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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Superannuation Legislation Further
Amendment Bill 1999
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendments relating to closure of Public Sector
Executives Superannuation Scheme 2
4 Miscellaneous amendments 2
5 Repeal of Public Sector Executives Superannuation Act
1989 No 106 2
6 Explanatory notes 2
Schedules
1 Amendments relating to closure of Public Sector
Executives Superannuation Scheme 3
2 Miscellaneous amendments 22
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY, has
finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of NEW
SOUTH WALES.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 1999
New South Wales
Superannuation Legislation Further
Amendment Bill 1999
Act No , 1999
An Act to amend various public sector superannuation Acts with respect to the
closure of the Public Sector Executives Superannuation Scheme, salary and wages
of executive officers, actuarial investigation of funds, administration costs,
contributions during part-time leave without pay and resignation, withdrawal and
invalidity benefits; and for other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill as
finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 Superannuation Legislation Further Amendment Bill 1999
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Superannuation Legislation Further Amendment Act
1999.
2 Commencement
(1) This Act commences on the date of assent to this Act, except as
provided by this section.
(2) Section 5 and Schedule 1 (other than Schedule 1.4) commence on 1
March 2000.
(3) Schedule 2.1 [1], [2], [4], [5] and [6] and 2.6 [1]-[3] are taken to have
commenced on 1 July 1999.
(4) Schedule 2.2 and 2.3 [2] are taken to have commenced on 1 July 1990.
(5) Schedule 2.6 [13] and [14] commence, or are taken to have
commenced, on 30 November 1999.
3 Amendments relating to closure of Public Sector Executives
Superannuation Scheme
The Acts specified in Schedule 1 are amended as set out in Schedule 1.
4 Miscellaneous amendments
The Acts specified in Schedule 2 are amended as set out in Schedule 2.
5 Repeal of Public Sector Executives Superannuation Act 1989 No 106
The Public Sector Executives Superannuation Act 1989 is repealed.
6 Explanatory notes
The matter appearing under the heading "Explanatory note" in
Schedules 1 and 2 does not form part of this Act.
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Superannuation Scheme
Schedule 1 Amendments relating to closure of Public
Sector Executives Superannuation
Scheme
(Section 3)
1.1 First State Superannuation Act 1992 No 100
[1] Section 10A Membership on transfer from PSESS Fund
Omit the section.
[2] Part 5
Insert after Part 4:
Part 5 Transfer of Public Sector Executives
Superannuation Fund members to First State
Superannuation Fund
Division 1 Preliminary
21 Definitions
In this Part:
additional benefit means the additional benefit provided under
the former Act.
former Act means the Public Sector Executives
Superannuation Act 1989.
former Scheme means the superannuation scheme established
under the former Act.
insurance contract or arrangement means a contract or
arrangement entered into by FTC under sections 12 and 20 of
the Superannuation Administration Act 1996 with another
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Superannuation Scheme
person (the insurer) for the insurance by that person or the
arranging of insurance by that person (on an individual or a
group basis) of persons for the purpose of coverage for
additional benefits.
PSES Fund means the Public Sector Executives
Superannuation Fund established under the former Act.
transfer day means 1 March 2000.
transferred member means a member of the former Scheme
who is transferred to the Fund under this Part and includes a
person referred to in section 23 (2).
22 Effect of Part
This Part has effect despite any other provision of this Act or
the trust deed.
Division 2 Transfer to, and membership of, Fund
23 Transfer of members of former Scheme
(1) A person who is a member of the former Scheme immediately
before the transfer day is, on and from that day, transferred
from the former Scheme to the superannuation scheme
established under this Act and the trust deed.
(2) A person who, immediately before the transfer day, had
preserved a benefit in the PSES Fund is, on and from that day,
transferred from the former Scheme to the superannuation
scheme established under this Act and the trust deed.
24 Amalgamation of Funds
(1) On and from the transfer day, the PSES Fund is taken to have
been amalgamated with and to have become part of the Fund.
(2) The balance standing to the credit of each account or reserve
forming part of the PSES Fund is, on the transfer day, taken to
be transferred to the corresponding account or reserve in the
Fund.
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25 Transferred members' accounts
(1) FTC must, on the transfer day, establish in the Fund in
accordance with the trust deed an account in respect of each
person made a member by this Part.
(2) The trust deed must provide for each account to have a balance
at credit equal to the balance at credit immediately before the
transfer day in the account established in the PSES Fund in
respect of the person.
(3) Despite any other provision of this section, if a transferred
member was a member of the Fund immediately before the
transfer day, the trust deed must provide for the member's
account to be credited with an amount equal to the balance at
credit immediately before the transfer day in the account
established in the PSES Fund in respect of the person.
(4) An amount credited to an account on the transfer to the Fund
of a person under this Part is, for the purposes of this Act and
the trust deed, to be treated as if it were contributed or
preserved under this Act and the trust deed by or on behalf of
the person, or the person's employer, as the case requires.
26 Salary or wages on transfer
(1) The salary or wages of a transferred member who is a full
member for the purposes of this Act and the trust deed is,
despite any other provision of this Act, taken to be the salary or
wages of the transferred member for the purposes of the former
Scheme immediately before the transfer day until another
nomination is made under this Act.
(2) Subsection (1) does not apply to a transferred member who
was, immediately before the transfer day, a full member of the
Fund.
27 Matters to be dealt with by trust deed
Without limiting section 13, 14, 18 or 20, the trust deed and
rules under the trust deed may make provision for or with
respect to the following:
(a) the category of membership of transferred members,
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(b) the establishment of accounts in respect of transferred
members,
(c) the crediting of amounts to accounts of transferred
members,
(d) the investment of amounts held in accounts of
transferred members,
(e) the treatment of additional contributions made by
transferred members under the former Scheme during a
period ending immediately before the transfer day.
Division 3 Additional benefit cover
28 Application of Division to other persons
(1) A person who became a full member under section 10A, as in
force before the transfer day, has the same rights and
obligations under this Division as a transferred member.
(2) For the purposes of subsection (1), a reference in this Division:
(a) to a transferred member includes a reference to a person
referred to in that subsection, and
(b) to the transfer day includes a reference to the day on
which the person concerned became a member.
29 Additional benefit cover
(1) A former member who, immediately before the transfer day,
was covered for the additional benefit under the former Scheme
continues, on and from the transfer day, to be covered for the
same amount of additional benefit and is liable for payment of
the additional benefit premium.
(2) A transferred member who, immediately before the transfer
day, was not covered for the additional benefit under the former
Scheme is, while a member of the Fund, entitled to apply to
FTC to be covered, and to be covered (if otherwise eligible),
for the additional benefit.
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(3) A transferred member who, immediately before the transfer
day, had applied to be covered for the additional benefit but
whose application had not been determined is taken to have
applied under this Act and the trust deed to be covered for the
additional benefit.
30 Insurance contracts and arrangements
(1) Any insurance contract or arrangement in force immediately
before the transfer day, and applicable to a transferred member,
continues in force and applies to transferred members in the
same way as it applied to members of the former Scheme
immediately before the transfer day.
(2) Any such contract or arrangement may be varied or terminated
or renewed in the manner provided for by the contract or
arrangement or in any other manner permitted by law.
(3) However, the contract or arrangement may not be terminated
solely because of the closure of the former Scheme and the
transfer of members to the Fund.
31 Matters to be dealt with by trust deed
(1) Without limiting section 13, 14, 18 or 20, the trust deed and
rules under the trust deed may make provision for or with
respect to the following:
(a) coverage of transferred members for the basic death or
invalidity benefit or the additional death or disability
benefit,
(b) applications for coverage for additional benefits,
(c) variation and revocation of cover for additional benefits
(including cover continued by this Part),
(d) payment of additional benefits.
(2) The trust deed may make provision for any matter referred to
in subsection (1) by applying the provisions of the former Act
relating to additional benefits.
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Division 4 Miscellaneous
32 Recovery of money owing to PSES Fund
FTC may recover any money owed to the PSES Fund
immediately before the transfer day as if any such money were
owed to the Fund.
33 Disputes
Any dispute under the former Scheme is to be dealt with in
accordance with the procedures applicable to disputes arising
under this Act.
34 Rights, liabilities and other matters
(1) Nothing in the Superannuation Legislation Further Amendment
Act 1999 affects the following:
(a) any rights, liabilities or obligations of the PSES Fund, or
of FTC in respect of that Fund or the former Scheme, in
existence immediately before the transfer day,
(b) any rights, liabilities or obligations of a transferred
member arising under the former Act and in existence
immediately before the transfer day,
(c) any rights, liabilities or obligations of any person in
respect of the provision of coverage for the additional
benefit and in existence immediately before the transfer
day.
(2) A provision of the trust deed or a rule may not detrimentally
affect any right, liability or obligation referred to in subsection
(1) and is void to the extent to which it purports to.
35 Regulations
(1) The regulations may make provision for or with respect to the
rights, liabilities and obligations of transferred members.
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(2) A provision referred to in subsection (1) may not restrict or
remove any rights a transferred member has as a member under
this Act (other than this Part), but may confer additional rights,
having regard to the rights and obligations of the transferred
member under the former Scheme.
(3) A provision referred to in subsection (1) may, if the regulations
so provide, take effect from the transfer day or a later day.
(4) To the extent to which any such provision takes effect from a
date that is earlier than the date of its publication in the Gazette,
the provision does not operate so as:
(a) to affect, in a manner prejudicial to any person (other
than the State or an authority of the State), the rights of
that person existing before the date of its publication, or
(b) to impose liabilities on any person (other than the State
or an authority of the State) in respect of anything done
or omitted to be done before the date of its publication.
36 Transactions and other matters not liable for duty
Duty under the Duties Act 1997 is not payable in respect of any
transaction or other document or matter resulting from the
closure of the former Scheme and the operation of this Part.
[3] Schedule 1 Employers
Insert at the end of Part 1:
Police Integrity Commission
[4] Dictionary
Omit the definition of chief executive officer. Insert instead:
chief executive officer means:
(a) a chief executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an employer specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a chief executive officer.
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Superannuation Legislation Further Amendment Bill 1999
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Superannuation Scheme
[5] Dictionary
Insert after paragraph (b) of the definition of executive officer:
(b1) a police executive officer within the meaning of the
Police Service Act 1990, or
[6] Dictionary
Omit the definition of senior executive officer. Insert instead:
senior executive officer means:
(a) a senior executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an authority specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a senior executive officer.
1.2 Local Government and Other Authorities (Superannuation) Act
1927 No 35
[1] Section 3 Definitions
Omit the definitions of Chief executive officer, Public Sector Executives
Superannuation Scheme and Senior executive officer from section 3.
[2] Section 3A Salary
Omit "(other than a servant who is eligible to become or who is a member
of the Public Sector Executives Superannuation Scheme)" from section 3A
(1).
[3] Section 3B Salary of executive officers
Omit the section.
[4] Part 3F Provisions relating to certain senior executives
Omit the Part.
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1.3 Police Regulation (Superannuation) Act 1906 No 28
[1] Section 1 Name of Act, commencement and definitions
Omit "Public Sector Executives Superannuation Act 1989" wherever
occurring in paragraphs (c) and (d) of the definition of executive officer in
section 1 (2).
Insert instead "Public Sector Management Act 1988".
[2] Section 1 (2), definition of "First State Superannuation Fund"
Insert in alphabetical order:
First State Superannuation Fund means the First State
Superannuation Fund established under the First State
Superannuation Act 1992.
[3] Section 1 (2), definition of "Public Sector Executives Superannuation
Scheme"
Omit the definition.
[4] Section 1AA Salary of office: executive officers
Omit section 1AA (10) (c). Insert instead:
(c) in the case of any other executive officer, the monetary
remuneration payable to the officer.
[5] Section 5B Contributor who is executive officer
Omit "eligible to become a member of the Public Sector Executives
Superannuation Scheme" from section 5B (1).
Insert instead "an executive officer".
[6] Section 5B (3)
Omit "Public Sector Executives Superannuation Scheme".
Insert instead "First State Superannuation Fund".
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Superannuation Legislation Further Amendment Bill 1999
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Superannuation Scheme
[7] Section 5B (3)
Omit "Scheme" where secondly occurring. Insert instead "Fund".
[8] Section 5B (4)
Omit "eligible to become or being a member of the Public Sector
Executives Superannuation Scheme".
Insert instead "an executive officer".
[9] Section 5B (5) (e)
Omit "Public Sector Executives Superannuation Scheme".
Insert instead "First State Superannuation Fund".
[10] Section 5B (6) (c)
Omit "Public Sector Executives Superannuation Fund under the Public
Sector Executives Superannuation Act 1989".
Insert instead "First State Superannuation Fund".
[11] Section 5B (7) and (7A)
Omit "Public Sector Executives Superannuation Scheme" wherever
occurring.
Insert instead "First State Superannuation Fund".
[12] Section 8A Disengagement benefit for members aged between 50-55
Omit "eligible to become or who is a member of the Public Sector
Executives Superannuation Scheme" from section 8A (8).
Insert instead "an executive officer".
[13] Section 9B Preserved benefit
Omit section 9B (6AA) (a). Insert instead:
(a) was an executive officer, and
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1.4 Public Sector Executives Superannuation Act 1989 No 106
Schedule 5 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
1.5 Public Sector Management Act 1988 No 33
Section 95 Certain other Acts not to be affected
Omit "Public Sector Executives Superannuation Act 1989" from section 95
(1).
Insert instead "First State Superannuation Act 1992".
1.6 State Authorities Non-contributory Superannuation Act 1987
No 212
[1] Section 3 Definitions
Omit the definition of chief executive officer from section 3 (1).
Insert instead:
chief executive officer means:
(a) a chief executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an employer specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a chief executive officer.
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Superannuation Legislation Further Amendment Bill 1999
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Superannuation Scheme
[2] Section 3 (1), definition of "First State Superannuation Fund"
Insert in alphabetical order:
First State Superannuation Fund means the First State
Superannuation Fund established under the First State
Superannuation Act 1992.
[3] Section 3 (1), definitions of "Public Sector Executives Superannuation
Fund" and "Public Sector Executives Superannuation Scheme"
Omit the definitions.
[4] Section 3 (1), definition of "senior executive officer"
Omit the definition. Insert instead:
senior executive officer means:
(a) a senior executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an authority specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a senior executive officer.
[5] Section 4A Salary of executive officers
Omit section 4A (10) (c). Insert instead:
(c) in the case of any other executive officer, the monetary
remuneration payable to the officer.
[6] Section 24 Benefit to be preserved
Omit section 24 (2) (a) and (b). Insert instead:
(a) an executive officer who is an optional member of the
First State Superannuation Fund ceases to be a
contributor to any other superannuation scheme
established by or under an Act, or
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Superannuation Legislation Further Amendment Bill 1999
Amendments relating to closure of Public Sector Executives Schedule 1
Superannuation Scheme
(b) an executive officer who is not a member of any other
superannuation scheme established by or under an Act
becomes a member of the First State Superannuation
Fund, or
[7] Schedule 2 Excluded persons
Omit "eligible to become or who is a member of the Public Sector
Executives Superannuation Scheme" from paragraph (a).
Insert instead "an executive officer".
[8] Schedule 2, paragraph (d)
Omit "a member of the Public Sector Executives Superannuation Scheme".
Insert instead "an executive officer who is an optional member of the First
State Superannuation Fund".
1.7 State Authorities Superannuation Act 1987 No 211
[1] Section 3 Definitions
Omit the definition of chief executive officer from section 3 (1).
Insert instead:
chief executive officer means:
(a) a chief executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an employer specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a chief executive officer.
[2] Section 3 (1), definition of "First State Superannuation Fund"
Insert in alphabetical order:
First State Superannuation Fund means the First State
Superannuation Fund established under the First State
Superannuation Act 1992.
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Superannuation Legislation Further Amendment Bill 1999
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[3] Section 3 (1), definition of "Public Sector Executives Superannuation
Scheme"
Omit the definition.
[4] Section 3 (1), definition of "senior executive officer"
Omit the definition. Insert instead:
senior executive officer means:
(a) a senior executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an authority specified in Schedule 1,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a senior executive officer.
[5] Section 4A Salary of executive officers
Omit section 4A (10) (c). Insert instead:
(c) in the case of any other executive officer, the monetary
remuneration payable to the officer.
[6] Section 30A Contributor who is executive officer
Omit "eligible to become a member of the Public Sector Executives
Superannuation Scheme" from section 30A (1).
Insert instead "an executive officer".
[7] Section 30A (3)
Omit "Public Sector Executives Superannuation Scheme".
Insert instead "First State Superannuation Fund".
[8] Section 30A (3)
Omit "that Scheme". Insert instead "that Fund".
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[9] Section 30A (4)
Omit "eligible to become or being a member of the Public Sector Executives
Superannuation Scheme".
Insert instead "an executive officer".
[10] Section 30A (5) (e)
Omit "Public Sector Executives Superannuation Scheme".
Insert instead "First State Superannuation Fund".
[11] Section 30A (5) (e)
Omit "that scheme". Insert instead "that Fund".
[12] Section 30A (6) (c)
Omit the paragraph. Insert instead:
(c) the FSS Trustee Corporation must credit the amount to
the account established or to be established for the
person in the First State Superannuation Fund.
[13] Section 43 Deferred benefit
Omit "eligible to become or who is a member of the Public Sector
Executives Superannuation Scheme" from section 43 (8).
Insert instead "an executive officer".
[14] Schedule 2 Excluded persons
Omit clause 1 (2) (a). Insert instead:
(a) who is an executive officer, and
[15] Schedule 2, clause 1 (2) (b)
Omit "so eligible or such a member".
Insert instead "an executive officer".
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Superannuation Legislation Further Amendment Bill 1999
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1.8 Superannuation Act 1916 No 28
[1] Section 3 Definitions
Omit the definition of Chief executive officer from section 3 (1).
Insert instead:
Chief executive officer means:
(a) a chief executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an employer specified in Schedule 3,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a chief executive officer.
[2] Section 3 (1), definition of "First State Superannuation Fund"
Insert in alphabetical order:
First State Superannuation Fund means the First State
Superannuation Fund established under the First State
Superannuation Act 1992.
[3] Section 3 (1), definition of "Public Sector Executives Superannuation
Scheme"
Omit the definition.
[4] Section 3 (1), definition of "Senior executive officer"
Omit the definition. Insert instead:
Senior executive officer means:
(a) a senior executive officer within the meaning of the
Public Sector Management Act 1988, or
(b) an employee (not being an officer referred to in
paragraph (a)) of an authority specified in Schedule 3,
being an employee who holds an office designated by
the Director-General of the Premier's Department as the
office of a senior executive officer.
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[5] Section 3AA Salary of executive officers
Omit section 3AA (10) (c). Insert instead:
(c) in the case of any other executive officer, the monetary
remuneration payable to the officer.
[6] Section 20AB Contributor who is executive officer
Omit "eligible to become a member of the Public Sector Executives
Superannuation Scheme" from section 20AB (1).
Insert instead "an executive officer".
[7] Section 20AB (3)
Omit "Public Sector Executives Superannuation Scheme".
Insert instead "First State Superannuation Fund".
[8] Section 20AB (3) and (5) (e)
Omit "that Scheme" wherever occurring. Insert instead "that Fund".
[9] Sections 20AB (4) and 52IA (1)
Omit "eligible to become or being a member of the Public Sector
Executives Superannuation Scheme" wherever occurring.
Insert instead "an executive officer".
[10] Section 20AB (6) (c)
Omit "Public Sector Executives Superannuation Fund established under the
Public Sector Executives Superannuation Act 1989".
Insert instead "First State Superannuation Fund".
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1.9 Superannuation Administration Act 1996 No 39
[1] Section 4 Definitions
Omit paragraph (b) of the definition of FTC fund or FTC scheme.
[2] Section 9 Principal functions of FTC, note
Omit the note.
Explanatory note
Transfer of former Scheme members after closure of former Scheme
The Public Sector Executives Superannuation Act 1989 (the former Act) is repealed by
the proposed Act and the members of the former Scheme (the transferred members)
are transferred to the First State Superannuation Fund (the Fund). The former Scheme
was a scheme established to provide superannuation for public sector executive officers
(that is, chief executive officers, senior executive officers, police executive officers and
certain statutory office holders). It was an accumulation style superannuation scheme, as
is the scheme to which its members are being transferred.
Schedule 1.1 [2] inserts proposed Part 5 into the First State Superannuation Act 1992
which contains provisions relating to the transfer and its consequences.
Proposed Division 1 (proposed sections 21 and 22) defines words and expressions and
makes it clear that the provisions of the proposed Part have effect despite any other
provisions of the Act or the trust deed regulating the Fund.
Proposed Division 2 (proposed sections 23-27) provides for the transfer of members to
the Fund, the status of the Public Sector Executives Superannuation Fund (the PSES
Fund) and transferred members' accounts and contributions. Proposed section 23
transfers the transferred members from the transfer day (1 March 2000). Proposed
section 24 amalgamates the PSES Fund and the Fund. Proposed section 25 provides for
the establishment of accounts in the Fund for new transferred members and the payment
of amounts to accounts on transfer. Proposed section 26 establishes the amount of salary
or wages of a transferred member on transfer. Proposed section 27 enables the trust deed
to provide for matters relating to membership and transferred members' accounts and
contributions.
Proposed Division 3 (proposed sections 28-31) retains the transferred members' rights
to additional benefits, as established under the former Scheme. Proposed section 28 also
applies these rights to certain members who transferred voluntarily to the Fund before the
transfer day. Proposed section 29 provides that additional benefit cover is to continue and
that transferred members not covered as at the transfer day are entitled to apply to be
covered (if otherwise eligible). It also preserves applications for cover made before the
transfer day. Proposed section 30 continues existing insurance contracts and
arrangements for the provision of additional benefits. Proposed section 31 enables the
trust deed to provide for certain matters related to coverage for additional benefits.
Proposed Division 4 (proposed sections 32-36) deals with other matters relating to the
transfer. Proposed section 32 makes it clear that the trustee may recover money owed to
the PSES Fund before the transfer day. Proposed section 33 applies procedures under
the Principal Act to disputes existing before the transfer day. Proposed section 34
preserves the rights, liabilities and obligations of the PSES Fund, transferred members,
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and any persons in respect of provision of additional benefit cover, in existence before the
transfer day. Proposed section 35 enables regulations to be made with respect to the
rights, liabilities and obligations of transferred members. Proposed section 36 excludes
transactions, matters or documents relating to the closure of the former Scheme or the
proposed Part from being chargeable for duty.
Schedule 1.1 [1] and [4]-[6] make consequential amendments.
Schedule 1.1 [3] adds the Police Integrity Commission (an employer under the former
Act) to the list of employers in the First State Superannuation Act 1992.
Schedule 1.2 [1]-[4] amend the Local Government and Other Authorities
(Superannuation) Act 1927 to omit unnecessary provisions relating to executive officers.
Schedule 1.3 [1]-[13] make consequential amendments to the Police Regulation
(Superannuation) Act 1906 as a result of the closure of the former Scheme. The
amendments change references to the former Scheme and the former Act and insert a
definition of the Fund.
Schedule 1.4 amends the Public Sector Executives Superannuation Act 1989 to enable
savings and transitional regulations to be made in the period before the closure of the
scheme takes place.
Schedule 1.5 amends the Public Sector Management Act 1988 to update a reference to
the former Act.
Schedule 1.6 [1]-[8] make consequential amendments to the State Authorities
Non-contributory Superannuation Act 1987 as a result of the closure of the former
Scheme. The amendments change references to the former Scheme and the former Act
and insert a definition of the Fund.
Schedule 1.7 [1]-[15] make consequential amendments to the State Authorities
Superannuation Act 1987 as a result of the closure of the former Scheme. The
amendments change references to the former Scheme and the former Act and insert a
definition of the Fund.
Schedule 1.8 [1]-[10] make consequential amendments to the Superannuation Act 1916
as a result of the closure of the former Scheme. The amendments change references to
the former Scheme and the former Act and insert a definition of the Fund.
Schedule 1.9 [1] and [2] make consequential amendments to the Superannuation
Administration Act 1996 as a result of the closure of the former Scheme. The
amendments omit references to the former Scheme and the former Act.
Page 21
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
Schedule 2 Miscellaneous amendments
(Section 4)
2.1 First State Superannuation Act 1992 No 100
[1] Section 3A
Insert after section 3:
3A Meaning of "salary or wages"
(1) For the purposes of this Act, the salary or wages of a member
is:
(a) in the case of a member who is not an executive officer,
the total of:
(i) earnings in respect of ordinary hours of work,
and
(ii) earnings consisting of over-award payments,
shift-loading or commission, or
(b) in the case of a member who is an executive officer, the
salary or wages as last nominated or changed in
accordance with this section.
(2) An amount of salary or wages for the purposes of this Act must
be nominated to the employer of a member who is an executive
officer by the member on, or as soon as practicable after,
becoming a member or being appointed as an executive officer
(whichever occurs first). An amount may also be nominated to
the employer by the member on, or as soon as practicable after,
being reappointed, or appointed to another position, as an
employee.
(3) The amount nominated is to be not less than:
(a) the monetary remuneration payable to the member at the
date of nomination, or
(b) the maximum contribution base, within the meaning of
the Superannuation Guarantee (Administration) Act
1992 of the Commonwealth, applicable at that time,
whichever is the lower.
Page 22
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
(4) The amount nominated is to be not more than the total value of
the remuneration package paid to the member (less the cost of
providing employer's contributions to superannuation and any
performance-related incentive payment), expressed as an annual
rate.
(5) If the member fails to nominate an amount of salary or wages
within 28 days after first becoming a member or being
appointed as an executive officer (whichever occurs first) or
within such further period as FTC may allow, the member is
taken to have nominated an amount of salary or wages that is
equal to the monetary remuneration payable to the member at
the end of the applicable period.
(6) A member who is an executive officer may, from time to time,
by notice to the member's employer elect to reduce the amount
of salary or wages nominated under this section, but not so that
the amount is less than the monetary remuneration payable to
the member at the date of the election.
(7) A member who is an executive officer may, from time to time,
by notice to the member's employer elect to increase the
amount of salary or wages nominated under this section, but not
so as to increase the amount nominated by a percentage of that
amount that is more than the percentage by which the
remuneration package of the member has increased since the
amount of the salary or wages was last nominated or changed.
(8) An employer must notify FTC of a nomination or election
under this section. Any such nomination or election takes effect
on the date of notification to FTC or on such other date as FTC
may determine with the consent of the member concerned.
(9) Nothing in this section requires the nominated amount of salary
or wages to be increased if, because of a variation in the
remuneration package of a member or in the proportions of the
remuneration package comprising monetary remuneration and
employment benefits of the member, the amount of salary or
wages as last nominated or changed for the purposes of this
section is less than the monetary remuneration of the member.
[2] Section 9 Membership on making conversion election
Omit the second sentence in section 9 (2).
Page 23
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
[3] Section 12A
Insert after section 12:
12A Certain employees may elect to have employer contributions
cease
(1) An employee may give his or her employer a written notice
requiring the employer to cease to make the contributions
payable to FTC under section 12 in respect of the employee.
(2) The notice may be given only if it is accompanied by the
statements referred to in section 19 (4) (b) of the
Superannuation Guarantee (Administration) Act 1992 of the
Commonwealth.
(3) A notice given under this section is irrevocable.
(4) An employer who is given a notice under this section:
(a) must comply with it, and
(b) is not required to make the contributions referred to in
section 12 in respect of the employee concerned.
[4] Schedule 3 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
[5] Schedule 3, clause 10
Insert after clause 9:
10 Executive officer taken to have nominated salary or wages
(1) A member who, on the commencement of section 3A (as
inserted by the Superannuation Legislation Further Amendment
Act 1999), is an executive officer is taken, on that
commencement, to have nominated under that section the
amount of salary or wages on which contributions in respect of
the executive officer are calculated as at that commencement.
(2) Nothing in this clause prevents such an executive officer from
reducing or increasing, in accordance with section 3A, the
amount of salary or wages so nominated.
Page 24
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
[6] Dictionary
Omit the definition of salary or wages. Insert instead:
salary or wages has the same meaning as in section 3A.
Explanatory note
Meaning of "salary or wages"
Schedule 2.1 [1] inserts proposed section 3A in the First State Superannuation Act 1992
(the Act). The proposed section sets out the meaning of salary or wages of a member
of the First State Superannuation Fund (the Fund). In the case of a member who is an
executive officer (within the meaning of the Act), the salary or wages is to be the amount
nominated by the member (within the limits allowed by the section). The section provides
a mechanism by which that nomination may be changed by the member concerned.
Schedule 2.1 [2] and [6] make consequential amendments. Schedule 2.1 [5] inserts a
transitional provision into Schedule 3 (Savings, transitional and other provisions) to the
Act. That provision concerns nomination of salary or wages by members of the Fund who
are executive officers on the commencement of proposed section 3A.
Cessation of employer contributions
Section 12 of the Act requires employers to make contributions to the FSS Trustee
Corporation in respect of each full member of the Fund. The contributions (generally
known as the "superannuation guarantee charge") are required as a result of the
Superannuation Guarantee (Administration) Act 1992 of the Commonwealth. That Act has
a provision (section 19) enabling an employee to elect that his or her employer should not
be liable to the superannuation guarantee charge if (in effect) certain benefits or
entitlements of the employee exceed the pension reasonable benefit limit under the
Income Tax Assessment Act 1936 of the Commonwealth.
Schedule 2.1 [3] inserts a provision to the same effect in the First State Superannuation
Act 1992.
Savings and transitional regulations
Schedule 2.1 [4] enables savings and transitional regulations to be made.
2.2 Police Association Employees (Superannuation) Act 1969 No 33
[1] Section 3 Employees of Association transferring from employment as
police officers
Omit section 3 (5) (a) (iii) and (iv). Insert instead:
(iii) in the case of a prescribed person who resigned
or was discharged (but not in the case of a
prescribed person who was dismissed)--at the
rate of 4.5 per cent per annum compounded on
30 June in each year of service of the prescribed
person as an employee of the Association, and as
Page 25
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
a member of the police force, during the period
beginning with 23 November 1984 and ending
with 30 June 1990, and also compounded on the
date of the resignation or discharge of the
prescribed person from employment by the
Association if it occurred during that period, and
(iv) in the case of all prescribed persons--at the rate
from time to time fixed by STC under section 16
of the State Authorities Superannuation Act
1987, compounded on 30 June in each year of
the service of the prescribed person as an
employee of the Association, and as a member of
the police force, from and including 1 July 1990,
and also compounded on the date of the
resignation, dismissal or discharge of the
prescribed person from employment by the
Association if it occurred on or after 1 July 1990,
and
[2] Schedule 1 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
Explanatory note
Interest on refund of contribution
Section 3 of the Police Association Employees (Superannuation) Act 1969 (which was
included in the original enactment) provides for a refund of deductions of personal
contributions to the Police Superannuation Fund to certain employees of the Police
Association (prescribed persons) who resign or are dismissed or discharged. Originally,
no interest was payable on the refunded contributions.
In 1984, an amendment to the section provided for interest to be paid to any prescribed
person who had served for a period of 5 years or more and was not dismissed. The
interest was to compound annually on 30 June (and on the date of the resignation or
discharge).
Subsequent amendments which took effect on 1 July 1992 both removed the requirement
for a minimum period of service and provided for compound interest also to be paid to a
prescribed person who is dismissed on or after that date.
Page 26
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
Schedule 2. 2 [1] makes it clear that interest payable to a dismissed prescribed person
does not begin to compound until 30 June 1991.
Savings and transitional regulations
Schedule 2.2 [2] enables savings and transitional regulations to be made.
2.3 Police Regulation (Superannuation) Act 1906 No 28
[1] Section 9A Commencement of pension
Omit section 9A (2).
[2] Section 17 Refund of deductions
Omit section 17 (1) (a). Insert instead:
(a) the total of all amounts deducted under this Act from
that member's salary of office, with the addition of
interest on those amounts:
(i) in the case of a member who resigned or was
discharged (but not in the case of a member who
was dismissed)--at the rate of 4.5 per cent per
annum compounded on 30 June in each year of
that member's service during the period
beginning with 23 November 1984 and ending
with 30 June 1990, and also compounded on the
date of the member's resignation or discharge if
it occurred during that period, and
(ii) in the case of all members--at the rate from time
to time fixed by STC under section 16 of the
State Authorities Superannuation Act 1987,
compounded on 30 June in each year of the
member's service from and including 1 July
1990, and also compounded on the date of that
member's resignation, dismissal or discharge if it
occurs on or after 1 July 1990, and
[3] Section 23B Actuarial investigation
Omit "12 months" from section 23B (2). Insert instead "6 months".
Page 27
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
[4] Section 23B (4)
Omit "2 months". Insert instead "1 month".
[5] Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
Explanatory note
Payment of superannuation allowances on discharge
Currently, a superannuation allowance payable to a police officer who is discharged is not
payable until after the date when all leave of absence owing to the officer (other than
extended leave) on discharge would have ended. This provision was originally inserted at
a time when many contributors could not take the value of accrued leave as a lump sum.
Schedule 2.3 [1] removes this restriction so as to enable immediate payment of
superannuation allowances.
Interest on refund of contribution
Section 17 of the Police Regulation (Superannuation) Act 1906 (which was first enacted
in 1974) provides for a refund of deductions of personal contributions to the Police
Superannuation Fund to a member of the police force who resigns or is dismissed or
discharged. Originally, no interest was payable on the refunded contributions.
In 1984, an amendment to the section provided for interest to be paid to any member who
had served for a period of 5 years or more and was not dismissed. The interest was to
compound annually on 30 June (and on the date of the resignation or discharge). The
requirement for a minimum period of service was subsequently removed.
Subsequent amendments which took effect on 1 July 1990 (and were required, in part,
by Commonwealth legislation relating to superannuation funds) provided for compound
interest also to be paid to a member of the police force who is dismissed on or after that
date.
Schedule 2.3 [2] makes it clear that interest payable to a dismissed police officer does
not begin to compound until 30 June 1991.
Actuarial investigations of fund
Section 23B requires an investigation as to the state and sufficiency of the Police
Superannuation Fund to be carried out every 3 years by an actuary appointed by the
trustee of that fund. Currently, the actuary must report the results of the investigation not
later than 12 months after the date of the investigation and the trustee must forward the
report (together with such comments as it thinks fit) to the Minister not later than 2 months
after the trustee receives the report.
Schedule 2.3 [3] reduces the time allowed for the making of the report to 6 months after
the date of the investigation, and Schedule 2.3 [4] reduces the time allowed for
forwarding the report to the Minister to 1 month after the trustee receives it.
Savings and transitional provisions
Schedule 2.3 [5] enables savings and transitional regulations to be made as a
consequence of the enactment of the proposed Act.
Page 28
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
2.4 State Authorities Non-contributory Superannuation Act 1987 No
212
[1] Section 13 Actuarial investigation
Omit "12 months" from section 13 (2). Insert instead "6 months".
[2] Section 13 (3)
Omit "2 months". Insert instead "1 month".
[3] Schedule 5 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
Explanatory note
Actuarial investigations of funds
Section 13 requires an investigation as to the state and sufficiency of any of the funds
established under the State Authorities Non-contributory Superannuation Act 1987 to be
carried out every 3 years by an actuary appointed by the trustee of the funds. Currently,
the actuary must report the results of the investigation not later than 12 months after the
date of the investigation and the trustee must forward the report (together with such
comments as it thinks fit) to the Minister not later than 2 months after the trustee receives
the report.
Schedule 2.4 [1] reduces the time allowed for the making of the report to 6 months after
the date of the investigation, and Schedule 2.4 [2] reduces the time allowed for
forwarding the report to the Minister to 1 month after the trustee receives it.
Savings and transitional regulations
Schedule 2.4 [3] enables savings and transitional regulations to be made.
2.5 State Authorities Superannuation Act 1987 No 211
[1] Section 18 Actuarial investigation
Omit "12 months" from section 18 (2). Insert instead "6 months".
[2] Section 18 (3)
Omit "2 months". Insert instead "1 month".
Page 29
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
[3] Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
Explanatory note
Actuarial investigations of funds
Section 18 requires an investigation as to the state and sufficiency of the funds
established under the State Authorities Superannuation Act 1987 to be carried out every
3 years by an actuary appointed by the trustee of the funds. Currently, the actuary must
report the results of the investigation not later than 12 months after the date of the
investigation and the trustee must forward the report (together with such comments as it
thinks fit) to the Minister not later than 2 months after the trustee receives the report.
Schedule 2.5 [1] reduces the time allowed for the making of the report to 6 months after
the date of the investigation, and Schedule 2.5 [2] reduces the time allowed for
forwarding the report to the Minister to 1 month after the trustee receives it.
Savings and transitional regulations
Schedule 2.5 [3] enables savings and transitional regulations to be made.
2.6 Superannuation Act 1916 No 28
[1] Section 6 Contributors' reserve
Omit section 6 (2). Insert instead:
(2) STC must ensure that there is debited to the contributors'
reserve that portion of any benefit payable to or in respect of a
contributor from the contributors' reserve in accordance with
section 33B (2) (a).
[2] Section 7 Employer reserves
Omit section 7 (2) (b). Insert instead:
(b) administration costs incurred by STC under the
Superannuation Administration Act 1996 in relation to:
(i) the employer (or an employer to whom the
reserve relates), and
(ii) contributors who are employees of that employer,
and
Page 30
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
[3] Section 8A Source of administration costs payments
Omit "the contributors' reserve in the Fund" from section 8A (1).
Insert instead "such other reserves (the contributor's reserve excepted) and
accounts in the Fund as STC considers appropriate".
[4] Section 10 Actuary or actuaries to conduct periodic investigations into
the Fund
Omit "12 months" from section 10 (3). Insert instead "6 months".
[5] Section 10 (4)
Omit "2 months". Insert instead "1 month".
[6] Section 10WC Commencement of or change to part-time employment
Omit section 10WC (1). Insert instead:
(1) In this section, a reference to a change in the employment status
of a contributor is a reference:
(a) to a contributor who is appointed to a full-time position
being appointed to a part-time position, or
(b) to a contributor who is appointed to a full-time position
and who is on part-time leave without pay making an
election under section 12C (1A) to be treated as a part-
time employee, or
(c) to the salary ratio (as defined in section 12C (1)) of a
contributor who is appointed to a part-time position
changing so that it is less than it was previously, or
(d) to a contributor who is appointed to a full-time position
and who is on part-time leave without pay making an
election under section 12C (3A) in respect of a decrease
in the salary ratio (as defined in section 12C (1)) of the
contributor.
Page 31
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
[7] Section 12C Deduction factors in relation to part-time employment
Omit the definition of part-time employee from section 12C (1).
Insert instead:
part-time employee means:
(a) a person appointed to a part-time position and certified
to STC by the person's employer to have a salary ratio
of less than one, or
(b) a person appointed to a full-time position and on part-
time leave without pay, and certified to STC by the
person's employer to have a salary ratio of less than one,
who has made an election, that is in force under this
section, to be treated as a part-time employee.
[8] Section 12C (1A)
Insert after section 12C (1):
(1A) A person who is appointed to a full-time position and who
commences a period of part-time leave without pay may elect
to be treated as a part-time employee for the purposes of this
section.
[9] Section 12C (3A)
Insert after section 12 (3):
(3A) However, subsection (3) does not apply in respect of a part-time
employee who has made an election under subsection (1A), and
whose salary ratio decreases, unless the employee elects that
subsection (3) is to apply in respect of that changed salary ratio.
[10] Section 29 Breakdown pensions
Omit section 29 (5).
[11] Section 29 (6)
Omit "pursuant to subsection (5)".
Page 32
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
[12] Section 32B Death after retirement and before payment of pension
Omit the section.
[13] Section 38A Withdrawal benefit
Omit ", on the basis of actuarial advice, as the capitalised value of the
pension that would have been payable to the contributor had he or she been
55 years of age and elected to retire on pension" from section 38A (5A) (a).
Insert instead "as the value of the lump sum that would have been payable
to the contributor had he or she retired at 55 years of age and elected under
section 21C to commute the whole of the pension to which the person was
entitled on retirement at that age".
[14] Section 38A (5A) (b)
Omit "as the capitalised value of the pension that would have been payable
to the contributor if the contributor had elected to retire on pension at his or
her current age".
Insert instead "as the value of the lump sum that would have been payable
to the contributor had he or she retired at his or her current age and elected
under section 21C to commute the whole of the pension to which the person
was entitled on retirement".
[15] Schedule 25 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 1999
[16] Schedule 25, Part 8
Insert after Part 7:
Part 8 Superannuation Legislation Further
Amendment Act 1999
24 Definition
In this Part:
amending Act means the Superannuation Legislation Further
Amendment Act 1999.
Page 33
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
25 Existing part-time contributors
(1) A contributor who, at any time during the period from 1 April
1999 to the date of assent to the amending Act, was a full-time
employee on part-time leave without pay may, in respect of any
period during which a deduction factor was applied, or
applicable, under section 12C because of that leave, apply to
STC to have the person's contributions and entitlements in
respect of that period adjusted, or treated, as if the person were
a part-time employee.
(2) On an election being made, STC must adjust or treat the
contributions and entitlements accordingly and may, for that
purpose, make any appropriate arrangements with the
contributor.
(3) If an election is not made under subclause (1), the person's
contributions and entitlements in respect of the period
concerned are to be adjusted, or treated, as if the person were a
full-time employee during that period.
(4) A person who, immediately before the date of assent to the
amending Act, was a full-time employee and who was on part-
time leave without pay is entitled to make an election under
section 12C, as amended by the amending Act, within 2 months
of that date or such later time as STC determines in respect of
any part of that period of leave occurring on or after that date.
(5) Any action, or omission, by STC in respect of the treatment of
contributors under section 12C that:
(a) occurred on or after 1 April 1999 and before the
amendment of section 12C by the amending Act, and
(b) would have been validly done or omitted to be done if
section 12C, as amended by the amending Act, had been
in force,
is taken to have been, and always to have been, validly done or
omitted.
Page 34
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
26 Payments of invalidity pensions
(1) Section 29, as amended by the amending Act, applies to any
person entitled to a pension on the date of assent to the
amending Act but who was, immediately before that date, not
entitled (because of section 29 (5)) to payment of that pension.
(2) Any payment of an invalidity pension under section 29 that:
(a) was made on or after 1 July 1999 and before the repeal
of section 29 (5) by the amending Act, and
(b) would have been validly made if section 29 (5), as in
force immediately before its repeal by the amending Act,
had been in force,
is taken to have been, and always to have been, validly made.
Explanatory note
Administration fees not to be payable from contributors' reserve
Under the Superannuation Act 1916 (the Act), the SAS Trustee Corporation (STC) is
required to establish and maintain within the State Superannuation Fund a reserve for
contributors' contributions and various reserves for employers. It may also establish and
maintain within that Fund such other reserves and accounts as it considers necessary or
convenient for the proper management of the Fund and the administration of the Act.
At present, various administration costs are payable partly out of the contributors' reserve.
Schedule 2.6 [1]-[3] ensure that this will no longer be the case.
Schedule 2.6 [1] repeals and re-enacts section 6 (2) of the Act so as to require STC to
debit the contributors' reserve with the portion of any benefit payable to or in respect of a
contributor. (Currently, section 6 (2) also requires STC to debit the contributors' reserve
with administration costs incurred by STC under the Superannuation Administration Act
1996 in relation to contributors and with other amounts that are "properly payable" from
the reserve.)
Schedule 2.6 [2] repeals and re-enacts section 7 (2) (b) of the Act so as to ensure that
administration costs incurred by STC under the Superannuation Administration Act 1996
in relation to contributors are debited to the employer reserve of the contributors
concerned.
Schedule 2.6 [3] amends section 8A of the Act so as to make it clear that administration
costs in respect of the superannuation schemes established under the Act are not to be
paid from the contributors' reserve.
Actuarial investigations of fund
Section 10 requires an investigation as to the state and sufficiency of the State
Superannuation Fund established for the purposes of the Superannuation Act 1916 to be
carried out every 3 years by an actuary appointed by the trustee of the Fund. Currently,
the actuary must report the results of the investigation not later than 12 months after the
date of the investigation and the trustee must forward the report (together with such
comments as it thinks fit) to the Minister not later than 2 months after the trustee receives
the report.
Page 35
Superannuation Legislation Further Amendment Bill 1999
Schedule 2 Miscellaneous amendments
Schedule 2.6 [4] reduces the time allowed for the making of the report to 6 months after
the date of the investigation, and Schedule 2.6 [5] reduces the time allowed for
forwarding the report to the Minister to 1 month after the trustee receives it.
Contributions during part-time leave without pay
The position of contributors who are employed in a full-time position but who take part-time
leave without pay has, since the commencement of amendments made by the
Superannuation Legislation Further Amendment Act 1998, been the same as contributors
who are employed in part-time positions. The effect of this is that the contributors have
been liable to have their contributions reduced and accordingly their entitlements to
benefits reduced. Before the amendments commenced, contributors who took part-time
leave without pay were required to maintain their contributions as full-time employees.
Schedule 2.6 [8] enables a person who commences a period of part-time leave without
pay to elect to be treated as a part-time employee during the period of leave. The effect
of making the election is that the unit entitlements of the person will be reduced.
Schedule 2.6 [9] provides that the unit entitlements of a person who elects to be treated
as a part-time employee are not to be reduced if the person's salary ratio decreases
unless the person elects to have deduction factors applied in respect of the decreased
salary ratio.
Schedule 2.6 [6] applies provisions which reduce the contributions of part-time
employees to contributors who take part-time leave without pay and make an election to
be treated as part-time employees or to such contributors who make an election when
their salary ratio decreases.
Schedule 2.6 [7] makes a consequential amendment.
Schedule 2.6 [16] makes provision with respect to persons currently on part-time leave
without pay who have been required to reduce contributions and have been, since 1 April
1999, treated or could have been treated as part-time employees. They will be able to
make arrangements with STC to have their contributions adjusted so that they are treated
as part-time employees for any period since 1 April 1999 and if they do not so elect will
be treated as full-time employees in respect of any such period. Elections may be made
to treat any current period of leave as a period of part-time employment.
Payment of invalidity pensions
Currently, a pension payable to a contributor who is retired on the ground of invalidity or
physical or mental incapacity to perform his or her duties is not payable until after the date
when all leave of absence owing to the contributor (other than extended leave) on
retirement would have ended. This provision was originally inserted at a time when many
contributors could not take the value of accrued leave as a lump sum.
Schedule 2.6 [10] removes this restriction so as to enable immediate payment of
invalidity pensions.
Schedule 2.6 [11] and [12] make consequential amendments.
Schedule 2.6 [16] applies the amended invalid pension provisions to persons eligible for
a pension but not able to receive payment when the amendments commence. It also
validates payments of pensions made on or after 1 July 1999, and before the amendment
relating to the time when invalidity pensions may be paid commences, that would
otherwise have contravened the Act but would comply with the Act as amended by
Schedule 2.6 [10].
Page 36
Superannuation Legislation Further Amendment Bill 1999
Miscellaneous amendments Schedule 2
Payment of withdrawal benefits
Currently, a contributor is entitled to be paid a withdrawal benefit when the contributor is
retrenched, resigns or is dismissed. The maximum amount payable is limited to the
capitalised value of the pension that would have been payable on retirement on age 55
(or if a contributor is older than 55) on retirement at that age.
Schedule 2.6 [13] amends the maximum amount payable to be the maximum amount
of lump sum of commuted pension that a person could receive on retirement at the
relevant age.
Schedule 2.6 [14] makes a consequential amendment.
Savings and transitional provisions
Schedule 2.6 [15] enables savings and transitional regulations to be made.
Page 37
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