Superannuation Legislation Further Amendment Act 1997 (NSW)
New South Wales
Superannuation Legislation Further
Amendment Act 1997 No 149
Contents
Page
1 Name of Act 2 2 Commencement 2 3 Amendment of Acts 2
Schedule 1 Amendment of Acts 3 New South Wales
Superannuation Legislation Further
Amendment Act 1997 No 149
Act No 149, 1997
An Act to amend various public sector superannuation Acts to enable compliance with certain Commonwealth requirements for regulated superannuation funds, and in relation to the Commonwealth surcharge on superannuation contributions, and to make other miscellaneous amendments relating to public sector superannuation schemes; and for other purposes. [Assented to 17 December 1997]
| Section 1 | Superannuation Legislation Further Amendment Act 1997 No 149 |
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Superannuation Legislation Further Amendment
Act 1997.
2 Commencement
(1) This Act commences on the date of assent, except as provided by
this section.(2) Schedule 1.1 [4], 1.6 [20] and 1.7 [6] commence on a day to be
appointed by proclamation.
3 Amendment of Acts
The Acts specified in Schedule 1 are amended as set out in that
Schedule.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Schedule 1 Amendment of Acts
(Section 3)
1.1 First State Superannuation Act 1992 No 100 [1 ] Section 5 Members of the Fund
Insert “16 or” before “18” in section 5 (2). [2] Section 5 (2A) Insert after section 5 (2):
(2A) The spouse of an employee or a person who is a member of the Parliamentary superannuation scheme may become an optional member of the Fund if the employee or person makes an election under section 18 to contribute to the Fund on behalf of his or her spouse and his or her spouse continues to be such a member while the election is in force.
[3] Section 5A
Insert after section 5:
5A Employees eligible to contribute to trust deed
superannuation schemes
(1)
Despite section 5 (l), an employee who is eligible to contribute to a superannuation scheme established under section 127 of the Superannuation Administration Act 1996 is not a full member of the Fund unless the person notifies his or her employer that the person elects to be a
full member. (2) Any such employee who so notifies his or her employer
is a full member of the Fund.
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[4] Sections 16, 16A
Omit section 16. Insert instead:
16 Optional employer contributions
An employee who is a full member may at any time elect, with the consent of the employee’s employer, to have contributions made to the Fund by the employee’s employer in addition to the compulsory contributions payable by the employer under this Act.
The additional contributions may, but need not, be made by deduction on a pre-tax basis from the full member’s salary.
An employee who is not a full member may at any time elect, with the consent of the employee’s employer, to have contributions made to the Fund by the employee’s employer by deduction on a pre-tax basis from the employee’s salary. On any such election taking effect, and while it is in force, the employee is an optional member of the Fund.
An election is to be made by lodging with FTC an election in a form approved by FTC and is to be accompanied by such information as FTC may require.
optional member. not make contributions to the Fund in respect of an Except as provided by subsection (3), an employer may
16A When does an election take effect?
(1) An election by an employee to have contributions made to the Fund by the employee’s employer takes effect not later than on the day determined under rules made by
FTC for the purposes of this section. (2)
An election ceases to be in force (to the extent to which it specifies the amount of any contributions) if a variation of contributions takes effect or on notification by the member to FTC that the contributions are to cease to be made.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Section 18 Optional employee contributions
Insert after section 18 (2):
(2A) An employee or a person who is a member of the Parliamentary superannuation scheme may at any time elect to make contributions to the Fund on behalf of the employee’s or person’s spouse and on any such election taking effect, and while it is in force, the spouse is an optional member of the Fund.
(2B)
For the purposes of this section, an employee or person may make an election on behalf of his or her spouse only if his or her spouse is qualified under the rules to be the subject of such an election.
Section 19 When does an election to contribute take effect?
Omit “or an employee” from section 19 (1).
Insert instead “ , optional member, employee or member of theParliamentary superannuation scheme”.
Section 19 (1)
Insert “, or to contribute to the Fund on behalf of a spouse,” after
“Fund”. Section 20 Rules as to payment of contributions and other matters
Insert at the end of section 20:
(2)
FTC may make rules for or with respect to the qualifications for spouses on behalf of whom elections under section 18 may be made and the payment periods for and manner of payment of contributions on behalf of such spouses.
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Section 21
Omit the section. Insert instead:
21 Contributions may be varied
A member, an employee who has elected to contribute on behalf of the employee’s spouse or a member of the Parliamentary superannuation scheme who has elected to contribute on behalf of the member’s spouse, may from time to time, by notice in writing to FTC, vary the amount of contributions to be paid to the Fund by the member or on behalf of the employee’s or member’s spouse.
Part 2, Division 4, heading
Insert “or temporary incapacity cover” after “cover”.
Section 22 Members eligible to apply for cover
Insert “(other than an optional member referred to in section 18 (2A))” after “member” where secondly occurring in section 22 (1).
Section 22 (1A)
Insert after section 22 (1): (IA) A full member or an optional member (other than an optional member referred to in section 18 (2A)) may apply to FTC to contribute to the Fund for the temporary
incapacity benefit.
Section 22 (2)
Insert “or temporary incapacity benefit” after “benefit”.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Section 23 Applications for cover
Insert “or temporary incapacity benefit” after “benefit” in section
23 (1).
Section 24 FTC may request medical examinations
Insert “or temporary incapacity benefit” after “benefit” in section
24 (1).
Section 25 FTC may refuse or approve an application
Insert “or temporary incapacity benefit” after “benefit” wherever occurring in section 25 (1) and (2).
Section 26 Premiums payable for cover
Insert after section 26 (1):
(1A) A member whose application to be covered for the temporary incapacity benefit is approved by FTC becomes, and remains, liable for payment of the temporary incapacity premium on and from the day that the member’s cover for the benefit commences.
Section 26 (2) and (3)
Insert “or temporary incapacity premium” after “premium”
wherever occurring. Section 27A Insert after section 27: 27A When temporary incapacity cover ceases
(1) A person’s cover for the temporary incapacity benefit
ceases:
(a)
when the person ceases to be a member, unless otherwise provided in a contract between FTC and the person providing the cover, or
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(b)
on notification by the member to FTC that the member is to cease to provide the cover, or
(c)
if the person ceases to pay the temporary incapacity premium.
(2) On ceasing to be covered for the benefit, the person:
(a)
ceases to be liable for payment of the temporary incapacity premium, and
(b)
is not entitled to a refund of any premiums paid for the cover.
Section 28 FTC may revoke cover
Insert “or temporary incapacity cover” after “cover” in section 28
(1).
Section 29 Effect of revocation of an approval
Insert “or temporary incapacity benefit” after “benefit” where firstly occurring in section 29 (1).
Section 29 (1)
Insert “or temporary incapacity premium” after “premium”.
Section 30 Rules as to coverage
Insert “or temporary incapacity benefit” after “benefit” wherever occurring.
| Section 34 |
| Insert after section 33: |
| 34 Amount of temporary incapacity benefit |
(1) The temporary incapacity benefit is to be an amount paid in the form required for the purpose of complying with the requirements of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth for payment of such a benefit from a regulated
superannuation fund.
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Amendment of Acts Schedule 1
(2) Despite subsection (l), the amount of the benefit is not to be more than the amount received by FTC from any person providing cover for the temporary incapacity benefit.
[25] Section 36 When is a benefit or preserved benefit payable?
Insert “or may be paid in respect of a member of such a fund under any such requirements” after “requirements” in section 36 ( 1) (c).
[26] Section 36 (4), (5)
Insert after section 36 (3):
(4)’ For the purposes of the payment under subsection (1) (c) of a benefit on compassionate grounds, FTC may exercise any function that the Insurance and Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner Act 1987 of the Commonwealth may exercise for the purpose of
determining whether a benefit is payable.(5) A benefit payable under subsection (1) (c) on compassionate grounds or on the grounds of severe financial hardship:
(a) is to be paid only to a person who has preserved a benefit in the Fund, and (b) is not to exceed the amount of any such preserved benefit.
[27] Section 37 When is a death or invalidity benefit payable under this Act?
Insert after section 37 (3):
(4)
The temporary incapacity benefit payable under this Act is payable to or in respect of a person who is covered for the benefit if FTC is satisfied that the circumstances are such that a benefit would be payable on the grounds of temporary incapacity if the person were a member of a regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.
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| Schedule 1 | Amendment of Acts |
Section 48 Transfer of benefit from other funds to Fund
Insert after section 48 (1):
(1A) An employee or a member of the Parliamentary superannuation scheme may:
(a) at the time of making an election on behalf of the employee’s or member’s spouse to contribute to the Fund, or (b) at any time after that, elect to pay a benefit received, or any amount held to the credit of the spouse, under another complying superannuation fund or under an approved deposit fund into the account established or to be established for the spouse in the Fund.
Section 48 (2) (b)
Insert “or on behalf of the spouse” after “employee”.
Section 48 (4)
Insert “or on behalf of” before “the member”.
Section 51 Payments from Fund
Insert “or temporary incapacity cover” after “cover” where secondly occurring in section 51 (1) (d).
Section 53 Payments to be credited to members’ accounts
Insert “or on behalf of” after “by” in section 53 (b).
Section 54 Payments to be debited to members’ accounts
Insert “or the temporary incapacity benefit” after “benefit” where secondly occurring in section 54 (a).
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Section 54 (d)
Insert “or superannuation contributions surcharge” after “tax”.
Section 55 Death or Invalidity Benefit Management Reserve
Insert “or temporary incapacity premiums” after “premiums” where secondly occurring in section 55 (2).
Section 55 (3)
Insert “or any temporary incapacity benefits” after “benefits” where secondly occurring.
Section 55 (3)
Insert “or temporary incapacity cover” after “cover” where secondly occurring.
Insert after section 57: Section 57A 57A Other adjustments of accounts and reserves FTC may, from time to time, adjust any of the accounts and reserves established under this Part as it thinks appropriate for the following purposes:
(a) to reflect a change in circumstances, (b)
to correct mistakes relating to amounts credited or debited to the accounts or reserves,
(c)
to reflect changes in the law applicable to the accounts or reserves.
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Section 61 How other costs may be paid
Insert “or temporary incapacity cover” after “cover” where secondly occurring in section 61 (2).
Section 62 FTC must deduct tax liabilities from members’ accounts
Omit “in respect of an employer’s contributions to a member’s account in the Fund, FTC is required to debit to the account the amount of any such income tax”.
Insert instead “or an amount of superannuation contributions surcharge in respect of an employer’s contributions to a member’s account in the Fund, FTC is required to debit to the account the amount of any such income tax or superannuation contributions surcharge”.
Section 64 Employer to provide information
Insert “or temporary incapacity benefit” after “benefit” in section
64 (2) (a).
Section 65 Employee or claimant to provide information
Insert “or temporary incapacity” after “invalidity” in section 65 (c).
provide information? Section 66 When may FTC require employee or claimant to Insert “or temporary incapacity benefit” after “benefit” in section
66 (a).Schedule 3 Savings, transitional and other provisions Insert at the end of clause 1 (1): Superannuation Legislation Further Amendment Act
1997
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Schedule 3 , clause 4
Insert after clause 3:
4 Adjustment of accounts
Any adjustment made before the commencement of section 57A (as inserted by the Superannuation
Legislation Further Amendment Act 1997) by FTC to an
account or reserve established under Part 5 that is in accordance with the powers contained in that section is validated.
Dictionary, definition of “full member”
Insert “or 5A” after “5”.
Dictionary, definition of “optional member”
Omit the definition. Insert instead:
optional member means:
(a)
an employee who is not a full member and who has made an election under section 16 or 18 that is still in force to contribute to the Fund, or
(b)
the spouse of an employee or member of the Parliamentary superannuation scheme on whose behalf an election under section 18 has been made that is still in force to contribute to the Fund.
Dictionary, definitions of “Parliamentary superannuation scheme”, “spouse”, “superannuation contributions surcharge”, “temporary incapacity benefit”, “temporary incapacity premium” Insert in alphabetical order: Parliamentary superannuation scheme means the
superannuation scheme established under the
Parliamentary Contributory Superannuation Act 1971.
spouse of a person means:
(a)
the wife or husband, as the case may be, of the person, or
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(b)
if the person is a man and is living with a woman as her husband on a bona fide domestic basis-the woman with whom he is so living, or
(c)
if the person is a woman and is living with a man as his wife on a bona fide domestic basis-the man with whom she is so living.
superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
temporary incapacity benefit means the benefit referred
to in section 34.
temporary incapacity premium means the premium that,
in order to attract the temporary incapacity benefit for a
member, is paid by transfer from the member’s account.
| 1.2 | Parliamentary Contributory Superannuation Act 1971 No 53 |
| [1] | Sections 2, 4, Schedule |
| Omit the sections and the Schedule. | |
| [2] | Section 3 Definitions |
| Omit paragraph (c) of the definition of salary in section 3 (1). Insert instead: |
(c)
if the member or former member is or was a recognised office holder (within the meaning of the Parliamentary Remuneration Act 1989), all remuneration payable to him or her under that Act by way of basic salary, additional salary, expense allowance and electoral allowance (not including any amount exceeding the minimum amount of electoral allowance payable to any member) while holding office as a recognised office holder, and
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1
(d) if the member or former member is or was not such a recognised office holder, all remuneration payable to him or her under that Act by way of basic salary or additional salary and electoral allowance (not including any amount exceeding the minimum amount of electoral allowance payable to any member) while holding office as a member,
[3] Section 3 Definitions
Insert in alphabetical order in section 3 (1):
superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
[4] Section 6 Payments into and out of the Fund
Insert “and any payments made by members under section 31A” after “Part 3” in section 6 (1) (b).
[5] Section 19 Members’ superannuation benefit
Insert after section 19 (5):
(6) If the trustees have made a determination under section 26D in relation to a benefit provided by this section, the amount of the benefit is reduced by the amount specified in the trustees’ determination.
[6] Section 19 (8)
Insert “and the amount of any reduction resulting from a determination under section 26D” after “Act” where lastly occurring.
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Section 22 Pension on retirement on grounds of ill-health
Insert after section 22 (2):
(3) If the trustees have made a determination under section 26D in relation to a benefit provided by this section, the amount of the benefit is reduced by the amount specified in the trustees’ determination.
Section 22A Contributors not entitled to pension
Insert after section 22A (5):
(6) If the trustees have made a determination under section 26D in relation to a benefit provided by this section, the amount of the benefit is reduced by the amount specified in the trustees’ determination.
Section 22B Preservation of minimum benefits under superannuation guarantee legislation
Insert after section 22B (6):
(7) Adjustment of benefits. If the trustees have made a determination under section 28C in relation to a benefit provided by this section, the amount of the benefit is reduced by the amount specified in the trustees’ determination.
Section 22C
Insert after section 22B:
22C Benefits on attaining age 65 or 70
( 1 )
A member who attains the age of 70 years must be paid any pension or other benefit under this Act to which the member would be entitled on retirement on that age as if the member had ceased to be a member at that age, but:
(a)
may elect, in the case of a pension, to commute to a lump sum all or part of the pension, and
(b) if such an election is made, may also elect to preserve the whole of any lump sum benefit in the
Fund.
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Amendment of Acts Schedule 1
(2)
A member who attains the age of 65 years may elect to be paid any pension or other benefit under this Act to which the member would be entitled on retirement on that age as if the member had ceased to be a member at that age, but:
(a)
may elect, in the case of a pension, to commute to a lump sum all or part of the pension, and
(b)
if such an election is made, may also elect to preserve the whole of any lump sum benefit in the Fund,
even though the member has not ceased to be a member. (3)
On an election to commute to a lump sum all or part of a pension, the pension is to be commuted in accordance with this Act as if the person had ceased to be a member on attaining the age of 70 years or on making the election, whichever is the earlier.
(4)
A benefit preserved under this section is payable by the trustees on the death of the member or in any circumstances in which it is specified in a relevant Commonwealth superannuation standard that a preserved benefit must or may be paid.
(5) A benefit provided by subsection (4) is payable:
(a) unless the member has died-to the member, or (b)
if the member has died and is survived by a spouse-to the surviving spouse, or
(c)
if the member has died and is not survived by a spouse—to the personal representative of the member or such other person as the trustees direct.
(6)
A member who has been paid or who preserves a benefit under this section is not entitled to any further benefit under this Act or to contribute to the Fund.
(7)
Subsection (6) does not affect any requirement to contribute to the Fund in respect of the member to comply with section 30, or the payment of any benefit resulting from such contributions.
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(8) If the trustees have made a determination under section 28C in relation to a benefit provided by subsection (4), the amount of the benefit is reduced by the amount specified in the trustees’ determination.
Section 23 Pension for spouses
Insert after section 23 ( 1 1 ) :
(12) If the trustees have made a determination under section 26D in relation to a benefit provided by subsection (2) or (3), the amount of the benefit is reduced by the amount specified in the trustees’ determination.
[12] Section 26A Arrangements for transfer to Commonwealth scheme
Insert after section 26A (5):
(6) If the trustees have made a determination under section 26D in relation to a lump sum to be paid as provided by this section, the amount is reduced by the amount specified in the trustees’ determination.
Section 26D
Insert after section 26C:
26D Power of trustees to reduce benefits to offset certain
liabilities of the Fund
(1) Whenever:
(a)
a right to a benefit under this Act accrues to or in respect of a member or former member, and
(b)
the trustees have paid or are liable to pay an amount of superannuation contributions surcharge in respect of the employer contributions paid to the Fund on behalf of the member or former member,
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 the trustees must determine in writing the surcharge deduction amount that, in the opinion of the trustees, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.
(2) In determining the surcharge deduction amount in respect of a benefit payable to a member or former member, the trustees may have regard to any or all of the following matters:
(a) the amount of superannuation contributions surcharge payable or paid by the trustees in respect of the member or former member, (b) the amount by which the member’s or former member’s surcharge debt account is in debit when the benefit emerges or commences to be paid, (c) the value of the employer-financed portion of the benefit, (d) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional
surchargeable contribution factors applicable to the member or former member, were assumed to be likely to be payable to the member or former member on his or her ceasing to hold office as a member of the Legislative Council or Legislative Assembly,
(e)
whether the member or former member has qualified for a benefit after having been a member for an aggregate period of 7 years or more,
( f ) the amount of any payments under section 31A, (g) any other matter the trustees consider relevant.
(3)
The surcharge deduction amount determined by the trustees must not exceed an amount that is 15% of the employer-financed portion of that part of the benefit payable to the member or former member that accrued after 20 August 1996.
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For the purpose of determining the surcharge deduction amount, the trustees may obtain actuarial advice or advice from any other persons, as the trustees think fit. The balance of any additional amount payable by the trustees for superannuation contributions surcharge in respect of a member or former member, after payment of the balance of the relevant surcharge debt account, is to be paid by the trustees from the Fund under section 6 (2). Subsection (1) does not authorise the reduction of a benefit as a result of a liability for superannuation contributions surcharge unless the benefit is a benefit under section 19, 22, 22A, 23 (2) or (3) or 26A.
surcharge debt account, in relation to a member or In this section: former member, means the surcharge debt account kept for the member or former member (while holding office as a member) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth.
Section 27A Power of trustees to adjust benefits to comply with certain standards relating to superannuation
Omit “and section 27C” from section 27A (5).
Section 27B Special provisions applicable to members who have reached 65 years of age
Omit the section.
| Sections 28A, 28B, 28C, 28D |
| Insert after section 28: |
| 28A Payment or release of benefit in other circumstances |
(1)
The trustees may, on the written application of a former member who has preserved a benefit in the Fund, and who is not otherwise entitled to be paid a benefit under this Act, pay the former member a benefit on the grounds of the former member’s severe financial hardship.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 The trustees may only pay the benefit if they are satisfied that the circumstances are such that a benefit would be payable on the grounds of severe financial hardship if the former member were a member of a regulated superannuation fund within the meaning of the
Superannuation Industry (Supervision) Act 1993 of the
Commonwealth.
The amount of the benefit:
(a) is to be the amount payable for the purpose of complying with the requirements of the Superannuation Industry (Supervision) Act I993
of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and
(b) is not to exceed the amount of any benefit preserved by the former member. A former member may, at any time, lodge with the trustees an election to vary or revoke an election under this section.
An election under this section is to be in a form approved by the trustees for the purposes of this section.
28B Payment or release of benefit on compassionate
grounds
The trustees may, on the written election of a former member who has preserved a benefit in the Fund, and who is not otherwise entitled to be paid a benefit under this Act, pay the former member a benefit on compassionate grounds.
The trustees may only pay the benefit if they are satisfied that the circumstances are such that the Insurance and Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner Act 1987 of the Commonwealth would be entitled to determine that the amount could be released on compassionate grounds if the former member were a member of a regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Common wealth.
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(3) The amount of the benefit:
(a)
is to be the amount payable for the purpose of complying with the requirements of the
Superannuation Industry (Supervision) Act 1993
of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and
(b)
is not to exceed the amount of any benefit preserved by the former member.
(4)
A former member may, at any time, lodge with the trustees an election to vary or revoke an election under this section.
(5) An election under this section is to be in a form approved
by the trustees for the purposes of this section.
28C Adjustment of benefit
If a benefit is paid to a person under section 28A or 28B, and the person subsequently becomes entitled to another benefit under this Act, the trustees must make a determination reducing the amount of the subsequent benefit to take into account any benefits previously paid under section 28A or 28B. The trustees may for that purpose obtain actuarial advice.
28D Commutation of pensions for adjustment of benefit
(1)
If a determination reducing a benefit that may be taken in the form of a pension is made under section 26D, the trustees may, at their discretion and with the consent of the member or former member concerned, commute part of the pension to a lump sum for the purposes of payment to the trustees of the amount of the reduction.
(2) Commutation of part of a pension under this section:
(a)
does not affect any other right that the member or former member has to commute the pension under this Act, and
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Amendment of Acts Schedule 1
(b)
is not to be taken into account for the purpose of determining whether, and to what extent, any such other right may be exercised, and
(c)
is to be done on a basis determined by the trustees for the purposes of this section.
(3) The trustees may obtain actuarial advice for the purpose of determining the basis on which part of a pension is to be commuted under this section. (4) This section has effect despite any other provision of this
Act.
[17] Sections 31A, 31B
Insert after section 31:
31A Payments to cover superannuation contributions
surcharge
(1)
A member may at any time lodge with the trustees an election to pay amounts to the Fund in respect of the superannuation contributions surcharge payable in respect of the member.
(2) Payments may be made on a periodic or a single
payment basis.(3) An election is to specify the amounts to be paid and the
manner in which the payments are to be made.(4)
A member may, at any time, lodge with the trustees an election to vary or revoke an election under this section.
(5) An election under this section is to be in a form approved
by the trustees for the purposes of this section.(6) An election under this section remains in force until a
subsequent election takes effect.
31B Repayment of excess payments
The trustees must refund to a member or former member any excess amount of payments made under section 31A remaining in the Fund after payment of the debt owed for superannuation contributions surcharge in respect of the member or former member, together with interest on that excess amount at a rate determined by the trustees.
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| Schedule 1 | Amendment of Acts |
Section 35
Insert after section 34:
35 Savings, transitional and other provisions
Schedule 1 has effect.
| Insert at the end of the Act: | ||
| Schedule 1 | ||
|
(Section 35)
1 Regulations
(1)
The regulations may contain provisions of a savings or transitional nature consequent on the enactment of the following Acts:
Superannuation Legislation Further Amendment Act
1997(2)
Any such provision may, if the regulations so provide, take effect from the date of assent to the Act concerned or a later date.
(3)
To the extent to which any such provision takes effect from a date that is earlier than the date of its publication in the Gazette, the provision does not operate so as:
(a)
to affect, in a manner prejudicial to any person (other than the State or an authority of the State), the rights of that person existing before the date of its publication, or
(b)
to impose liabilities on any person (other than the State or an authority of the State) in respect of anything done or omitted to be done before the date of its publication.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 1.3 Police Regulation (Superannuation) Act 1906 No 28 [1] Section 1 Short title, commencement and definitions Insert in alphabetical order in section 1 (2): superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
[2] Section 3 Police Superannuation Fund
Insert “or 20A” after “section 5A” in section 3 (2) (b1).
[3] Section 3 (3) (b)
Insert “or an amount of superannuation contributions surcharge” after “law”.
[4] Section 5 Contributions to Fund
Omit section 5 (3). Insert instead:
(3) A member of the Police Service who is a contributor, or an employee of the Police Association of New South Wales who is a contributor, is a qualified person for the purposes of this section if the member or employee is under 70 years of age.
[5] Section 5AC
Insert after section 5AB:
5AC Other contributions by members of the Police Service
(1)
A member of the Police Service, or an employee of the Police Association of New South Wales, who is not required by this Act to contribute to the Fund under this
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Act merely because the person is on authorised leave without pay as such a member or employee, is entitled to remain a contributor to the Fund even though the member or employee is not contributing to the Fund.
(2) This section applies to a member or employee only if
(a) the leave is for the purposes of raising children of whom the member or employee is a parent, or for whom he or she has assumed the responsibility of a parent, and (b) he or she has been on that leave for less than 7 years consecutively, and (c) he or she has a statutory or contractual right to resume employment at the end of the leave. (3) Any period during which this section applies to a member or employee is not taken to be a period of service for the purposes of this Act. (4) In this section: authorised leave means:
(a) leave approved by the Commissioner of Police or the Police Association, as the case requires, or (b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth.
Section 8A Disengagement benefit for members aged between 50–55
Insert after section 8A (9):
(10)
If STC has made a determination under section 14AA in relation to a benefit under this section, the amount of the benefit is reduced by the amount specified in the determination.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 [7] Section 14AA Power of STC to reduce benefits to offset certain tax liabilities of the Fund
Insert after section 14AA (1):
(1 A) Whenever:
(a) a right to a benefit under this Act accrues to or in respect of a contributor or former contributor, and (b) STC has paid or is liable to pay an amount of superannuation contributions surcharge in respect of the employer contributions paid to the Fund, or in respect of contributions made under the State Authorities Non-contributory Superannuation Act 1987, on behalf of the contributor or former
contributor,
STC must determine in writing the surcharge deduction amount that, in the opinion of STC, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.
(1B) In determining the surcharge deduction amount in respect of a benefit payable to a contributor or former contributor, STC may have regard to any or all of the following matters:
(a) the amount of superannuation contributions surcharge payable or paid by STC in respect of the contributor or former contributor, (b) the amount by which the contributor’s or former contributor’s surcharge debt account is in debit when the benefit emerges or commences to be paid, (c) the value of the employer-financed portion of the benefit, (d) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional
surchargeable contribution factors applicable to
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
the contributor or former contributor, were assumed to be likely to be payable to the contributor or former contributor on his or her ceasing to be a member of the police force,
(e)
whether the contributor or former contributor has qualified for a benefit that includes an employer-financed component,
( f ) the amount of any payments under section 20A, The surcharge deduction amount determined by STC must not exceed an amount that is 15% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued after 20 August 1996. (g) any other matter STC considers relevant. For the purpose of determining the surcharge deduction amount, STC may obtain actuarial advice or advice from any other persons, as STC thinks fit.
a contributor or former contributor, after payment of the for superannuation contributions surcharge in respect of The balance of any additional amount payable by STC balance of the relevant surcharge debt account, is to be
paid by STC from the Fund under section 3 (3).
Section 14AA (3), (4)
Insert after section 14AA (2):
(3)
Subsection (1A) does not authorise the reduction of a benefit as a result of a liability for superannuation contributions surcharge unless the benefit is of a kind prescribed by the regulations for the purposes of this section.
(4) In this section: surcharge debt account, in relation to a contributor or former contributor, means the surcharge debt account kept for the contributor or former contributor (while an employee) under section 16 of the Superannuation
Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 [9] Section 14AC
Insert after section 14AB:
14AC Commutation of pensions for adjustment of benefits
(1) If a determination reducing a benefit that may be taken in the form of a pension is made under section 14AA, STC may, at its discretion and with the consent of the contributor or former contributor concerned, commute part of the pension to a lump sum for the purposes of payment to STC of the amount of the reduction. (2) Commutation of part of a pension under this section:
(a) does not affect any other right that the contributor or former contributor has to commute the pension under this Act, and (b) is not to be taken into account for the purpose of determining whether, and to what extent, any such other right may be exercised, and (c) is to be done on a basis determined by STC for the purposes of this section. (3) STC may obtain actuarial advice for the purpose of determining the basis on which part of a pension is to be commuted under this section. (4) This section has effect despite any other provision of this
Act.
[10] Section 14M Benefit on attaining age 65 or 70
Omit section 14M (1). Insert instead:
(1)
A contributor who attains the age of 70 years must be paid any pension or other benefit under this Act to which the contributor would be entitled on retirement on that
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
age as if the contributor had ceased to be a contributor at
that age but:
(a)
may elect under section 14J, in the case of a superannuation allowance, to commute to a lump sum all of the allowance, and
(b)
if such an election is made, may also elect to preserve the whole of any lump sum benefit in the Fund.
Section 14M (4)
Omit the subsection.
Section 14M (4A)
60 years or more on 1 July 1990 is entitled”.
Omit “Despite subsections (1) and (4), a contributor who was aged may elect”.
| Insert after section 20: |
| Sections 20A, 20B |
| 20A Payments to cover superannuation contributions |
surcharge
(1)
A contributor may at any time lodge with STC a written election to pay amounts to the Fund in respect of the superannuation contributions surcharge payable in respect of the contributor.
(2) Payments may be made on a periodic or a single
payment‘ basis.(3) An election is to specify the amounts to be paid and the
manner in which the payments are to be made.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1
(4)
A contributor may, at any time, lodge with STC an election to vary or revoke an election under this section.
(5) An election under this section is to be in a form approved
by STC for the purposes of this section.(6) An election under this section remains in force until a
subsequent election takes effect.
20B Repayment of excess payments
STC must refund to a contributor or former contributor any excess amount of payments made under section 20A remaining in the Fund after payment of the amount of debt (including accrued interest) owed for superannuation contributions surcharge in respect of the contributor or former contributor, together with interest on the excess amount at a rate determined by STC.
Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act
1997
Insert after Part 2: Schedule 6, Part 3
Part 3 Superannuation Legislation Further
Amendment Act 19977 Authorised leave
A person who commenced a period of authorised leave before the commencement of section 5AC (as inserted
by the Superannuation Legislation Further Amendment
Act 1997) is entitled to the benefit of that section if the person was still on leave immediately before the commencement of that section.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
| 1.4 | Public Sector Executives Superannuation Act 1989 No 106 |
| [1] | Section 3 Definitions |
| Insert in alphabetical order in section 3 (1): |
superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
Section 22 Establishment of the Fund
Insert “or payments” after “contributions” in section 22 (2) (a).
Section 22 (3) (b)
Insert “or superannuation contributions surcharge” after “law”.
Section 23 Members’ accounts
Insert “or payments” after “contributions” in section 23 (2) (a).
Section 31 FTC must deduct tax liabilities from members’ accounts
Insert “or an amount of superannuation contributions surcharge” after “law”.
Section 31
Insert “or superannuation contributions surcharge” after “tax” where secondly occurring.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 Section 34 How does an employee become a member of the
Fund?
Omit “65” from section 34 (4). Insert instead “70”.
Section 34 (7)
Insert “or the employee has previously been paid or preserved a benefit under this Act” after “scheme”.
Section 43 Liability of employee to contribute
Omit section 43 (1A). Insert instead:
(1A) An employee is not entitled to contribute to the Fund, and FTC is not to accept a contribution to the Fund offered by an employee, unless the employee is under 70 years of age.
Section 44 Liability of employer to contribute
Omit section 44 (3). Insert instead:
(3)
An employer is not to contribute to the Fund in relation to an employee, and FTC is not to accept a contribution to the Fund offered by an employer in relation to an
employee, unless the employee is under 70 years of age. Section 46A Insert after section 46:
46A Other contributions by members
(1) A person who is not required by this Act to contribute to the Fund under this Act merely because the person is on authorised leave as an employee may elect to contribute to the Fund at the, rate applicable if the person was so required to contribute.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
This section applies to a person only if:
(a) the leave is for the purposes of raising children of whom the person is a parent, or for whom he or she has assumed the responsibility of a parent, and (b) he or she has been on that leave for less than 7 years consecutively, and (c) he or she has a statutory or contractual right to resume employment at the end of the leave. A person may, at any time, lodge with FTC an election to vary or revoke an election under this section.
An election under this section is to be in a form approved
by FTC for the purposes of this section.
An election under this section remains in force until it is revoked.
This section has effect despite section 46.
authorised leave means: In this section:
(a) leave approved by the person’s employer, or (b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the
Common wealth.
| Section 47 Benefit at or after early retirement |
| Omit section 47 (1). Insert instead: |
(1) The benefit provided by this section must be paid to a
member by FTC:
(a)
when the member retires from employment with an employer on or after attaining the early retirement age and before attaining the age of 70 years, or
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1
(b)
when the member attains the age of 65 years and elects to take the benefit, or
(c) when the member attains the age of 70 years.
Section 47 (4)
Insert or who elects to have a benefit paid,” after “benefit paid”. Section 51 Preserved benefit—employer-financed contributions
Insert “or may be paid in respect of a member of such a fund under any such requirements” after “requirements” in section 51 (4) (c).
Section 51 (6), (6A)
Insert after section 51 (5):
For the purposes of the payment under subsection (4) (c) of a benefit on compassionate grounds, FTC may exercise any function that the Insurance and Superannuation Commissioner appointed under the
Insurance and Superannuation Commissioner Act I987
of the Commonwealth may exercise for the purpose of
determining whether a benefit is payable.
compassionate grounds or on the grounds of severe A benefit payable under subsection (4) (c) on financial hardship:
(a) is to be paid only to a person who has preserved a benefit in the Fund, and (b) is not to exceed the amount of any such preserved benefit.
Section 52 Preserved benefit-member-financed contributions
Omit “65” from section 52 (5) (a). Insert instead “70”.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
Schedule 5 Savings and transitional provisions
Insert at the end of clause 1 (1):
| Insert after clause 1: |
| Schedule 5, clause 2 |
2 Authorised leave
A person who commenced a period of authorised leave before the commencement of section 46A (as inserted by the Superannuation Legislation Further Amendment Act
1997) is entitled to the benefit of that section if the
person was still on leave immediately before the
commencement of that section.
| 1.5 | State Authorities Non-contributory Superannuation Act | |
| ||
| [1] | Section 23 When benefits are payable | |
| Insert “or may be paid in respect of a member of such a fund under any such requirements” after “requirements” in section 23 (1) (c). | ||
| [2] | Section 23 (4), (5) | |
| Insert after section 23 (3): |
(4)
For the purposes of the payment under subsection (1) (c) of a benefit on compassionate grounds, STC may exercise any function that the Insurance and Superannuation Commissioner appointed under the
Insurance and Superannuation Commissioner Act 1987 of the Commonwealth may exercise for the purpose of
determining whether a benefit is payable.
Superannuation Legislation Further Amendment Act 1997 NO 149
Amendment of Acts Schedule 1 (5) A benefit payable under subsection (1) (c) on compassionate grounds or on the grounds of severe financial hardship:
(a) is to be paid only to a person who has preserved a benefit in the Fund, and (b) is not to exceed the amount of any such preserved benefit.
[3] Section 23A Benefit on attaining 65
Insert “elect to” after “age may” in section 23A (1).
[4] Section 23A (2) and (3)
Omit the subsections.
[5] Schedule 5 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act
1997
1.6 State Authorities Superannuation Act 1987 No 211 [1] Section 3 Definitions Insert in alphabetical order in section 3 ( l ) : superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
Section 11 Establishment of the Fund
Insert “or payments” after “contributions” in section 11 (3) (a).
Section 11 (4) (b)
Insert “or an amount of superannuation contributions surcharge payable” after “law”.
Section 19 Election to contribute to the Fund
Omit “65” from section 19 (5). Insert instead “70”.
Section 25 Liability to contribute
Omit section 25 (5) and (6). Insert instead:
(5) An employee is not entitled to contribute to the Fund, and STC is not to accept a contribution to the Fund offered by an employee, unless the employee is under 70 years of age. (6) A contributor is not entitled to accrue benefit points after
attaining the age of 70 years.
Section 29A
Insert after section 29:
29A Other contributions by contributors
(l)
A contributor, who is not required by this Act to contribute to the Fund under this Act merely because the contributor is on authorised leave without pay as an employee, is entitled to remain a contributor to the Fund even though the contributor is not contributing to the Fund.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 This section applies to a contributor only if:
(a) the leave is for the purposes of raising children of whom the contributor is a parent, or for whom he or she has assumed the responsibility of a parent, and (b) he or she has been on that leave for less than 7 years consecutively, and (c) he or she has a statutory or contractual right to resume employment at the end of the leave. A contribution period in respect of which a contributor is a contributor to whom this section applies is not an applicable contribution period in relation to the contributor.
This section has effect despite section 29.
authorised leave means: In this section:
(a) leave approved by the contributor’s employer, or (b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth.
[7] Section 42A Benefit on attaining 65 or 70
Omit “65” from section 42A (1). Insert instead “70”.
[8] Section 42A (2)
Omit the subsection.
[9] Section 42A (2A)
Omit “Despite subsections (1) and (2), an employee who was aged
60 years or more on I July 1990”.
Insert instead “An employee”.Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
[10] Section 42A (5)
Omit the subsection. Insert instead:
(5) A person paid a benefit under this section is not entitled:
(a) to any further benefit under this Act in respect of the same period of service, or (b) to contribute to the Fund or to accrue any further benefits under this Act.
Section 43 Preserved benefit
Omit section 43 (3) (f). Insert instead:
(f)
on STC being satisfied that the former member has attained the age of 70 years even though the former member is employed for more than 10 but less than 30 hours a week,
Section 43 (7A)
Insert “43D or” before “45A”.
| Insert after section 43AB: |
| Sections 43B, 43C, 43D |
| 43B Payment or release of benefit in other circumstances |
(1)
STC may, on the application of a former contributor who has preserved a benefit in the Fund, and who is not otherwise entitled to be paid a benefit under this Act, pay the former contributor a benefit on the grounds of the former contributor’s severe financial hardship.
(2)
STC may only pay the benefit if STC is satisfied that the circumstances are such that a benefit would be payable on the grounds of severe financial hardship if the former
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 contributor were a member of a regulated superannuation fund within the meaning of the
Superannuation Industry (Supervision) Act 1993 of the
Commonwealth.
(3) The amount of the benefit:
(a)
is to be the amount payable for the purpose of complying with the requirements of the
Superannuation Industry (Supervision) Act 1993
of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and
(b)
is not to exceed the amount of any benefit that would be payable to the former contributor under section 43 (7), if the former contributor was eligible to be paid such a benefit.
(4) A former contributor may, at any time, vary or revoke an
application under this section.
43C Payment or release of benefit on compassionate
grounds
(1)
STC may, on the written election of a former contributor who has preserved a benefit in the Fund, and who is not otherwise entitled to be paid a benefit under this Act, pay the former contributor a benefit on compassionate grounds.
circumstances are such that the Insurance and STC may only pay the benefit if STC is satisfied that the Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner Act 1987 of the Commonwealth would b e entitled to determine that the amount could be released on compassionate grounds if the former contributor were a member of a regulated superannuation fund within the meaning of the
Superannuation Industry (Supervision) Act 1993 of the Common wealth.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
(3) The amount of the benefit:
(a)
is to be the amount payable for the purpose of complying with the requirements of the
Superannuation Industry (Supervision) Act I993
of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and
(b)
is not to exceed the amount of any benefit that would be payable to the former contributor under section 43 (7), if the former contributor was eligible to be paid such a benefit.
(4) A former contributor may, at any time, vary or revoke an
application under this section.
43D Adjustment of benefit
If a benefit is paid to a person under section 43B or 43C,
and the person subsequently becomes entitled to another benefit under this Act, STC must make a determination reducing the amount of the subsequent benefit to take into account any benefits previously paid under section 43B or 43C. STC may for that purpose obtain actuarial advice.
Section 44 Application for payment of benefit
Insert “ , 43B or 43C” after “43” in section 44 (1) (a).
Section 45A Power of STC to reduce benefits to offset certain tax liabilities of the Fund
Insert after section 45A (1):
(1A) Whenever:
(a)
a right to a benefit under this Act accrues to or in respect of a contributor or former contributor, and
(b)
STC has paid or is liable to pay an amount of superannuation contributions surcharge in respect
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 of the employer contributions paid or payable to the Fund, or in respect of contributions made
under the State Authorities Non-contributory Superannuation Act 1987, on behalf of the
contributor or former contributor,
STC must determine in writing the surcharge deduction amount that, in the opinion of STC, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.
(1B) In determining the surcharge deduction amount in
respect of a benefit payable to a contributor or former contributor, STC may have regard to any or all of the following matters:
(a) the amount of superannuation contributions surcharge payable or paid by STC in respect of the contributor or former contributor, (b) the amount by which the contributor’s or former contributor’s surcharge debt account is in debit when the benefit emerges or commences to be paid, (c) the value of the employer-financed portion of the benefit, (d) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional
surchargeable contribution factors applicable to the contributor or former contributor, were assumed to be likely to be payable to the person
on his or her ceasing to be an employee,
(e)
whether the contributor or former contributor has qualified for a benefit that includes an employer-financed component,
(f) the amount of any payments under section 52A, (g) any other matter STC considers relevant.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
(1C) The surcharge deduction amount determined by STC must not exceed an amount that is 15% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued after 20 August 1996.
(1D) For the purpose of determining the surcharge deduction amount, STC may obtain actuarial advice or advice from any other persons, as STC thinks fit. (1E) The balance of any additional amount payable by STC for superannuation contributions surcharge in respect of a contributor or former contributor, after payment of the balance of the relevant surcharge debt account, is to be paid by STC from the Fund under section 11 (4) and debited to the appropriate employer reserve.
Section 45A (3), (4)
Insert after section 45A (2):
(3) Subsection (IA) does not authorise the reduction of a benefit as a result of a liability for superannuation contributions surcharge unless the benefit is of a kind prescribed by the regulations for the purposes of this subsection. (4) In this section: surcharge debt account, in relation to a contributor or former contributor, means the surcharge debt account kept for the contributor or former contributor (while an employee) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth.
Section 46 Employers and employees
Insert after section 46 (1) (d):
(d1) amend Schedule 1 by omitting the name of an employer if the employer no longer employs any employees who are contributors,
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 [18] Section 46 (IA), (1 B)
Insert after section 46 (1):
(1A) The Governor may, by order published in the Gazette, make an order amending Schedule 1 by inserting, in relation to an employer listed in Schedule 1, such limitations as are specified in the amendment.
(1B) An order under subsection (1A) may not impose limitations that operate to the prejudice of an existing contributor.
[19] Sections 52A, 52B
Insert after section 52:
52A Payments to cover superannuation contributions
surcharge
A contributor may at any time lodge with STC an election to pay amounts to the Fund in respect of the superannuation contributions surcharge payable in respect of the contributor.
Payments may be made on a periodic or a single
payment basis.
An election is to specify the amounts to be paid and the manner in which the payments are to be made.
A contributor may, at any time, lodge with STC an election to vary or revoke an election under this section.
An election under this section is to be in a form approved by STC for the purposes of this section.
An election under this section remains in force until a subsequent election under this section takes effect.
52B Repayment of excess payments
STC must refund to a contributor or former contributor any excess amount of payments made under section 52A remaining after payment of the debt (including accrued interest) owed for superannuation contributions
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
surcharge in respect of the contributor or former contributor, together with interest on the excess amount at a rate determined by STC.
Schedule 2 Excluded persons
Insert after clause 1 (2):
(3) Clause 1 (1) (a) does not apply to an employee for whom additional pre-tax employer contributions are made to another superannuation scheme.
Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (I):
Superannuation Legislation Further Amendment Act
1997
Schedule 6, Part 3
Insert after Part 2:
Part 3 Superannuation Legislation Further
Amendment Act 19975 Authorised leave
A person who commenced a period of authorised leave before the commencement of section 29A (as inserted by the Superannuation Legislation Further Amendment Act
1997) is entitled to the benefit of that section if the
person was still on leave immediately before the
Commencement of that section.
| 1.7 | Superannuation Act 1916 No 28 |
| [1] | Section 3 Definitions |
| Insert in alphabetical order in section 3 (1): |
Superannuation contributions surcharge means the
superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act
1997 of the Commonwealth.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 [2] Section 4 Reconstitution of the Fund
Insert “or payments” after “contributions” in section 4 (3) (a).
[3] Section 4 (4) (d)
Insert “or an amount of superannuation contributions surcharge payable by the Fund” after “law”.
[4] Section 10SA
Omit the section. Insert instead:
10SA Cessation of contributions
An employee is not entitled to contribute to the Fund, and STC is not to accept a contribution to the Fund offered by an employee, after the employee attains 70 years of age.
[5] Section 12D
Insert after section 12CA:
12D Other contributions by contributors
(1)
A contributor, who is not required by this Act to contribute to the Fund under this Act merely because the contributor is on authorised leave without pay as an employee, is entitled to remain a contributor to the Fund even though the contributor is not contributing to the Fund.
(2) This section applies to a contributor only if
(a)
the leave is for the purposes of raising children of whom the contributor is a parent, or for whom he or she has assumed the responsibility of a parent, and
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
(b)
he or she has been on that leave for less than 7 years consecutively, and
(c)
he or she has a statutory or contractual right to resume employment at the end of the leave.
(3) Section 12B (1) and (2) apply to a contributor, and to the period of leave of the contributor, during any period during which this section applies to the contributor. (4) In this section: authorised leave means:
(a) leave approved by the contributor’s employer, or (b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth.
Section 521A Effect of contributor becoming a contributor to another scheme while employed by the same employer
Insert at the end of section 52IA:
(3) Subsection (1) does not apply to an employee for whom additional pre-tax employer contributions are made to another superannuation scheme.
Section 52W Benefit on attaining 65 or 70
Omit “was under the age of 60 years on 1 July 1990 and attains the
age of 65” from section 52W (1).
Insert instead “attains the age of 70”.
Section 52W (2)
Omit the subsection.
| Superannuation Legislation Further Amendment Act 1997 No 149 | ||
|
Section 52W (2A)
Omit “Despite subsections (1) and (2), an employee who was aged
60 years or more on 1 July 1990”.Insert instead “An employee”.
Section 52W (6)
Insert “or who has elected to be paid” after “entitled” where firstly occurring.
Section 52X Compulsory payment of preserved or other benefit
Omit “and is” from section 52X (2) (b).
Insert instead “even though the person is”.
Section 61RA Power of STC to reduce pensions and other benefits to offset certain tax liabilities of the Fund Insert after section 61RA (1): (1A) Whenever:
(a) a right to a benefit under this Act accrues to or in respect of a contributor or former contributor, and (b) STC has paid or is liable to pay an amount of superannuation contributions surcharge in respect of the employer contributions paid or payable to the Fund, or in respect of contributions made under the State Authorities Non-contributory Superannuation Act 1987, on behalf of the
contributor or former contributor,
STC must determine in writing the surcharge deduction amount that, in the opinion of STC, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
(1B) In determining the surcharge deduction amount in
respect of a benefit payable to a contributor or former contributor, STC may have regard to any or all of the following matters:
the amount of superannuation contributions surcharge payable or paid by STC in respect of the contributor or former contributor,
the amount by which the contributor’s or former contributor’s surcharge debt account is in debit when the benefit emerges or commences to be paid,
the value of the employer-financed portion of the
benefit,the value of the benefits that, for the purpose of working out (under the Superannuation
Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional
surchargeable contribution factors applicable to the contributor or former contributor, were assumed to be likely to be payable to the person on his or her ceasing to be an employee,
whether the contributor or former contributor has qualified for a benefit that includes an employer-financed component,
the amount of any payments under section 91B,
any other matter STC considers relevant. surcharge deduction amount determined by STC must not exceed an amount that is 15% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued after 20 August 1996.
(1D)
For the purpose of determining the surcharge deduction amount, STC may obtain actuarial advice or advice from any other persons, as STC thinks fit.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1
(1E) The balance of any additional amount payable by STC for superannuation contributions surcharge in respect of a contributor or former contributor, after payment of the balance of the relevant surcharge debt account, is to be paid by STC from the Fund under section 4 (4) and debited to the appropriate employer reserve.
[13] Section 61RA (3), (4)
Insert after section 61RA (2):
(3) Subsection (1A) does not authorise the reduction of a benefit as a result of a liability for superannuation contributions surcharge unless the benefit is of a kind to which section 61RD applies. (4) In this section: surcharge debt account, in relation to a contributor or former contributor, means the surcharge debt account kept for the contributor or former contributor (while an employee) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth.
[14] Section 61RE
Insert after section 61RD:
61RE Commutation of pensions for adjustment of benefits
(1)
If a determination reducing a benefit that may be taken in the form of a pension is made under section 61RA, STC may, at its discretion and with the consent of the contributor or former contributor concerned, commute part of the pension to a lump sum for the purposes of payment to STC of the amount of the reduction.
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
(2) Commutation of part of a pension under this section:
(a) does not affect any other right that the contributor or former contributor has to commute the pension under this Act, and (b) is not to be taken into account for the purpose of determining whether, and to what extent, any such other right may be exercised, and (c) is to be done on a basis determined by STC for the purposes of this section. (3) STC may obtain actuarial advice for the purpose of determining the basis on which part of a pension is to be commuted under this section. (4) This section has effect despite any other provision of this
Act.
Sections 91B, 91C
Insert after section 91A:
91B Payments to cover superannuation contributions
surcharge
(1)
A contributor may at any time lodge with STC an election to pay amounts to the Fund in respect of the superannuation contributions surcharge payable in respect of the contributor.
(2) Payments may be made on a periodic or a single
payment basis.(3) An election is to specify the amounts to be paid and the
manner in which the payments are to be made.(4)
A contributor may, at any time, lodge with STC an election to vary or revoke an election under this section.
(5) An election under this section is to be in a form approved
by STC for the purposes of this section.(6) An election under this section remains in force until a
subsequent election under this section takes effect.
Superannuation Legislation Further Amendment Act 1997 No 149
Amendment of Acts Schedule 1 91C Repayment of excess payments
STC must refund to a contributor or former contributor any excess amount of payments made under section 91B remaining in the contributor’s or former contributor’s account after payment of the amount of debt (including accrued interest) owed for superannuation contributions surcharge in respect of the contributor or former contributor, together with interest on the excess amount at a rate determined by STC.
[16] Section 92 Power to amend Schedule 3 (List of employers)
Insert after section 92 (1) (d):
(d1) amend Schedule 3 by omitting the name of an employer if the employer no longer employs any employees who are contributors, or
[17] Section 92 (1A), (1 B)
Insert after section 92 ( 1):
(1A) The Governor may, by order published in the Gazette, make an order amending Schedule 3 by inserting, in relation to an employer listed in Schedule 3, such limitations as are specified in the amendment.
(1B) An order under subsection (1A) may not impose limitations that operate to the prejudice of an existing contributor.
[18] Schedule 25 Savings and transitional provisions
Insert at the end of clause l (1):
Superannuation Legislation Further Amendment Act
1997
Superannuation Legislation Further Amendment Act 1997 No 149
| Schedule 1 | Amendment of Acts |
Schedule 25, Part 4
Insert after Part 3:
Part 4 Superannuation Legislation Further
Amendment Act 19977 Authorised leave
A person who commenced a period of authorised leave before the commencement of section 12D (as inserted by the Superannuation Legislation Further Amendment Act
1997) is entitled to the benefit of that section if the
person was still on leave immediately before the
commencement of that section.
[Minister’s second reading speech made in—
Legislative Assembly on 27 November 1997 p.m.
Legislative Council on 5 December 1997]
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