Local Government and Other Authorities (Superannuation) Amendment Act 1980 (NSW)

LOCAL GOVERNMENT AND OTHER AUTHORITIES

(SUPERANNUATION) AMENDMENT ACT, 1980,

No. 191

A N N O V I C E S I M O N O N O

E L I Z A B E T H E II R E G I N E

Act No. 191, 1980.

A n Ac t to amend the Loca l G o v e r n m e n t and O the r Author i t ies

( S u p e r a n n u a t i o n ) Act , 1927 , with respect to cer ta in benefits payable unde r that Ac t and to provide for the paymen t of pensions to cer ta in widowers , for opt ions to t ake lump sum benefits and for the periodical adjustment of pension rates.

[Assented to, 19th December . 1980.]

BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows :—

This Act may be cited as the "Local Government and Other Authorities (Superannuation) Amendment Act, 1980".

1.

2. The Local Government and Other Authorities (Super­ annuation) Act, 1927, is referred to in this Act as the Principal Act.

3.      This Act contains the following Schedules :—

SCHEDULE 1 . — A M E N D M E N T S TO THE PRINCIPAL A C T

RELATING TO PENSIONS TO WIDOWERS.

SCHEDULE 2 . — A M E N D M E N T S TO THE PRINCIPAL A C T

RELATING TO BENEFITS ON D E A T H OF UNMARRIED

CONTRIBUTORS.

SCHEDULE 3 . — A M E N D M E N T S TO THE PRINCIPAL A C T

RELATING TO L U M P SUM BENEFITS .

SCHEDULE 4 . — A M E N D M E N T S TO THE PRINCIPAL A C T

RELATING TO ALTERNATIVE BENEFITS .

SCHEDULE 5 . — A M E N D M E N T S TO THE PRINCIPAL A C T

RELATING	TO PERIODICAL	A D J U S T M E N T	OF PENSION
RATES.

SCHEDULE 6 .—MISCELLANEOUS A M E N D M E N T S TO THE

PRINCIPAL A C T .

SCHEDULE 7.—SAVINGS AND TRANSITIONAL PROVISIONS.

1. The Principal Act is amended in the manner set forth in

Schedules 1-6.

5.      Schedule 7 has effect.

SCHEDULE 1.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS.

(1) Section 15AL, definition of "dependent widower"—

After the definition of "dependent child", insert :—

"dependent widower", in relation to a woman who dies while a contributor or pensioner, means her widower if he satisfies and continues (except during any period he is married) to satisfy the prescribed dependency test;

(2) (a) Section 15BM ( 1 ) —

Omit the subsection, insert instead :—

(1) In this section "the former contributor" means a contributor who dies leaving a widow or dependent widower.

(b) Section 15BM ( 2 ) —

After "widow" wherever occurring, insert "or

dependent widower".

(c) Section 15BM (2) ( a ) —

Omit the paragraph, insert instead :—

(a) the total amount at credit in the former contributor's servant's account in the Pension F u n d ; a n d

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

(d) Section 15BM ( 3 ) —

Omit "The board shall" insert instead "Subject to sections 15BOA, 15BUD, 15BUE and 15BUF, the board shall".

(e) Section 15BM ( 3 ) —

After "widow" where firstly occurring, insert "or dependent widower".

(f) Section 15BM ( 3 ) —

After "widow" where secondly occurring, insert ", or the widower while he is a dependent widower,".

(g) Section 15BM ( 3 ) —

Omit "his" where secondly and thirdly occurring, insert instead "the former contributor's".

(3) (a) Section 15BN (1)-

Omit the subsection, insert instead :—-

In this section "the former contributor" means

a contributor who dies while unmarried or who dies
leaving a widower who is not a dependent widower.

( 1 )

(b) Section 15BN (2) ( a ) —

Omit "standing to the former contributor's credit in

his", insert instead "at credit in the former con­

tributor's".

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

(4 ) Sections 15BO, 15BOA, 15BOB—

Omit section 15BO, insert instead :—

15BO. Subject to sections 15BOA and 15BOB, if a pen­

sioner under section 15BF, 15BG or 15BH dies leaving a
widow or dependent widower, the board shall—

(a) where the pensioner leaves a widow—pay to the widow a pension at the rate of 62 per cent of the rate at which her late husband was receiving, or entitled to receive, a pension under section

15BF, 15BG or 15BH immediately before his

death; or

(b) where the pensioner leaves a dependent widower —pay to the widower while he is a dependent widower a pension at the rate of 62 per cent of the rate at which his late wife was receiving, or entitled to receive, a pension under section

15BF, 15BG or 15BH immediately before her

death.

15BOA. (1) Where a person marries after becoming entitled, to a pension under section 15BF, 15BG or 15BH and dies while a party to that marriage, a pension under

section 15BO is not payable to the widow or dependent
widower as such.

(2) Subsection (1) does not apply in respect of a pensioner who, after marrying as referred to in that subsection, again becomes a contributor.

(3) Notwithstanding sections 15BM (3) and

15BO (b) and Division 5A, only so much of a pension

under section 15BO (b) is at any time payable to a dependent widower as results in the rate at which it is so

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

payable not exceeding the maximum rate referred to in
subsection (4) applicable to him at that time.

(4 ) For the purposes of subsection ( 3 ) , the maximum rate applicable to a dependent widower is such rate as, when added to the rate of his other income, being income of a prescribed class or description, does not exceed the prescribed rate.

(5) The regulations may make provision for

or with respect to the manner of—

(a)	ascertaining the maximum rate referred to in
subsection ( 4 ) ;
(b)	determining the rate of other income referred to in that subsection; and
(c)	determining the time to which either of those rates relates.

(6) A pension is not payable to a dependent widower as such unless the board is furnished with such evidence or information verified (if the board so requires) by statutory declaration, as it requires for the purpose of

establishing whether the pension is payable and at what rate it is payable. (7) A pension is not again payable to a

dependent widower under section 15BO (b) after he ceases (except during any period he is married) to satisfy the prescribed dependency test.

15BOB. (1) In this section, "spouse's pension" means a pension payable under section 15BM or 15BO.

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

(2) A spouse's pension is not payable to a

person during any period the person is married.

(3) Where, but for this subsection, a person would be entitled to more than one spouse's pension, the person shall be entitled to one only of those pensions, being (where they are not equal) the greater or greatest of them.

(4) A reference in section 15BO to the pension a late husband or wife was receiving, or entitled to receive, immediately before his or her death does not include a reference to a spouse's pension.

(5) (a) Section 15BP ( 1 ) —

Omit "Where"', insert instead "Subject to section 15BN

( 8 ) , where".

(b) Section 15BP ( 1 ) —

Omit "male" wherever occurring.

(c) Section 15BP (1) —

After "widow", insert "or widower".

(d) Section 15BP (2) —

Omit the subsection, insert instead :—

(2) A pensioner under section 15BM or 15BO is entitled to so much only of pensions under this section as will, when added to the pension under section 15BM or 15BO, as the case may be, not exceed—

(a) in the case of a pensioner under section

15BM—the pension to which the pensioner's spouse would have been entitled if that

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

spouse had, immediately before dying, become entitled to a pension under section

15BH ( 3 ) ; or

(b) in the case of a pensioner under section

15BO—the pension to which the pensioner's spouse was entitled immediately before dying.

(e) Section 15BP ( 3 ) —

Omit the subsection, insert instead :—

(3) A pension under this section payable to the widow or widower of a former contributor shall con­ tinue to be payable notwithstanding remarriage of the widow or widower but, upon such a remarriage, subsection (2) ceases to apply to the pension.

(f) Section 15BP ( 5 ) —

Omit "his death", insert instead "the death of the pensioner".

(g) Section 15BP (5) —	Omit "his widow's children", insert instead "children
of the surviving party to the marriage".

(h) Section 15BP (6) —

Omit the subsection, insert instead—

(6) Subsection (5) does not apply in respect of a pensioner who. after marrying as referred to in that subsection, again becomes a contributor.

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

(6) (a) Section 15BR ( 3 ) —

Omit "4", insert instead "3 or Column 4".

(b) Section 15BR (5) —

Omit the subsection.

(c) Section 15BR (8) —

After section 15BR ( 7 ) , insert :—

(8) If a contributor who, under this section, has converted an amount to pension at the rate specified in column 3 of Schedule D dies leaving a widow or widower, the board shall—

(a) where the contributor leaves a widow, pay

to the widow a pension at the rate of 62

per cent of the rate at which her late husband was receiving, or entitled to receive, pension under this section immediately before his death; or

(b) where the contributor leaves a widower, pay to the widower a pension at the rate of 62 per cent of the rate at which his late

wife was receiving, or entitled to

receive, pension under this section

immediately before her death.

(7) (a) Schedule D, Column 3 —

After "Male", insert "or female".

(b) Schedule D, Column 3 —

After "widow", insert "or widower".

SCHEDULE 1—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PENSIONS TO WIDOWERS—continued.

(c) Schedule D, Column 4 —

After "Female.", insert " (No pension to widower.)".

SCHEDULE 2.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO B E N E F I T S

ON D E A T H OF UNMARRIED CONTRIBUTORS.

(1) Section 15BN ( 2 ) —

After "17BA" insert "and to subsection ( 7 ) " .

(2) Section 15BN (2) (a) —

(3) Section 15BN (2) (b) —	Omit "and".
Omit "service.", insert instead "service; and".

(4) Section 15BN (2) ( c ) —

After section 15BN (2) ( b ) , insert :—

SCHEDULE 2—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO B E N E F I T S

ON DEATH OF UNMARRIED CONTRIBUTORS—continued.

(c)	if the former contributor was qualified for full or
partial additional benefits—a lump sum calculated in accordance with the following formula :—

L=	S	x	P
100

where—

L represents the lump sum payable;

S represents the former contributor's final

salary; and

P represents the number of the former con­ tributor's potential pension points (reduced by one-half if the contributor was qualified for partial, but not full, additional benefits).

(5) Section 15BN ( 3 ) - ( 8 ) —

After section 15BN (2 ) , insert :—

(3) Subject to subsections (6) and ( 7 ) , where the

former contributor became a contributor under section 15AO, 15AP or 15AR, or became a contributor under section

15AQ but is not a former contributor referred to in sub-

section ( 4 ) , the board shall, on application in writing in a form approved by the board made to the board by the personal representative of the former contributor, pay to that personal representative instead of the amount referred to in subsection (2) —

(a)	the sum of the amounts referred to in subsection
(2) ( a ) , (b) and, if applicable, ( c ) ; o r

SCHEDULE 2—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO B E N E F I T S

ON D E A T H OF UNMARRIED CONTRIBUTORS—continued.

(b) the sum of—

(i)   the notional accumulation for the former

contributor; and

(ii)   the amount referred to in subsection (2)

( a ) ,

whichever is the greater.

(4) Subject to subsections (6) and ( 7 ) , where the

former contributor became a contributor under section

15AQ and was qualified for additional death benefits under

Part I I I B or full additional death benefits under this Part, the board shall, on application in writing in a form approved by the board made to the board by the personal representative of the former contributor, pay to that personal representative instead of the amount referred to in subsection ( 2 ) —

(a)	the sum of the amounts referred to in subsection
(2) ( a ) , (b) and ( c ) ; o r

(b) the sum of—

(i) the notional accumulation for the former

contributor:

(ii)   the amount referred to in subsection (2)

( a ) ; and

(iii)   the amount calculated in accordance with

the following formula :—

A = M x S

where—

A represents the amount to be calculated;

SCHEDULE 2—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO B E N E F I T S

ON DEATH OF UNMARRIED CONTRIBUTORS—continued.

M represents the number under the heading "Multiplier of salary" in Schedule B opposite the age specified in years in that Schedule that was the age of the former contributor at the time of death; and

S represents—

(a)	where the former contributor contributed to the Pension Fund at the rate of 2 per cent of salary—four-sevenths of the for- mer contributor's final salary;
(b)	where the former contributor contributed to the Pension Fund at the rate of 3 per cent of salary—six-sevenths of the for- mer contributors final salary; or
(c)	in any other case—the former

contributor's final salary,

whichever is the greater.

(5) Where, immediately before the death of the former contributor, a person (other than a person in respect of whom a pension is payable under section 15BP) was, in the opinion of the board, dependent upon the former contributor and that person applies to the board in writing in a form approved by the board requesting a payment under this subsection, the board may, in its absolute discretion, pay to that person a lump sum calculated in accordance with the following formula :—

S C H E D U L E 2—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO BENEFITS

ON D E A T H OF UNMARRIED CONTRIBUTORS—continued.

where—

L represents the lump sum payable;

T represents the amount referred to in subsection ( 2 )

( a ) ; and

Y represents the number (not exceeding 5 ) of the former contributor's completed periods of 1 2 months' approved service in excess of 3 5 years' approved service.

( 6 ) The amount that, but for this subsection, would be

paid under subsection ( 3 ) (b) or ( 4 ) (b) shall be reduced
by any amount paid under subsection ( 5 ) .

( 7 ) Where a lump sum is payable under subsection
( 5 ) , a lump sum is not payable under subsection ( 2 ) ( b ) .

A pension under section 1 5 B P is not payable where the benefit under subsection ( 3 ) (b) or ( 4 ) (b) is paid.

( 8 )

S C H E D U L E	3 .
A M E N D M E N T S	TO THE PRINCIPAL A C T	RELATING

TO L U M P S U M B E N E F I T S .

( 1 ) (a) Section 1 ( 4 ) , matter relating to Division 5 of Part

IIID-

Oniit " 1 5 B V " , insert instead " 1 5 B T " .

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

(b) Section 1 (4) —

After the matter relating to Division 5 of Part I I I D , insert :—

DIVISION 5A.—Lump sum options—ss. 15BUA-

15BVC.

(2) (a) Section 15AL ( 1 ) , definition of "final salary"—

After the definition of "final average salary",

insert :—

"final salary" means, in relation to a person who ceases to be a servant, the annual rate of salary actually payable to him immediately before he ceased to be a servant;

(b)	Section 15AL (1), definitions of "notional accumula­
tion", "notional final salary", "notional pension

points"—

After the definition of "month", insert :—

"notional accumulation" means, in relation to a former contributor who became a contributor under section 15AO, 15AP, 15AQ or 15AR, an amount equal to the sum of— (a) the amount credited to the general reserve or the special reserve under section 15AO ( 3 ) , 15AP (9) or 15AQ (10) in respect of the former con- tributor; and

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

(b)	in respect of each superannuation year
since he became a contributor, an amount equal t o—

(i)   5 per cent of his salary, based

on the rate of salary on which his contributions were based under section 15AV in respect of that year; or

(ii)  11/2 times the contributions paid

or payable by him in that year, whichever is the lesser, together with interest at a rate or rates determined by the board, but reduced by an amount or amounts calculated in such manner as the board may determine in respect of the amounts referred to in

section 15BA ( l ) (a) and ( c ) ;

"notional final salary" means, in relation to a former contributor who has resigned, or been dismissed, from the service of an employer on the grounds of total and permanent disable­

ment, or has died— (a) where the former contributor had not

attained the age of 57 years on or

before 31st December that last pre­ ceded his resignation, dismissal or death, as the case may be—the amount of his final salary;

(b) where the former contributor had attained the age of 57 years, but had not attained the age of 58 years, on

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

or before that 31st December—an amount equal to one-third of the sum

of—

(i)   the amount of the former con­

tributor's annual salary as at
that 31st December;

(ii)   twice the amount of his final salary;

(c) where the former contributor had attained the age of 58 years, but had not attained the age of 59 years, on or before that 31st December—an amount equal to one-third of the sum

of—

(i)   the amount of the former con­

tributor's annual salary as at that 31 st December and the 31st December that last

preceded it; and

(ii)   the amount of his final salary;

or

(d) where the former contributor had attained the age of 59 years on or before that 31st December—his final average salary;

"notional pension points" means, in relation to a former contributor who ceased to be a contri­ butor before he attained the age of 60 years, the pension points (if any) that he would have, but has not, accrued had he continued to

90245   H - 2 / 3 1

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

contribute to the Pension Fund, until he attained that age, at the average rate (includ- ing any additional rate) at which he was contributing under section 15AU since becom­ ing a contributor;

(3) (a) Section 15BF (3) —

Omit "The board", insert instead "Subject to subsection (4) and sections 15BUB and 15BV, the board".

(b) Section 15BF (4) —

After section 15BF ( 3 ) , insert :—

(4) Where a former contributor—

(a) is entitled to a pension under subsection

( 3 ) ;

(b)	is not entitled to make or, being entitled to do so, does not make, an election under
section 15BV (1) ( a ) ; and

(c) elects under section 15BUB (1) to be paid, instead of part of the pension, a lump sum that is less than the maximum lump sum he could elect under section 15BUB (1) to be paid,

the pension to which he is entitled after payment of the lump sum is a pension calculated in accordance with the following formula :—

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

where—

E represents the annual rate of pension to which the former contributor is entitled after pay­ ment of the lump sum;

B represents the annual rate of pension that would have been payable to the former con­ tributor but for his election to be paid the lump sum;

G represents the amount of the lump sum

elected to be taken; and

L represents the maximum amount of lump sum that the former contributor could have elected to be paid instead of pension, cal­ culated in accordance with the formula specified in section 15BUB (1 ) .

(4) (a) Section 15BG ( 3 ) —

Omit "The board", insert instead "Subject to sub-

board". section (4) and to sections 15BUB and 15BV, the

(b) Section 15BG ( 4 ) —

After section 15BG ( 3 ) , insert :—

(4) Section 15BF (4) applies to a former con­
tributor under this section in the same way as it
applies to a former contributor under section 15BF.

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—cont inued.

(5) (a) Section 15 BH ( 2 ) —

Omit "annual rate of salary actually payable to the former contributor at the time of his resignation or dismissal", insert instead "former contributor's final salary".

(b) Section 15BH ( 3 ) —

Omit "The board", insert instead "Subject to sub- section (4) and to sections 15BUC and 15BV, the board".

(c) Section 15BH ( 3 ) —

Omit "annual rate of salary actually payable to the former contributor at the date of his resignation or dismissal", insert instead "former contributor's final salary".

(d) Section 15BH ( 4 ) —

After section 15BH ( 3 ) , insert :—

(4) Where a former contributor—

(a) is entitled to a pension under subsection

( 3 ) ;

(b)	is not entitled to make or, being entitled to do so, does not make, an election under
section 15BV (1 ) ( b ) ; and
(c)	elects under section 15BUC (1) to be paid, instead of part of the pension, a lump sum that is less than the maximum lump sum he could elect under section 15BUC (1) to be paid,

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—cont inued.

the pension to which he is entitled after payment of the lump sum is a pension calculated in accordance with the following formula :—

E=Bx(1-G/L)

where—

E represents the annual rate of pension to which the former contributor is entitled after payment of the lump sum;

B represents the annual rate of pension that would have been payable to the former contributor but for his election to be paid the lump sum;

G represents the amount of the lump sum

elected to be taken; and

L represents the maximum amount of lump sum that the former contributor could have elected to be paid instead of pension, calculated in accordance with the formula specified in section 15BUC ( 1 ) .

(6) (a) Section 15BI ( 2 ) —

After "15BW", insert "and to subsection ( 3 ) " .

(b) Section 15BI ( 2 ) —

Omit "annual rate of salary actually payable to the

former contributor at the time of his resignation or
dismissal", insert instead "former contributor's final
salary".

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

(c) Section 15BI (3) —

After section 15BI ( 2 ) , insert :—

(3) Where the former contributor became a con- tributor under section 15AO, 15AP, 15AQ or 15AR, the board shall, subject to section 15BW, pay to the former contributor instead of the amount referred to in sub- section (2) an amount equal to the sum of—

(a)	the amount referred to in subsection (2)
( a ) ; and

(b) the greater of—

(i)   the lump sum referred to in subsec­

tion (2) ( b ) ; a n d

(ii)   the notional accumulation for the

former contributor.

(7) Section 15BJ ( 2 ) —

Omit "annual rate of salary actually payable to the former

contributor at the time of his retrenchment", insert instead

"former contributor's final salary".

(8 ) (a) Section 15BM ( 2 ) , ( 3 ) —

Omit "annual rate of salary actually payable to the former contributor at the date of his death" wherever occurring, insert instead "former contributor's final salary".

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

(b) Section 15BM ( 4 ) —

After section 15BM ( 3 ) , insert :—

(4) Where the widow of the former contributor elects under section 15BUD to be paid, instead of part of the pension under subsection ( 3 ) , a lump sum that is less than the maximum lump sum she could elect to be paid under that section, the pension to which she is entitled after payment of the lump sum is a pension calculated in accordance with the following formula :—

where—

E represents the annual rate of pension to which the widow is entitled after payment of the lump sum;

B represents the annual rate of pension that

would have been payable to the widow but

for her election to be paid the lump sum;

G represents the amount of the lump sum elected

to be taken; and

L represents the maximum amount of lump sum that the widow could have elected to be paid instead of pension, calculated in accordance with the formula specified in section 15BUD.

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS-—continued.

(9) Section 15BP (2A) —

After section 15BP ( 2 ) , insert :—

(2A) For the purposes of subsection ( 2 ) , a widow or dependent widower who, under Division 5A, has been paid a lump sum instead of pension shall be deemed to be in receipt of a pension, or additional pension, equal to the amount of pension instead of which the lump sum was paid.

(10) Part I I I D , Division 5A—

Before section 15BV, insert :—

DIVISION 5A.—Lump sum options.

15BUA. ( l ) Where, but for this section, a person would be entitled to a pension (not being a pension under section

15BO, 15BP or 15BR ( 8 ) ) that amounts to less than $10

per fortnight or, where a greater amount per fortnight is prescribed for the purposes of this section, that greater amount per fortnight, the board may, instead of paying the pension, pay to that person a lump sum calculated in

accordance with the following formula :—

L = ( R x 11.3) - P

where—

L represents the amount of the lump sum;

R represents the annual rate of the pension; and

P represents the total amount (if any) of the pension paid before payment of the lump sum.

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

( 2 ) Subsection ( 1 ) applies to a pension that became payable before the commencement of this section as well as to a pension that becomes payable after that commencement and so applies whether or not payment of the pension has commenced.

15BUB. ( 1 ) A former contributor who is entitled to a pension under section 1 5 B F (3) or 15BG (3) may, unless he also makes an election under section 15BV ( 1 ) ( a ) , elect to be paid, instead of that pension or some part of that pension, a lump sum calculated in accordance with the following formula :—

where—

L represents the lump sum payable;

F represents the former contributor's final average

salary; and

A represents such number of the former contributor's accrued pension points as are not to be applied in the provision of a pension under section 1 5 B F	(3)	or 15BG ( 3 ) .
( 2 )	Where a former contributor is entitled to a

pension under section 1 5 B F (3) or 15BG (3) and elects under section 15BV to be paid a lump sum instead of a part of the pension, he may elect to be paid, instead of the whole or a part of the residue of his pension, a lump sum calculated in accordance with the following formula : —

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

where—

L represents the lump sum payable;

B represents the lump sum that would have been pay­ able to the former contributor under subsection

( 1 ) if it had been calculated on the basis of the

whole of his pension;

G represents the lump sum to be paid under section

15BV;

M represents the maximum lump sum that would have been payable to the former contributor under section 15BV if the lump sum had been calculated on the basis of the whole of his pension;

H represents the annual rate of the residue of the former contributor's pension under section 1 5 B F

(3) or 15BG ( 3 ) , if any, that is not the subject

of an election by the former contributor to be paid a lump sum under this subsection or section

1 5 B V ; a n d

Q represents the annual rate of pension that would have been payable to the former contributor under section 1 5 B F (3) or 15BG (3) had he not elected under this subsection and section 15BV to be paid a lump sum.

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

15BUC. (1) A former contributor who is entitled to a pension under section 15BH (3) may, unless he also makes an election under section 15BV (1) ( b ) , elect to be paid, instead of that pension or some part of that pension, a lump sum calculated, subject to subsections (2) and ( 3 ) , in accordance with the following formula :—

where—

L represents the lump sum payable;

C represents the former contributor's notional final

salary;

A represents such number of the former contributor's accrued pension points as bears to the total number of those points the same proportion as the amount of pension instead of which a lump sum is to be paid bears to the amount of pension that would be payable under section 15BH (3) if no election had been made;

D represents—	(a)	where the former contributor was quali­ fied for full additional benefits—such number of his notional pension points as bears to the total number of those points the same proportion as is used in assigning a value to A ;
(b)	where the former contributor was quali­ fied for partial, but not full, additional benefits—such number of his notional pension points as bears to one-half the

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

total number of those points the same proportion as is used in assigning a value to A; or

(c) where the former contributor was not qualified for additional benefits—nil.

(2) Where a former contributor who became a contributor under section 15AO, 15AP or 15AR, or who became a contributor under section 15AQ but is not a former contributor referred to in subsection ( 3 ) , elects under subsection ( l ) to be paid a lump sum instead of the whole of his pension, the board shall pay to the former contributor, instead of the benefits that, but for this section, would otherwise be payable, a lump sum equal to the greater of—

(a) the sum of—

(i)   the amount calculated under subsection

(1) in relation to the former contributor;
and

(ii) the amount of any benefit that, but for

this subsection, would be payable to the

former contributor under section 15RH
( 2 ) ; a n d

(b) the sum of—

(i)   the notional accumulation for the former

contributor; and

(ii)   the amount of any benefit that, but for

this subsection, would be payable under

section 15BH (2) ( a ) .

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

(3) Where a former contributor who became a contributor under section 15AQ elects under subsection (1) to be paid a lump sum instead of the whole of his pension and, but for that election, would have been entitled to additional disablement benefits under Part IIIB or full additional disablement benefits under this Part, the board shall pay to the former contributor, instead of the benefits that, but for this section, would otherwise be payable, a lump sum equal to the greater of—

(a) the sum of—

(i)   the amount calculated under subsection

(1) in relation to the former contributor;
and

(ii)   the amount of any benefit that, but for

this subsection, would be payable to the former contributor under section 15BH

( 2 ) ; and

(b) the sum of—

(i)   the notional accumulation for the former

contributor;

(ii)	the amount of any benefit that, but for
this subsection, would be payable under section 15BH (2) ( a ) ; and
(iii)	the amount calculated in accordance with
the following formula : —

A = M x S

where—

A represents the amount to be calculated;

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

M represents the number under the heading "Multiplier of salary" in Schedule B opposite the age specified in years in that Schedule that was the age of the former contributor at the time of the former contributor's resignation or dismissal; and

S represents—

(a)	where the former contributor contributed to the Pension Fund at the rate of 2 per cent of salary —four-sevenths of the former contributor's final salary;
(b)	where the former contributor contributed to the Pension Fund at the rate of 3 per cent of salary —six-sevenths of the former contributor's final salary; or
(c)	in any other case—the former

contributor's final salary.

(4) Where a former contributor is entitled to

a pension under section 15BH (3) and elects under section

15BV to be paid a lump sum instead of a part of the

pension, he may elect to be paid, instead of the whole or a part of the residue of his pension, a lump sum calculated in accordance with the following formula : —

where—

L represents the lump sum payable;

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

B represents the lump sum that would have been payable to the former contributor under sub- section (1) if it had been calculated on the basis of the whole of his pension;

G represents the lump sum to be paid under section

15BV;

M represents the maximum lump sum that would

have been payable under section 15BV if section

15BV (3) had not been enacted and the lump

sum had been calculated on the basis of the

whole of his pension;

H represents the annual rate of pension under section

15BH ( 3 ) , if any, that is not the subject of an

election by the former contributor to be paid a lump sum under this subsection or section 15BV; and

Q represents the annual rate of pension that would have been payable to the former contributor under section 15BH (3) had he not elected under this subsection and section 15BV to be paid a lump sum.

15BUD. Subject to sections 15BM (4) and 15BUF, a widow entitled to a pension under section 15BM (3) may elect to be paid, instead of that pension or some part of that pension, a lump sum calculated in accordance with the following formula :—

where— L represents the lump sum payable;

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

C represents the former contributor's notional final

salary;

A represents such number of the former contributor's accrued pension points as bears to the total number of those points the same proportion as the amount of pension instead of which a lump sum is to be paid bears to the amount of pension that would be payable under section

15BM (3) if no election had been made;

D represents—

(a) where the former contributor was quali- fied for full additional benefits—such number of his notional pension points as bears to the total number of those points the same proportion as is used in assigning a value to A ;

(b)	where the former contributor was quali- fied for partial, but not full, additional benefits—such number of his notional pension points as bears to one-half the total number of those points the same proportion as is used in assigning a value to A ; or
(c)	where the former contributor was not qualified for additional benefits—nil.

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

1 5BUE. (1) Subject to section 15BUF, a dependent widower entitled to a pension under section 15BM (3) may elect to be paid, instead of the whole of the pension, a lump sum calculated, subject to subsection ( 2 ) , in accordance with the following formula :—

where—

L represents the lump sum payable;

T represents the total amount payable to the depen­

dent widower under section 15BM (2) ( a ) ; and

Y represents the number (not exceeding 5) of the
former contributor's completed periods of 12

months' approved service in excess of 35 years'

approved service.

(2) Notwithstanding subsection ( 1 ) , the lump sum payable under that subsection to the dependent widower of a former contributor shall not exceed an amount equal to the value of L calculated in relation to the former contributor in accordance with the formula in section 15BUD.

S C H E D U L E 3—continued.

A M E N D M E N T S	TO THE PRINCIPAL	A C T RELATING
TO	L U M P	S U M BENEFITS—cont inued.

15BUF. (1 ) Where the widow of a former contributor who became a contributor under section 15AO, 15AP or

15AR, or who became a contributor under section 15AQ

but is not a former contributor referred to in subsection ( 2 ) , elects to be paid a lump sum instead of the whole of her pension, or the dependent widower of such a former contributor elects to be paid a lump sum instead of his pension, the board shall pay to the widow or dependent widower, as the case may be, instead of the benefits that, but for this section, would otherwise be payable, a lump sum equal t o —

(a ) the sum of—

(i)   the amount calculated under section 15BUD or, as the case may require, sec­

tion 15BUE, in relation to the widow or
dependent widower; and

(ii)   the amount of any benefit that, but for

this subsection, would be payable to the widow or dependent widower under

section 15BM ( 2 ) ; or

(b) the sum of—

(i)   the notional accumulation for the former

contributor; and

(ii)   the amount of any benefit that, but for

this subsection, would be payable under
section 15BM (2) ( a ) ,

whichever the widow or dependent widower specifies in the
election.

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

(2) Where the widow of a former contributor who became a contributor under section 15AQ is entitled to additional death benefits under Part I I I B or full additional death benefits under this Part and elects to be paid a lump sum instead of the whole of her pension, or the dependent widower of such a former contributor is so entitled and elects to be paid a lump sum instead of his pension, the board shall pay to the widow or dependent widower, as the case may be, instead of the benefits that, but for this section, would otherwise be payable, a lump sum equal t o—

(a) the sum of—

(i)   the amount calculated under section

15BUD or, as the case may require,

section 15BUE, in relation to the widow
or dependent widower; and

(ii)   the amount of any benefit that, but for this subsection, would be payable to the widow or dependent widower under

section 15BM ( 2 ) ; or

(b) the sum of—	(i)	the notional accumulation for the former contributor;
(ii)	the amount of any benefit that, but for this subsection, would be payable under section 15BM (2) ( a ) ; and
(iii)	the amount calculated in accordance with the following formula :—

A = M x S

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

where—

A represents the amount to be calculated;

M represents the number under the heading "Multiplier of salary" in Schedule B opposite the age specified in years in that Schedule that was the age of the former contributor at the time of death; and

S represents—

(a)	where the former contributor contributed to the Pension Fund at the rate of 2 per cent of
salary—four-sevenths of the

former contributor's final salary;

(b)	where the former contributor contributed to the Pension Fund at the rate of 3 per cent of
salary—six-sevenths of the
former contributor's final salary: or

(c) in any other case—the former

contributor's final salary,

whichever the widow or dependent widower specifies in the
election.

(3) A pension under section 15BP is not payable to a widow or dependent widower who elects to be paid the lump sum referred to in subsection (1) (b) or (2) ( b ) .

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

(11) (a) Section 15BV ( l ) - ( 13) —

Omit the subsections, insert instead :—

(1) A person who became a contributor under section 15AO, 15AP, 15AQ or 15AR may—

(a) if he is entitled to receive a pension under

section 15BF (3) or 15BG (3)—elect to be paid a lump sum in accordance with this section instead of the pension or part

thereof; or

(b) if he is entitled to a pension under section 15BH (3) and had attained the age of 60

years on or before becoming so entitled— elect to be paid a lump sum in accordance with this section instead of the pension or part thereof.

(2) A lump sum payable pursuant to an election by a former contributor under subsection (1) (a) shall be calculated—

(a)	where the former contributor is a man—
in accordance with the following
formula : —
(b)	where the former contributor is a woman—
in accordance with the following

formula :—

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

where—

L represents the lump sum payable;

F represents the former contributor's final

average salary;

M represents the number of the former contribu­ tor's accrued pension points that, subject to subsection (2A) , the former contributor has elected to apply towards provision of the lump sum; and

N represents the number of the former contribu­ tor's accrued pension points (if any) that may be applied towards provision of the lump sum in accordance with subsections

(4) and ( 5 ) .

(2A) The maximum number of accrued pension points that may be assigned as the value of M in the appropriate formula in subsection (2) shall be calculated—

(a)	where the former contributor is a man—
in accordance with the following
formula :—
(b)	where the former contributor is a woman—
in accordance with the following
formula :—
S C H E D U L E	3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued,

where—

M represents the maximum number of accrued pension points that could have been applied towards provision of the lump sum if sub- sections (4 ) and (5) had not been enacted;

Z represents the amount referred to in subsection

( 3 ) ; and

F represents the former contributor's final

average salary.

(2B) A lump sum payable pursuant to an election by a former contributor under subsection (1) (b) shall be calculated—

(a)	where the former contributor is a man—in accordance with the following formula : —
(b)	where the former contributor is a woman—
in accordance with the following

formula :—

where—

L represents the lump sum payable;
S represents the former contributor's final

salary;

M represents the number of the former con­ tributor's accrued and potential pension points that, subject to subsection ( 2 c ) , the former contributor has elected to apply towards provision of the lump sum; and

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

N represents the number of the former con­ tributor's accrued and potential pension points (if any) that may be applied towards provision of the lump sum in accordance with subsections (4) and ( 5 ) .

(2c) The maximum number of accrued and potential pension points that may be assigned as the value of M in the appropriate formula in subsection (2B) shall be calculated—

(a)	where the former contributor is a man—
in accordance with the following

formula :—

(b)	where the former contributor is a woman—
in accordance with the following

formula :—

where—

M represents the maximum number of accrued and potential pension points that could have been applied towards provision of the lump sum had subsections (4) and (5) not been enacted;

Z represents the amount referred to in subsec­

tion ( 3 ) ; a n d

S represents the former contributor's final

salary.

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

(3) The value to be assigned to Z in calculating the entitlement of a former contributor in accordance with a formula in subsection (2A) or (2c ) is the amount of the notional accumulation for that con­ tributor.

Where a person who ceases to be a contributor on or before 31st March, 1984—

(4)

(a)	makes an election under subsection (1) (a) and the maximum number of the for­ mer contributor's accrued pension points that is assignable as the value of M in the appropriate formula in subsection (2) is less than the total number of the former contributor's accrued pension points; or
(b)	makes an election under subsection (1) (b) and the maximum number of the for­ mer contributor's accrued pension points and potential pension points that is assignable as the value of M in the appropriate formula in subsection ( 2B) is less than the total number of the former

a percentage of the remaining accrued pension points potential pension points, contributor's accrued pension points and

or, as the case may be, accrued pension points and potential pension points may, if the former contributor so elects, also be applied towards provision of the lump sum, that percentage being the percentage specified in Column 2 of Schedule F opposite the superannuation year specified in Column 1 of that Schedule in which the former contributor ceased to be a contributor.

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P SUM BENEFITS—continued.

(5) Where, after payment of a lump sum under this section (this subsection excepted) a former con­ tributor would be entitled to a pension not exceeding $40 per fortnight, he may elect to apply the balance of his accrued pension points or, as the case may be, accrued pension points and potential pension points towards provision of a lump sum in accordance with this section.

(b) Section 15BV ( 1 4 ) —

Omit the subsection, insert instead :—

(14) Where, by reason only of the payment of a lump sum under this section, no pension, or a reduced pension, would, but for this subsection, be payable to the widow or dependent widower of the former con­ tributor, a pension is payable to the widow or, as the case may be, the dependent widower, in all respects as if the former contributor had been paid pension instead of the lump sum unless, in the case of a dependent widower, the lump sum was paid before the date of assent to the Local Government and Other Authorities (Superannuation) Amendment Act, 1980.

(c) Section 15BV ( 1 5 ) —
Omit the subsection.

(12) Sections 15BVA, 15BVB, 15BVC—

After section 15BV, insert :—•

15BVA. A lump sum calculated under a provision of

section 15BUB, 15BUC, 15BUD, 15BUE, 15BUF or 15BV

shall, notwithstanding the provision, be reduced by the

SCHEDULE 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

amount of such pension payments already made as would not have been made if payment of the lump sum had preceded payment of the pension.

15BVB. Where a lump sum is paid to a person under this Division instead of an amount of pension—

(a)	that amount of pension does not become, or ceases to be, payable to that person; and
(b)	except as provided in section 15BV (14), that amount of pension shall, on the death of that person, be disregarded for the purposes of section

15BO.

15BVC. (1) An election to be paid a lump sum instead of pension must be made in a form approved by the board and must be received in the office of the board not earlier than 3 months before, and not later than 3 months after, the former contributor ceases to be a contributor.

(2) An election to be paid a lump sum instead

of pension does not take effect until—

(a)	the expiration of such period as the board deter­ mines after the election is received in the office of the board; or
(b)	the person making the election ceases to be a contributor,

whichever last occurs.

S C H E D U L E 3—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO L U M P S U M BENEFITS—continued.

(3) Where an election to be paid a lump sum under this section instead of pension takes effect but the person making the election dies before payment of the lump sum is made, the board shall pay the lump sum to the personal representatives of the deceased person.

(4) An election that a person is entitled to make under a provision of this Division may not, unless the board in special circumstances approves, be made more than once.

(13) Schedule E —

Omit the Schedule.

(14) Schedule F —

Omit the Schedule, insert instead :—

S C H E D U L E F .

PERCENTAGES FOR D E T E R M I N I N G ADDITIONAL PENSION POINTS

APPLICABLE IN CALCULATING L U M P S U M .

Column 1. Column 2.

Superannuation year in which ceased to be contributor.	Percentage.
Year ending on 31st March, 1981	58
Year ending on 31st March, 1982	44
Year ending on 31st March, 1983	30
Year ending on 31st March, 1984	16

SCHEDULE 4.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS .

(1) Section 1 (4 ) , matter relating to Division 7 of Part I I I D —

Omit "15CG", insert instead " 1 5 C J " .

(2) (a) Section 15CF (1 ) , definition of "employer-financed

benefits"—

Omit "or 15BN (2) (b ) " , insert instead ", 15BN (2)

(b) or ( 5 ) , 15BUB, 15BUC (1) or ( 4 ) , 15BUD,

15BUE or 15BV".

(b)	Section 15CF (l), definitions of "hypothetical maximum
pension points", "maximum employer-financed

benefit"—

After the definition of "employer-financed benefits", insert :—

"hypothetical maximum pension points", in

relation to a transferee who ceases to be a contributor, means the number of pension points that the transferee would have accrued if they had been calculated at the rate of one- half a pension point for each whole month during which the transferee was—

(a)	the holder of a current insurance policy under Part II;
(b)	a person in respect of whom contribu­ tions were being made under Part I I I to the Provident Fund;
(c)	a contributor within the meaning of Part IIIB; or
(d)	a contributor within the meaning of
Part I I I D ;

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

"maximum employer-financed benefit", in relation to a transferee who ceases to be a contributor, means—

(a)	where, immediately before ceasing to be a contributor, the number of the transferee's accrued pension points was equal to the number of his hypothetical maximum pension points—the amount of the employer-financed benefits payable upon his ceasing to be a contributor; or
(b)	in any other case—the amount of the

employer-financed benefits that would have been payable upon the transferee ceasing to be a contributor if, imme­ diately before his ceasing to be a contributor, the number of his accrued pension points had been equal to the number of his hypothetical maximum pension points;

(c) Section 15CF (1), definition of "special sum pension points"—

At the end of section 15CF ( 1 ) , insert :—

"special sum pension points" means, for the pur­
pose of calculating an employer-financed

benefit as provided by subsection ( 4 ) , pension

points calculated under subsection	( 1 A ) , ( 1 B )
or ( l c ) , as the case may require.

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(d) Section 15CF ( 1 A ) ( 1 C ) —

After section 15CF ( 1 ) , insert :—

(1A) For the purposes of the definition of "special sum pension points" in subsection ( 1 ) , where the employer-financed benefit is—

(a)	a pension payable under section 15BF (3) or 15BG ( 3 ) ;
(b)	a lump sum payable under section 15BUB or 15BV ( 2 ) ;
(c)	partly a lump sum payable under section

15BUB and the remainder a lump sum pay­

able under section 15BV ( 2 ) ;

(d)	partly such a pension and the remainder a lump sum payable under section 15BUB or
15BV ( 2 ) ; or
(e)	partly such a pension and the remainder a lump sum payable under sections 15BUB
and 15BV ( 2 ) ,

the number of pension points shall be calculated in

accordance with the following formula :—

where—

H represents the number of special sum pension

points;

J represents the amount of the special sum paid or payable by the employer; and

F represents the transferee's final average

salary.

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(1B) For the purposes of the definition of "special sum pension points" in subsection ( 1 ) , where the employer-financed benefit is—

(a)	a pension payable under section 15BH (3) or 15BM ( 3 ) ;
(b)	partly a pension payable under section

15BH (3) and the remainder a lump sum

payable under section 15BV ( 2 B ) ; or

(c)	a lump sum payable under section 15BI (2)
( b ) , 15BJ (2) (b) or 15BV ( 2 B ) ,

the number of pension points shall be calculated in
accordance with the following formula:—

where— H represents the number of special sum pension

points;

J represents the amount of the special sum paid

or payable by the employer; and

S represents the transferee's final salary.

( l C ) For the purposes of the definition of "special

sum pension points" in subsection ( 1 ) , where the
employer-financed benefit is—

(a) a lump sum payable under section 15BUC

(1) or (4) or 15BUD;

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(b) partly a pension payable under section

15BH (3) or 15BM (3) and the remainder

a lump sum referred to in paragraph ( a ) ;

(c) partly a lump sum payable under section

15BUC and the remainder a lump sum

payable under section 15BV ( 2 B ) ; or

(d) partly a pension payable under section

15BH ( 3 ) , partly a lump sum payable under

section 15BUC and the remainder a lump
sum payable under section 15BV ( 2 B ) ,

the number of pension points shall be calculated in
accordance with the following formula :—

where— H represents the number of special sum pension

points; J represents the amount of the special sum paid

or payable by the employer;

C represents the transferee's notional final salary.

(e) Section 15CF (2) ( a ) - ( c ) —

Omit section 15CF (2) (a) and ( b ) , insert instead :—

(a) subsection (3) applies to the person if the employer-financed benefit is a benefit under section 15BK (2) ( b ) , 15BN (2) (b) or (5)

o r 1 5 B U E ;

90245   H - 2 / 3 2

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(b)	subsection (4) applies to the person if the employer-financed benefit is a benefit under
section 15BJ (2) ( b ) ; and
(c)	except in the case of an employer-financed benefit referred to in paragraph (a) or ( b ) , subsection (4) applies to the person unless he elects to take the benefit of subsection ( 5 ) , in which case subsection (5) applies to him.

(f) Section 15CF ( 3 ) - ( 6 ) —

Omit the subsections, insert instead :—

(3) Where this subsection applies to a person and

the sum of—

(a) the employer-financed benefit that, but for

this subsection, would be payable to him upon a transferee's ceasing to be a contributor; and

(b) the special sum applicable in relation to that

person,

would exceed the amount of the maximum employer-

financed benefit that, but for this subsection, would be payable to the person, the employer-financed benefit shall be reduced by the amount of the excess.

(4) Except in the case of a person to whom sub- section (3) applies, to the extent to which accrued pension points are a factor in calculating employer- financed benefits that, upon a transferee's ceasing to be a contributor, are payable under Division 5 or 5A

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—cont inued.

to a person referred to in subsection ( 2 ) , the number of accrued pension points to be used in the calculation is the number equal to the lesser of—

(a) the actual number of the transferee's

accrued pension points; and

(b) the difference between the number of the

transferee's hypothetical maximum pension points and the number of his special sum pension points.

(5) Where this subsection applies to a person, he shall not be entitled to any employer-financed benefits upon a transferee's ceasing to be a contributor but he shall be entitled to receive an amount equal to the sum of—

(a) the notional accumulation for the trans­

feree; and

(b) an amount equal to the supplementary bene­

fit that would have been payable in accordance with Part I I IC had the trans­

feree continued to be a contributor within

the meaning of Part l i fe .

(6) An election to take the benefit of subsection (5) must be made in writing in a form approved by the board and be received in the office of the board not earlier than 3 months before, and not later than 3 months after, the relevant transferee ceases to be a contributor.

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(3) (a) Section 15CG ( 1 ) —

After "15CF", insert "or 15CH".

(b) Section 15CG ( 1 ) —

Omit " ( 5 ) " , insert instead " ( 4 ) " .

(4) Sections 15CH, 15CI, 1 5 C J —

After section 15CG, insert :—

15CH. (1) Subject to this section, a person—

(a)	who is a former contributor within the meaning of section 15BF, 15BG or 15BH or the widow or dependent widower of a former contributor within the meaning of section 15BM;
(b)	who is paid, or entitled to be paid, a special sum; and
(c)	to the calculation of whose benefit section 15CF (4) applies,

may pay to the board an amount equal to the whole or part of the prescribed amount for that person for conver­

sion to a pension in accordance with section 15CI.

(2) For the purposes of subsection ( 1 ) , the prescribed amount for a person to the calculation of whose benefit section 15CF (4) applies is—

(a)	the amount of the special sum applicable in relation to that person; or
(b)	the amount paid or payable under section 15CJ (1) in relation to that person,

whichever is the lesser.
SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

15CI. (1) Where a person entitled to an employer- financed benefit under section 15BG pays an amount to the board under section 15CH ( 1 ) , the annual pension payable is the amount obtained by—

(a)	dividing the amount paid to the board by 11.3; and
(b)	reducing the rate of pension in the manner specified in section 15BG ( 3 ) .

(2) Where a person other than a person referred to in subsection (1) pays an amount to the board under section 15CH ( 1 ) , the annual pension payable is the amount obtained by dividing the amount paid to the board by 11.3.

(3) A pension that, immediately before the date of assent to the Local Government and Other Authorities (Superannuation) Amendment Act, 1980, was payable pursuant to section 15CF (6) as from time to time in force before that date continues on and after that date as a pension payable under this section but nothing in this

section operates to alter—

(a) the date on and from which the pension became

payable under this Act; or

(b) the rate at which it is payable.

15cJ. (1) Where employer-financed benefits otherwise
payable to a person upon a transferee ceasing to be a
contributor are reduced by the operation of section 15CF

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—cont inued.

(3) or calculated by applying section 15CF ( 4 ) , the board shall pay to the employer who employed the transferee immediately before he ceased to be a contributor—

(a)	in the case of a reduction by the operation of
section 15CF ( 3 ) — a n amount equal to the amount of the reduction; or
(b)	in the case of benefits calculated by applying
section 15CF ( 4 ) — a n amount calculated as

provided in subsection ( 2 ) .

(2 ) The amount referred to in subsection (1) (b) shall be calculated in accordance with the following formula :—

where—

Q represents the amount payable to the employer;

V represents the transferee's final average salary, final salary or notional final salary, whichever salary is applicable in calculating the employer- financed benefit, subject to the applicable salary being—

(a) where the benefit is partly a pension and partly a lump sum payable under section

15BV but does not include another lump

sum payable under Division 5A—the salary applied in calculating the lump sum payable; or

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(b) where the benefit is partly a lump sum payable under section 15BV and partly another lump sum payable under Divi­ sion 5A whether with or without a pen­ sion—the salary applied in calculating that other lump sum; and

J represents the number of accrued pension points that, but for the operation of section 15CF ( 4 ) , would have been applicable in calculating the employer-financed benefit, reduced by the difference between the number of the transferee's hypothetical maximum pension points and the number of his special sum pension points.

(3) Where section 15CF (5) applies to a person after a transferee ceases to be a contributor and the amount of the employer-financed benefit prescribed by subsection (4) that would be payable to him if section 15CF (5) did not apply to him exceeds the amount he is entitled to receive under section 15CF ( 5 ) , the board shall pay an amount equal to the excess to the employer who was the transferee's employer immediately before the transferee ceased to be a contributor.

(4) The employer-financed benefit prescribed by

this subsection for the purposes of subsection (3) is the lump sum that the person to whom section 15CF (5) applies would have been entitled to receive under section

15BI (2) ( b ) , 15BUB ( 1 ) , 15BUC (1) or 15BUD if section

15CF (5) did not apply to him.

(5) An amount payable to an employer under

subsection (1) or (3) shall be paid—

(a) where the employer is a general employer—from the general reserve; or

SCHEDULE 4—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING

TO ALTERNATIVE BENEFITS—continued.

(b) where the employer is a special employer—from the special reserve.

SCHEDULE 5.

A M E N D M E N T S	TO THE PRINCIPAL A C T	RELATING TO
PERIODICAL	A D J U S T M E N T OF PENSION	RATES.

(1) Section 1 ( 4 ) —

After the matter relating to Division 7 of Part I I I D , insert :—

DIVISION 8.—Periodical adjustment of pension

rates—ss. 15CK-15CN.

(2) Section 15BQ—

Omit the section, insert instead :—

15BQ. Subject to its adjustment in accordance with

Division 8 of Part I I I D , the pension payable under section

15BP in respect of a dependent child shall be paid at the

applicable rate in force immediately before the commence­
ment of that Division.

(3) Section 15BS (2) —

Omit the subsection.

(4) Section 15BU—

Omit the section.

SCHEDULE 5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

(5) Part I I I D , Division 8—

After Division 7 of Part I I I D , insert :—

DIVISION 8.—Periodical adjustment of pension rates.

15CK. (1) In this Division, except in so far as the

context or subject-matter otherwise indicates or requires— "adjustment date", in relation to a year, means the first day of the first pension pay period that commences on or after 1st April in the year that next succeeds that year;

"adjustment percentage" for a year, in relation to a

pension, means (subject to section 15CM) the
percentage for that year in relation to that pen­
sion calculated in accordance with that section;

"December quarter", in relation to a year, means the period commencing on and including 1st October in that year and ending on and including 31st December in that year;

"Index number", in relation to a quarter, means the

number for that quarter appearing in the Con­

sumer Price Index (All Groups Index) for
Sydney published by the Commonwealth Statis­

tician under the Census and Statistics Act 1905 of the Parliament of the Commonwealth, as amended from time to time, or any Act of that Parliament replacing that Act, as so amended;

"June quarter", in relation to a year, means the period commencing on and including 1st April in that year and ending on and including 30th June in that year;

SCHEDULE 5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

"March quarter", in relation to a year, means the period commencing on and including 1st January in that year and ending on and including 31st March in that year;

"quarter", in relation to a year, means—

(a) the period commencing on and including

1st January in that year and ending on and including 31st March in that year;

(b) the period commencing on and including

1st April in that year and ending on and including 30th June in that year;

(c) the period commencing on and including

1st July in that year and ending on and including 30th September in that year; or

(d) the period commencing on and including

1st October in that year and ending on and including 31st December in that year;

"September quarter", in relation to a year, means the

period commencing on and including 1st July in that year and ending on and including 30th September in that year;

"suspended pension" means a pension that is not payable only by reason of marriage of the person to whom, but for the marriage, it would be payable:

SCHEDULE 5—continued.

A M E N D M E N T S	TO THE PRINCIPAL A C T RELATING TO
PERIODICAL A D J U S T M E N T OF PENSION	RATES—continued.

"year" means—

(a)	except in relation to section 15CM (7) — a period commencing on and including 1st January and ending on and including the next succeeding 31st December; or
(b) in relation to section	15CM ( 7 ) — a

superannuation year.

(2) Where a pension is to be adjusted under this Division by reference to the adjustment percentage for a year, a reference (however expressed) in this Division to adjusting the pension is a reference—

(a) where the adjustment percentage is calculated in accordance with the formula specified in section

15CM (3) ( c ) , (4) ( a ) , (5) (a) or (7) ( a ) —

to increasing the pension; or

(b) where the adjustment percentage is calculated in accordance with the formula specified in section

15CM (3) ( d ) , (4) ( b ) , (5) (b) or (7) ( b ) —

to reducing the pension.

15CL. (1) This Division does not operate to reduce a

pension to a rate lower than the rate at which it would have been payable if this Division had not been enacted and clauses 13A, 13B, 13BA, 13BB and 13c of the Local Government and Other Authorities (Superannuation) Regulation, 1978, as from time to time in force before the commencement of this Division, had not been made.

SCHEDULE 5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

(2) Where the board is of the opinion that an increase pursuant to this Division in the pension payable to a person would prejudicially affect that person in respect of a benefit to which that person, but for being so affected, would be entitled, the board may determine—

(a) not to pay the amount of the increase;
(b) to pay a specified increase of a lesser amount; or

(c) to decrease the pension to a specified amount.

and may determine to revoke or vary any such determina­
tion.

(3) A determination in force under clause 13c of the Local Government and Other Authorities (Super­ annuation) Regulation, 1978, immediately before the commencement of this Division shall be deemed to be a determination made under subsection (2) as if this Division had been in force when the determination was made.

(4) A determination made under subsection (2)

has effect according to its tenor but subsection (2) does not

authorise variation of a determination that has the effect of increasing a pension to an amount greater than it would
have been if no determination in relation to the pension
had been made under subsection ( 2 ) .
(5) A determination made under subsection (2) shall be disregarded in calculating a pension payable to the widow of the pensioner to whom the determination relates but such a determination may be made in relation to the pension so calculated.
SCHEDULE	5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

15CM. (1) In this section, "relevant day", in relation to a pension, means—

(a)	where the pension is payable under section 15BO in consequence of the death of a pensioner—the day on which the deceased pensioner last became a pensioner;
(b)	where the pension is payable under section 15BO by reason of section 15BV (14)—the day on which the deceased spouse of the widow or dependent widower entitled to the pension last became, or would, but for the payment of the lump sum under section 15BV, have become, a pensioner; or
(c)	in any other case—the day on and from which

entitlement to the pension arose.

(2) For the purposes of the definition of "adjustment percentage" in section 15CK ( l ) , the percentage for a year in relation to a pension shall be calculated as provided by this section.

(3) Where a pension is payable under—

(a) section 15BF, 15BG, 15BH, 15BM or 15BO

(including a pension referred to in section 15BV

( 1 4 ) ) ; o r

(b) section 15CI to a former contributor within the meaning of section 15BF, 15BG or 15BH or the widow or dependent widower of a former contributor within the meaning of section 15BM,

SCHEDULE 5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

the calculation for the purposes of subsection (2) in rela­ tion to a year shall, where the relevant day for the pension is a day that is earlier than 1st January in that year, be made—

(c)	where the Index number for the December quarter in that year is greater than the Index number for the immediately preceding December quarter—in accordance with the following formula :—
(d)	where the Index number for the December quarter in that year is less than the Index number for the immediately preceding December quarter —in accordance with the following formula :—

where— P represents the percentage to be obtained;

D represents the Index number for the December

quarter in that year; and

L represents the Index number for the immediately preceding December quarter.

(4) Where a pension is payable under section

15BF or 15BG or a pension (including a pension referred to

in section 15BV ( 1 4 ) ) is payable under section 15BO in consequence of the death of a former contributor referred to in section 15BF or 15BG, the calculation for the purposes

SCHEDULE 5—continued.

A M E N D M E N T S	TO THE PRINCIPAL	A C T RELATING TO
PERIODICAL	A D J U S T M E N T OF PENSION	RATES—continued.

of subsection (2) in relation to a year shall, where the relevant day for the pension is a day that is not earlier than 1st January, or later than 31st December, in that year, be made—

(a)	where the Index number for the December quarter in that year is greater than the Index number for the June quarter in that year—in accordance with the following formula :—
(b)	where the Index number for the December quarter in that year is less than the Index num­ ber for the June quarter in that year—in accordance with the following formula :—

where—

P represents the percentage to be obtained;

D represents the Index number for the December quarter in that year; and

J represents the Index number for the June quarter

in that year.

(5) Where a pension is payable under section

15BH or 15BM or a pension (including a pension referred

to in section 15BV ( 1 4 ) ) is payable under section 15BO in consequence of the death of a former contributor referred to in section 15BH, the calculation for the purposes of sub-

SCHEDULE 5—continued.

A M E N D M E N T S TO THE PRINCIPAL A C T RELATING TO

PERIODICAL A D J U S T M E N T OF PENSION RATES—continued.

section (2) in relation to a year shall, where the relevant day for the pension is a day during the March, June or Sep­ tember quarter in that year, be made—

(a)	where the Index number for the December quarter in that year is greater than the Index number for the quarter in that year during which the relevant day for the pension falls—in accordance with the following formula :—
(b)	where the Index number for the December quarter in that year is less than the Index number for the quarter in that year in which the relevant day for the pension falls—in accordance with the following formula :—

where—

P represents the percentage to be obtained;

D represents the Index number for the December

Q represents the Index number for the quarter quarter in that year; and

durinc which the relevant day for the pension

falls.

(6) Where a pension is payable under section

15BQ, the calculation for the purposes of subsection (2)

in relation to a year shall be made in the same way as a
calculation under subsection ( 3 ) .

SCHEDULE 5—continued.

AMENDMENTS TO THE PRINCIPAL A C T RELATING TO

PERIODICAL ADJUSTMENT OF PENSION RATES—continued.

(7) Where a pension is payable under section

15BR, the calculation for the purposes of subsection (2)

in relation to a superannuation year shall be made—

(a) where the rate of interest determined by the

board for that year under section 15BB (2) is

greater than 4 per cent—in accordance with
the following formula :—

(b) where the rate of interest determined by the

board for that year under section 15BB (2) is

less than 4 per cent—in accordance with the
following formula :—

where—

P represents the percentage to be obtained;

R represents the rate determined for that year under

section 15BB ( 2 ) ;

I represents 4 per cent; and

N represents the number of whole quarters in that

year during which the pension was payable.

(8) If at any time (whether before or after the commencement of this Division) the Commonwealth Statistician has published in respect of a particular quarter an Index number in substitution for an Index number previously published by him in respect of that quarter—

(a) except as provided by paragraph (b)—the publication of the later Index number shall be disregarded; or

SCHEDULE 5—continued.

AMENDMENTS TO THE PRINCIPAL A C T RELATING TO

PERIODICAL ADJUSTMENT OF PENSION RATES—continued.

(b)	if the Minister so directs—regard shall, after the
direction is given, be had to the later and not to the earlier, Index number,

for the purposes of this Division.

(9) Notwithstanding subsection ( 8 ) , if at any time

after the commencement of this Division the Common­ wealth Statistician changes the reference base for the Con­ sumer Price Index (All Groups Index) for Sydney, regard shall, for the purposes of this Division, be had only to Index numbers published in terms of the new reference base.

(10) This section applies to and in respect of a suspended pension in the same way as it would have applied if the marriage by reason of which it is a suspended pension had not taken place but nothing in this subsection operates to authorise or require the payment of that suspended pension or any part thereof.

15CN. (1) Subject to this Division, where there is an

adjustment percentage for a year in relation to a pension, the amount of that pension payable on the adjustment date

for that year is hereby adjusted, on and from that adjustment date, by that percentage. (2) A reference in subsection (1) to the amount

of a pension payable to a person includes a reference to the pension that would have been payable to that person had section 15CL (2) not been enacted.

SCHEDULE 6.

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL ACT.

(1) Sections 15AO ( 1 ) , 15AP ( 1 ) , 15AQ ( 1 ) —

Omit "31st December, 1979, or within such further period as the Governor may, by proclamation published in the Gazette before 1st January, 1980, allow," wherever occurring, insert instead "30th September, 1981,".

(2) Section 15BC ( 8 ) —

After section 15BC ( 7 ) , insert :—

(8) Where a benefit is payable under section 15BI (3)

(b) ( i i) , 15BN (3) (b) or (4) ( b ) , 15BUC (2) (b) or

(3) (b) or 15BUF (1) (b) or (2) ( b ) , the amount by

which the benefit paid exceeds—-

(a)	where the benefit paid is the benefit referred to in section 15BI (3) (b) ( i i)—the amount of the benefit referred to in section 15BI (3) (b) ( i ) ;
(b)	where the benefit paid is the benefit referred to in section 15BN (3) (b) or (4) (b )—the amount of the benefit referred to in section 15BN
(3) ( a ) ;
(c)	where the benefit paid is the benefit referred to in section 15BUC (2) (b )—the amount of the
benefit referred to in section 15BUC (2) ( a ) ;
(d)	where the benefit paid is the benefit referred to in section 15BUC (3) (b )—the amount of the benefit referred to in section 15BUC (3) ( a ) ;
(e)	where the benefit paid is the benefit referred to in section 15BUF (1) (b)—the amount of the benefit referred to in section 15BUF (1) ( a ) ;
(f)	where the benefit paid is the benefit referred to in section 15BUF (2) (b )—the amount of the benefit referred to in section 15BUF (2) ( a ) ,

SCHEDULE 6—continued.

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL A C T —

continued.

shall, where the former contributor was, at the time of his resignation, dismissal or death, a servant of a general employer, be debited to the general reserve or where, at that time, he was a servant of a special employer, be debited to the special reserve.

(3) Section 15BE ( 5 A ) —

After section 15BE ( 5 ) , insert :—

(5A) The number of accrued pension points applic­ able for the purposes of this Division or Division 5A in rela­ tion to a person referred to in section 15CF (2) is to be calculated subject to section 15CF ( 4 ) .

(4) Section 16 ( 1 2 ) —

Omit the subsection.

(5) (a) Section 16c (2) (b) —

Omit "or 5B", insert instead ", 5B or 5c".

(b) Section 16c ( 3 ) —

Omit "and 5B", insert instead ", 5B and 5c".

(c) Section 16c (4) —

Omit the subsection, insert instead :—

(4) For the purposes only of this section, the Superannuation Act, 1916. shall be deemed to be amended by omitting section 5A (8) (d) of that Act.

SCHEDULE 6—continued.

MISCELLANEOUS AMENDMENTS TO THE PRINCIPAL A C T —

continued.

(6) Section 16E ( 1 ) , ( 2 ) —

Omit "5A ( 1 ) " wherever occurring, insert instead "5A".

(7) Section 16G—

After section 16F, insert :—

16G. (1) The board may delegate any of its powers, authorities, duties and functions under this or any other Act or under the regulations, except this power of delega­ tion, to any member of the board or any employee of the board.

(2) The decision of a member of the board or an employee of the board made when he is acting in pursuance of a delegation under this section shall be deemed to be a decision of the board.

(3) A delegation under this section may be revoked by the board at any time and does not prevent the exercise or performance of any power, authority, duty or function by the board.

S C H E D U L E 7.

SAVINGS AND TRANSITIONAL PROVISIONS.

1. Where a pension was commuted under section 15BV of the Principal

Act before the date of assent to this Act—

(a) that section, as in force immediately before that date, applies to and in respect of the commutat ion; and

S C H E D U L E 7—continued.

SAVINGS AND TRANSITIONAL PROVISIONS—continued.

(b) that section, as amended by this Act, does not apply to or in

respect of the commutat ion .

2. Where , before the date of assent to this Act, a former contributor had made an election under section 15BV of the Principal Act but his pension had not, in accordance with the election, been commuted before that date, that section, as in force immediately before that date, applies to and in respect of the election, and commuta t ion in accordance there­ with, as if this Act had not been enacted.

3. The repeal by this Act of section 15BU of the Principal Act does not

affect the previous operat ion of clauses 13A, 13B, 13BA, 13BB and 13c

of the Local Government and Other Authorities (Superannuat ion) Regula­ tion, 1978, as from t ime to t ime enacted before the date of assent to this Act.