Superannuation Variation Regulations 2005 (SA)

South Australia

Superannuation Variation Regulations 2005

under the Superannuation Act 1988

Contents

Part 1—Preliminary

1. Short title

2. Commencement

3. Variation provisions

Part 2—Variation of Superannuation Regulations 2001

1. Variation of regulation 19—Right to apply for commutation

2. Variation of regulation 20—Commutation factors

3. Variation of regulation 25—Exclusion of certain remuneration from salary

4. Variation of regulation 29A—Special provision relating to certain TEC contracts without tenure

5. Insertion of regulation 29B

   29BSpecial provision relating to certain transferred contributors

Part 1—Preliminary

1—Short title

These regulations may be cited as the Superannuation Variation Regulations 2005.

2—Commencement

These regulations come into operation on the day on which they are made.

3—Variation provisions

In these regulations, a provision under a heading referring to the variation of specified regulations varies the regulations so specified.

Part 2—Variation of Superannuation Regulations 2001

4—Variation of regulation 19—Right to apply for commutation

1. Regulation 19(1), table, row 2, column 1—after "invalidity pension" insert:

   (subject to subregulation (1a))

2. Regulation 19—after subregulation (1) insert:

   (1a)A pensioner in receipt of an invalidity pension may apply to the Board to commute up to 20 per cent of the pension in accordance with this Division at any time before he or she reaches the age of retirement.

3. Regulation 19(2)—after "part of the pension" insert:

   in accordance with this Division

4. Regulation 19(4)(a)—after "section 45" insert:

   of the Act

5. Regulation 19—after subregulation (6) insert:

   (7)A person who has applied successfully to the Board for commutation of part of a pension under a preceding subregulation may not apply to the Board for a further commutation in relation to the pension under that subregulation.

5—Variation of regulation 20—Commutation factors

1. Regulation 20(1)(c)(ii)—after "section 43AO(7)" insert:

   of the Act

2. Regulation 20(1)—after paragraph (c) insert:

   (d)in the case of an invalid pensioner who elects under regulation 19(1a) to commute up to 20 per cent of his or her pension to a lump sum prior to reaching the age of retirement—

Age at date of commutation	Amount of lump sum for each dollar of annual pension commuted
less than 50	$7.70
50 - 55	$7.70 - $7.30
55 - 60	$7.30 - $6.50

6—Variation of regulation 25—Exclusion of certain remuneration from salary

Regulation 25(1)—delete "construction or industry allowances;" and substitute:

construction or industry allowances not being those paid on an annual basis;

on call allowances not being those paid on an annual basis;

7—Variation of regulation 29A—Special provision relating to certain TEC contracts without tenure

Regulation 29A(1)—after "any other regulation" insert:

(and despite any provision to the contrary in the Act)

8—Insertion of regulation 29B

After regulation 29A insert:

29B—Special provision relating to certain transferred contributors

(1)Subregulation (2) applies to a contributor who—

(a)is employed by a relevant entity; and

(b)is, while retaining his or her position with the entity (the substantive position), occupying an alternative position whereby he or she is working within or for an administrative unit (the alternative position).

(2)Despite any other regulation (and despite any provision to the contrary in the Act), the salary of a contributor to whom this subregulation applies will, for the purpose of determining contributions and benefits, be taken to be—

(a)if the contributor has occupied the alternative position for less than 12 months—the salary received by the contributor in respect of the substantive position immediately before beginning to occupy the alternative position; and

(b)if—

(i)the contributor has occupied the alternative position for 12 months or more; and

(ii)the contributor's remuneration in respect of that position is the same as, or less than 25 per cent higher than, his or her remuneration in respect of the substantive position immediately before beginning to occupy the alternative position,

the salary received by the contributor in respect of the alternative position; and

(c)if—

(i)the contributor has occupied the alternative position for 12 months or more; and

(ii)the contributor's remuneration in respect of that position is at least 25 per cent higher than his or her remuneration in respect of the substantive position immediately before beginning to occupy the alternative position,

as follows:

(iii)for the purpose of determining contributions—the salary received by the contributor in respect of the alternative position;

(iv)for the purpose of determining benefits—salary calculated in accordance with subregulation (4).

(3)Despite any other regulation (and despite any provision to the contrary in the Act), the salary of a contributor who transfers from employment with a relevant entity to employment with an administrative unit, and whose employment with the entity ceases on or following the transfer, will be taken to be—

(a)for the purpose of determining contributions—the salary received by the contributor in respect of his or her employment with the administrative unit; and

(b)for the purpose of determining benefits—

(i)if the contributor's remuneration in respect of employment with the administrative unit is the same as, or less than 25 per cent higher than, his or her remuneration in respect of employment with the entity immediately before his or her transfer to the administrative unit—the salary received by the contributor in respect of his or her employment with the administrative unit; and

(ii)if the contributor's remuneration in respect of employment with the administrative unit is at least 25 per cent higher than his or her remuneration in respect of employment with the entity immediately before his or her transfer to the administrative unit—salary determined in accordance with subregulation (4).

(4)Salary for the purposes of determining benefits under subregulation (2)(c)(iv) and (3)(b)(ii) is to be determined in accordance with the following formula:

Where—

S is the salary

S1 is the highest level of salary received by the contributor while employed by, and undertaking duties for, the relevant entity, adjusted to reflect movement in salaries for the same classification with that employer

CM is the number of contribution months in the contributor's contribution period

X is the number of contribution months in the contributor's contribution period occurring while working within or for the administrative unit

S2 is the amount that would, but for this regulation, have been the contributor's salary for the purpose of determining benefits.

(5)In this regulation—

administrative unit means an administrative unit under the Public Sector Management Act 1995;

relevant entity means an entity that has entered into an arrangement with the Board under section 5 of the Act.

Note—

As required by section 10AA(2) of the Subordinate Legislation Act 1978, the Minister has certified that, in the Minister's opinion, it is necessary or appropriate that these regulations come into operation as set out in these regulations.

Made by the Governor's Deputy

with the advice and consent of the Executive Council

on 13 January 2005

No 1 of 2005

T&F04/090CS