Local Authorities Superannuation Act 1988 (Vic)

No judgment structure available for this case.

Version No. 021

Local Authorities Superannuation Act 1988

Act No. 23/1988

Version incorporating amendments as at 1 July 1997

TABLE OF PROVISIONS

Section Page

PART 1—PRELIMINARY 1

1. Purpose 1
2. Commencement 1
3. Definitions 1
4. Application of Act 13
5. Contributors under Local Authorities Superannuation
Act 1958 14

PART 2—LOCAL AUTHORITIES SUPERANNUATION BOARD 16

6. The Board 16
7. Objectives and duties of the Board 16
8. Powers of Board 19
8A. Additional powers of the Board 20
9. Membership of the Board 20
10. Term of office 23
11. Deputies 23

11A. Vacancies on Board 23
11B. Removal or suspension of Directors 24

12. Payment of Directors 25
13. Procedure of Board 25

13A. Resolutions without meetings 26
13B. Improper use of information 26
13C. Committees of the Board 27
13D. Pecuniary interests of Directors of the Board 27

14. Persons employed by the Board 28
15. Delegation 29

PART 3—LOCAL AUTHORITIES SUPERANNUATION FUND 30

16. Establishment of Fund 30
17. Objective of Fund 30
18. Powers under Borrowing and Investment Powers Act 1987 30

i

Section Page

19. Management Account of the Board 30

20–22. Repealed 31

23. Actuarial investigation of the Fund 31

PART 4—REVIEW OF DECISIONS OF BOARD 33
24. Question as to disability determined by Board on medical

officer's report 33

24A. Settlement of disputes 33

PART 5—CONTRIBUTIONS 35

25. Contribution rates 35
26. Length of contribution period 37
27. Payment of contributions 37

27A. Payments into Fund by Authority 38

28. Changes in salary 40
29. Authority to notify Board of changes with respect to employees 40

29A. Board to maintain separate records 41

PART 6—MEDICAL EXAMINATIONS AND CLASSIFICATION 42
30. Board may require information or examination for purposes of

classification 42
31.

Authorities must not contribute to other schemes 43

PART 7—BENEFITS 44

32. Benefit on retirement 44
33. Benefit on death of contributor before retirement 45
34. Benefit on retirement through disability 46

34A. Temporary benefit 47

35. Benefit on retrenchment 51
36. Benefit on resignation 51
37. Benefit on retirement due to ill health 54
38. Deferred benefit 55

38A. Superannuation guarantee 56

39. Traumatic bodily injury 57
40. Long service leave and termination of employment 58
41. Repealed 56
42. Interruptions to employment 58
43. Re-employment of retrenched persons 60
44. Additional benefits contracts 60
45. Payment of benefits 61
46. General powers of Board in respect of benefits 61
47. Employment by more than one Authority 62

ii

Section Page

PART 7A—Repealed 60

47A–47D. Repealed 60

PART 7B—NEW SCHEME—LASPLAN 63

47E. Definitions 63
47F. Membership of the new scheme 66
47G. Employer contributions 69
47H. Members' contributions 70
47I. Members' Accounts 71

47J. Disability and death cover 72

47JA. Casual employees—disability and death cover 76
47K. Disability and death insurance 77
47L. Disability and Death Benefits Reserve 77
47M. Investment funds 78
47N. Net earning rate 79
47O. Amount and payment of benefits 80
47P. Amount and payment of disability or death benefits 80
47Q. Application for disability benefits 81
47R. Transfer of preserved benefit 82
47S. Transfer to or from new scheme 83
47T. Transfer of benefits to other scheme 83

PART 8—GENERAL 84

48. Assignment of benefits 84
49. Payment of benefits if person is incapable 84
50. Money owing to the Fund 85

50A. Preservation of minimum benefit 85
50B. Early release of benefits 86
50C. Taxation on benefits 86
50D. Specified standards 90

51. Repealed 91
52. Minors 91
53. Board may require information 91

53A. Transfer of assets to the Fund 92
53B. Transfer of assets in respect of MEU staff superannuation 92
53C. Contribution by certain municipal councils 94
53D. City of Melbourne Superannuation Fund 94
53E. No tax payable 95
53F. Provisions relating to City of Melbourne Superannuation Fund 96
53FA. Provision relating to change of employment 97
53G. Provisions relating to Melbourne Parks and Waterways 99
53GA. Provision relating to change of employment 101
53GB. Contribution by Melbourne Parks and Waterways 103

iii

Section Page

53H. Provisions relating to certain water authorities 103
53HA. Provision relating to change of employment 105

53I. Provisions relating to transfer of assets and liabilities 107

PART 9—REGULATIONS 108

54. Regulations generally 108
55. Regulations under section 54 109

PART 10—TRANSITIONAL 111
56. Board under Local Authorities Superannuation Act 1958 to

continue 111
57.

Transfer of assets and liabilities to the Fund 111
58. Accrued rights under the Local Authorities Superannuation

Act 1958 112
59. Employees of Authorities under the Local Authorities

Superannuation Act 1958 113
60.

Additional benefits contracts 113

═══════════════

NOTES 115
1. General Information 115
2. Table of Amendments 116
3. Explanatory Details 119

iv

Version No. 021

Local Authorities Superannuation Act 1988

Act No. 23/1988

Version incorporating amendments as at 1 July 1997

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose
The purpose of this Act is to provide improved superannuation arrangements for contributors to the local authorities superannuation scheme.

2. Commencement
(1) This Act (except Parts 1 and 7) comes into
operation on a day or days to be proclaimed.
(2) Parts 1 and 7 are deemed to have come into
operation on 1 September 1987.

3. Definitions
(1) In this Act—

S. 3(1) def. of

"actuary"	"actuary" means a fellow or accredited member
substituted by	of the Institute of Actuaries of Australia
No. 4/1996
s. 37(1)(a).	approved by the Minister;

"adjusted final salary" means the lesser of—
(a) the salary of a contributor immediately before any benefits become payable to that person; and

(b) the greater of—

(i) the contributor's average salary
over the year immediately before
the benefits became payable (or

1
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3
over any lesser period of time for
which that person was a
contributor); and
(ii) the sum referred to in sub- paragraph (i) multiplied by—

A + B where—
2B
A is the Average Weekly
Earnings Index which is determined from time to time by the Treasurer on the
recommendation of the
Government Actuary and
published by the
Commonwealth Statistician
for the last full quarter
before the benefits become
payable; and

B is the Average Weekly
Earnings Index which is determined from time to time by the Treasurer on the
recommendation of the
Government Actuary and
published by the
Commonwealth Statistician
for the corresponding
quarter a year earlier (or, if
the person was a contributor
for less than a year before
the benefits became payable,
the last complete
corresponding quarter
before the person became a
contributor);

2
Local Authorities Superannuation Act 1988

s. 3	Act No. 23/1988
S. 3(1) def. of	"Authority" means—
"Authority"
amended by	(a) any municipal council; and
Nos 12/1989
s. 4(Sch. 2	(b) any Authority under the Water Act
item 72.1),
81/1989	1989; and
s. 3(Sch. item

* * * * *

28(a)(b)), 49/1992 s. 56(1)(a),	(h) any weights and measures union; and
127/1993
s. 10(3),	(i) any cemetery trust; and
120/1994

s. 27(a),	*	*	*	*	*
64/1995

s. 5(a).

(l) the Melbourne Market Authority; and

* * * * *
(n) the Board; and
(o) any body—
(i) constituted under any Act for any public or local governing purpose; or
(ii) constituted for a joint purpose by two or more Authorities—

which the Governor in Council declares by Order under this Act or has declared under the Local Authorities
Superannuation Act 1958 to be an or that Act; and

(p) any other body approved by the Treasurer by instrument for the purposes of this Act;
"benefit" means any amount paid or payable by the Board out of the Fund;
"Board" means Local Authorities

Superannuation Board;

3
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3

"casual employee" means a casual employee as defined by the relevant award determinations

S. 3(1) def. of
"casual
employee"

or an employee deemed by the Board to be a

inserted by No. 4/1996
casual employee; s. 37(1)(b).
S. 3(1) def. of

"complying superannuation fund" means a superannuation entity or a superannuation

"complying
superannua-
tion fund"

fund within the meaning of section 10 of the inserted by
Commonwealth Superannuation Industry No. 4/1996
(Supervision) Act 1993 which is a s. 37(1)(b).
complying superannuation fund or a
complying approved deposit fund within the
meaning of Part IX of the Commonwealth
Income Tax Assessment Act 1936;
S. 3(1) def. of

"contributor" means a person who will be, is, or has been liable to contribute to the Fund

"contributor"

amended by No. 82/1996

under Part 5 with respect to the entitlement s. 35(1).
to benefits under Part 7;

"current equivalent of the salary on

retirement", in relation to a disability case requires) as being equivalent at any relevant time to the last salary that was payable to the beneficiary;
beneficiary, means such salary as the Board
from time to time determines (having regard
to general increases in salary that have
occurred since the retirement of the
beneficiary or the commencement of the
payment of weekly payments of
compensation to the beneficiary under the

S. 3(1) def. of

"Director" means a Director of the Board appointed under section 9 and a deputy of a

"Director"

inserted by No. 64/1995

Director while acting as a Director; s. 6(a).

4
Local Authorities Superannuation Act 1988

s. 3

Act No. 23/1988

S. 3(1) def. of

"disability", in relation to a contributor, means

"disability"

amended by

the permanent inability of the contributor

Nos 49/1992

before the age of 60 years due to a

s. 56(1)(b),

23/1994

continuing or recurring injury, disease or

s. 118(Sch. 1

infirmity—

item 32.1(a)),

substituted by

(a) to perform his or her duties; and

No. 82/1996

s. 35(2).1

(b)	to perform any other duties for which he or she is suited by education, training or experience or for which he or she would be suited as a result of retraining—

as determined by the Board on the basis of
reports provided by at least 2 registered
medical practitioners appointed by the
Board;

"disability beneficiary" means a contributor in

respect of whom an application for a
disability benefit has been approved by the
Board;

"employee" means—
(a) any person under 65 years of age who is in the service or employment of an Authority on a continuous (whether on
a full-time or part-time) basis; and

(b) any other person under 65 years of age

who is an employee of an Authority
and whom the authority with the
approval of the Board declares in
writing to be an employee—

but does not include any person who is an
employee who is prescribed as, or a member
of a class of employees which is prescribed
as, being engaged on constructional work,
and whose length of employment is or is

5
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3
likely to be dependent on the duration of that
work;
"existing contributor" means a person who—
(a) is a permanent employee within the

meaning of the Local Authorities
Superannuation Act 1958; or

(b) is in receipt of or entitled to any
benefits under the Local Authorities
Superannuation Act 1958—

immediately before the repeal of the Local
Authorities Superannuation Act 1958;
"financial year" means the period of twelve
months ending at midnight on 30 June or on such other date as is fixed from time to time by Order of the Governor in Council for the purposes of this definition;
"Fund" means Local Authorities Superannuation
Fund;
"gainful employment", in relation to a person, means the receipt by that person or another person, corporation or trust of remuneration which is derived wholly or partly from
labour provided by the person whether under
a contract of service or otherwise;
"Government Actuary" means the Government
Statist under the Statistics Act 1958 in the capacity of Government Actuary;

S. 3(1) def. of

"ill health" means a continuous or recurring impairment of the health of an employee

"ill health"
amended by
No. 4/1996

which is due to a physical or mental s. 37(1)(c).
incapacity, bodily injury, illness or disease,
which in the opinion of the Board—

(a) is not a disability; and

6
Local Authorities Superannuation Act 1988

s. 3	Act No. 23/1988

(b) is likely to be adversely affected if the

employee remains in his or her
employment; and

(c) does not preclude the employee from
seeking alternative employment; and
(d) has not been incurred or inflicted for
the purpose of obtaining a benefit;

"maternity leave" means unpaid maternity leave;

S. 3(1) def. of	*	*	*	*	*
"member" repealed by No. 64/1995 s. 6(b).
S. 3(1) def. of	*	*	*	*	*
"occupational super- annuation standards" inserted by No. 49/1992 s. 56(1)(c), repealed by No. 4/1996 s. 37(1)(d).

"old benefits" means the following:

(a) In relation to retirement other than
retirement through disability—

(i)
twenty-firsts of the contributor's
a lump sum which is eleven calculated under section 32; and

(ii)
accordance with the provisions of
the Local Authorities
Superannuation Act 1958
immediately before its repeal),
which is calculated by dividing
ten twenty-firsts of the
a yearly pension (indexed in benefit

7
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3
calculated under section 32 by the
appropriate factor from the
following Table:
TABLE

Age of contributor in

completed years Factor
65 12.0
64 12.1
63 12.2
62 12.3
61 12.4
60 12.6
59 12.8
58 13.0
57 13.2
56 13.4
55 13.6
Note: Age must be calculated in years
and completed months, and
interpolation of factors must be made;
(b) In relation to retirement through

disability—

(i)
reference to a Table contained in
an Order published by the
a lump sum calculated by Gazette; and

(ii)
accordance with the provisions of
the Local Authorities
Superannuation Act 1958
immediately before its repeal)
which is 0·8333 per cent of the
contributor's salary for each year
for which the contributor was
a yearly pension (indexed in prospective years to the age of 65

8
Local Authorities Superannuation Act 1988

s. 3	Act No. 23/1988

years (but not exceeding a total of
40 years)—
subject to a reduction by the Board of
either of the amounts referred to in sub-
paragraph (i) or (ii) in accordance with
a Table contained in an Order
published by the Minister in the
Government Gazette, if the
contributor's most recent medical
classification under the Local
Authorities Superannuation Act 1958
was not the top classification;
"pensioner" means a person receiving a pension under this Act or the regulations;

S. 3(1) def. of

"registered	"registered medical practitioner" means a
medical	registered medical practitioner within the
practitioner"
inserted by	meaning of the Medical Practice Act 1994;
No. 23/1994 s. 118(Sch. 1 item 32.1(b)).
S. 3(1) def. of
"retrench-	"retrenchment" means the termination of the
ment"	employment or service of an employee who
substituted by
No. 82/1996	has not attained the age of 55 years and in
s. 35(3).	respect of whom the employing Authority certifies in writing to the Board that the employee has been retrenched for the purposes of this Act;

"salary" means the annual rate, computed as

determined by the Board on the basis of a
year, of pecuniary emoluments payable
periodically and regularly to an employee for
the performance of the duties of his or her
grade of employment as that employee, but
does not include payments—

(a) for overtime or in the form of bonuses;
or

9
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3
(b) for travelling allowances or incidental expenses; or
(c) of a temporary character;

"service", in relation to a person, means the period of time for which that person is a contributor, adjusted to take into account any
part-time employment, maternity leave,
leave without pay and breaks in employment
of that person;

S. 3(1) def. of

"specified standards" means standards specified under section 50D.

"specified

standards" inserted by
No. 4/1996
s. 37(1)(e).
S. 3(1A)

(1A) For the avoidance of any doubt it is hereby declared that the Tables published in the

inserted by
No. 4/1996

Government Gazette on 27 July 1995 at page s. 38.

1902 relate to the calculation of old benefits where the contributor's most recent medical classification under the Local Authorities

Superannuation Act 1958 was not the top classification.

(2) For the purposes of calculating the adjusted final
before that person ceases to be a contributor, the

salary of any person whose salary decreases salary for that person.
(3) The Governor in Council may by Order under this
Act revoke any declaration of a body as an Authority made under paragraph (o) of the definition of "Authority" from a date specified in
the Order, and that revocation has the following
effect from that date:
(a) A person who was a contributor in relation to the Authority immediately before the

10
Local Authorities Superannuation Act 1988

s. 3	Act No. 23/1988

revocation must be treated as if that person is
a contributor for the purposes of this Act;
(b) The body must be treated as if it is an Authority for the purposes of this Act (subject to an Order under paragraph (o) of
the definition of "Authority", only in relation
to that person).

S. 3(3A)	*	*	*	*	*
inserted by No. 110/1993 s. 122, repealed by No. 64/1995 s. 5(b).

(4) For the purposes of the definition of "service"— (a) any part-time employment or breaks in
employment of a contributor are to be taken contributor—
into account as follows:
(i) that contributor's salary must be treated

as if it is the salary of a full-time
employee who has been a contributor
for the same period of time; and

(ii) that contributor's period of service or prospective service must be reduced proportionately according to the basis
on which that contributor is employed;
and

S. 3(4)(b)

amended by	(b) any parental leave or leave without pay of a
No. 4/1996	contributor for a period not exceeding 7
s. 39(a)(b).	years if the member is on parental leave or not exceeding 2 years if the member is on leave for any other reason except ill-health
are to be taken into account as follows:

11
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 3

(i) The contributor and that contributor's employing Authority are not required to

S. 3(4)(b)(i)
amended by
No. 4/1996

pay any contributions for the period of s. 39(a).

the parental leave or leave without pay, but the Board may on application allow such payment;
S. 3(4)(b)(ii)

(ii) A contributor on leave without pay may elect to continue to pay to the Board

amended by
No. 4/1996
s. 39(c).
during that period of leave a actuarial investigation under section 23 and which is specified in the actuary's report) of his or her salary to continue that person's death and disability benefits during that period of leave;
contribution at a rate equal to 2 per cent
(or such other percentage as is first
determined by an actuary after the
commencement of section 39(c) of the
Superannuation Acts (Amendment)

(iii) The Board must reduce the benefits

payable to that contributor taking into
account the amount of contributions
unpaid during the leave.

S. 3(4A)

* * * * * inserted by No. 49/1992
s. 56(2),
repealed by
No. 4/1996
s. 37(3).
(5) If any question arises as to whether any person is

an employee the Board may decide the question
conclusively, subject to the person's right to
request a reconsideration of the decision under
section 24.

(6) If an Authority engages an employee temporarily for 12 months or less, the Authority and the

12
Local Authorities Superannuation Act 1988

s. 4	Act No. 23/1988

employee are exempted from complying with this Act during that period of temporary employment.
(7) On application to the Board by an employee, the
Board may exempt the employee from complying with this Act either indefinitely or for a specific period, if the Board considers that the exemption is for the employee's benefit.

(8) If a person who becomes an employee was within

3 months before becoming an employee a
contributor to a superannuation fund approved by
the Board for the purposes of this sub-section, that
person may choose, within 6 months after
becoming an employee, to pay to the Board an
amount not exceeding the amount paid to him or
her by that other fund, and the Board must treat
that amount as a contribution to an additional
benefits contract.

4. Application of Act
(1) A person who is an employee at the date of

coming into operation of this section is a
contributor to the Fund.

(2) A person who becomes an employee on or after the date of coming into operation of this section becomes a contributor to the Fund on the

commencement of that employment.

(3) A person who chooses under section 5 to be

eligible to receive benefits under this Act is a contributor from the day on which that person makes the choice.

S. 4(4)

inserted by	(4) A person who is an employee and is entitled to
No. 49/1992	any benefits from any superannuation
s. 57.	arrangement approved by the Treasurer by instrument for the purposes of this sub-section may within the prescribed period or periods elect to become a contributor to the Fund.

13
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 5

(5) A person cannot become a contributor to the Fund on or after the commencement of section 125(2)

S. 4(5)
inserted by
No. 110/1993

of the Public Sector Superannuation s. 125(2).
(Administration) Act 1993 except as a member
of the new scheme in accordance with section
47F.

5. Contributors under Local Authorities Superannuation Act 1958
(1) Each of the following persons is eligible to
receive benefits under this Act unless that person makes a choice to receive old benefits under sub- section (2)—
(a) an existing contributor;
(b) a person who—
(i) was a permanent employee within the

meaning of the Local Authorities
Superannuation Act 1958
immediately before its repeal; and

(ii) ceased to be a permanent employee on or after 31 August, 1987.
(2) A person may choose to receive old benefits
instead of benefits under this Act at any time from the termination of employment of that person until 6 months after the benefits to which that person is entitled fall due.

(3) The repeal of the Local Authorities Superannuation Act 1958—
(a) in relation to—
(i) persons who choose to receive old

benefits; and

(ii) persons with an accrued entitlement to

receive any benefits under the Local
Authorities Superannuation Act 1958
immediately before its repeal—

14
Local Authorities Superannuation Act 1988

s. 5	Act No. 23/1988

does not affect the entitlement or future entitlement of those persons to benefits under that Act, and that Act and the
regulations under it apply for that purpose to
those persons as if it had not been repealed;
and

(b) in relation to persons referred to in sub-
under this Act, means that the entitlement or
future entitlement of those persons to
benefits under that Act continues under this

section (1) who choose to receive benefits under this Act.

(4) If a person referred to in sub-section (1)(b)

chooses to receive benefits under this Act and has Board may adjust the entitlement of that person under this Act to take those benefits already received into account.
already received any benefits under the Local

_______________

15
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 6

PART 2—LOCAL AUTHORITIES SUPERANNUATION

BOARD

6. The Board
(1) There is established a body corporate called the Local Authorities Superannuation Board.
(2) The Board—
(a) has perpetual succession; and
(b) has a common seal; and
(c) may sue and be sued in its corporate name;
and
(d) is capable of taking, purchasing, leasing,

holding, selling, exchanging and disposing
of real and personal property for the
purposes of this Act; and

(e) may do and suffer all acts and things which a body corporate may by law do and suffer and which are necessary or expedient for the
purposes of this Act.
(3) The common seal of the Board—
(a) can only be attached to a document if the Board so resolves; and
(b) must be authenticated by the signature of one

member of the Board and an officer of the
Board authorised by the Board.

7. Objectives and duties of the Board
(1) The following are the objectives of the Board—

(a) to collect contributions;
(b) to manage and invest the Fund so as to

maximise the return earned on the Fund,
having regard to—

16
Local Authorities Superannuation Act 1988

s. 7	Act No. 23/1988

(i) the need to provide for payments out of the Fund; and
(ii) the need to exercise reasonable care

and prudence so as to maintain the
integrity of the Fund;

(c) to administer the payment of benefits having

due regard to the need for equity among
contributors and pensioners.

(2) It is the duty of the Board to—

(a) establish and maintain records of

contributors to and administrative systems
for the Fund which ensure that—
(i) the correct benefits are paid out of the

Fund; and

(ii) benefits are paid as quickly as possible,
considering both the time required to ascertain their nature and amount and the entitlement of persons to receive
them; and

(iii) the enquiries of contributors about
benefits are answered accurately and
promptly; and

(b) establish and maintain systems which ensure

that all income due to the Fund is properly
received and accounted for; and

(c) ensure that the Board controls sufficient

funds for the payment of benefits and the
expenses of operating and administering the
Fund; and

(d) invest the funds held by the Board to receive

the highest possible returns taking into
account the liabilities of the Fund whilst—

(i) minimising the capital depreciation of those funds; and

17
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 7
(ii) making payments of benefits out of the

Fund; and

(iii) maintaining the integrity and good
reputation of the Fund with
contributors, each Authority and the
investment sector; and

S. 7(2)(da)

* * * * * inserted by No. 49/1992
s. 58(1),
repealed by
No. 4/1996
s. 40(1).
(e) initiate, develop and operate information programs and counselling services which ensure that—
(i) contributors are informed about the
general benefit structure of the Fund, their entitlement to benefits from the Fund, the advantages of being a
contributor and the availability of those
counselling services; and

(ii) persons entitled to benefits from the
Fund and each Authority may receive information about the planning for and receipt of those benefits; and

(f) provide information, advice and assistance to State and local government bodies about the Fund in the light of—
(i) community attitudes; and
(ii) the practices of persons entitled to
receive benefits from the Fund and each
Authority; and

(iii) changes to other superannuation
practices and procedures; and (iv) the actions of governments; and

18
Local Authorities Superannuation Act 1988

s. 8	Act No. 23/1988

(v) the Board's experience of operating under this Act.

S. 7(2A)	*	*	*	*	*
inserted by No. 49/1992 s. 58(2),
repealed by No. 4/1996 s. 40(1).

(3) The Board must, in performing its duties under sub-section (2)(a)(iii), (e) and (f), consider the need to protect information the disclosure of
which could adversely affect the financial position
or the commercial or other operations of the
Board.

(4) If the Minister at any time gives to the President of the Board—
(a) a statement of government policy on any

matter that is relevant to the performance of
the duties of the Board; and

(b) a request that the Board consider that policy in the performance of its duties—
the Board must ensure that consideration is given
to that policy.
(5) The Board must publish any statement under sub- section (4) in its next annual report together with the results of its consideration.

8. Powers of Board
The Board may—
(a) purchase, rent, hire or otherwise provide for
the use of office furniture or fittings, business equipment or services; and
(b) give assistance to any bodies (including the
use of its employees or agents or by use of
its equipment or facilities), if the Minister

19
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 8A
approves either generally in relation to a
class of bodies or specifically, on any terms
and conditions specified by the Board.

S. 8A

8A. Additional powers of the Board

inserted by No. 64/1995

Without limiting or derogating from the generality s. 7.
of the powers of the Board under this Act, the
powers of the Board include—

(a) power to enter into agreements or arrangements with any other person or body—
(i)  to carry out on behalf of the Board any one or more of the functions or powers of the Board in relation to the Fund;
(ii)  to arrange death and disability cover insurance for individual members or classes of members of the new scheme;
(iii)  to provide custodial or nominee services;

(b)

power to engage any person or body to act as an agent on behalf of the Board.

S. 9

9. Membership of the Board substituted by
No. 64/1995

(1) The Board is to consist of 6 Directors appointed by the Governor in Council.

s. 7.
(2) Of the persons appointed to the Board—

(a)

2 must be persons nominated by the Minister; and

(b)

1 must be a person nominated by the Minister from a panel of 3 names submitted by the governing body of the Municipal Association of Victoria at the request of the Minister; and

(c)

3 must be persons who are eligible to be voters elected by voters.

20
Local Authorities Superannuation Act 1988

s. 9	Act No. 23/1988

(3) In this section "voters" means—
(a) contributors other than pensioners; and
(b) members of the scheme; and

(c) persons who are members of the City of Melbourne Superannuation Fund to which section 53F applies; and
(d)
Water Corporation Employees
persons who are members of the Melbourne applies.

(4) Despite sub-section (2)—

(a) the members of the Board in office immediately before the commencement of section 7 of the Superannuation Acts (General Amendment) Act 1995 under section 9(1) as in force before that commencement, continue in office as Directors, subject to this Act, for the remainder of their term; and
(b) for the remainder of the term of members referred to in paragraph (a), the alternate members of those members are to continue
to be appointed in accordance with section 9
as in force before the commencement of
section 7 of the Superannuation Acts
(General Amendment) Act 1995; and
(c) any vacancy in the office of a member referred to in paragraph (a) during the remainder of their term is to be filled in
accordance with sections 9 and 10 as in force

21
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 9
before the commencement of section 7 of the
Superannuation Acts (General
Amendment) Act 1995; and

(d)

the additional Director of the Board must be elected in accordance with this section for appointment to the Board as from 1 January 1996.

(5) If the governing body of the Municipal
names in accordance with this section, the
Governor in Council may appoint a person to be a
Association of Victoria fails to submit a panel of nominated in accordance with sub-section (2)(b).
(6) Elections for the purposes of this section must be

held in accordance with procedures determined by
the Board.

(7) If there is no candidate at an election or no person is elected at an election, the Governor in Council may appoint a person to be a Director although
that person has not been elected.

(8) The Governor in Council must appoint a Director to be the President of the Board.
(9) The Public Sector Management Act 1992

(including Part 9) does not apply to a Director in
respect of the office of Director.

(10) A Director is not subject to any action, liability, claim or demand for any matter or thing done or contract entered into by the Board if the matter or
thing is done or the contract is entered into in
good faith for the purpose of carrying out a duty
or function or exercising a power of the Board.

(11) The Board is deemed to be the same body on and after as before the commencement of section 7 of the Superannuation Acts (General
Amendment) Act 1995.

22
Local Authorities Superannuation Act 1988

s. 10	Act No. 23/1988
S. 10	10. Term of office
amended by
Nos 49/1992	(1) A Director is to be appointed for a term not
s. 59,
110/1993	exceeding 5 years as is specified in the Director's
s. 123,	instrument of appointment or, in the case of a (2) A Director is eligible for re-appointment. (3) Despite sub-section (1), the term of office of a
substituted by
No. 64/1995	Director to be elected under section 9(2)(c), as is
s. 7.	fixed by the Minister before the election is held.
Director may exceed 5 years but not 6 years if the Director is elected to fill a casual vacancy in respect of a Director who had an unexpired term of less than 1 year.
S. 11
substituted by	11. Deputies
No. 64/1995
s. 7.	(1) Each Director is to have a deputy nominated or elected in the same manner as the Director and appointed by the Governor in Council.
(2) The deputy of a Director is to act in the case of illness, suspension or absence of that Director.
(3) A deputy has while acting as a Director the powers and authority of the Director.
(4) A person may act as the deputy of more than one

Director except for the purposes of forming a quorum or voting on a resolution, provided that the deputy is nominated or elected in the same manner as all of those Directors.

S. 11A

inserted by	11A. Vacancies on Board
No. 64/1995
s. 7.	(1) A person ceases to be a Director if that person— (a) becomes bankrupt; or

(b)

is absent, without leave first granted by the Board, from 3 consecutive meetings of which reasonable notice has been given to that Director personally or by post; or

23
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 11B

(c)

resigns office by writing signed and addressed to the Governor in Council; or

(d)

becomes permanently incapable of performing the duties of office; or

S. 11A(1)(e)

(e) is convicted of an offence against a law of the State of Victoria or a law of the

substituted by
No. 4/1996

Commonwealth or of another State or a s. 41.

Territory, being an offence in respect of dishonest conduct; or

(f)

is elected under section 9 and ceases to be qualified as required by that section.
(2) If a Director dies or otherwise ceases to be a
Director—

(a)

the deputy of that Director is to be appointed by the Governor in Council to fill the vacancy; or

(b)

if there is no deputy, the Governor in Council may appoint a person nominated or elected in the same manner as that Director was nominated or elected to fill the vacancy.

S. 11A(3)

(3) A vacancy in the office of a Director must be filled within 60 days of the vacancy occurring.

substituted by
No. 4/1996

s. 40(2). S. 11B

11B. Removal or suspension of Directors

inserted by No. 64/1995
s. 7.
S. 11B(1)

(1) A Director may be removed or suspended from office by the Governor in Council—

inserted by
No. 4/1996
s. 40(3).

(a)

in the case of a Director appointed under section 9(2)(a) or 9(2)(b), at any time without cause; or

(b)

in the case of a Director elected under section 9(2)(c), for misbehaviour or

24
Local Authorities Superannuation Act 1988

s. 12

Act No. 23/1988

incompetence while performing the duties of
a Director.
(2) A Director removed from office under this section

is not entitled to any remuneration or
compensation for loss of office.

S. 12

amended by	12. Payment of Directors
No. 64/1995
s. 8(a),	Each Director is entitled to be—
substituted by
No. 4/1996	(a) paid such remuneration as the Governor in
s. 42.	Council fixes from time to time; and

(b)

reimbursed for expenses incurred in the course of performing the duties of office which are expenses approved by the Board.
13. Procedure of Board

S. 13(1)

substituted by	(1) All powers, duties and authorities of the Board
No. 49/1992	may only be exercised at any meeting of the
s. 60(a),
amended by	Board at which at least two-thirds of the Directors
No. 64/1995	of the Board are present.
s. 8(b).
S. 13(2)
substituted by	(2) A decision of the Board requires at least a two-
No. 49/1992	thirds majority of the total number of Directors of
s. 60(a),
amended by	the Board.
No. 64/1995 s. 8(b).
S. 13(3)
amended by	(3) During any vacancy in the Board the continuing
No. 64/1995	Directors may act as if there were no vacancy. (4) The Board may hold its meetings at such times
s. 8(b).

and places as it appoints, and may adjourn those
meetings.
(5) The President must preside at all meetings of the Board at which that person is present.

S. 13(6)

amended by	(6) If the President is not present at any meeting of
No. 64/1995
s. 8(a).	the Board, the Director who is senior in order of appointment must preside at the meeting.

25
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 13A

* * * * * S. 13(7)
repealed by
S. 13A

13A. Resolutions without meetings No. 49/1992
inserted by
s. 60(b).
No. 110/1993
s. 124.
S. 13A(1)

(1) If all of the Directors of the Board for the time being sign a document containing a statement that

amended by
No. 64/1995

they are in favour of a resolution in terms set out s. 8(a)(b).

in the document, a resolution in those terms shall be taken to have been passed at a meeting of the Board held on the day on which the document is signed or, if the Directors of the Board do not sign
it on the same day, on the day on which the last
Director signs the document.
S. 13A(2)

(2) If a resolution is, under sub-section (1), taken to have been passed at a meeting of the Board, each

amended by
No. 64/1995

Director of the Board must immediately be s. 8(a).
advised of the matter and given a copy of the
terms of the resolution.
S. 13A(3)

(3) For the purposes of sub-section (1), two or more separate documents containing a statement in

amended by
No. 64/1995

identical terms, each of which is signed by one or s. 8(b).
more Directors of the Board, shall be taken to
constitute one document.
S. 13B

13B. Improper use of information inserted by
No. 110/1993

A person who is, or has been, a Director of the s. 124,

Board or member of the staff of the Board must

amended by No. 64/1995
not make improper use of any information s. 8(c).
acquired only in the course of his or her duties to
obtain directly or indirectly any pecuniary or other
advantage for himself or herself or for any other
person.
Penalty: 50 penalty units.

26
Local Authorities Superannuation Act 1988

s. 13C	Act No. 23/1988
S. 13C	13C. Committees of the Board
inserted by No. 110/1993 s. 124.
S. 13C(1)
amended by	(1) The Board may establish one or more committees
No. 64/1995	of Directors of the Board.
s. 8(b).

(2) The Board may by instrument of delegation

delegate any of its functions or powers, other than
this power of delegation, to a member of a
committee.

S. 13C(3)

substituted by	(3) A committee is to have an equal number of
No. 64/1995	Directors appointed under sections 9(2)(a) and
s. 8(d).	9(2)(b) and of Directors elected under section 9(2)(c).

(4) A quorum of a committee is constituted by not

less than two-thirds of the total number of
members of the committee in office for the time
being.

(5) Sections 13, 13A and 13D apply with such

modifications as are necessary in respect of a
committee.

S. 13D

inserted by	13D. Pecuniary interests of Directors of the Board
No. 110/1993 s. 124.
S. 13D(1)
amended by	(1) A Director of the Board who has any pecuniary
No. 64/1995	interest in a matter being considered or about to
s. 8(a)(e).	be considered by the Board or in any other matter in which the Board is concerned must, as soon as practicable after the relevant facts have come to
the Director's knowledge, declare the nature of that interest at a meeting of the Board.
S. 13D(2)
amended by	(2) The requirements of sub-section (1) do not apply
No. 64/1995	in any case where the interest of the Director of
s. 8(a).	the Board consists only of being a shareholder or creditor of a company which has an interest in a

27
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 14
contract or proposed contract with the Board if the
interest of the Director may properly be regarded
as not being a material interest.
(3) The person presiding at a meeting at which a

declaration is made under sub-section (1) must
cause a record of the declaration to be made in the
minutes of the meeting.

S. 13D(4)

(4) After a declaration is made by a Director of the Board under sub-section (1)—

amended by
No. 64/1995
s. 8(a).
S. 13D(4)(a)

(a) that Director must not be present during any deliberation of the Board with respect to that

amended by
No. 64/1995

matter; and s. 8(a).
S. 13D(4)(b)

(b) that Director is not entitled to vote on the amended by

matter; and No. 64/1995
s. 8(a).
S. 13D(4)(c)

(c) if that Director does vote on the matter, the vote must be disallowed.

amended by
No. 64/1995
s. 8(a).
S. 13D(5)

(5) A Director of the Board is not to be taken to have a pecuniary interest in a matter only because the

amended by
No. 64/1995

Director has or may become entitled to a benefit s. 8(a).
from the Fund.

14. Persons employed by the Board
(1) The Board—
(a) may employ any persons necessary to carry out the Board's functions; and
(b) may fix the salaries or other remuneration to be paid to those persons.

(2) The Board may engage an actuary to advise it about the administration of the Fund.
(3) Section 101 of the Local Government Act 1988
and the regulations made under that section apply

28
Local Authorities Superannuation Act 1988

s. 15

Act No. 23/1988

to all persons employed by the Board, as if any
reference to Council staff were a reference to
employees of the Board, and with any other
necessary modifications.

S. 15

amended by	15. Delegation
No. 64/1995
s. 8(a),	The Board may, by an instrument of delegation
substituted by	under its common seal, delegate to the President, a
No. 102/1995
s. 12.	member of the Board or a person employed by the Board or to any other person or corporation—

(a) any function, power or duty of the Board under this Act or any other Act or under a governing instrument, other than this power
of delegation; or
(b) any power or duty of the Board under the Borrowing and Investment Powers Act 1987.

_______________

29
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 16

PART 3—LOCAL AUTHORITIES SUPERANNUATION FUND

16. Establishment of Fund

There is established a Fund called the Local administered by the Board.

17. Objective of Fund
The objective of the Fund is to provide benefits—
(a) to employees who are contributors, if they
retire or resign from that employment; and
(b) to the spouses or personal legal
representatives of employees who are
contributors, if the employees die—
on an equitable basis which takes into account
each employee's age, income and length of
employment.

18. Powers under Borrowing and Investment Powers Act 1987
The Board has the powers conferred on it by the Borrowing and Investment Powers Act 1987.

19. Management Account of the Board
(1) The Board must keep an account called the Management Account.
(2) The Board must credit to the Management
Account any money appropriated from time to time by the Board from the Fund.

(3) The Board must debit to the Management

Account—
(a) the remuneration paid to the members of the
Board; and
(b) the salaries or other remuneration paid to persons employed by the Board; and

30
Local Authorities Superannuation Act 1988

s. 23

Act No. 23/1988

(c) the expenses (including rent paid for the use
of premises) and other payments of the and carrying out its functions under this Act; and
(d) any expenses incurred before this section

comes into operation in connection with any
arrangements to assist in establishing the
Fund which are approved by the Treasurer.

Ss 20–22	*	*	*	*	*
repealed by No. 31/1994 s. 4(Sch. 2 item 49).

23. Actuarial investigation of the Fund

S. 23(1)

amended by	(1) The Board must arrange for an actuarial
No. 120/1994	investigation into the financial position of the
s. 27(b).	Fund as at the end of the financial year in 1989 and at the end of each following period of 3 years to be made by an actuary appointed by the Board.
S. 23(2)
amended by	(2) The Board must submit the actuary's report of the
No. 82/1996	investigation to the Minister within 6 months after
s. 36.	the end of each period of 3 years.

(3) The Minister must cause each actuary's report
submitted to him or her to be laid before the before the expiration of the seventh sitting day of the Legislative Council or the Legislative Assembly, as the case may be, after the actuary's report has been received by the Minister.
(4) An actuarial investigation under this section must include a determination as to the proportion of the salaries payable to employees by Authorities that the Authorities must pay to the Board.
(5) The Board may at any time request a further
actuarial determination of the proportion of

31
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 23
salaries payable to employees by Authorities that
the Authorities must pay to the Board.
(6) The proportion referred to in sub-sections (4) and (5) must be paid by the Authorities from the date determined by the Board.

S. 23(7)

(7) The Board may at any time request a further actuarial determination as to any additional

inserted by
No. 50/1997

amount or amounts to be paid into the Fund by an s. 3.

Authority in respect of the unfunded liability of the Fund relating to that Authority.

_______________

32
Local Authorities Superannuation Act 1988

s. 24

s. 24A

Act No. 23/1988

PART 4—REVIEW OF DECISIONS OF BOARD

S. 24

amended by	24. Question as to disability determined by Board on
No. 23/1994	medical officer's report
s. 118(Sch. 1
items 32.2,	(1) If a question arises as to—
32.3),
substituted by	(a) whether a contributor is suffering disability;
No. 64/1995
s. 9.	or

(b) whether the disability is due to his or her fault—
the question is to be determined by the Board (whether before or after the retirement of the contributor on the ground of disability) after considering, among other things, reports from at
least 2 registered medical practitioners appointed by the Board as medical officers for the purposes of this Act.
(2) After the Board receives the reports from the

medical officers and has made a determination on
the question which is adverse to the contributor,
the contributor has the right to require the Board
to review its determination and obtain a further
report from—

(a)

a registered medical practitioner mutually agreed upon by the contributor and the Board; or

(b)

if the contributor and the Board do not agree, a registered medical practitioner appointed by the Minister.

S. 24A

inserted by	24A. Settlement of disputes
No. 64/1995
s. 9.	(1) Any dispute under this Act must be determined in the first place by the Board.
(2) Any person aggrieved by a decision of the Board may apply to the Administrative Appeals Tribunal for a review of the decision.

33
Local Authorities Superannuation Act 1988

Act No. 23/1988

_______________

34
Local Authorities Superannuation Act 1988

s. 25

Act No. 23/1988

PART 5—CONTRIBUTIONS

25. Contribution rates
(1) Subject to sub-sections (2) and (3), a contributor and the employing Authority of that contributor must make contributions to the Fund at the
following rates:

S. 25(1)(a)

substituted by	(a) in the case of the contributor, at the rate not
No. 64/1995	exceeding 7·5 percent of his or her salary as
s. 10(1).	is elected by the contributor;

(b) in the case of the Authority, at a rate equal
to—
(i) on and from 1 March 1988, 11·75 per

cent of the salary of the contributor;
and

(ii) on and from 1 March 1989, 13·25 per

cent of the salary of the contributor;
and

(iii) on and from 1 March 1990, at a rate which is determined by the Board in accordance with section 23(4) and (5)
(whether being a percentage of a
contributor's salary or a fixed amount).

S. 25(1)(c)

inserted by	(c) in the case of an employing Authority
No. 64/1995	declared by the Minister by notice published
s. 11.	in the Government Gazette for the purposes of this paragraph, at a rate determined by the Board on the advice of an actuary appointed by the Board.
S. 25(2)
substituted by	(2) A contributor can only elect to contribute at a rate
No. 64/1995	equal to 7·5 per cent of his or her salary if
s. 10(2).	contributing at that rate will not result in the average of the contributor's contribution rates exceeding 6 per cent of salary for the period of

35
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 25
service of the contributor commencing on 1 July
1995.

S. 25(3)

(3) A contributor may elect to change his or her rate of contribution on the day or days in any calendar

substituted by
No. 64/1995

year fixed by the Board as the day or days on s. 10(2).
which contributors or a class of contributors of
which he or she is a member may elect to change
their rate of contribution.
S. 25(3A)

(3A) Until a contributor has made an election in a manner approved by the Board, he or she is to be

inserted by
No. 64/1995

treated as having elected to contribute at 6 percent s. 10(2).
of his or her salary.
S. 25(3B)

(3B) An election continues in force until another election is made in accordance with this section.

inserted by
No. 64/1995

s. 10(2). S. 25(3C)

(3C) A changed contribution is payable as from and inclusive of the pay day on or next following the

inserted by
No. 64/1995

day being 2 months after the day fixed under sub- s. 10(2).
section (3).
S. 25(4)

(4) Despite anything to the contrary in this section, if by agreement (whether made before or after the

inserted by
No. 49/1992

commencement of section 61 of the s. 61.
Superannuation (Occupational
Superannuation Standards) Act 1992) between
a contributor and his or her employing Authority a
contributor is required to make a contribution at a
rate of less than 6 per cent of the contributor's
salary, the employing Authority must make
contributions at a rate determined by the Board
and the contributor is relieved of any liability to
make a contribution in excess of the rate agreed
between the contributor and the employing
Authority.

36
Local Authorities Superannuation Act 1988

s. 26	Act No. 23/1988
S. 25(5)	(5) If an agreement is in force under sub-section (4)
inserted by
No. 49/1992	and despite anything to the contrary in the
s. 61,	agreement—
substituted by
No. 4/1996	(a) the contributor is deemed to have elected to
s. 44.	make contributions to the Fund which are not less than the contributions required of the contributor under a law of the Commonwealth of Australia; and

(b)

the contributions are to be made by deductions from the salary of the contributor.

S. 26

amended by	26. Length of contribution period
No. 120/1994
s. 27(c).	A person ceases to be a contributor after—

(a) that person attains the age of 65 years; or

S. 26(b)

substituted by	(b) the person becomes entitled to the maximum
No. 64/1995	accrued retirement benefit specified in
s. 12.	section 32(4A).

(c) that person ceases to be an employee—
whichever occurs first.
27. Payment of contributions
(1) An Authority must pay to the Board, within 21

days after the date or dates specified by the Board,
the contributions due to the Board under section
25 in respect of each employee of the Authority.

(2) The Authority must pay to the Board the

(3) If an Authority fails to pay or is late in paying any contributions in respect of an employee until the longer employed by the Authority.
contribution due to the Board, the Board may
require the Authority to pay to the Board—
(a) the amount of the contribution which is unpaid or overdue; and

37
Local Authorities Superannuation Act 1988

Act No. 23/1988

(b) interest at the rate for the time being fixed under section 2 of the Penalty Interest

S. 27(3)(b)
substituted by
No. 4/1996

Rates Act 1983 on the amount remaining s. 43.

38
Local Authorities Superannuation Act 1988

s. 27A

Act No. 23/1988

unpaid from the date on which it became
payable until the date on which it is paid to
the Board.
(4) In respect of any interest referred to in sub-section
(3)—
(a) the Board may recover that interest in the

same manner as it may recover any
contributions; and

(b) the Authority which is required to pay that

interest must not charge it to the employee in
respect of whom it is due; and

(c) the Board may waive the payment of any or all of the interest by the Authority.
(5) An Authority which has paid any contribution in
respect of an employee may deduct the amount of that contribution for which the employee is liable under section 25 by regular equal instalments
from any regular payments of salary or other sums
due to the employee from the Authority.

(6) If an Authority is unable to recover any amount of

a contribution by instalments from an employee
under sub-section (5), the Authority may sue and
recover that amount from the employee.

S. 27A

inserted by	27A. Payments into Fund by Authority
No. 50/1997

s. 4.

(1) Subject to sub-section (3), the Board may

into the Fund by an Authority or a class of

determine the additional contributions to be paid under section 23(7).

(2) Contributions under sub-section (1) may be calculated—
(a) as a percentage or percentages of salary; or

(b)

as a multiple or multiples of an employee's or former employee's contribution; or

39
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 28

(c)

as a proportion or proportions of the benefit paid or payable; or
(d) as a fixed amount or lump sum; or

(e) by any combination of the methods specified in paragraphs (a), (b), (c) and (d).
(3) A determination of the Board under this section has no effect unless the determination has been approved by the Minister.
(4) An Authority must pay its contributions in the manner and on such dates as are determined by the Board in respect of that Authority or the class
of Authority of which the Authority is a member. (5) If an Authority does not within 14 days after an
amount has become payable pay the whole of that
amount to the Board, the Authority must pay
interest at the rate for the time being fixed under
section 2 of the Penalty Interest Rates Act 1983
on the amount remaining unpaid from the date on
which it became payable until the date on which it
is paid to the Board.

28. Changes in salary
If an employee's salary is increased, the Authority must notify the Board, within 14 days after the increase, of the increase.

29. Authority to notify Board of changes with respect to employees
An Authority must notify the Board of any of the following events, within 14 days after that event—
(a) a person becoming an employee of the
Authority;
(b) the resignation, retirement, dismissal or

death of an employee of the Authority;

40
Local Authorities Superannuation Act 1988

s. 29A

Act No. 23/1988

(c) a change of address or of the conditions of employment or position of an employee of the Authority.

S. 29A

inserted by	29A. Board to maintain separate records
No. 64/1995
s. 13.	The Board must ensure that separate accounting records in a manner and form approved by the Minister are kept in relation to the benefits and contributions of the persons employed by—

(a)

an employing Authority declared under section 25(1)(c); and

(b)

any other employing Authority which has requested that the Board keep separate accounting records.

_______________

41
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 30

PART 6—MEDICAL EXAMINATIONS AND
CLASSIFICATION

30. Board may require information or examination for purposes of classification
(1) The Board may at any time require any
employee—
(a) to provide the Board with a personal

statement or other information, verified as
the Board requires, containing details about
his or her age, occupation, background,
health and any other matters which the
Board considers it necessary to contain; and

(b) if the employee so authorises, to provide the Board with a report on the employee by the employee's own treating doctor; and

S. 30(1)(c)

(c) to undergo any medical examinations by registered medical practitioners nominated

amended by

No. 23/1994 s. 118(Sch. 1

by the Board which are considered necessary item 32.4).
by the Board.
(2) The Board must from time to time determine the classes into which contributors may be classified under this Act and must publish notice of the
determination in the Government Gazette. (3) The Board may alter or revoke a determination
and must publish notice of the alteration or
revocation in the Government Gazette.

(4) If an alteration or revocation of a determination includes a reduction in benefits for persons in a certain class of contributors, the notice in the
Government Gazette must specify details of the percentage reductions in those benefits.

(5) The Board must as soon as possible after receiving the initial statement or information and

42
Local Authorities Superannuation Act 1988

s. 31

Act No. 23/1988

causing any initial medical examination to be conducted notify the employee of the class of contributors to which the Board has assigned that
person.
(6) The Board may at any time—
(a) reassign a contributor to another class of contributors from a specific date; and
(b) accordingly make any necessary adjustments to the benefits regarding that contributor.

(7) If an employee provides the Board with a personal

statement or other information which is
fraudulently untrue in any material particular—

(a) the contributor is not entitled to make any
claims to any assets of the Board; and
(b) the Board may keep any contributions
already paid to it in respect of that
contributor.

31. Authorities must not contribute to other schemes

An Authority must not make any payments under any arrangement for the provision of superannuation benefits to its employees other than payments under this Act unless—
(a) the payment is to the Board; or
(b) the Minister approves of the payment either

generally or specifically.

_______________

43
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 32

PART 7—BENEFITS

32. Benefit on retirement
(1) A contributor is entitled to a benefit on retirement on or after attaining the age of 55 years.

S. 32(2)

(2) For the period of service until 1 July 1993, the accrued retirement benefit of a contributor is 21

amended by
No. 64/1995

per cent of the adjusted final salary of the s. 14(1).
contributor for each year or an amount calculated
under sub-section (3) for each part of that
contributor's service.

(3) In calculating a part year of service for the

purposes of sub-section (2), the calculation must
be by the day, with each additional day being a
fractional increase.

S. 32(3A)

(3A) For the period of service after 1 July 1993, the accrued retirement benefit of a contributor is the

inserted by
No. 64/1995

sum of— s. 14(2).

(a)

8·5 percent of the adjusted final salary of the contributor for each year in which he or she has not contributed to the Fund; and

(b)

13 percent of the adjusted final salary of the contributor for each year in which he or she contributed 3 percent of salary to the Fund; and

(c)

18·5 percent of the adjusted final salary of the contributor for each year in which he or she contributed 6 percent of salary to the Fund; and

(d)

21·5 percent of the adjusted final salary of the contribution for each year in which he or she contributed 7·5 percent of salary to the fund.

44
Local Authorities Superannuation Act 1988

s. 33

Act No. 23/1988

S. 32(4)

(4) For the purposes of section 33, the accrued

amended by

No. 64/1995

retirement benefit of a contributor must not

s. 14(3).

exceed a maximum of 8·4 times the adjusted final
salary of the contributor.

S. 32(4A)

inserted by

(4A) The accrued retirement benefit of a contributor for

No. 64/1995

any other purpose must not exceed the adjusted

s. 14(4).

final salary of the contributor multiplied by

ACM



(8

⋅ −

4

ACM)

18 5

⋅



+ ×

 

1  1 21 
where ACM is the multiple determined in
accordance with sub-section (2).

(5) A benefit under this section does not continue to accrue after 65 years of age.

33. Benefit on death of contributor before retirement

(1) On the death of a contributor before retirement the
Board must pay to his or her legal personal representative a lump sum equal to the sum of—
(a) the contributor's accrued retirement benefit

calculated under section 32 as if the
contributor's date of death were the date of
his or her retirement; and

(b) 21 per cent of the adjusted final salary of the

contributor multiplied by the number of
years as a contributor remaining to the
contributor before he or she would have
attained the age of 60 years.

(2) The sum referred to in sub-section (1)(b) may be
reduced by the Board on the basis of medical classification by the percentage specified in a notice under section 30(4), if the deceased
contributor's medical classification is not the top
classification.

(3) If any lump sum payable under this section is less than the amount specified by the Minister in a

45
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 34
notice published in the Government Gazette for
the purposes of this section, sub-section (4)
applies.
(4) If the legal personal representative makes a

statutory declaration and produces any other
evidence required by the Board of that person's
entitlement to claim under this section, the Board
may pay to that person the amount specified in the
Minister's notice.

(5) A payment under sub-section (4) is valid with respect to any claim against the Board by any other persons claiming an interest in relation to
the deceased contributor, but does not affect any
right of those persons to recover the whole or any
part of the payment from the legal personal
representative.

S. 33(6)

(6) A written acknowledgment of receipt of a payment under sub-section (4) is a release to the

amended by
No. 120/1994

Board from any obligation to pay any further s. 27(d).
amounts in respect of the deceased contributor.

34. Benefit on retirement through disability

(1) If a contributor retires or is retired with the

Board's consent on the ground of disability, the contributor is entitled to have a disability retirement benefit calculated in accordance with section 33 credited to a disability beneficiary account together with any benefits from an additional benefits contract.
(2) If, on application by a contributor or his or her

employing authority at any time before or within 6
months after the contributor ceases employment,
the Board is satisfied that that person was
suffering from a disability on or before the date on
which that person ceased employment, that person
becomes a disability beneficiary.

46
Local Authorities Superannuation Act 1988

s. 34

Act No. 23/1988

(3) The Board must keep a beneficiary's account for each disability beneficiary and must credit to that account—
(a) any amounts referred to in sub-section (1);
and

(b) interest on the amounts in the account at a
rate calculated from time to time by the the earning rate of the Fund for this purpose; and
(c) any other amounts determined by the Board on the advice of an actuary.

(4) Any payment to the disability beneficiary under

this section must be debited against the
beneficiary's account.

S. 34(5)

amended by	(5) The Board must pay from a beneficiary's account
No. 64/1989	to the beneficiary or any other person as the Board
s. 36(2)(a).	thinks fit on the beneficiary's behalf such instalments or a single payment as may be decided by the Board.

(6) When the balance in a beneficiary's account is

reduced to zero, the Board is discharged from any
liability to make further payments to the
beneficiary.

(7) When a disability beneficiary attains the age of 65

years, he or she is entitled to receive any balance
in his or her account.

(8) If a disability beneficiary dies before attaining the

age of 65 years, that beneficiary's legal personal
representative is entitled to receive any balance in
the beneficiary's account.

47
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 34
(9) The Board may at any time review the question as

to whether a disability beneficiary who is in
receipt of disability benefits is still suffering from
a disability.

(10) If the Board determines that the disability

beneficiary is capable of gainful employment, it
may—

(a) continue the existing benefits; or (b) increase the existing benefits; or (c) reduce the existing benefits; or
(d) discontinue the existing benefits.

S. 34(11)

* * * * * repealed by No. 4/1996
s. 45.
(12) A determination to reduce the existing benefits

does not take effect for a period of 3 months after
the date of the determination.

(13) If the Board decides that a disability beneficiary is

again able to be employed by the employing
Authority and if—

(a) he or she is offered employment by that
Authority at a salary not less than five-sixths of the salary (at the time of the offer) for the grade in which he or she was employed

(b) he or she is offered employment by that
immediately before ceasing employment, the Authority for the commencement of the employment (whether or not the person accepts that employment) cancel the disability benefits; or

Authority at a salary less than five-sixths of the salary (at the time of the offer) for the grade in which he or she was employed immediately before ceasing employment, the

48
Local Authorities Superannuation Act 1988

s. 34A

Act No. 23/1988

Board may pay to the beneficiary that part of his or her benefits which is necessary to raise the total of his or her salary and benefits to
five-sixths of the salary (to the extent that
the benefits allow).

S. 34(14)(15)	*	*	*	*	*
repealed by No. 64/1989 s. 36(2)(b).
S. 34A

inserted by	34A. Temporary benefit
No. 82/1996
s. 37.	(1) This section applies if the Board determines that a contributor who has applied under section 34 to retire on the ground of disability is likely to substantially recover from injury, disease or infirmity.
(2) The Board is to pay the contributor a benefit calculated in accordance with section 34 for a limited period not exceeding 2 years from the date that the Board makes its

determination under sub-section (1) and
sections 34(1), 34(3) and 34(4) apply
accordingly.
(3) The amount of the benefit payable to the

contributor during the limited period must
not exceed the annual rate determined by
dividing the opening balance in his or her
beneficiary's account by 12.

(4) The Board must within 12 months of making

its determination under sub-section (1)
conduct a review to determine whether—

(a) sub-section (1) still applies; or

(b)

the contributor is suffering from a disability and may retire on the ground of disability; or

49
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 34A

(c) the contributor is suffering from ill health and may retire on the ground of ill health; or
(d) the contributor is not suffering from disability or ill health.
(5) If sub-section (4)(a) applies, the Board must

conduct a further review not later than 2
months before the expiry of the limited
period.

(6) If sub-section (4)(b) applies, the contributor
is entitled to a benefit under section 34 calculated on the balance of his or her beneficiary's account as at the date the review is determined.
(7) If sub-section (4)(c) applies, the contributor is entitled to a benefit equal to the lesser of the amount calculated in accordance with
section 37 or the amount of his or her beneficiary's account as at the date of retirement.
(8) If sub-section (4)(d) applies, the contributor

ceases to be entitled to a benefit under this
section.

(9) If the contributor fails to comply with a
requirement by the Board to attend a medical examination or to provide information to the Board required by the Board so as to
determine whether the contributor is still suffering from a disability or is gainfully employed, the Board may by notice in
writing to the contributor suspend payment
of the benefit.
(10) If the contributor has not complied with a

requirement under sub-section (9) within 30
days of being served with a notice of

50
Local Authorities Superannuation Act 1988

s. 35

Act No. 23/1988

suspension, the Board may by further notice in writing to the contributor cancel payment of the benefit.
(11) The Board may at a further review determine
that—

(a)

the contributor is suffering from a disability and may retire on the ground of disability; or

(b)

the contributor is suffering from ill health and may retire on the ground of ill health; or

(c)

the contributor is not suffering from disability or ill health.
(12) If sub-section (11)(a) applies, the contributor
is entitled to a benefit under section 34 calculated on the balance of his or her beneficiary's account as at the date the review is determined.
(13) If sub-section (11)(b) applies, the contributor

is entitled to a benefit equal to the lesser of
the amount calculated in accordance with
section 37 or the amount of his or her
beneficiary's account as at the date of
retirement.

(14) If sub-section (11)(c) applies, the contributor

ceases to be entitled to a benefit under this
section.

35. Benefit on retrenchment
A contributor who is retrenched is entitled to a benefit equal to the amount of the accrued retirement benefit of that person calculated under section 32.

36. Benefit on resignation

51
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 36
(1) If a contributor resigns, he or she is entitled to an amount equal to the sum of—

S. 36(1)(a)

(a) for the period of service until 1 July 1993, 15 per cent of the adjusted final salary of the

amended by
No. 64/1995

contributor for each year or an amount s. 15(a)(c).
calculated under sub-section (3) for each part
year of that contributor's service (excluding
the 5 years of service immediately prior to
resignation); and
S. 36(1)(ab)

(ab) for the period of service after 1 July 1993— (i) 7·5 percent of the adjusted final salary inserted by No. 64/1995
s. 15(b).
of the contributor for each year or an amount calculated under sub-section (3) for each part of that contributor's service (excluding the 5 years of
service immediately prior to
resignation) in which he or she has not
contributed to the Fund; and

(ii)
10·5 percent of the adjusted final salary amount calculated under sub-section (3) for each part of that contributor's service (excluding the 5 years of service immediately prior to resignation) in which he or she has contributed 3 percent of salary to the Fund; and

(iii)
13·5 percent of the adjusted final salary amount calculated under sub-section (3) for each part year of that contributor's service (excluding the 5 years of service immediately prior to resignation) in which he or she has contributed 6 percent of salary to the Fund; and

52
Local Authorities Superannuation Act 1988

s. 36

Act No. 23/1988

(iv) 15 percent of the adjusted final salary of the contributor for each year or an amount calculated under sub-section (3) for each part year of that
contributor's service (excluding the 5 years of service immediately prior to resignation) in which he or she has

contributed 7·5 percent of salary to the
Fund; and

(b) 9 per cent of the adjusted final salary of the

contributor for the 5 years of the
contributor's service immediately prior to
resignation; and

S. 36(1)(c)

amended by	(c) if the contributor's service immediately prior cent of the adjusted final salary of the contributor for each year or an amount calculated under sub-section (3) for each part
No. 64/1995	to resignation was less than 5 years, 9 per
s. 15(c).
year of that contributor's service immediately prior to resignation.

(2) In respect of a person classified under the Local
Authorities Superannuation Act 1958 immediately before the repeal of that Act as class 3, the Board, on the advice of an actuary, may approve the payment of benefits additional to those referred to in sub-section (1)(a), (b) and (c).

(3) In calculating a part year of service for the

purposes of sub-section (1), the calculation must
be by the day, with each additional day being a
fractional increase.

S. 36(4)

substituted by	(4) The Board must pay the benefit calculated in
No. 82/1996	accordance with sub-sections (1), (2) and (3) less
s. 38(1).	the amount required to be preserved in accordance with the specified standards as a lump sum on resignation.

53
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 37

(5) The Board must pay the amount required to be preserved in accordance with the specified

S. 36(5)
substituted by
No. 82/1996

standards plus interest on that amount at a rate s. 38(1).

determined by the Board from time to time from the date of the contributor's resignation until the date of retirement, death or disability as specified
in sub-sections (7), (8) and (9).
S. 36(6)

(6) The Board may transfer the amount referred to in sub-section (5) to a complying superannuation

substituted by
No. 82/1996

fund.

s. 38(1). S. 36(7)

(7) The amount referred to in sub-section (5) is payable to the contributor on the request of the

substituted by
No. 82/1996

contributor to the Board at any time after ceasing s. 38(1).
to be an employee from the age of 55 years except
for that part which is subject to the specified
standards.
S. 36(8)

(8) If the person dies before attaining the age of 55 years, the legal personal representative of that

amended by
No. 82/1996

person is entitled to receive from the Board the s. 38(2).
amount referred to in sub-section (5).
S. 36(9)

(1) With the approval of the Minister, the trustees of the City of Melbourne Superannuation Fund must

s. 26.

94
Local Authorities Superannuation Act 1988

s. 53E

Act No. 23/1988

enter into an agreement with VEI Super Pty Ltd
which specifies—

(a) the liability of the City of Melbourne Superannuation Fund up to the date of transfer in respect of the entitlements of transferred MEU staff members as determined by an actuary appointed by the trustees of the City of Melbourne Superannuation Fund; and
(b) the value of assets of the City of Melbourne Superannuation Fund equal to the liability of the City of Melbourne Superannuation Fund under paragraph (a) that are to be transferred to the Victorian Electricity Industry
Superannuation Fund; and

(c)

the terms and conditions which apply to the transfer of those assets to the Victorian Electricity Industry Superannuation Fund.

(2) If agreement cannot be reached before 12

December 1994, the Minister may determine the matters specified in sub-section (1) or which are in dispute and the trustees of the City of
Melbourne Superannuation Fund and VEI Super Pty Ltd are deemed by virtue of this sub-section to have entered into an agreement containing the matters determined by the Minister.

(3) The trustees of the City of Melbourne

Superannuation Fund must transfer the assets
specified in the agreement to the Victorian
Electricity Industry Superannuation Fund.
(4) As soon as the assets have been transferred, the

assets form part of the Victorian Electricity
Industry Superannuation Fund.

S. 53E

inserted by	53E. No tax payable
No. 120/1994 s. 26.

95
Local Authorities Superannuation Act 1988

Act No. 23/1988

No stamp duty or other tax is chargeable under
any Act in respect of anything done under section
53B, 53C or 53D.

S. 53F

53F. Provisions relating to City of Melbourne inserted by

Superannuation Fund No. 64/1995
s. 23.
(1) On the commencement of section 23 of the
Superannuation Acts (General Amendment)
Act 1995—

(a) the assets and liabilities of the City of Melbourne Superannuation Fund are by virtue of this section transferred to the Fund and form part of that Fund; and
(b) the City of Melbourne Superannuation Fund ceases to exist; and
(c) the trustees of the City of Melbourne Superannuation Fund cease to hold the office of trustees; and
(d) all the members of the City of Melbourne Superannuation Fund are transferred to the Fund.

(2) Despite sub-section (1) a member of the City of Melbourne Superannuation Fund—

(a)
is entitled to receive the same benefits that had the City of Melbourne Superannuation Fund continued to exist; and

(b)

is entitled to have his or her rights and obligations determined in accordance with the provisions of the governing instrument of the City of Melbourne Superannuation Fund as in force immediately before the City of Melbourne Superannuation Fund ceased to exist.

96
Local Authorities Superannuation Act 1988

s. 53F

s. 53FA

Act No. 23/1988

(3) For the purposes of sub-section (2) the Board has

in respect of a member the duties and powers
conferred on the trustees of the City of Melbourne
Superannuation Fund by or under the provisions
of the governing instrument of the City of
Melbourne Superannuation Fund as in force
immediately before the City of Melbourne
Superannuation Fund ceased to exist.

S. 53F(3A)

inserted by	(3A) Without derogating from sub-sections (2) and (3),
No. 4/1996	sections 24 and 24A apply to and in respect of
s. 57.	transferred members.

(4) With the approval of the Minister, the Melbourne
City Council must enter into an agreement with the Board which specifies—

(a)

the liability of the City of Melbourne Superannuation Fund up to the date of transfer in respect of the entitlements of the members as determined by an actuary appointed by the Melbourne City Council; and

(b)

the extent to which the liability specified under paragraph (a) is unfunded; and

(c)

the contribution to be paid to the Fund in respect of that unfunded liability by the Melbourne City Council.

(5) The Melbourne City Council must pay the
the Board in such instalments and at such intervals
as is agreed between the Board and the Melbourne

contribution determined under sub-section (4) to determined by the Minister.

S. 53FA

inserted by	53FA. Provision relating to change of employment
No. 64/1995 s. 23.

97
Local Authorities Superannuation Act 1988

Act No. 23/1988

(1) Subject to sub-section (1A), if a member of the City of Melbourne Superannuation Fund ceases to

S. 53FA(1)
amended by
No. 4/1996

be an employee of the Melbourne City Council or s. 58(1).

the governing instrument of the City of Melbourne

of an associated employer within the meaning of employee of any other Authority (including the Melbourne City Council or an associated employer), subject to section 42, the member is from the date of commencement of employment with that Authority transferred to the Fund as a contributor with a resignation benefit and an accrued retirement benefit entitlement calculated in accordance with sub-section (2).
S. 53FA(1A)

(1A) This section does not apply if a member of the City of Melbourne Superannuation Fund ceases to

inserted by
No. 4/1996

be an employee of the Melbourne City Council so s. 58(2).
as to become an employee of—

(a) Citywide Solutions Pty Ltd A.C.N. 066960085; or
(b) a wholly owned subsidiary of the Melbourne City Council established for the sole purpose of providing services to the City of
Melbourne; or

(c) a wholly owned company in which all the equity capital is held and continues to be held by the Melbourne City Council and another Council or Councils having contiguous boundaries with the City of Melbourne and which is established for the sole purpose of providing services to all of those Councils.

(2) The resignation benefit and accrued retirement

benefit entitlement to the date of transfer of a
member transferred to the Fund under this section
are to be calculated in accordance with the

98
Local Authorities Superannuation Act 1988

s. 53G

Act No. 23/1988

provisions of the governing instrument of the City
of Melbourne Superannuation Fund and certified
by an actuary appointed by the Board after having
been translated into the corresponding benefit
entitlements under Part 7 of the Local
Authorities Superannuation Act 1988.
(3) From the date of transfer a member transferred to

the Fund under this section is entitled to receive
benefits as a contributor to the Fund.

(4) The Board must from the separate accounting

records kept in respect of the former City of
Melbourne Superannuation Fund determine—

(a) the liability up to the date of transfer in respect of a member transferred under this section; and
(b) the adjustment to be made to the value of assets shown in the accounting records equal to that liability.
(5) For the purposes of sub-section (4), the liability in respect of a transferred member is to be treated as being in the same proportion as total net assets are to the total liabilities as shown in the accounting

records at the date of the transfer.

S. 53G

inserted by	53G. Provisions relating to Melbourne Parks and
No. 64/1995	Waterways
s. 23.
(1) On the commencement of section 23 of the

Superannuation Acts (General Amendment) Act 1995 an employee of Melbourne Parks and Waterways who immediately before that

99
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 53G
commencement is a member of the Melbourne Water Corporation Employees' Superannuation Fund is transferred to the Fund.
(2) Despite the transfer of a member under this section to the Fund—

(a) the member is entitled to receive the same benefits that he or she would have been entitled to receive had he or she not been so transferred; and
(b)
rights and obligations determined in
accordance with the provisions of the
governing instrument of the Melbourne
Water Corporation Employees'
the member is entitled to have his or her immediately before the transfer.

(3) For the purposes of sub-section (2) the Board has
conferred on the trustees of the Melbourne Water

in respect of a member the duties and powers or under the provisions of the governing instrument of the Melbourne Water Corporation Employees' Superannuation Fund as in force immediately before the transfer.

S. 53G(3A)

(3A) Without derogating from sub-sections (2) and (3), sections 24 and 24A apply to and in respect of

inserted by
No. 4/1996

transferred members. s. 59.

(4) With the approval of the Minister, the trustees of

the Melbourne Water Corporation Employees' agreement with the Board which specifies—

(a)

the liability of the Melbourne Water Corporation Employees' Superannuation Fund up to the date of transfer in respect of transferred members under this section; and

100
Local Authorities Superannuation Act 1988

s. 53GA

Act No. 23/1988

(b)
Corporation Employees' Superannuation
Fund equal to the liability of the Melbourne
Water Corporation Employees'
the value of assets of the Melbourne Water that are to be transferred to the Fund; and

(c) the terms and conditions which apply to the transfer of these assets to the Fund.
(5) For the purposes of sub-section (4), the liability in respect of each transferred member is to be treated as being in the same proportion as total net assets
of the Melbourne Water Corporation Employees' Superannuation Fund are to the total liabilities of the Melbourne Water Corporation Employees'
Superannuation Fund.

(6) If agreement cannot be reached within 3 months
of the commencement of section 23 of the Act 1995, the Minister may determine the matters specified in sub-section (4) or which are in dispute and the trustees of the Melbourne Water Corporation Employees' Superannuation Fund and the Board are deemed by virtue of this sub-section to have entered into an agreement containing the matters determined by the Minister.
(7) The trustees of the Melbourne Water Corporation

Employees' Superannuation Fund must transfer
the assets specified in the agreement to the Fund.

(8) As soon as the assets have been transferred the assets form part of the Fund.

S. 53GA

inserted by

53GA. Provision relating to change of employment

No. 64/1995

s. 23.

(1) If a person to whom section 53G applies ceases to

be an employee of Melbourne Parks and
Waterways so as to become an employee of an
Authority (other than Melbourne Parks and

101
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 53GA
Waterways), subject to section 42, the person becomes from the date of commencement of employment with the Authority a contributor with
a resignation benefit and an accrued retirement
benefit entitlement calculated in accordance with
sub-section (2).
(2) The resignation benefit and accrued retirement

benefit entitlement to the date of becoming a
contributor to the Fund under this section are to be
calculated in accordance with the provisions of
the governing instrument of the Melbourne Water
Corporation Employees' Superannuation Fund and
certified by an actuary appointed by the Board
after having been translated into the
corresponding benefit entitlements under Part 7 of
the Local Authorities Superannuation Act
1988.

(3) From the date of becoming a contributor under

this section a person is entitled to receive benefits
as a contributor to the Fund.

(4) The Board must from the separate accounting

records kept in respect of employees of the Fund under section 53G determine—

(a) the liability up to the date of becoming a contributor in respect of a person to whom this section applies; and
(b) the adjustment to be made to the value of assets shown in the accounting records equal to that liability.

(5) For the purposes of sub-section (4), the liability in respect of a person to whom this section applies is to be treated as being in the same proportion as
total net assets are to the total liabilities as shown in the accounting records at the date of becoming a contributor.

102
Local Authorities Superannuation Act 1988

s. 53GB	Act No. 23/1988
S. 53GB	53GB. Contribution by Melbourne Parks and Waterways
inserted by
No. 64/1995	(1) The Board must on the advice of an actuary
s. 23.	appointed by the Board determine—

(a) the extent to which the liability specified under section 53G(4)(a) is unfunded; and
(b) the contribution to be paid to the Fund in respect of that unfunded liability by Melbourne Parks and Waterways in respect of employees transferred to the Fund under section 53G.
(2) For the purposes of sub-section (1), the liability in

respect of each transferred employee is to be
treated as being in the same proportion as total net
assets of the Fund are to total liabilities of the
Fund.

(3) Melbourne Parks and Waterways must pay the
the Board in such instalments and at such intervals
as is agreed between the Board and Melbourne

contribution determined under sub-section (1) to agreement, as is determined by the Minister.

S. 53H

inserted by	53H. Provisions relating to certain water authorities
No. 64/1995
s. 23.	(1) In this section, "water authority" means— (a) the Melbourne Water Corporation; (b) City West Water Ltd; (c) South East Water Ltd; (d) Yarra Valley Water Ltd.
(2) On the commencement of section 23 of the

Superannuation Acts (General Amendment) Act 1995 an employee of a water authority who immediately before that commencement is a

103
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 53H
contributor to the Fund is transferred to the Melbourne Water Corporation Employees' Superannuation Fund.
(3) Despite the transfer of a member under this section to the Melbourne Water Corporation Employees' Superannuation Fund—

(a)

the member is entitled to receive the same benefits that he or she would have been entitled to receive had he or she not been so transferred; and

(b)

the member is entitled to have his or her rights and obligations determined in accordance with the Local Authorities Superannuation Act 1988 as in force immediately before that transfer.

(3A) For the purposes of sub-section (3) the trustees of

the Melbourne Water Corporation Employees' the duties and powers conferred on the Board by or under the Local Authorities Superannuation Act 1988 as in force immediately before the transfer.

S. 53H(3B)

(3B) On the commencement of section 60 of the inserted by

Superannuation Acts (Amendment) Act 1996 No. 4/1996
sub-sections (3)(b) and (3A) apply as if after s. 60.
"1988" there was inserted "(other than sections
24 and 24A)".

(4) With the approval of the Minister, the Board must

enter into an agreement with the trustees of the
Melbourne Water Corporation Employees'
Superannuation Fund which specifies—

(a) the liability of the Fund up to the date of transfer in respect of the entitlements of transferred members as determined by an
actuary appointed by the Board; and

104
Local Authorities Superannuation Act 1988

s. 53HA

Act No. 23/1988

(b) the value of assets of the Fund equal to the liability of the Fund under paragraph (a) that are to be transferred to the Melbourne Water Corporation Employees' Superannuation Fund; and
(c) the terms and conditions which apply to the transfer of these assets to the Melbourne Water Corporation Employees' Superannuation Fund.
(5) For the purposes of sub-section (4), the liability in respect of each transferred member is to be treated as being in the same proportion as total net assets
of the Fund are to the total liabilities of the Fund.
(6) If agreement cannot be reached within 3 months

(7) The Board must transfer the assets specified in the of the commencement of section 23 of the Act 1995, the Minister may determine the matters specified in sub-section (4) or which are in dispute and the Board and the trustees of the Melbourne Water Corporation Employees' Superannuation Fund are deemed by virtue of this sub-section to have entered into an agreement containing the matters determined by the Minister.
agreement to the Melbourne Water Corporation
Employees' Superannuation Fund.
(8) As soon as the assets have been transferred the

assets form part of the Melbourne Water
Corporation Employees' Superannuation Fund.

S. 53HA

inserted by

53HA. Provision relating to change of employment

No. 64/1995

s. 23.

(1) If a person to whom section 53H applies ceases to

be an employee of a water authority so as to
become an employee of another water authority,
subject to section 42, the person becomes from the
date of commencement of employment with the

105
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 53HA

other water authority a member of the Melbourne retirement benefit entitlement calculated in accordance with sub-section (2).
Water Corporation Employees' Superannuation
(2) The resignation benefit and accrued retirement
benefit entitlement to the date of becoming a member of the Melbourne Water Corporation Employees' Superannuation Fund under this
section are to be calculated in accordance with the Local Authorities Superannuation Act 1988 and certified by an actuary appointed by the trustees of the Melbourne Water Corporation Employees'
Superannuation Fund after having been translated into the corresponding benefit entitlements under Section B of the governing instrument of the
Melbourne Water Corporation Employees'
Superannuation Fund.

(3) From the date of becoming a member of the

Melbourne Water Corporation Employees'
Superannuation Fund under this section a person
is entitled to receive benefits as a member of the
Fund.

(4) The trustees of the Melbourne Water Corporation
Employees' Superannuation Fund must from the separate accounting records kept in respect of employees of a water authority transferred to the Fund under section 53H determine—

(a)

the liability up to the date of becoming a member in respect of a person to whom this section applies; and

(b)

the adjustment to be made to the value of assets shown in the accounting records equal to that liability.

(5) For the purposes of sub-section (4), the liability in
respect of a person to whom this section applies is

106
Local Authorities Superannuation Act 1988

s. 53I

Act No. 23/1988

to be treated as being in the same proportion as
total net assets are to the total liabilities as shown
in the accounting records at the date of becoming
a member.

S. 53I

inserted by	53I. Provisions relating to transfer of assets and liabilities
No. 64/1995
s. 23.	No stamp duty or other tax is payable under any Act in respect of anything done under section 53F, 53G or 53H.

_______________

107
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 54

PART 9—REGULATIONS

S. 54

54. Regulations generally

amended by No. 49/1992

(1) The Governor in Council may, on the s. 67(a).
recommendation of the Board, make regulations
prescribing all matters required or permitted or
necessary to be prescribed, and in particular for or
with respect to—
(a) forms to be used for the purposes of this Act;
and
(b) making provision for the benefits to be paid to certain persons; and

(c) the times when contributions become

payable and the payment of interest on late
contributions; and

(d) the keeping of separate accounting records about the benefits and contributions of the employees of each Authority; and
(e) providing for payments by the Board to pensioners who resume employment.

S. 54(2)

*

*

*

*

*

inserted by No. 49/1992
s. 67(b),

repealed by No. 4/1996

s. 40(4). S. 54(3)

(3) Regulations made under this Act may be inserted by

disallowed in whole or in part by resolution of No. 49/1992
s. 67(b),
either House of Parliament in accordance with the amended by
requirements of section 6(2) of the Subordinate No. 4/1996
Legislation Act 1962. s. 40(5).

108
Local Authorities Superannuation Act 1988

s. 55

Act No. 23/1988

* * * * *

S. 54(4)
inserted by
No. 49/1992
s. 67(b),
repealed by
No. 4/1996

s. 40(4).

55. Regulations under section 54

Regulations made under section 54—

(a) may be of general or limited application; and
(b) may differ according to differences in time,

place or circumstance; and

(c) may impose penalties not exceeding five penalty units for a contravention of or an offence under the regulations; and
(d) may apply, adopt or incorporate (with or without modification)—
(i) the provisions of any document, code, standard, rule, specification or method formulated, issued, prescribed or
published by any person or body
whether as formulated, issued,
prescribed or published at the time the
regulations are made, or at any time
before then; or

(ii) the provisions of any Act of the
Commonwealth or of another State or of a Territory or any matter contained in an Index published by the
Commonwealth or of another State or of a Territory or any matter contained in an Index published by the
Commonwealth Statistician or the
provisions of any subordinate
instrument under any such Act, whether
wholly or partially or as amended by
the regulations or as in force or

109
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 55
published at a particular time or from
time to time; and
(e) may leave any matter or thing to be from

time to time determined, applied, dispensed
with or regulated by the Board; and

(f) may confer powers or impose duties in connection with the regulations on the Board.

_______________

110
Local Authorities Superannuation Act 1988

s. 56

Act No. 23/1988

PART 10—TRANSITIONAL

56. Board under Local Authorities Superannuation Act 1958 to continue

(1) Despite the repeal of the Local Authorities
treated as if it is the same body as the Local
Authorities Superannuation Board under the
Superannuation Act 1958, the Board must be no act, matter or thing is abated or affected by the repeal.
(2) The persons at the date of coming into operation
of this section who are members of the Board under that Act are the members of the Board under section 9 of this Act as if they had been
appointed under that section.

(3) The person who immediately before the repeal of the Local Authorities Superannuation Act 1958 is the President of the Local Authorities
Superannuation Board under the Local President of the Board under this Act as if that person had been appointed as President under section 9(2).

57. Transfer of assets and liabilities to the Fund
(1) On and from the commencement of this section
the following funds and accounts under the Local Authorities Superannuation Act 1958 are closed and their assets and liabilities immediately before the commencement of this section are transferred to the Fund and form part of the Fund—
(a) the Local Authorities (Employés) Insurance Account and any accounts subsidiary to it which are kept by the Board for the payment of premiums;

111
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 58
(b) the Local Authorities Benefits Contracts Account and the beneficiaries' accounts maintained within it;
(c) the Employees' Fund; (d) the Authorities' Fund; (e) the Pensions Fund;
(f) the Contingent Account.
(2) The Stamps Act 1958 and Financial Institutions
Duty Act 1983 do not apply to that transfer of assets and liabilities.

(3) On and from the commencement of this section,
the Local Authorities (Superannuation) Management Account under the Local Authorities Superannuation Act 1958 becomes
the Management Account of the Board under
section 19, and its assets and liabilities form part
of that Account.

58. Accrued rights under the Local Authorities Superannuation Act 1958
(1) Subject to this Act, the repeal of the Local Authorities Superannuation Act 1958 does not affect the entitlement or future entitlement of persons to pensions or other benefits under that Act and those entitlements continue under this Act, as if they were entitlements under this Act.
(2) Regulations made under this Act may make provision in relation to the entitlements referred to in sub-section (1), but not so as to disadvantage the persons with those entitlements.

112
Local Authorities Superannuation Act 1988

s. 59

Act No. 23/1988

59. Employees of Authorities under the Local Authorities Superannuation Act 1958
(1) This section applies to a person who, immediately before the commencement of this section— (a) was a permanent employee within the
meaning of the Local Authorities
Superannuation Act 1958; and
(b) whose employing Authority under that Act
was—
(i) any harbor board constituted under the
Harbor Boards Act 1958; or

(ii) the Victorian Dairy Industry Authority;
or

(iii) the Victorian Fishing Industry Council.

(2) A person to whom this section applies must be treated as if that person is a contributor for the purposes of this Act, and the employing Authority
of that person must be treated as if it is an an Order under paragraph (o) of the definition of "Authority" in section 3, only in relation to that person).

60. Additional benefits contracts

(1) If at the commencement of this section a

permanent employee within the meaning of the an additional benefits contract under that Act, the Board must credit the funds held in respect of that contract (the amount of which are determined by the Board on the advice of an actuary) to an interest bearing account under section 44.

113
Local Authorities Superannuation Act 1988

Act No. 23/1988 s. 60
(2) Any death or disability benefits which are payable in respect of an additional benefits contract under the Local Authorities Superannuation Act 1958 before its repeal must not be less than the amount payable if the contributor died or became disabled immediately before that repeal.

—————————

Pt 11

* * * * * (Heading and
s. 61)

repealed by No. 120/1994 s. 27(g).

═══════════════

114
Local Authorities Superannuation Act 1988

Notes

Act No. 23/1988

NOTES

1. General Information
Minister's second reading speech— Legislative Assembly: 14 April 1988 Legislative Council: 5 May 1988
The long title for the Bill for this Act was "A Bill to re-enact with changes the law relating to local authorities superannuation, to repeal the Local Authorities Superannuation Act 1958 and certain other Acts, to amend certain Acts and for other purposes.".

The Local Authorities Superannuation Act 1988 was assented to on
17 May 1988 and came into operation as follows:
Parts 1, 7 on 1 September 1987: s. 2(2); rest of Act on 25 May 1988:
Government Gazette 25 May 1988 p. 1458.

115
Local Authorities Superannuation Act 1988

Act No. 23/1988 Notes
2. Table of Amendments

This Version incorporates amendments made to the Local Authorities
Superannuation Act 1988 by Acts and subordinate instruments.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Local Government (Consequential Provisions) Act 1989, No. 12/1989

Assent Date: 9.5.89
Commencement Date: S. 4(1)(Sch. 2 item 72.1) on 1.10.92: Government
Gazette 23.9.92 p. 2789
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Accident Compensation (General Amendment) Act 1989, No. 64/1989

Assent Date: 29.9.89
Commencement Date: S. 36(2) on 1.7.90: Government Gazette 21.2.90
p. 518
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Water (Consequential Amendments) Act 1989, No. 81/1989

Assent Date: 5.12.89
Commencement Date: 1.11.90: Government Gazette 15.8.90 p. 2473
Current State: All of Act in operation
Superannuation (Occupational Superannuation Standards) Act 1992,
No. 49/1992

Assent Date: 30.6.92
Commencement Date: 30.6.92: Special Gazette (No. 31) 30.6.92 p. 2
Current State: All of Act in operation
Superannuation (Compliance) Act 1993, No. 54/1993

Assent Date: 8.6.93
Commencement Date: Ss 5, 6 on 1.7.92: s. 2(2)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Public Sector Superannuation (Administration) Act 1993, No. 110/1993

Assent Date: 30.11.93
Commencement Date: S. 122 on 3.11.93: s. 2(4); s. 125 on 1.1.94: s. 2(6);
ss 123, 124, 126–128 on 30.11.93: s. 2(1)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988

116
Local Authorities Superannuation Act 1988

Notes

Act No. 23/1988

Melbourne Wholesale Fruit and Vegetable Market Trust (Amendment) Act
1993, No. 127/1993

Assent Date: 14.12.93
Commencement Date S. 10(3) on 21.12.93: Special Gazette (No. 95)
21.12.95 p. 1
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Medical Practice Act 1994, No. 23/1994

Assent Date: 17.5.94
Commencement Date: S. 118(Sch. 1 item 32) on 1.7.94: Government Gazette
23.6.94 p. 1672
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Financial Management (Consequential Amendments) Act 1994, No. 31/1994

Assent Date: 31.5.94
Commencement Date: S. 4(Sch. 2 item 49) on 1.1.95: Government Gazette
28.7.94 p. 2055
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Superannuation Acts (Further Amendment) Act 1994, No. 120/1994

Assent Date: 20.12.94
Commencement Date: S. 26 on 3.10.94: s. 2(8); s. 27 on 20.12.94: s. 2(1)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Superannuation Acts (General Amendment) Act 1995, No. 64/1995

Assent Date: 27.6.95
Commencement Date: Ss 5–8, 23 on 1.11.95: s. 2(5); ss 9, 16–22 on 1.7.95:
s. 2(2); ss 10–15 on 1.9.95: s. 2(3)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Superannuation Acts (Miscellaneous Amendments) Act 1995, No. 102/1995

Assent Date: 5.12.95
Commencement Date: Ss 12, 13 on 5.12.95: s. 2(1)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988

117
Local Authorities Superannuation Act 1988

Act No. 23/1988 Notes
Superannuation Acts (Amendment) Act 1996, No. 4/1996

Assent Date: 18.6.96
Commencement Date: S. 38 on 27.7.95: s. 2(4); s. 58 on 1.11.95: s. 2(5);
ss 39(c), 50 on 1.3.96: s. 2(9); s. 60 on 1.5.96:
s. 2(10); ss 37(1)(3), 46, 51, 56, 57, 59 on 30.6.96:
s. 2(12); ss 39(a)(b), 40–45, 47–50, 52–55 on 18.6.96:
s. 2(1)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Superannuation Acts (Further Amendment) Act 1996, No. 82/1996

Assent Date: 23.12.96
Commencement Date: Ss 35(1)(3), 36 on 23.12.96: s. 2(1); ss 38–41 on
1.1.97: s. 2(4); ss 35(2), 37 on 1.3.97: s. 2(5)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988
Superannuation Acts (Miscellaneous Amendment) Act 1997, No. 50/1997

Assent Date: 11.6.97
Commencement Date: Ss 3, 4 on 11.6.97: s. 2(1)
Current State: This information relates only to the provisions
amending the Local Authorities Superannuation
Act 1988

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

118
Local Authorities Superannuation Act 1988

Notes

Act No. 23/1988

3. Explanatory Details
1 S. 3(1) def. of "disability":

The proposed amendment by s. 37(2) of the Superannuation Acts
(Amendment) Act 1996, No. 4/1996 was repealed prior to it having come
into operation, by section 79 of the Superannuation Acts (Further
Amendment) Act 1996, No. 82/1996, and is therefore ineffective.

119

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Citations

Local Authorities Superannuation Act 1988 (Vic)

Cases Citing This Decision

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1.	Purpose	1
2.	Commencement	1
3.	Definitions	1
4.	Application of Act	13
5.	Contributors under Local Authorities Superannuation
Act 1958	14

6.	The Board	16
7.	Objectives and duties of the Board	16
8.	Powers of Board	19
8A.	Additional powers of the Board	20
9.	Membership of the Board	20
10.	Term of office	23
11.	Deputies	23

11A. Vacancies on Board	23
11B. Removal or suspension of Directors	24

13A. Resolutions without meetings	26
13B. Improper use of information	26
13C. Committees of the Board	27
13D. Pecuniary interests of Directors of the Board	27

16.	Establishment of Fund	30
17.	Objective of Fund	30
18.	Powers under Borrowing and Investment Powers Act 1987	30

25.	Contribution rates	35
26.	Length of contribution period	37
27.	Payment of contributions	37

28.	Changes in salary	40
29.	Authority to notify Board of changes with respect to employees	40

29A. Board to maintain separate records	41
PART 6—MEDICAL EXAMINATIONS AND CLASSIFICATION	42

32.	Benefit on retirement	44
33.	Benefit on death of contributor before retirement	45
34.	Benefit on retirement through disability	46

35.	Benefit on retrenchment	51
36.	Benefit on resignation	51
37.	Benefit on retirement due to ill health	54
38.	Deferred benefit	55

39.	Traumatic bodily injury	57
40.	Long service leave and termination of employment	58
41.	Repealed	56
42.	Interruptions to employment	58
43.	Re-employment of retrenched persons	60
44.	Additional benefits contracts	60
45.	Payment of benefits	61
46.	General powers of Board in respect of benefits	61
47.	Employment by more than one Authority	62

Section	Page
PART 7A—Repealed	60
47A–47D. Repealed	60
PART 7B—NEW SCHEME—LASPLAN	63
47E. Definitions	63
47F. Membership of the new scheme	66
47G. Employer contributions	69
47H. Members' contributions	70
47I. Members' Accounts	71

47JA. Casual employees—disability and death cover	76
47K. Disability and death insurance	77
47L. Disability and Death Benefits Reserve	77
47M. Investment funds	78
47N. Net earning rate	79
47O. Amount and payment of benefits	80
47P. Amount and payment of disability or death benefits	80
47Q. Application for disability benefits	81
47R. Transfer of preserved benefit	82
47S. Transfer to or from new scheme	83
47T. Transfer of benefits to other scheme	83
PART 8—GENERAL	84

48.	Assignment of benefits	84
49.	Payment of benefits if person is incapable	84
50.	Money owing to the Fund	85

50A. Preservation of minimum benefit	85
50B. Early release of benefits	86
50C. Taxation on benefits	86
50D. Specified standards	90

51.	Repealed	91
52.	Minors	91
53.	Board may require information	91

53A. Transfer of assets to the Fund	92
53B. Transfer of assets in respect of MEU staff superannuation	92
53C. Contribution by certain municipal councils	94
53D. City of Melbourne Superannuation Fund	94
53E. No tax payable	95
53F. Provisions relating to City of Melbourne Superannuation Fund	96
53FA. Provision relating to change of employment	97
53G. Provisions relating to Melbourne Parks and Waterways	99
53GA. Provision relating to change of employment	101
53GB. Contribution by Melbourne Parks and Waterways	103

Section	Page
53H. Provisions relating to certain water authorities	103
53HA. Provision relating to change of employment	105

54.	Regulations generally	108
55.	Regulations under section 54	109

NOTES	115
1. General Information	115
2. Table of Amendments	116
3. Explanatory Details	119

"casual employee" means a casual employee as defined by the relevant award determinations	S. 3(1) def. of
"casual
employee"
or an employee deemed by the Board to be a	inserted by No. 4/1996
casual employee;	s. 37(1)(b). S. 3(1) def. of
"complying superannuation fund" means a superannuation entity or a superannuation	"complying
superannua- tion fund"
fund within the meaning of section 10 of the	inserted by
Commonwealth Superannuation Industry	No. 4/1996
(Supervision) Act 1993 which is a	s. 37(1)(b).
complying superannuation fund or a complying approved deposit fund within the meaning of Part IX of the Commonwealth Income Tax Assessment Act 1936;
S. 3(1) def. of
"contributor" means a person who will be, is, or has been liable to contribute to the Fund	"contributor"
amended by No. 82/1996
under Part 5 with respect to the entitlement	s. 35(1).
to benefits under Part 7;

"Director" means a Director of the Board appointed under section 9 and a deputy of a	"Director"
inserted by No. 64/1995
Director while acting as a Director;	s. 6(a).

"ill health" means a continuous or recurring impairment of the health of an employee	"ill health"
amended by No. 4/1996
which is due to a physical or mental	s. 37(1)(c).
incapacity, bodily injury, illness or disease, which in the opinion of the Board—

completed years	Factor
65	12.0
64	12.1
63	12.2
62	12.3
61	12.4
60	12.6
59	12.8
58	13.0
57	13.2
56	13.4
55	13.6

"specified standards" means standards specified under section 50D.	"specified
standards" inserted by
No. 4/1996
s. 37(1)(e). S. 3(1A)

(1A) For the avoidance of any doubt it is hereby declared that the Tables published in the	inserted by
No. 4/1996

Government Gazette on 27 July 1995 at page	s. 38.
1902 relate to the calculation of old benefits where the contributor's most recent medical classification under the Local Authorities
Superannuation Act 1958 was not the top classification.

Act No. 23/1988	s. 3
(i) The contributor and that contributor's employing Authority are not required to	S. 3(4)(b)(i) amended by
No. 4/1996
pay any contributions for the period of	s. 39(a).
the parental leave or leave without pay, but the Board may on application allow such payment;
S. 3(4)(b)(ii)

(ii) A contributor on leave without pay may elect to continue to pay to the Board	amended by No. 4/1996
s. 39(c).

*	*	*	*	*	inserted by No. 49/1992
s. 56(2), repealed by
No. 4/1996
s. 37(3).