1 or PSS 2
(2) Section 21AA(3)(a)(i)—delete "an old scheme or new scheme member, or a
former old scheme or new scheme" and substitute:
a PSS 1 or PSS 2 member, or a former PSS 1 or
PSS 2
(3) Section 21AA(3)(a)(ii)—delete
"old scheme or new scheme" and substitute:
PSS 1 or PSS 2
(4) Section
21AA(8), definition of deferred superannuation
contributions surcharge—delete the definition
(5) Section
21AA—redesignate the section as amended by this section as section 23AA
and relocate the section so that it follows section 23 of the Act (as
substituted by this Act)
24—Insertion of Part 4 Division 2A
After Part 4 Division 2 insert:
Division 2A—Superannuation
benefits for PSS 3 members
21AB—Application
of Division
This Division applies in relation to PSS 3 members.
21AC—Interpretation
In this Division—
Government-funded component in relation to a member (other than a
member who is a PSS 3 member by virtue of section 7E) means the amount standing
to the credit of the member's Government contribution account;
member-funded component in relation to a member (other than a
member who is a PSS 3 member by virtue of section 7E) means the amount standing
to the credit of the member's contribution account;
rollover component in relation to a member means the amount
standing to the credit of the member's rollover account.
21AD—Retirement
at or above age 55
(1) A PSS 3 member who—
(a) has retired (either voluntarily or involuntarily); and
(b) has reached the age of 55 years,
is entitled to payment of the member-funded component and the
Government-funded component and to payment of the rollover component (if any)
to the extent that that payment can be made in accordance with the SIS Act.
(2) Subject
to subsection (3), a PSS 3 member who does not apply to the Board in
writing for the payment of an entitlement under subsection (1) within 3
months after retirement will be taken to have preserved the relevant components
and section 21AF will apply to and in relation to them.
(3) A
PSS 3 member who has retired and reached the age of 65 years must immediately
be paid any entitlement under subsection (1).
(4) However,
a rollover component, or part of a rollover component, that cannot be paid in
accordance with the SIS Act must be preserved and section 21AF will apply
to and in relation to it.
(5) This
section does not apply to or in relation to a case involving the death of a PSS
3 member (see section 21AH) and does not derogate from the ability of a
member to apply for a benefit under section 21AG (rather than taking a
benefit under this section).
21AE—Cessation
of membership before age 55
(1) Subject to this section, a PSS 3 member who
retires (either voluntarily or involuntarily) before reaching the age of 55
years may—
(a) elect—
(i) to take
immediately the member-funded component; or
(ii) to preserve the member-funded component; or
(iii) to carry the member-funded component over to another
superannuation fund or scheme that is a complying superannuation fund (as a
preserved employee component); and
(b) elect—
(i) to preserve the
Government-funded component; or
(ii) to carry the Government-funded component over to another
superannuation fund or scheme that is a complying superannuation fund (as a
preserved employer component); and
(c) elect—
(i) to take
immediately the rollover component (if any) to the extent that payment of that
component can be made in accordance with the SIS Act; or
(ii) to preserve the rollover component; or
(iii) to carry the rollover component over to another
superannuation fund or scheme that is a complying superannuation fund.
(2) A
PSS 3 member who does not inform the Board in writing of his or her election
under subsection (1) within 3 months after ceasing to be a member will be
taken to have elected to preserve the relevant components and section 21AF
will apply to and in relation to them.
(3) If
the Board is of the opinion that the limitation period referred to in subsection (2)
would unfairly prejudice a member, the Board may extend the period that applies
to the member.
(4) A
PSS 3 member who has elected, or has been taken to have elected, to preserve
his or her member-funded component, Government-funded component or rollover
component and to whom the component has not been paid under section 21AF,
may elect to withdraw the election and to elect to carry the component over to
a complying superannuation fund.
(5) If
2 or 3 components have been preserved, a member cannot make an election under
subsection (4) to carry 1 or 2 but not both or all of them over.
(6) If a member elects to carry over a
component to a complying superannuation fund, the following provisions apply:
(a) the
member must satisfy the Board by such evidence as it may require that he or she
has been admitted to membership of the fund; and
(b) on being so satisfied the Board will authorised payment of
the component on behalf of the member to the fund.
(7) If
a PSS 3 member has ceased to be a member of the Parliament of the State and has
elected to preserve the member-funded, Government-funded or rollover component
but has subsequently again become a member of the Parliament, the Board may
maintain separate member's contribution accounts or Government contribution
accounts or rollover accounts or a combined member's contribution account or
Government contribution account or rollover account in the name of the member.
(8) This section does not apply to or in relation
to a case involving—
(a) a cessation of membership on the ground of invalidity (in
circumstances entitling the member to a benefit under section 21AG); or
(b) the death of a PSS 3 member (see section 21AH).
21AF—Preservation
of components
(1) If a superannuation component has been
preserved under section 21AD(2) or (4) or 21AE,
then the following provisions will apply (subject to subsection (2)):
(a) the
Board must in relation to a component preserved under section 21AE, not less
than 6 months before the relevant member's 55th birthday (unless that period
has already been reached), notify the relevant member in writing of his or her
entitlement to require the Board to make a payment under paragraph (b);
(b) the
relevant member may at any time after reaching 55 years of age require the
Board to authorise payment of the component and, if no such requirement has
been made on or before the date on which the member reaches 65 years of age,
the Board will authorise payment of the component to the member;
(c) if
the relevant member has become incapacitated and satisfies the Board that his
or her incapacity for all kinds of work is 60 per cent or more of total
incapacity and is likely to be permanent, the Board will authorise payment of
the component to the member;
(d) if the relevant member dies, the component will be paid to
the spouse of the deceased member or, if he or she left no surviving spouse, to
the member's estate,
(and a payment under any of the above
paragraphs excludes further rights so that a claim cannot be subsequently made
under some other paragraph).
(2) Subsection (1)
applies to a rollover component subject to restrictions imposed by the SIS Act.
21AG—Cessation
of membership on ground of invalidity
(1) If—
(a) a PSS 3 member ceases to be a member of the Parliament of
the State before reaching the age of 70 years; and
(b) a
judge is satisfied that the cessation is due to ill health that prevents the
member from being able to carry out the duties of office to a reasonable degree,
then the member is entitled to benefits made up of the
following components:
(c) the member-funded component; and
(d) the Government-funded component; and
(e) the rollover component (if any); and
(f) subject to this section, the invalidity insurance benefit
(if any) for PSS 3 members (see section 21AI).
(2) The
invalidity insurance benefits are not payable unless the Board is satisfied
that the member's incapacity for all kinds of work is 60 per cent or more of
total incapacity and is likely to be permanent.
(3) The invalidity insurance benefit is not
payable to a member within 1 year after becoming a PSS 3 member unless the
Board is satisfied (by the production of such evidence as the Board thinks fit)
that—
(a) the invalidity is attributable to a medical condition
arising after the member became a PSS 3 member and is not attributable (or
is not attributable in any material degree) to a medical condition existing
before the member became a PSS 3 member; or
(b) the
invalidity is attributable to a medical condition existing before the member
became a PSS 3 member in a situation where, at the time of becoming a
PSS 3 member, there was no reason for the member to believe that such a
condition existed; or
(c) the invalidity was caused by accidental injury.
(4) A
member who claims to be entitled to benefits under this section (or a person
acting on his or her behalf) must make the claim (being a claim for benefits
that have not otherwise been paid) to the Board within 3 months after ceasing
to be a member of the Parliament of the State.
21AH—Death
of PSS 3 member
(1) If a PSS 3 member ceases to be a member of
the Parliament of the State by reason of his or her death—
(a) if the deceased member is survived by a spouse—a payment
will be made to the spouse;
(b) if the deceased member is not survived by a spouse—a payment
will be made to the member's estate.
(2) A payment under subsection (1)(a) or (b) is to be made up of the following components:
(a) the member-funded component; and
(b) the Government-funded component; and
(c) the rollover component (if any); and
(d) subject to this section, the death insurance benefit (if
any).
(3) A
surviving spouse will not be entitled to a benefit under this section if
section 23J applies to the spouse.
(4) The death insurance benefit is not payable
in respect of a member who dies within 1 year after becoming a PSS 3 member
unless the Board is satisfied (by the production of such evidence as the Board
thinks fit) that—
(a) the death is attributable to a medical condition arising
after the member became a PSS 3 member and is not attributable (or is not
attributable in any material degree) to a medical condition existing before the
member became a PSS 3 member; or
(b) the
death is attributable to a medical condition existing before the member became
a PSS 3 member in a situation where, at the time of becoming a PSS 3
member, there was no reason for the member to believe that such a condition
existed; or
(c) death was caused by accidental injury.
(5) If
a PSS 3 member who has died is not survived by a spouse and probate or letters
of administration in relation to the deceased's estate have not been granted to
any person, the Board may use the amount payable under this section, or such
part of it as is required, to pay the funeral expenses of the deceased member
or to reimburse a person who has paid those expenses.
(6) If—
(a) a PSS 3 member ceases to be a member of the Parliament of
the State for any reason other than his or her death; and
(b) the member dies within 1 month after that cessation,
the member's spouse or estate is entitled to the death
insurance benefit (if any) that the spouse or estate would have been entitled
to if the member had ceased to be a member of Parliament by virtue of the member's
death unless—
(c) an invalidity insurance benefit has been paid; or
(d) the member has taken his or her own life.
21AI—Determination
of invalidity/death insurance
(1) For the purposes of this Division, a PSS 3
member is entitled to the following level of invalidity/death insurance by
virtue of his or her membership of PSS 3:
B
is the amount of benefit.
F is—
(a) in the case of a PSS 3 member who has not reached the age of
66 years at the relevant time—5;
(b) in the case of a PSS 3 member who is 66 years of age at the
relevant time—4;
(c) in the case of a PSS 3 member who is 67 years of age at the
relevant time—3;
(d) in the case of a PSS 3 member who is 68 years of age at the
relevant time—2;
(e) in the case of a PSS 3 member who is 69 years of age at the
relevant time—1;
(f) in the case of a PSS 3 member who has reached the age of 70
years at the relevant time—0.
BS
is the member's basic salary at the relevant time (expressed as an annual
salary).
AS is—
(a) in
the case of a member who has held a prescribed office at any time—an amount
arrived at by taking the rate of remuneration for the highest prescribed office
that the member held, being the rate applying to the holder or holders of such
an office immediately before the relevant time, and—
(i) in the case of a member who held prescribed
offices for a total period exceeding 4 years, or who held any prescribed
office immediately before the relevant time—applying that rate over a period of
4 years;
(ii) in any other case—applying that rate over the period or
periods over which the member held any prescribed office before the relevant
time;
(b) in any other case—0.
GCA
is the amount standing to the credit of the member's Government contribution
account at the relevant time, less any amount credited to that account due to
superannuation salary sacrifice payments under section 14C(3).
(2) For the purposes of subsection (1),
the relevant time is—
(a) in the case of invalidity insurance—the date on which the
relevant member ceases to be a member of the Parliament of the State;
(b) in the case of death insurance—the date on which the
relevant member dies or, if the relevant member died after leaving the
Parliament of the State (see section 21AH(6)), the date on which he or she
ceased to be a member of the Parliament of the State.
(3) If
an entitlement under this section would be a negative number (or zero), there
is no entitlement.
25—Substitution of heading to Part 4 Division 3
Heading to Part 4 Division 3—delete the
heading to Division 3 and substitute:
Division 3—Related Matters
26—Amendment of section 22—Other benefits under PSS 1
Section 22—delete "an old
scheme" and substitute:
a PSS 1
27—Amendment of section 22A—Other benefits under PSS 2
(1) Section 22A(1)—delete
"new scheme" and substitute:
PSS 2
(2) Section 22A(1)(a)—delete
paragraph (a) and substitute:
(a) a lump sum made up of an employee component and a
Government-funded component;
(3) Section 22A(2)(b)—delete
"employer" and substitute:
Government-funded
(4) Section 22A(2)(b)(ii)—delete
"employer" and substitute:
Government-funded
(5) Section 22A(4)(b)—delete
"employer" and substitute:
Government-funded
(6) Section 22A(4a)—delete
"employer" and substitute:
Government-funded
(7) Section 22A(4c)—delete
"employer" and substitute:
Government-funded
(8) Section 22A(5a)—delete
"employer" and substitute:
Government-funded
Section 23—delete the section and
substitute:
23—Pension
paid for limited period
(1) If—
(a) a PSS 1 or PSS 2 member ceases to be a member of the
Parliament of the State; and
(b) either immediately or after a period of preservation of the
former member's benefits—
(i) a pension is paid
under this Act to the former member; or
(ii) a pension is paid under this Act to the former member and
then, on his or her death, a pension is paid under this Act to his or her
spouse; or
(iii) the cessation of membership is by reason of his or her death
and a pension is paid under this Act to his or her spouse; or
(iv) the
former member dies after a period of preservation before receiving a pension
and a pension is paid under this Act to his or her spouse; and
(c) the
pension, or the last of the pensions to be payable, ceases before the
expiration of the period of 4.5 years after the pension, or the first of the
pensions, commenced and no actual or prospective right to a pension exists and
no other benefit is payable under this Act,
an amount determined in accordance with subsection (2)
is payable to the former member's estate.
(2) The amount referred to in
subsection (1) is the amount of the pension or pensions that would have
been payable to, or in relation to, the former member during the period
referred to in subsection (1)(c) if the pension or pensions had not ceased,
reduced by—
(a) the amount of the lump sum, or the aggregate of the lump
sums, (if any) paid on commutation of the pension or pensions; and
(b) the amount of the pension or pensions actually paid to, or
in relation to, the former member.
(3) When computing the amount of the pension or
pensions that would have been payable during the period referred to in
subsection (1)(c)—
(a) it will be assumed that the pension or pensions were not
reduced by commutation; and
(b) the provisions of this Act for indexation of pensions will
be ignored.
(4) For
the purposes of this section, if the cessation under subsection (1)(a) relates to a PSS 1 or PSS 2 member who had
been a member of the Parliament, then ceased to be a member and then, after a
period of time, returned as a member and has again ceased to be a member, then
any previous cessation of service, and any previous benefits paid on account of
that cessation, will be disregarded.
29—Insertion of sections 23AAB, 23AAC and 23AAD
After section 23 (as substituted by
section 27) and section 23AA (as relocated by section 22) insert:
23AAB—Commutation
to pay deferred superannuation contributions surcharge—lump sum entitlements
(1) In this section—
prescribed member means—
(a) a former PSS 2 member who has an amount preserved under
this Part by virtue of his or her membership of PSS 2; or
(b) a PSS 3 member, or a former PSS 3 member.
(2) A prescribed member who is liable for a
deferred superannuation contributions surcharge as a result of a benefit
becoming payable to the prescribed member may apply to the Board, in accordance
with this section—
(a) to receive part of the benefit in the form of a commutable
pension; and
(b) to fully commute the pension.
(3) A prescribed member who has become entitled
to a benefit, or will shortly become entitled to a benefit, may—
(a) estimate the amount of the surcharge the prescribed member
will become liable to pay (the estimated surcharge amount); and
(b) request the Board, in the approved form, to—
(i) withhold from the
prescribed member's benefit an amount equal to the estimated surcharge amount
(the withheld amount); and
(ii) pay
the balance of the benefit to the prescribed member (being, in the case of a
benefit to which the prescribed member is yet to become entitled, a payment
after the entitlement arises),
and the Board must, subject to subsection (5), comply
with the prescribed member's request.
(4) If a prescribed member has made a request
under subsection (3)(b), the prescribed member must, before the expiration
of 2 months following the issue of a surcharge notice in respect of the
prescribed member, advise the Board in the approved form that the notice has
been issued and the Board must, within 7 days of receiving that advice—
(a) convert into a pension—
(i) if the amount of the surcharge payable by
the prescribed member is less than the withheld amount—a portion of the
withheld amount equal to the amount payable; or
(ii) in any other case—the whole of the withheld amount; and
(b) immediately after converting the withheld amount, or a
portion of the withheld amount, into a pension under paragraph (a)—commute
the pension; and
(c) pay to the prescribed member—
(i) the lump sum
resulting from the commutation of the pension; and
(ii) the balance (if any) of the withheld amount.
(5) The Board may reject an application under
subsection (2) if—
(a) it is not satisfied that, if the application were accepted,
the resulting lump sum will be applied in payment of the surcharge; or
(b) the prescribed member fails to satisfy the Board that the
prescribed member has, or will have, a surcharge liability to the Commissioner
of Taxation.
(6) The factors to be applied in—
(a) the conversion of a withheld amount (or part of a withheld
amount) into a pension; and
(b) the commutation of a pension,
will be determined by the Treasurer on the recommendation of an
actuary.
23AAC—Commutation
to pay deferred superannuation contributions surcharge following death of
member
(1) In this section—
prescribed member has the same meaning as in
section 23AAB.
(2) If a prescribed member who is liable for a
deferred superannuation contributions surcharge dies—
(a) having made a request of the Board under section 23AAB
for part of his or her benefit to be withheld but before receiving a surcharge
notice; or
(b) having received a surcharge notice but before requesting
commutation of his or her pension under section 23AAB,
the prescribed member's spouse or, if the prescribed member is not
survived by a spouse, the prescribed member's legal representative, may, before
the expiration of the period of 2 months immediately following the prescribed
member's death or the issue of the surcharge notice (whichever is the later),
apply to the Board—
(c) to receive the amount withheld by the Board on behalf of the
deceased prescribed member under section 23AAB in the form of a commutable
pension; and
(d) to fully commute the pension.
(3) The Board must, on receipt of an
application under subsection (2)—
(a) convert into a pension—
(i) if the amount of the surcharge payable by
the spouse or estate is less than the withheld amount—a portion of the withheld
amount equal to the amount payable; or
(ii) in any other case—the whole of the withheld amount; and
(b) immediately after converting the withheld amount, or a
portion of the withheld amount, into a pension under paragraph (a)—commute
the pension; and
(c) pay to the spouse or estate—
(i) the lump sum
resulting from the commutation of the pension; and
(ii) the balance (if any) of the withheld amount.
(4) If a prescribed member dies without having
made a request under section 23AAB, the prescribed member's spouse or, if
the prescribed member is not survived by a spouse, the prescribed member's
legal representative, may—
(a) estimate the amount of the surcharge the spouse or estate
will become liable to pay (the estimated surcharge amount); and
(b) request the Board, in the approved form, to—
(i) withhold from the spouse's benefit or the
benefit payable to the estate an amount equal to the estimated surcharge amount
(the withheld amount); and
(ii) pay the balance of the benefit to the spouse or estate,
and the Board must, subject to subsection (7), comply with
the request.
(5) An
application under subsection (4) must be made in writing to the Board
before payment of the benefit to the spouse or legal representative.
(6) The spouse or legal representative must,
before the expiration of 2 months following the issue of a surcharge notice in
respect of the member, advise the Board in the approved form that the notice
has been issued and the Board must, within 7 days of receiving that advice—
(a) convert into a pension—
(i) if the amount of the surcharge payable by
the spouse or estate is less than the withheld amount—a portion of the withheld
amount equal to the amount payable; or
(ii) in any other case—the whole of the withheld amount; and
(b) immediately after converting the withheld amount, or a
portion of the withheld amount, into a pension under paragraph (a)—commute
the pension; and
(c) pay to the spouse or estate—
(i) the lump sum
resulting from the commutation of the pension; and
(ii) the balance (if any) of the withheld amount.
(7) The
Board may reject an application under subsection (2) or (4) if it is not
satisfied that, if the application were accepted, the resulting lump sum will
be applied in payment of the surcharge or be used to reimburse the deceased
prescribed member's estate, or the spouse or other person who has paid the
surcharge on behalf of the estate.
(8) The factors to be applied in—
(a) the conversion of a withheld amount (or part of a withheld
amount) into a pension; and
(b) the commutation of a pension,
will be determined by the Treasurer on the recommendation of an
actuary.
(9) In this section—
legal representative, in relation to a deceased prescribed
member, means a person—
(a) holding
office as executor of the will of the deceased prescribed member where probate
of the will has been granted or resealed in South Australia or any other State
or a Territory; or
(b) holding office in South Australia or any other State or a
Territory as administrator of the estate of the deceased prescribed member.
23AAD—Withheld
amount
An amount withheld under
section 23AAB or 23AAC—
(a) must be retained in the PSS 3—Government Contributions
Division of the Fund; and
(b) will be credited with interest at the rate of return
determined by the Board under section 14D(3); and
(c) may be paid to the prescribed member (or the prescribed
member's spouse or legal representative)—
(i) in accordance with
section 23AAB or 23AAC; or
(ii) at the direction of the Board if the Board—
(A) has
not, within 2 years of withholding the amount, received advice that a surcharge
notice has been issued in respect of the prescribed member; or
(B) considers, at any time, there is other good reason for doing
so.
30—Amendment of section 23B—Interpretation
Section 23B, definition of SIS Act—delete the
definition
31—Amendment of section 23C—Accrued benefit multiple
Section 23C(1)—after
"superannuation interest of a" insert:
PSS 1 or PSS 2
32—Amendment of section 23D—Value of superannuation interest
Section 23D(1)—after
"value of any superannuation interest" insert:
of a PSS 1 or PSS 2 member
33—Amendment of section 23E—Non-member spouse's entitlement
(1) Section 23E(2)—after
"on the Board" insert:
and the member spouse is a PSS 1 or PSS 2 member
(2) Section 23E(3)—after
"non-member spouse's interest" insert:
with respect to PSS 1 or PSS 2
(3) Section 23E—after subsection (3) insert:
(4) The
value of the non-member spouse's interest with respect to PSS 3 will be
determined by reference to the provisions of the instrument but in any event
may not exceed the value of the member spouse's interest.
34—Substitution of section 23J
Section 23J—delete the section and
substitute:
23J—Benefit
not payable to spouse on death of member if split has occurred
If a member or former member dies and is
survived by a spouse who—
(a) has received, is receiving or is entitled to receive a
benefit under a splitting instrument; or
(b) is,
under the terms of a splitting instrument, not entitled to any amount arising
out of the member's superannuation interest under this Act (or any proportion
of such an interest),
the spouse is not entitled to a benefit under this Act in
respect of the deceased member (except in accordance with the instrument) and
will not be considered to be a spouse of the deceased person for the purposes
of section 36A (if relevant).
35—Amendment of section 24—Pension for spouse of deceased PSS 1 member pensioner
Section 24(1)—delete "old
scheme" and substitute:
PSS 1
36—Amendment of section 25—Pension for spouse of deceased PSS 1 member
Section 25(1)—delete "old
scheme" and substitute:
PSS 1
37—Amendment of section 25A—Pension for spouse of PSS 2 member pensioner
Section 25A(1)—delete
"new scheme" and substitute:
PSS 2
38—Amendment of section 25B—Pension for spouse of deceased PSS 2 member
Section 25B(1)—delete
"new scheme" and substitute:
PSS 2
39—Amendment of section 25C—Interpretation
Section 25C(2)—delete subsection (2)
Before section 26A insert:
26AAB—Application
of Division
This Division applies in relation to members (or former members)
of PSS 1 or PSS 2.
41—Substitution of heading to Part 5A
Heading to Part 5A—delete the heading and
substitute:
Part 5A—Benefit payable to member's estate
(PSS 1 or PSS 2)
42—Amendment of section 31A—Benefits payable to member's estate (PSS 1 or PSS 2)
Section 31A(1)—delete
"member dies" and substitute:
PSS 1 or PSS 2 member dies
Part 6A—delete the Part
Section 36—delete the section
45—Amendment of section 36B—Power to obtain information
(1) Section 36B(1)—delete
"new scheme" and substitute:
PSS 2
(2) Section 36B(2)—delete
"new scheme" and substitute:
PSS 2
(3) Section 36B(3)—delete
"new scheme" and substitute:
PSS 2
46—Amendment of section 37—Payment of benefits
Section 37—after
subsection (2) insert:
(3) If
a payment made under this Act includes a member-funded component or a rollover
component, an amount equivalent to the amount standing to the credit of the
member's contribution account or rollover account is to be charged against the
appropriate account.
(4) If
a payment made under this Act includes a Government-funded component or relates
to a superannuation salary sacrifice, the amount of that component is to be
charged against the relevant member's Government contribution account.
(5) The Board may close the account of a member
or former member if—
(a) he
or she has retired (either voluntarily or involuntarily) and is in receipt of a
pension under this Act, or no further benefit or amount is payable to, or in
relation to, the member or former member under this Act; or
(b) he or she has died (and no further benefit or amount is
payable in relation to the member or former member under this Act).
After section 40 insert:
Schedule 1—Transitional
provision
1—Transitional
provision
An amendment made by a provision of the Statutes Amendment
(Equal Superannuation Entitlements for Same Sex Couples) Act 2003 to a
provision of this Act that provides for, or relates to, the payment of a
pension, lump sum or other benefit to a person on the death of a member, or
former member, applies only if the death occurs on or after 3 July 2003.
Part 3—Amendment of Parliamentary Remuneration
Act 1990
After section 4A insert:
4AA—Salary
sacrifice for superannuation purposes
(1) In this section—
PSS 3 means the scheme of superannuation known as PSS 3 under the Parliamentary
Superannuation Act 1974;
PSS 3 member means a member of PSS 3 under the Parliamentary
Superannuation Act 1974, other than a person who is only a member of
PSS 3 in order to establish a rollover account under section 7E of
that Act;
salary means basic salary and additional salary
(if any).
(2) A
PSS 3 member may elect to forego a percentage or amount of salary that
would otherwise be paid to the member and instead have contributions made to
PSS 3 for superannuation purposes.
(3) The election must—
(a) be made in writing; and
(b) be signed by the member; and
(c) be furnished to the Treasurer.
(4) The election must—
(a) subject to subsection (5), specify the percentage or
amount of salary that is foregone; and
(b) specify the date from which the election is to have effect,
being a date—
(i) that is at least 14 days after the date on
which the notice is furnished to the Treasurer; and
(ii) that coincides with a date on which salary is actually due
to be paid to the member; and
(c) contain such other information (if any) as is required by
the Treasurer.
(5) The
amount that may be sacrificed under this section (whether by way of a
percentage of salary or an amount of salary), when aggregated with any amount
by way of salary sacrifice under section 4A that applies in relation to the
member, cannot exceed 50 per cent of the member's salary.
(6) If
an amount of salary is specified, it must be an amount of salary per pay
period.
(7) If a member has made an election under this
section then, while the election has effect—
(a) the salary to which the member would otherwise be entitled
under this Act is reduced in accordance with the terms of the election; and
(b) the Treasurer must make contributions of amounts
representing the amount of reduction for the benefit of the member in
accordance with section 14C(3) of the Parliamentary Superannuation
Act 1974.
(8) A
member who has made an election under this section may vary the election from
time to time in accordance with the regulations.
(9) An election under this section will cease
to have effect if—
(a) the member dies; or
(b) the member revokes the election by notice in writing
furnished to the Treasurer in accordance with the regulations.
(10) For
the purposes of determining a percentage of salary under this section, other
than under subsection (5), any amount that may be deducted from salary
under section 4A will be disregarded.
(11) A member who has made an election under this
section must—
(a) pay to the Treasurer an administrative charge of an amount
fixed by the Treasurer at intervals, and in a manner, specified by the
Treasurer; and
(b) if required by the Treasurer, enter into an arrangement
specified by the Treasurer under which the member indemnifies the Crown with
respect to—
(i) any income tax or
other taxation liability whatsoever (including any administrative penalty, fine
or other amount) that may become payable pursuant to any relevant taxation
legislation or ruling; and
(ii) any other liability that may arise on account of the
member's decision to sacrifice salary under this section.
Schedule 1—Transitional provisions
(1) In this clause—
principal Act means the Parliamentary Superannuation Act 1974.
(2) A
person who was, immediately before the commencement of this clause, an old
scheme member pensioner under the principal Act will continue as a PSS 1 member
pensioner.
(3) A
person who was, immediately before the commencement of this clause, a new
scheme member pensioner under the principal Act will continue as a PSS 2 member
pensioner.
(4) A
reference in the principal Act (as amended by this Act) to a former PSS 1
member will be taken to include a reference to a former old scheme member under
the principal Act immediately before the commencement of this clause.
(5) A
reference in the principal Act (as amended by this Act) to a former PSS 2
member will be taken to include a reference to a former new scheme member under
the principal Act immediately before the commencement of this clause.
(6) A
reference in the principal Act (as amended by this Act) to a deceased PSS 1 or
PSS 2 member will be taken to include a reference to a deceased old scheme
member or a deceased new scheme member (as the case requires) under the
principal Act immediately before the commencement of this clause.
2—Other provisions
(1) The
Governor may, by regulation, make additional provisions of a saving or
transitional nature consequent on the enactment of this Act.
(2) A
provision of a regulation made under subclause (1) may, if the regulation
so provides, take effect from the commencement of this Act or from a later day.
(3) To the extent to which a provision takes
effect under subclause (2) from a day earlier than the day of the
regulation's publication in the Gazette, the provision does not operate to the
disadvantage of a person by—
(a) decreasing the person's rights; or
(b) imposing liabilities on the person.
(4) The Acts Interpretation Act 1915 will, except to the extent of any inconsistency with the provisions of this Schedule (or regulations made under this Schedule), apply to any amendment effected by this Act.