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Superannuation Legislation Amendment Bill 2019

                 PARLIAMENT OF VICTORIA

 Superannuation Legislation Amendment Bill 2019



                      TABLE OF PROVISIONS
Clause                                                            Page

Part 1--Preliminary                                                   1
  1      Purpose                                                     1
  2      Commencement                                                2
Part 2--Amendment of the Emergency Services Superannuation
Act 1986                                                             3
  3  Amendment of section 4--Application of Act                       3
  4  Amendment of section 20A--Contributions                          3
  5  New section 20AA inserted--Additional contributions              5
  6  Amendment of section 20B--Membership                             6
  7  Amendment of section 20C--Accrued benefits                       6
  8  Amendment of section 20E--Death of contributor or police
     recruit                                                         7
  9 New section 20MA inserted--Notional contribution rate during
     leave of absence                                                7
  10 New section 20T inserted--Transition to retirement pension       8
  11 Amendment of section 21A--ESSPLAN Scheme                         9
  12 Amendment of section 27A--Unpaid lump sum benefits               9
Part 3--Amendment of other Superannuation Acts                       10
  13 Amendment of section 74D--Payment of lump sum benefits          10
  14 Amendment of section 89A--Payment of lump sum benefits          10
  15 Amendment of section 50A--Payment of lump sum benefits          10
Part 4--Repeal of this Act                                           11
  16 Repeal of this Act                                             11
                               ═════════════
Endnotes                                                            12
  1      General information                                        12




591039B.I-4/6/2019                   i    BILL LA INTRODUCTION 4/6/2019

 


 

PARLIAMENT OF VICTORIA Introduced in the Assembly Superannuation Legislation Amendment Bill 2019 A Bill for an Act to amend the Emergency Services Superannuation Act 1986 and certain other Superannuation Acts and for other purposes. The Parliament of Victoria enacts: Part 1--Preliminary 1 Purpose The purpose of this Act is to amend the Emergency Services Superannuation Act 1986, 5 the State Employees Retirement Benefits Act 1979, the State Superannuation Act 1988 and the Transport Superannuation Act 1988 to improve the operation of the superannuation schemes under those Acts. 591039B.I-4/6/2019 1 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 1--Preliminary 2 Commencement This Act comes into operation on the day after the day on which it receives the Royal Assent. 591039B.I-4/6/2019 2 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 Part 2--Amendment of the Emergency Services Superannuation Act 1986 3 Amendment of section 4--Application of Act In section 4(1E)(d) of the Emergency Services 5 Superannuation Act 1986, for "and the Board agrees that the reduction is not to be taken into account" substitute "then, unless the contributor agrees in writing that the reduced salary applies". 4 Amendment of section 20A--Contributions 10 (1) After section 20A(2) of the Emergency Services Superannuation Act 1986 insert-- "(2AA) Subject to subsection (7A), from 1 July 2019 a contributor may also elect to make contributions at a rate of 9% or 10% of 15 salary.". (2) In section 20A(2A) and (2B) of the Emergency Services Superannuation Act 1986, after "subsection (2)" insert "or (2AA)". (3) After section 20A(7) of the Emergency Services 20 Superannuation Act 1986 insert-- "(7A) A contributor is permitted to contribute at a rate of 9% or 10% of salary only if at the time of the first election under this section or at any subsequent date on which 25 contributions may be varied, the contributor is an operational staff member whose average contribution rate is less than 7% of their salary over the whole of their period of membership as at the time of the election.". 30 (4) In section 20A(8) of the Emergency Services Superannuation Act 1986, after "section 20C" insert "or if the contributor has elected to take a transition to retirement pension under section 20T, the reduced maximum under section 20T(4)". 591039B.I-4/6/2019 3 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 (5) After section 20A(12) of the Emergency Services Superannuation Act 1986 insert-- "(13) Subject to subsection (16), for the purposes of making contributions, the 5 salary upon which the contributor is to make contributions is to be fixed as at 1 July each year. (14) The employer must within the period of 2 months after 1 July each year notify the 10 Board of any change in the salary of the contributor for the purpose of making contributions. (15) The salary as notified in accordance with subsection (14), or if there is no notification 15 in accordance with subsection (14), the last salary notified, is the salary for the purposes of making contributions for the period commencing on 1 September each year and ending on 31 August in the following year. 20 (16) If the contribution that a member is liable to make changes because of-- (a) an election by the member under this section, the contributions are to be adjusted from the date on which the 25 Board accepts the election; (b) a change in the time fraction basis of their employment, the contributions are to be adjusted from the date on which the change to the time fraction basis of 30 their employment took effect.". 591039B.I-4/6/2019 4 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 5 New section 20AA inserted--Additional contributions After section 20A of the Emergency Services Superannuation Act 1986 insert-- 5 "20AA Additional contributions (1) If the accrued benefit of a contributor has reached-- (a) the maximum specified in section 20C(2); or 10 (b) if the contributor has elected to take a transition to retirement pension under section 20T, the multiple of the salary of the contributor that applies under 15 section 20T(4)-- the employer of the contributor must pay additional contributions in respect of the contributor based on the contributor's actual current salary in accordance with 20 the Table in subsection (2). (2) The Table referred to in subsection (1) is-- Year Rate as a percentage of salary 2019-2020 3 2020-2021 3 2021-2022 6 2022-2023 6 2023-2024 8 2024-2025 9 2025-2026 11 2026-2027 12 ". 591039B.I-4/6/2019 5 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 6 Amendment of section 20B--Membership In section 20B(4)(d) of the Emergency Services Superannuation Act 1986, for "or 20G" substitute ", 20G or 20T". 5 7 Amendment of section 20C--Accrued benefits (1) In section 20C(2AB) of the Emergency Services Superannuation Act 1986, for "the Table in subsection (2AC)" substitute "Table A in subsection (2AC) and, if section 20A(7A) applies, 10 Table B in subsection (2ACA)". (2) In section 20C(2AC) of the Emergency Services Superannuation Act 1986, for "The Table" substitute "Table A". (3) After section 20C(2AC) of the Emergency 15 Services Superannuation Act 1986 insert-- "(2ACA) Table B referred to in subsection (2AB) is-- Contribution Annual accrual Annual accrual rate by rate for each rate for each contributor as year of year of percentage of membership membership salary of the after 1 July after 1 July contributor 2019 if benefits 2019 if benefits are taxed are untaxed 9 32 36 10 35.5 40 ". (4) In section 20C(2AE)(a)(i) of the Emergency Services Superannuation Act 1986, after "contributor" insert ", or if the contributor's 20 maximum untaxed benefit multiple of 8.4 has been reduced under section 20T(4), the amount that the Board determines for the purposes of this section, on the advice of the actuary appointed by the Board". 591039B.I-4/6/2019 6 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 (5) In section 20C(2AE)(b) of the Emergency Services Superannuation Act 1986, after "contributor" insert ", or if the contributor has elected to take a transition to retirement pension 5 under section 20T, the multiple of the salary of the contributor that applies under section 20T(4)". 8 Amendment of section 20E--Death of contributor or police recruit (1) In section 20E(4)(b) of the Emergency Services 10 Superannuation Act 1986, after "subsection (1)" insert ", or if the contributor's maximum multiple of 8.4 is reduced under section 20T(4), the difference between the reduced maximum multiple under section 20T(4) times the salary 15 and the lump sum under subsection (1)". (2) In section 20E(6) of the Emergency Services Superannuation Act 1986, after "dependants" insert "or, if there are none, to the nominees". 9 New section 20MA inserted--Notional contribution 20 rate during leave of absence After section 20M of the Emergency Services Superannuation Act 1986 insert-- "20MA Notional contribution rate during leave of absence 25 (1) A contributor who is on leave in accordance with section 20B(3)(b) or (ba), may apply to the Board in a form approved by the Board to choose a notional contribution rate for the purposes of section 20C for the period of the 30 leave of absence. (2) The Board may determine whether the amount of the contributions unpaid during the period of leave and interest on that amount is to be recovered-- 591039B.I-4/6/2019 7 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 (a) by the contributor making higher member contributions at a rate and for a period determined by the Board; or (b) by the Board reducing the accrued 5 benefit of the contributor by an amount determined by an actuary appointed by the Board.". 10 New section 20T inserted--Transition to retirement pension 10 After section 20S of the Emergency Services Superannuation Act 1986 insert-- "20T Transition to retirement pension (1) A contributor who has attained preservation age may apply to the Board in a form 15 approved by the Board to convert part of their accrued benefit into a transition to retirement pension. (2) The contributor must elect in the application under subsection (1) to convert a part of their 20 accrued benefit into a transition to retirement pension which is equal to a percentage that is not less than 20% and not more than 50% of their accrued benefit. (3) If the Board approves the application under 25 subsection (1), the Board must-- (a) establish a transition to retirement pension account in the ESSPLAN Scheme for the contributor; and (b) reduce the contributor's accrued 30 benefit multiple in accordance with a methodology approved by the Minister, on the advice of an actuary appointed by the Board. 591039B.I-4/6/2019 8 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 2--Amendment of the Emergency Services Superannuation Act 1986 (4) The Board must reduce the maximum of 8.40 times the salary of the contributor that would otherwise apply in respect of the accrued benefit of the contributor under 5 section 20C(2) by the same reduction as the accrued benefit multiple is reduced under subsection (3)(b). (5) In this section, preservation age has the same meaning as it has in regulation 6.01(2) 10 of the Superannuation Industry (Supervision) Regulations 1994 of the Commonwealth.". 11 Amendment of section 21A--ESSPLAN Scheme After section 21A(2)(ac) of the Emergency Services Superannuation Act 1986 insert-- 15 "(ad) contributions made by an employer in respect of a contributor in accordance with section 20AA;". 12 Amendment of section 27A--Unpaid lump sum benefits 20 In section 27A of the Emergency Services Superannuation Act 1986-- (a) for "within 14 days of the date of termination of service of a contributor" substitute "on the date on which a 25 contributor becomes entitled to the lump sum benefit"; (b) for "of termination of service" (where secondly occurring) substitute "on which the contributor became entitled 30 to the lump sum benefit". 591039B.I-4/6/2019 9 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 3--Amendment of other Superannuation Acts Part 3--Amendment of other Superannuation Acts 13 Amendment of section 74D--Payment of lump sum benefits 5 In section 74D of the State Employees Retirement Benefits Act 1979, for "within 14 days of the person becoming entitled" substitute "on the date on which the person becomes entitled to the lump 10 sum benefit". 14 Amendment of section 89A--Payment of lump sum benefits In section 89A of the State Superannuation Act 1988, for "within 14 days of the person 15 becoming entitled" substitute "on the date on which the person becomes entitled to the lump sum benefit". 15 Amendment of section 50A--Payment of lump sum benefits 20 In section 50A of the Transport Superannuation Act 1988, for "within 14 days of the person becoming entitled" substitute "on the date on which the person becomes entitled to the lump sum benefit". 591039B.I-4/6/2019 10 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Part 4--Repeal of this Act Part 4--Repeal of this Act 16 Repeal of this Act This Act is repealed on the first anniversary of the day on which it receives the Royal Assent. 5 Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═════════════ 591039B.I-4/6/2019 11 BILL LA INTRODUCTION 4/6/2019

 


 

Superannuation Legislation Amendment Bill 2019 Endnotes Endnotes 1 General information See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. By Authority. Government Printer for the State of Victoria. 591039B.I-4/6/2019 12 BILL LA INTRODUCTION 4/6/2019

 


 

 


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