Local Government Employees' Superannuation (Amendment of Articles) Regulation (No. 2) 1992 (Qld)

Queensland Subordinate Legislation 1992 No. 440 Local Government Superannuation Act 1985 LOCAL GOVERNMENT EMPLOYEES’ SUPERANNUATION (AMENDMENT OF ARTICLES) REGULATION (No. 2) 1992 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Approval of amendments of The Articles of the Local Government Employees’ Superannuation Scheme . . . . . . . . . . . . . . . . . . . . 3 4 Amendment of article 4 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 Amendment of article 4A (Meaning of “member’s superannuation scheme accumulation”) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 Insertion of new articles 4C and 4D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4C Meaning of “member’s reserve superannuation scheme multiple” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4D Meaning of “final average salary” . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 Amendment of article 5 (Enrolment and medical classification of members) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 Amendment of article 7 (Contributions and Member Accounts) . . . . . . . . . 9 9 Amendment of article 8 (Benefits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 10 Amendment of article 9 (Reductions in benefit calculations) . . . . . . . . . . . 14 11 Amendment of article 10 (General Conditions for Payment of Benefits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 12 Amendment of article 16 (General Powers of the Board) . . . . . . . . . . . . . . 15 13 Omission of article 17 (Prescribed Matters) . . . . . . . . . . . . . . . . . . . . . . . . . 15

2 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) 14 Replacement of articles 20–21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 20 Transfers to or from the Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 15 Insertion of new Part 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 PART 9—APPLICATION OF RELEVANT LAW 24 Application of relevant law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 16 Amendment of tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 17 Minor amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . 20 MINOR AMENDMENTS

3 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) ˙ Short title 1. This regulation may be cited as the Local Government Employees’ Superannuation (Amendment of Articles) Regulation (No. 2) 1992 . ˙ Commencement 2.(1) Sections 4(1) and 15 are taken to have commenced on 30 June 1992. (2) Sections 4(2), 4(3), 6(1), 8, 9, 10(1) and 16 are taken to have commenced on 1 July 1992. ˙ Approval of amendments of The Articles of the Local Government Employees’ Superannuation Scheme 3. The amendments of The Articles of the Local Government Employees’ Superannuation Scheme set out in this regulation are approved. ˙ Amendment of article 4 (Interpretation) 4.(1) Article 4(1)— insert— ‘ “public sector scheme” means a superannuation scheme established— (a) under an Act of the State or of the Commonwealth; or (b) under the authority of— (i) the State or of the Commonwealth; or (ii) a local authority or other body established under an Act of the State or of the Commonwealth; “relevant law” means— (a) the OccupationalSuperannuationStandardsAct1987 of the Commonwealth; or (b) the Income Tax Assessment Act 1936 of the Commonwealth; or (c) any other Act of the State or of the Commonwealth that the

4 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) Scheme or the Board must comply with in order to secure, or better secure, a tax concession or avoid a penalty, detriment or disadvantage; ’. (2) Article 4(1) (definitions “age discount factor”, “amended article 8(5)”, “deferred beneficiary”, “Deferred Beneficiary Account”, “Preserved Beneficiary Account” and “repealed section 39(2)” )— omit. (3) Article 4(1)— insert— ‘ “age discount factor” means the factor applicable to a person at the cessation date, calculated by— (a) selecting from the member’s reserve factor table shown in Table 4(1) the factor set opposite the member’s age in full years at the cessation date; and (b) adjusting the factor to include the fraction of a full year of the member’s age that has passed between the member’s last birthday and the cessation date; “amended article 8(5)” means article 8(5) as in force on 30 June 1992; “deferred beneficiary” means a former member— (a) who has made an election under repealed article 8(10); or (b) to whom the proviso to repealed article 8(7) applies; “Deferred Beneficiary Account” in relation to a former member, means the account kept under repealed article 8(10) to which the amount of benefits deferred under repealed article 8(7) or repealed article 8(10) have been credited; “member’s reserve” means the amount calculated using the formula— MRSSM x FAS x F; in which, at the cessation date— “MRSSM” is the member’s reserve superannuation scheme multiple; “FAS” is the member’s final average salary;

5 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) “F” is the age discount factor; “member’s reserve superannuation scheme multiple” has the meaning given by article 4C; “Preserved Beneficiary Account” in relation to a member, means the account kept for the purpose of receiving an amount— (a) payable under article 8(6) that is required by a relevant law, or an order of a court or tribunal, to be vested in, and preserved for, the member rather than being payable to the member on resignation or dismissal; or (b) that is to be retained in the Fund as a result of a member making an election under article 8(6D); “repealed article 8(7)” means article 8(7) as in force on 30 June 1992; “repealed article 8(10)” means article 8(10) as in force on 30 June 1992; “repealed section 39(2)” means section 39(2) of the Act as in force on 30 June 1992; ’. (4) Article 4(1) (definitions “amending order”, “Board”, “Final Average Salary” and “Voluntary Contributions Account” )— omit. (5) Article 4(1)— insert— ‘ “final average salary” has the meaning given by article 4D; “Voluntary Contributions Account” means the account kept under article 7(12) to which— (a) amounts mentioned in the article and in articles 20(3)(b) and 22(5) are credited; and (b) amounts mentioned in article 22(3) are debited; ’.

6 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) ˙ Amendment of article 4A (Meaning of “member’s superannuation scheme accumulation”) 5. Article 4A(1)(b)(i)— omit ‘ member contributions ’, insert ‘ amount of the member contributions ’. ˙ Insertion of new articles 4C and 4D 6.(1) After article 4B— insert— ˙ ‘Meaning of “member’s reserve superannuation scheme multiple” ‘4C.(1) “Member’s reserve superannuation scheme multiple” , in relation to a member who— (a) was not a member of the prior scheme; or (b) was a member of the prior scheme but did not make an election under repealed section 39(2); or (c) was a member of the prior scheme and made an election under repealed section 39(2) and a further election under section 38B of the Act; is, on any day— (d) 18% for each complete year of the member’s superannuation scheme membership after 30 June 1992 before the member turns 65 years; and (e) pro rata for each additional complete day. ‘(2) “Member’s reserve superannuation scheme multiple” , in relation to a member who— (a) was a member of the prior scheme; and (b) made an election under repealed section 39(2); and (c) did not make a further election under section 38B of the Act; is, on any day—

7 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (d) 15.75% for each complete year of the member’s superannuation scheme membership after 30 June 1992 before the member turns 65 years; and (e) pro rata for each additional complete day. ’. (2) After article 4C— insert— ˙ ‘Meaning of “final average salary” ‘4D.(1) Subject to subarticles (3) and (4), “final average salary” is a member’s average annual salary during the period of 1 year ending on the cessation date, calculated on the basis that the member’s salary at each review date accrued and was paid daily from review date to review date ending on the cessation date. ‘(2) Subject to subarticles (3) and (4), if a member has been a permanent employee for less than 1 year, “final average salary” is the member’s salary calculated under subarticle (1) over the period that the member was a permanent employee estimated pro rata over a period of 1 year. ‘(3) Subject to subarticle (4), a member’s “final average salary” must not, unless otherwise determined by the Board after consideration of advice from the member’s employer, exceed an amount calculated using the formula— (1 + (1.5 x A – B)) x C; B in which— “A” is the average weekly ordinary time earnings index published by the Commonwealth Statistician for the second last complete quarter before the cessation date; “B” is the average weekly ordinary time earnings index published by the Commonwealth Statistician for— (a) if the member has been a permanent employee for more than 3 years before the cessation date—the quarter 3 years earlier that corresponds to the quarter mentioned in “A”; or

8 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (b) if the member has been a permanent employee for less than 3 years before the cessation date—the last complete quarter before the member became a permanent employee; “C” is the member’s rate of annual salary— (a) if the member has been a permanent employee for more than 3 years before the cessation date—on the day that is 3 years before the cessation date; or (b) if the member has been a permanent employee for less than 3 years before the cessation date—on the day the member became a permanent employee. ‘(4) A member’s “final average salary” must not be less than a member’s final salary as defined by the Articles as in force on 1 July 1989. ’. ˙ Amendment of article 5 (Enrolment and medical classification of members) 7.(1) Article 5(1)— omit, insert— ‘(1) A person who becomes a member on or after 1 July 1989 must— (a) complete and sign— (i) a Form 1; and (ii) unless otherwise determined by the Board, a personal statement in Form 2; and (b) give the forms to the person’s employer within 14 days after contributions are started in relation to the person. ’. (2) Article 5(3)(a)— omit ‘ the time prescribed ’, insert ‘ 28 days of receiving a request from the Board ’. (3) Article 5(4)— omit ‘ Forms 1 and 2 ’, insert ‘ Form 1 ’.

9 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (4) Article 5(5)(e)— omit, insert— ‘ (e) The Board must, after considering— (i) the member’s personal statement, medical report (if applicable), assessed expectation of life and assessed probability of incapacity; or (ii) if the Board determines that a member need not complete a personal statement—such other evidence as is accepted by the Board; determine a member’s medical classification to be Class A, B, C, D or E. ’. ˙ Amendment of article 7 (Contributions and Member Accounts) 8.(1) Article 7(2)(g)–(l)— omit, insert— ‘ (g) for the year starting on 1 July 1992—15.5%; (h) for the year starting on 1 July 1993—16%; (i) for the year starting on 1 July 1994—16.5%; (j) for the year starting on 1 July 1995—17%; (k) for the year starting on 1 July 1996—17.5%; (l) from 1 July 1997—18%. ’. (2) Article 7(2A)(h)–(m)— omit, insert— ‘ (h) for the year starting on 1 July 1992—13.5%; (i) for the year starting on 1 July 1993—14%; (j) for the year starting on 1 July 1994—14.5%; (k) for the year starting on 1 July 1995—15%;

10 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (l) for the year starting on 1 July 1996—15.5%; (m) from 1 July 1997—16%. ’. (3) Article 7(2B)(h)–(m)— omit, insert— ‘ (h) for the year starting on 1 July 1992—15.5%; (i) for the year starting on 1 July 1993—16%; (j) for the year starting on 1 July 1994—16.5%; (k) for the year starting on 1 July 1995—17%; (l) for the year starting on 1 July 1996—17.5%; (m) from 1 July 1997—18%. ’. (4) Article 7(3)(b)— omit, insert— ‘ (b) to each Member’s (Permanent) Minimum Vested Employer Contributions Account the amount that is required to be vested in, and preserved for, the member under— (i) any Act of the State or of the Commonwealth; or (ii) any agreement registered or recognised under any Act of the State or of the Commonwealth; or (iii) any order of a court or tribunal acting under the authority of any Act of the State or of the Commonwealth; ’. (5) After article 7(3)— insert— ‘(3AA) The amount to be vested in, and preserved for, a member under the SuperannuationGuarantee(Administration)Act1992 of the Commonwealth is the employer’s charge percentage specified in the table set out in section 21(4) of that Act. ’. (6) Article 7(12)(a)— omit ‘ a permanent employee ’, insert ‘ an eligible employee ’.

11 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (7) Article 7(12)(b)— omit ‘ to contributions ’, insert ‘ to employer contributions ’. ˙ Amendment of article 8 (Benefits) 9.(1) Article 8(6)— omit, insert— ‘Resignation and dismissal ‘(6) The Board must pay a lump sum benefit to, or in relation to, a member on the member’s resignation or otherwise ceasing to be a member if a benefit is not payable to, or in relation to, the member under another article. ‘(6A) The lump sum benefit is the sum of— (a) the member contributions paid to the scheme in relation to the member together with compound interest at the declared rate from 1 July 1992 to the cessation date; and (b) the amount standing to the credit of the Member’s (Non-Permanent) Minimum Vested Employer Contributions Account in relation to the member together with compound interest at the declared rate to the cessation date; and (c) the greater of— (i) the amount standing to the credit of the Member’s (Permanent) Minimum Vested Employer Contributions Account in relation to the member together with compound interest at the declared rate to the cessation date; and (ii) the amount calculated using the formula— (MR – MCI) x F; in which— “ is M th R e ” amount of the member’s reserve at the cessation date; i “ s M th C e I a ” mount determined under paragraph (a);

12 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) “ is F t ” he percentage factor (derived from the factor table shown in Table 8(6A)) referable to the total duration of the member’s superannuation scheme membership and the member’s prior scheme membership; and (d) the lump sum benefit— (i) that would have been payable to, or in relation to, the member at 30 June 1992, calculated under repealed article 8(7), together with compound interest at the declared rate from 1 July 1992 to the cessation date; or (ii) if the member so requests, calculated under repealed article 8(10) on the period of membership ending on 30 June 1992, but the calculation is to be based on— (A) the member’s age and final average salary on the cessation date; and (B) the member’s previous scheme accumulation and the member’s superannuation scheme accumulation on 30 June 1992 accrued with compound interest at the declared rate until the cessation date. ‘(6B) If the total duration mentioned in subarticle (6A)(c)(ii) includes a fraction of a completed year (being the period that has passed between the last completed year of combined scheme memberships and the cessation date), the percentage factor derived from the factor table shown in Table 8(6A) must be adjusted pro rata to 4 decimal places to take the fraction into account. ‘(6C) Without limiting subarticles (6), (6A) or (6B), if any amount payable under those subarticles is required by a relevant law, or an order of a court or tribunal, to be vested in, and preserved for, a member— (a) the amount must be excluded from the benefit payable to the member; and (b) an equivalent amount must be credited to a Preserved Beneficiary Account in the name of the member. ‘(6D) A member who ceases to be a member because of resignation or dismissal before reaching the minimum preservation age may, by written notice given to the Board, elect to retain in the Fund the amount of the

13 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) benefit that would otherwise be immediately available to the member. ‘(6E) The amount of the benefit must be credited to a Preserved Beneficiary Account in the former member’s name. ‘(6F) The benefit is payable to the former member on the happening of the earliest of any of the following events— (a) the member turns 55 and permanently retires from the workforce; (b) the member becomes permanently incapacitated or invalided and retires from the workforce; (c) the member dies; (d) the member leaves Australia to permanently reside overseas. ‘(6G) An amount credited to a Preserved Beneficiary Account in a former member’s name may be transferred only to— (a) the fund of an approved superannuation scheme or an eligible superannuation scheme within the meaning of the Superannuation(PublicEmployeesPortabilityandActsAmendment) Act 1985 ; or (b) another benefit arrangement (including a superannuation fund, an approved deposit fund, a deferred annuity or other like fund) on the happening of the earliest of any of the events mentioned in subarticle (6F). ’. (2) Article 8(9)— omit. (3) Article 8(10)— renumber as article 8(9). (4) Article 8(11)— renumber as article 8(10). ˙ Amendment of article 9 (Reductions in benefit calculations) 10.(1) Article 9(2)— omit ‘ age discount factor table ’, insert ‘ member’s reserve factor table ’.

14 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (2) Article 9(3)— omit, insert— ‘Exclusion of accidents etc. ‘(3) Despite articles 5(5)(i) and 9(1), if— (a) a member’s death or disablement (in relation to which a benefit is claimed under article 8(4), (6) or (8)) is the result of an injury sustained in an accident; and (b) the Board is of the opinion that— (i) the death or disablement was not substantially caused by, or attributable to, the impairment that gave rise to the member’s medical classification; or (ii) if the member’s medical classification arises because of article 5(5)(i)—the death or disablement was not substantially caused, or attributable to, an impairment that may have resulted in a medical classification other than Class A being determined for the member; the member’s medical classification is taken to be Class A for the purposes of article 8. ’. ˙ Amendment of article 10 (General Conditions for Payment of Benefits) 11. Article 10(12)(a)(ii)— omit ‘ referred to in Article 20 ’. ˙ Amendment of article 16 (General Powers of the Board) 12. After article 16(8)— insert— ‘(8A) to determine payment under section 47 of the Act if a benefit is payable to a member under article 8(1) to (4), (6) or (9) and the member dies before payment is made; ‘(8B) subject to such terms as the Board may determine, if a member

15 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) receives a salary increase that exceeds a percentage rate of increase fixed by the Board—to review and determine the level of the member’s insured total and permanent disablement cover as provided by the Board; ’. ˙ Omission of article 17 (Prescribed Matters) 13. Article 17— omit. ˙ Replacement of articles 20–21 14. Articles 20 and 21— omit, insert— ˙ ‘Transfers to or from the Scheme ‘20.(1) In this section— “Portability Act” means the Superannuation(PublicEmployeesPortability and Acts Amendment) Act 1985 . ‘(2) If a person— (a) becomes a member; and (b) before becoming a member—was a member of another superannuation scheme or like fund; the Board may accept from the scheme or fund any amount in relation to a member. ‘(3) An amount received from an approved superannuation scheme within the meaning of the Portability Act may be accepted only subject to that Act. ‘(4) An amount received by the Board is vested in the member and must be credited as follows— (a) to the Member’s (Non-Permanent) Minimum Vested Employer Contributions Account, so much of the amount as is required to be vested in, and preserved for, the member under— (i) any Act of the State or of the Commonwealth; or

16 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) (ii) any agreement registered or recognised under any Act of the State or of the Commonwealth; or (iii) any order of a court or tribunal acting under the authority of any Act of the State or of the Commonwealth; (b) to the Voluntary Contributions Account, so much of the amount as is required to be vested in, but not preserved for, the member under— (i) any Act of the State or of the Commonwealth; or (ii) any agreement registered or recognised under any Act of the State or of the Commonwealth; or (iii) any order of a court or tribunal acting under the authority of any Act of the State or of the Commonwealth; (c) to an Employer Portability Account, the balance (if any). ‘(5) An amount in an Employer Portability Account in relation to a member is payable only on the happening of the earliest of any of the following events— (a) the member elects under the Portability Act to transfer the member’s benefit to an approved superannuation scheme or an eligible superannuation scheme within the meaning of that Act; (b) the member turns 55 and permanently retires from the workforce; (c) the member becomes permanently incapacitated or invalided and retires from the workforce; (d) the member dies; (e) the member leaves Australia to permanently reside overseas. ‘(6) A transfer under subarticle (5)(a) may be made only subject to the Portability Act. ’. ˙ Insertion of new Part 9 15. After Part 8— insert—

17 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) ‘PART 9—APPLICATION OF RELEVANT LAW ˙ ‘Application of relevant law ‘24.(1) A provision or requirement of a relevant law that is required by the relevant law to be included in these Articles in order to comply with a requirement of the relevant law— (a) is taken to be included in these Articles on the day by which it must be included under the relevant law if the requirement is to be complied with; and (b) for the purposes of regulation 18(4) of the OccupationalSuperannuationStandardsRegulations1987 of the Commonwealth, this Part (so far as it relates to the operating standards applying to a public sector scheme) is taken to have been included in these Articles on 30 June 1992. ‘(2) If there is any conflict between a provision of a relevant law mentioned in subarticle (1) and any other provision of these Articles, the provision of the relevant law prevails. ’.

18 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) ˙ Amendment of tables 16. Table 4(1) (Age Discount Factor)— omit, insert— ‘TABLE 4(1) Member’s reserve factor table Age of Member Factor F 35 or younger 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 0.60 0.62 0.64 0.66 0.68 0.70 0.72 0.74 0.76 0.78 0.80 0.82 0.84 0.86 0.88 0.90 0.92 0.94 0.96 0.98 1.00 TABLE 8(6A) Factor table Completed years of Membership 0 1 % 0 20

19 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) 2 3 4 5 or more 40 60 80 100 ’. ˙ Minor amendments 17. The Articles of the Local Government Employees’ Superannuation Scheme are further amended as set out in the Schedule.

20 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) ¡ SCHEDULE MINOR AMENDMENTS section 17 1. Article 4(1) (definition “total and temporary disablement”)— omit ‘ total permanent disablement ’, insert ‘ total and permanent disablement ’. 2. Article 4B(1)(b) (after ‘election’)— insert ‘ under ’. 3. Article 6(2)(b)(i)— omit ‘ to suffering ’, insert ‘ to be suffering ’. 4. Article 6(2)(d)— omit ‘ to suffering ’, insert ‘ to be suffering ’. 5. Article 8(1A)(b) (2nd paragraph (b))— renumber as paragraph (c). 6. Article 7(3)(c)— omit ‘ to be credited ’. 7. Article 13(1)— omit ‘ of his state ’, insert ‘ or state ’.

21 Local Government Employees’ Superannuation No. 440, 1992 (Amendment of Articles) (No. 2) SCHEDULE (continued) 8. Article 16(1)— omit ‘ comprise ’, insert ‘ compromise ’. ENDNOTES 1. Made by the Governor in Council on 17 December 1992. 2. The amendments approved in this regulation were made by the Board on 29 November 1992. 3. Notified in the Gazette on 18 December 1992. 4. Laid before the Legislative Assembly on . . . 5. The administering agency is the Department of Housing, Local Government and Planning. The State of Queensland 1992