Untitled document
Parliamentary Superannuation Legislation (Reform) Act 2004
Act No. 78/2004
table of provisions
Section Page
Part 1—Preliminary
1.Purpose
2.Commencement
Part 2—Parliamentary Salaries and Superannuation Act 1968
Division 1—Closure of Parliamentary Contribution Superannuation Fund
3.Section 14A substituted—Closure of existing benefits scheme
14A.Application of Division
4.Amendment of section 21A—Closure of new benefits scheme
5.Amendment of section 21C—Benefits
6.Consequential renumbering of Parts
Division 2—Parliamentary Accumulation Superannuation Arrangements
7.New Part 4 inserted
Part 4—Parliamentary Accumulation Superannuation Arrangements
Division 1—Preliminary
26.Definitions
27.Meaning of complying superannuation fund
28.Meaning of new arrangements entry time
29.Meaning of new arrangements contribution period
Division 2—State's Obligations to Make Contributions
30.Persons to whom this Division applies
31.The State's obligations to make contributions
Division 3—Choice of Funds
32.Meaning of fund—includes schemes and accounts
33.When may a person choose a fund?
34.The nature of the choice
35.How to make a choice
36.Duration of a choice notice
37.Variation of a choice notice
38.Revocation of a choice notice
39.Obligation to notify person of right to choose a fund
Division 4—The Default Fund
40.Declaration of the default fund
Division 5—Miscellaneous
41.Salary sacrifice
42.Appropriation
43.Regulations
Part 3—The Constitution Act Amendment Act 1958
8.Amendment of section 30—Definition of "public service"
9.Amendment of section 30—Privileges of certain former
members10.New section 30A inserted—Privileges of new members
30A.Privileges of new members
Part 4—Amendments to Other Superannuation Acts
Division 1—Government Superannuation Act 1999
11.Amendment of section 42—MTA Superannuation Fund
Division 2—State Employees Retirement Benefits Act 1979
12.Amendment of section 2—Definitions
13.New section 24A inserted—Eligible member account
24A.Eligible member account
Division 3—State Superannuation Act 1988
14.Amendment of section 3—Definitions
15.New section 60A inserted—Eligible member account
60A.Eligible member account
Division 4—Transport Superannuation Act 1988
16.Amendment of section 3—Definitions
17.New section 28A inserted—Eligible member account
28A.Eligible member account
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Endnotes
Parliamentary Superannuation Legislation (Reform) Act 2004
[Assented to 9 November 2004]
The Parliament of Victoria enacts as follows:
Part 1—Preliminary
1.Purpose
The purpose of this Act is—
(a)to amend the Parliamentary Salaries and Superannuation Act 1968—
(i)to close the Parliamentary Contributory Superannuation Fund to new Members of Parliament; and
(ii)to provide superannuation arrangements for new Members of Parliament;
(b)to amend The Constitution Act Amendment Act 1958 in relation to the privileges of certain Members of Parliament;
(c)to amend the Government Superannuation Act 1999, the State Employees Retirement Benefits Act 1979, the State Superannuation Act 1988 and the Transport Superannuation Act 1988 to enable the acceptance of Government co‑contributions.
2.Commencement
(1)This Act, other than section 8, comes into operation on the day after the day on which it receives the Royal Assent.
(2)Section 8 is deemed to have come into operation on 1 January 1987.
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Part 2—Parliamentary Salaries and Superannuation Act 1968
Division 1—Closure of Parliamentary Contribution Superannuation Fund
3.Section 14A substituted—Closure of existing benefits scheme
For section 14A of the Parliamentary Salaries and Superannuation Act 1968 substitute—
"14A.Application of Division
(1)This Division does not apply to, or in respect of, a member to whom Division 3 of this Part or Part 4 applies.
(2)If this Division applies to, or in respect of, a member immediately before the commencement of section 3 of the Parliamentary Superannuation Legislation (Reform) Act 2004, the entitlements of that member are to be determined in accordance with this Division if—
(a)subject to paragraph (b), the person continues to be a member and after ceasing to be member does not subsequently become a member to whom Part 4 applies; or
(b)the person ceases to be a member as a result of resigning as a member of a House of the Parliament and is elected as a member of the other House of the Parliament within 3 months after the resignation.".
4.Amendment of section 21A—Closure of new benefits scheme
(1)In section 21A(1) of the Parliamentary Salaries and Superannuation Act 1968, for "This" substitute "Subject to sub-sections (1A) and (1B), this".
(2)After section 21A(1) of the Parliamentary Salaries and Superannuation Act 1968 insert—
"(1A)This Division does not apply to, or in respect of, a member to whom Part 4 applies.
(1B)If this Division applies to, or in respect of, a member immediately before the commencement of section 4 of the Parliamentary Superannuation Legislation (Reform) Act 2004, the entitlements of that member are to be determined in accordance with this Division if—
(a)subject to paragraph (b), the person continues to be a member and after ceasing to be member does not subsequently become a member to whom Part 4 applies; or
(b)the person ceases to be a member as a result of resigning as a member of a House of the Parliament and is elected as a member of the other House of the Parliament within 3 months after the resignation.".
5.Amendment of section 21C—Benefits
In section 21C(1) of the Parliamentary Salaries and Superannuation Act 1968, after "1996" insert "and in accordance with Schedule 1 to the Commonwealth Parliamentary Contributory Superannuation Act 1948 as inserted by the Commonwealth Parliamentary Superannuation and Other Entitlements Legislation Amendment Act 2004, subject to any modifications to that Schedule which the Parliamentary Trustee considers are necessary to give effect to the modifications to Part V of the Commonwealth Parliamentary Contributory Superannuation Act 1948 specified in sub-section (2)".
6.Consequential renumbering of Parts
(1)In the Parliamentary Salaries and Superannuation Act 1968—
(a)before section 1 insert—
"Part 1Preliminary"—;
(b)for the Part Heading before section 6 substitute—
"Part 2Parliamentary Salaries and Allowances"—;
(c)for the Part Heading before section 10 substitute—
"Part 3Parliamentary Contributory Superannuation Fund"—.
(2)Section 1(3) of the Parliamentary Salaries and Superannuation Act 1968 is repealed.
(3)In section 45A(6) of The Constitution Act Amendment Act 1958, in the definition of "basic salary", for "Part II" substitute "Part 3".
(4)In the Parliamentary Contributory Superannuation Act 1962—
(a)in section 2(3) for "Part II" substitute "Part 3";
(b)in section 9A(6), in the definition of "basic salary", for "Part II" substitute "Part 3".
Division 2—Parliamentary Accumulation Superannuation Arrangements
7.New Part 4 inserted
After section 25 of the Parliamentary Salaries and Superannuation Act 1968 insert—
'Part 4—Parliamentary Accumulation Superannuation Arrangements
Division 1—Preliminary
26.Definitions
In this Part—
"administering authority" means—
(a)in relation to a person who is a member of the Legislative Assembly, the Clerk of the Legislative Assembly; and
(b)in relation to a person who is a member of the Legislative Council, the Clerk of the Legislative Council;
"basic contributions fund", in relation to a person at a particular time, means—
(a)if a choice notice given by the member is in force under Division 3 at that time, the fund that is, at that time, specified in the notice as the chosen fund; or
(b)in any other case, the fund or scheme that is, at that time, the default fund;
"choice notice" means a notice under section 35;
"chosen fund" means the fund chosen by a member under section 34;
"complying superannuation fund" has the meaning given by section 27;
"default fund" means the fund or scheme declared by the Minister to be the default fund under Division 4;
"election" has the same meaning as it has in section 3 of the Electoral Act 2002;
"month" means one of the 12 months of the year;
"new arrangements" means parliamentary accumulation superannuation arrangements;
"new arrangements contribution period", in relation to a person, has the meaning given by section 29;
"new arrangements entry time", in relation to a person, has the meaning given by section 28;
"parliamentary salary" means salary to which a member is entitled under section 6(1)(a);
"prescribed" means prescribed by regulations made under this Part;
"RSA" has the same meaning as in the Retirement Savings Accounts Act 1997 of the Commonwealth;
"self managed superannuation fund" has the same meaning as in the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.
27.Meaning of complying superannuation fund
(1)For the purposes of this Part, a fund or scheme is a complying superannuation fund at a particular time if, and only if—
(a)the fund or scheme is a complying superannuation fund for the purposes of Part IX of the Income Tax Assessment Act 1936 of the Commonwealth in relation to the year of income in which the time occurs; and
(b)the fund or scheme is a superannuation fund as defined by section 6(1) of the Income Tax Assessment Act 1936 of the Commonwealth.
(2)In applying sub-section (1)(a) in relation to a fund or scheme and a particular time, the following are to be disregarded—
(a)any notice that is given after that time under section 40 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth and that relates to the fund or scheme and the year of income in which the time occurs;
(b)any revocation or setting aside, after that time, of a notice given before that time under section 40 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth and that relates to the fund or scheme and the year of income in which the time occurs or an earlier year of income.
28.Meaning of new arrangements entry time
(1)For the purposes of this Part, the new arrangements entry time for a person is the first time after the commencement of section 7 of the Parliamentary Superannuation Legislation (Reform) Act 2004 in relation to which the following conditions are satisfied—
(a)the time is on or after the election day for the first election following the commencement of that section;
(b)the person becomes entitled to a parliamentary salary at that time;
(c)the person was not entitled to a parliamentary salary immediately before that time.
(2)For the purposes of sub-section (1), if—
(a)a person resigned as a member of a House of the Parliament; and
(b)was elected as a member of the other House of the Parliament within 3 months after the resignation—
then the person is taken to have been entitled to a parliamentary salary from the time the person resigned as a member until the time the person was elected as a member of the other House of the Parliament.
(3)For the purposes of sub-section (2), a person is taken to be elected on the election day.
(4)For the purposes of this Part, if after the commencement of section 9 of the Constitution (Parliamentary Reform) Act 2003, a person becomes a member as a result of being chosen under section 27A of the Constitution Act 1975 to fill a casual vacancy in the Legislative Council the person is taken to be elected on the day that the person is chosen to fill the casual vacancy.
29.Meaning of new arrangements contribution period
(1)For the purposes of this Part, a new arrangements contribution period of a person is a period described in sub-section (2) or (3).
(2)The period that starts at the new arrangements entry time for the person and that ends when the person next ceases to be entitled to a parliamentary salary is a new scheme contribution period of the person.
(3)The period that starts at any later time in relation to which the following conditions are satisfied—
(a)the person becomes entitled to a parliamentary salary at that time; and
(b)the person was not entitled to a parliamentary salary immediately before that time—
and that ends when the person next ceases to be entitled to a parliamentary salary is a new arrangements contribution period of the person.
Division 2—State's Obligations to Make Contributions
30.Persons to whom this Division applies
This Division applies to a member in respect of a month if all or part of the month is in a new arrangements contribution period of the member.
31.The State's obligations to make contributions
(1)If this Division applies to the member in respect of a month, the State must make a contribution, in respect of the member, to the basic contributions fund of the member.
(2)Subject to sub-section (3), the amount of the contribution is an amount equal to the greater of—
(a)the sum of the prescribed percentage of—
(i)the amount of parliamentary salary to which the person is entitled in respect of the month; and
(ii)the amount (if any) of additional salary to which the member is entitled because he or she was the holder of an office specified in the first column of the Table to section 6 for some or all of the month; or
(b)the minimum amount necessary to avoid a superannuation guarantee shortfall within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.
(3)An election under section 41 to make member contributions by way of salary sacrifice does not affect the amount that would otherwise constitute parliamentary salary for the purpose of sub-section (2)(a).
(4)Despite anything to the contrary in this section, the State is not required by this section to pay contributions to the person's basic contributions fund if, under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth (including the regulations under that Act), the basic contributions fund is not permitted to receive those contributions.
(5)The administering authority must comply with any requirements relating to the making of contributions under the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.
(6)The Superannuation Industry (Supervision) Act 1993 of the Commonwealth (including the regulations under that Act) apply in respect of contributions made under this Part.
(7)In this section, "prescribed percentage" means the percentage required under the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth to ensure compliance with the minimum level of contributions required to be made by employers to avoid incurring a liability for a superannuation guarantee charge under that Act.
Division 3—Choice of Funds
32.Meaning of fund—includes schemes and accounts
In this Division, "fund" includes a scheme or account.
33.When may a person choose a fund?
A member may choose a fund as described in section 34 if, and only if, the choice is made during a new arrangements contribution period of the member.
34.The nature of the choice
(1)A member may choose a fund to be the fund to which contributions are made under this Part in respect of the member.
(2)At the time the choice is made, the chosen fund must be—
(a)a complying superannuation fund; or
(b)an RSA.
Note:Complying superannuation funds include any self-managed funds which are complying superannuation funds.
(3)There can only be one chosen fund at any particular time in relation to the member.
35.How to make a choice
(1)A choice of a fund must be made by notice in writing signed by the member.
(2)The choice notice must—
(a)specify the name of, and contact details for, the chosen fund;
(b)specify the start date from which the notice is to have effect, being the date the notice is given or a later date;
(c)contain such other information (if any) as is prescribed.
(3)The choice notice must be accompanied by evidence that the chosen fund will—
(a)accept contributions under this Part;
(b)comply with any requirements which are prescribed for the purposes of this section.
(4)The administrator of a fund may reject a request that the fund be the chosen fund if the administrator considers that the fund will not be able to comply with any requirements which are prescribed for the purposes of this section.
(5)The choice notice must be given to the administering authority.
36.Duration of a choice notice
If sections 33, 34 and 35 are complied with, a choice notice comes into force on the start date for the notice and remains in force until whichever of the following occurs first—
(a)the contribution payable under this Part in respect of the month in which the member next ceases to be entitled to parliamentary salary has been paid; or
(b)a revocation of the choice notice takes effect; or
(c)the chosen fund ceases to exist; or
(d)the chosen fund ceases to accept contributions under this Part; or
(e)the chosen fund ceases to be a complying superannuation fund or an RSA.
37. Variation of a choice notice
(1)The member may vary a choice notice he or she has given by notice in writing signed by the member and given to the administering authority.
(2)The only variations that are permitted are—
(a)to change the chosen fund to another fund that is, at the time the notice is given—
(i)a complying superannuation fund; or
(ii)an RSA; or
Note:Complying superannuation funds include any self-managed funds which are complying superannuation funds.
(b)if the start date has not already occurred, to change the start date to a later date.
(3)The notice of variation must specify a date from which the variation is to take effect, being the date on which the notice is given or a later date.
(4)A notice of variation to change the chosen fund must—
(a)specify the name of, and contact details for, the new chosen fund;
(b)be accompanied by evidence that the new chosen fund will—
(i)accept contributions under this Part; and
(ii)comply with any requirements which are prescribed for the purposes of section 35.
(5)Subject to any later variations, if the notice of variation complies with this section, it varies the choice notice accordingly with effect from the variation date.
38.Revocation of a choice notice
(1)The member may revoke a choice notice he or she has given by a notice in writing—
(a)signed by the member; and
(b)given to the administering authority.
(2)The notice of revocation must specify a date from which the revocation is to take effect, being the date on which the notice of revocation is given or a later date.
(3)If the notice of revocation complies with this section, the revocation takes effect on the specified date.
39.Obligation to notify person of right to choose a fund
(1)Within 28 days after the member becomes a person who, under section 33, can choose a fund as described in section 34, the administering authority must cause the member to be given a written notice containing the following information—
(a)a statement that the member may choose as the fund to which contributions in respect of the member will be paid under this Part—
(i)a complying superannuation fund; or
(ii)an RSA;
Note:Complying superannuation funds include any self-managed funds which are complying superannuation funds.
(b)a statement to the effect that if the member does not choose a fund, the contributions will be paid to the fund or scheme that is, from time to time, the default fund;
(c)such other information (if any) as is prescribed for the purposes of this section.
(2)For the purposes of sub-section (1), a person becomes a person who, under section 33, can choose a fund as described in section 34, on whichever of the following days applies—
(a)unless paragraph (b) applies, the first day of the relevant new scheme contribution period of the person; or
(b)if the day on which the person is declared to have been elected under section 121 of the Electoral Act 2002 is later than the day applicable under paragraph (a), that later day.
Division 4—The Default Fund
40.Declaration of the default fund
(1)The Minister may by notice published in the Government Gazette declare that a fund or scheme is the default fund for the purposes of this Part.
(2)Before making a declaration under sub-section (1), the Minister must consult with the Speaker and the President.
(3)At the time the declaration is made, the fund or scheme must be a complying superannuation fund other than a self managed superannuation fund.
(4)A declaration made under sub-section (1) must specify the date of effect of the declaration which may be the day on which the notice is published or an earlier or later day.
(5)The Minister must make a declaration under sub-section (1) as soon as practicable after the commencement section 7 of the Parliamentary Superannuation Legislation (Reform) Act 2004.
(6)The Minister must ensure that there is only one default fund at any one time.
(7)The Minister may by notice published in the Government Gazette revoke a declaration made under sub-section (1) at any time.
(8)A revocation made under sub-section (7) must specify the date of effect of the revocation which may be the day on which the notice is published or an earlier or later day.
(9)If the Minister revokes a declaration made under sub-section (1), the Minister must make another declaration under sub-section (1) which takes effect immediately after the revocation takes effect.
Division 5—Miscellaneous
41.Salary sacrifice
(1)A member may by notice in writing signed by the member elect to make member contributions by way of salary sacrifice.
(2)An election under sub-section (1) can only be made before the parliamentary salary to which the election is to apply is earned.
(3)The notice under sub-section (1) must—
(a)specify the percentage of his or her parliamentary salary not exceeding 50% which is to be used to make member contributions;
(b)be accompanied by evidence that the chosen fund or default fund will—
(i)accept contributions under this section; and
(ii)comply with any requirements which are prescribed for the purposes of this section.
(4)The administrator of the chosen fund or default fund may reject a request under this section if the administrator considers that the fund will not be able to comply with any requirements which are prescribed for the purposes of this section.
(5)The notice under sub-section (1) must be given to the administering authority.
(6)The member may vary a notice he or she has given under sub-section (1) by notice in writing signed by the member and given to the administering authority.
(7)The notice of variation must specify a date from which the variation is to take effect, being the date on which the notice is given or a later date.
(8)The member may revoke a notice he or she has given under sub-section (1) by a notice in writing—
(a)signed by the member; and
(b)given to the administering authority.
(9)The notice of revocation must specify a date from which the revocation is to take effect, being the date on which the notice of revocation is given or a later date.
(10)An election under this section does not affect the entitlement of a member to make additional superannuation contributions from his or her post tax salary.
42.Appropriation
The money required for the purposes of paying contributions under section 31 is to be paid out of the Consolidated Fund which is by virtue of this section appropriated to the necessary extent.
43.Regulations
The Governor in Council may make regulations for or with respect to any matter or thing required or permitted by this Part to be prescribed or necessary to be prescribed to give effect to this Part.'.
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Part 3The Constitution Act Amendment Act 1958—
8.Amendment of section 30—Definition of "public service"
In section 30(1) of The Constitution Act Amendment Act 1958, in the definition of "public service", after paragraph (a) insert—
"(b)any employee within the meaning of section 3(1) of the Emergency Services Superannuation Act 1986;".
9.Amendment of section 30—Privileges of certain former members
(1)In section 30 of The Constitution Act Amendment Act 1958—
(a)in sub-section (1)—
(i)in the definition of "public service" omit "railway service";
(ii)in the definition of "teaching service" after "Education" insert "and Training";
(b)in sub-section (2)—
(i)omit "or the railway service" (where twice occurring);
(ii)in paragraph (d), for "the teaching service the railway service" substitute "or the teaching service".
(2)After section 30(3) of The Constitution Act Amendment Act 1958 insert—
"(4)Sub-section (2) only applies to and in relation to any person who is a member of Parliament immediately before the commencement of section 9 of the Parliamentary Superannuation Legislation (Reform) Act 2004.".
10.New section 30A inserted—Privileges of new members
After section 30 of The Constitution Act Amendment Act 1958 insert—
'30A.Privileges of new members
(1)In this section—
"Parliament" means—
(a)the Parliament of Victoria; or
(b)the Parliament of the Commonwealth of Australia;
"police force" includes the officers and other members of the police force of Victoria;
"public service" includes as well as employees in the public service—
(a)permanent and temporary medical officers employed under the Mental Health Act 1986 or the Intellectually Disabled Persons' Services Act 1986;
(b)any employee within the meaning of section 3(1) of the Emergency Services Superannuation Act 1986;
(c)any officer within the meaning of the State Superannuation Act 1988 not otherwise included within the definitions of "public service" or "teaching service";
"teaching service" includes, as well as officers and employees in the teaching service, any person who is certified by the Secretary to the Department of Education and Training to be employed in whole-time duties on the permanent staff of any school or schools for technical education receiving aid from the Consolidated Fund.
(2)A member of the public service, the teaching service or the police force who—
(a)is after the commencement of section 10 of the Parliamentary Superannuation Legislation (Reform) Act 2004 elected a member of Parliament; and
(b)ceases to be a member of Parliament within 5 years of that commencement without being entitled to a pension under this Act or the Parliamentary Contributory Superannuation Act 1948 of the Commonwealth or any similar Act—
is entitled, on application in writing to the proper authority within 3 months after so ceasing to be a member of Parliament, to reinstatement in the public service, the teaching service or the police force subject to the provisions in relation to classification, superannuation, sick leave and long service leave specified in sub-section (3).
(3)The provisions are—
(a)he or she must be re-employed in the public service, the teaching service or the police force in a classification, grade or office not inferior to that in which he or she was employed when he or she ceased to be employed in the public service, teaching service or police force by reason of his or her election as a member of Parliament;
(b)if immediately before he or she so ceased to be employed, he or she was a contributor under the State Superannuation Act 1988, he or she becomes a contributor under that Act if, on being re-employed in the public service or the teaching service, he or she pays into the State Superannuation Fund under that Act an amount equal to—
(i)the sum paid to him or her out of the State Superannuation Fund when he or she so ceased to be employed; and
(ii)an additional amount equal to the contributions he or she would have been required to make under the State Superannuation Act 1988 if he or she had remained in the public service or teaching service during the period from so ceasing to be employed until re‑employment in the public service or teaching service—
and on payment of that amount into the State Superannuation Fund he or she is to be treated for the purposes of the State Superannuation Act 1988 as if he or she had continued to be a contributor under that Act during that period;
(c)if immediately before he or she so ceased to be a member of the police force rateable deductions were being made under the Police Regulation Act 1958, on becoming a member of the police force again he or she becomes entitled to the same rights in respect of a pension as he or she would have had if he or she had not ceased to be a member of the police force if he or she pays into the Police Pensions Fund under that Act an amount equal to—
(i)the sum paid to him or her out of the Police Pensions Fund when he or she so ceased to be a member; and
(ii)an additional amount equal to the deductions that would have been made under that Act if he or she had remained a member of the police force during the period that he or she was not a member—
and on payment of that amount into the Police Pension Fund he or she is to be treated for the purposes of entitlement to a pension under the Police Regulation Act 1958 as if he or she had continued to be a member of the police force during that period;
(d)if immediately before he or she so ceased to be employed, he or she was a contributor under the State Employees Retirement Benefits Act 1979, he or she becomes a contributor under that Act if, on being re-employed in the public service or teaching service, he or she pays into the State Superannuation Fund under that Act an amount equal to—
(i)the sum paid to him or her out of the State Superannuation Fund when he or she so ceased to be employed; and
(ii)an additional amount equal to the contributions he or she would have been required to make under the State Employees Retirement Benefits Act 1979 if he or she had remained in the public service or the teaching service during the period from so ceasing to be employed until re-employment in the public service or teaching service—
and on payment of that amount into the State Superannuation Fund he or she is to be treated for the purposes of the State Employees Retirement Benefits Act 1979 as if he or she had continued to be a contributor under that Act during that period;
(e)if immediately before he or she so ceased to be employed he or she was a contributor under the Emergency Services Superannuation Act 1986, he or she becomes a contributor under that Act if, on being re-employed in the public service, he or she pays into the Scheme under that Act an amount equal to—
(i)the sum paid to him or her out of that Scheme when he or she so ceased to be employed; and
(ii)an additional amount equal to the contributions he or she would have been required to make under the Emergency Services Superannuation Act 1986 if he or she had remained in the public service during the period from so ceasing to be employed until re‑employment in the public service—
and on payment of that amount into the Fund he or she is to be treated for the purposes of the Emergency Services Superannuation Act 1986 as if he or she had continued to be a contributor under that Act during that period;
(f)if immediately before he or she so ceased to be employed, he or she was a member under the Transport Superannuation Act 1988, he or she becomes a member under that Act if, on being re-employed in the public service, he or she pays into the State Superannuation Fund under that Act an amount equal to—
(i)the sum paid to him or her out of the State Superannuation Fund when he or she so ceased to be employed; and
(ii)an additional amount equal to the contributions he or she would have been required to make under the Transport Superannuation Act 1988 if he or she had remained in the public service during the period from so ceasing to be employed until re‑employment in the public service—
and on payment of that amount into the State Superannuation Fund he or she is to be treated for the purposes of the Transport Superannuation Act 1988 as if he or she had continued to be a member under that Act during that period;
(g)upon re-employment in the public service, teaching service or police force he or she is to be credited with the amount of sick leave to which he or she was entitled on so ceasing to be employed;
(h)upon re-employment in the public service, teaching service or police force, a period from his or her ceasing to be employed in the public service, teaching service or police force until re‑employment in the public service, teaching service or police force—
(i)is to be regarded for the purposes of any long service leave as continuous with service in the public service, teaching service or the police force;
(ii)is not in the computation of the period of long service leave to be counted as service with the public service or teaching service or in the police force.
(4)For the purposes of this section, if after the commencement of section 9 of the Constitution (Parliamentary Reform) Act 2003, a person becomes a member as a result of being chosen under section 27A of the Constitution Act 1975 to fill a casual vacancy in the Legislative Council the person is taken to be elected a member of Parliament on the day that the person is chosen to fill the casual vacancy.'.
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Part 4—Amendments to Other Superannuation Acts
Division 1—Government Superannuation Act 1999
11.Amendment of section 42—MTA Superannuation Fund
After section 42(15) of the Government Superannuation Act 1999 insert—
'(16)In this section—
"eligible contribution" means the Government co-contribution payable under the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 of the Commonwealth that the Commissioner of Taxation determines under that Act is to be paid to the Fund or to the person;
"eligible member" means an employee who is a person in respect of whom a Government co-contribution is payable in accordance with section 6 of the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth;
"eligible member account" means the account established under sub-section (17).
(17)The Trustee of the MTA Superannuation Fund must establish and maintain a separate eligible member account for each employee who is an eligible member.
(18)The Trustee of the MTA Superannuation Fund must credit to an employee's eligible member account—
(a)eligible contributions received on behalf of, or from, the employee; and
(b)interest on the amount in the account at the rate determined by the Trustee of the MTA Superannuation Fund.
(19)The Trustee of the MTA Superannuation Fund must debit to an employee's eligible member account—
(a)any reasonable costs incurred in maintaining the account as determined by the Trustee of the MTA Superannuation Fund; and
(b)any taxes payable in respect of the account; and
(c)any refund of overpaid or ineligible contributions required to be made to the Commissioner of Taxation under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth.
(20)The Trustee of the MTA Superannuation Fund may for the purposes of sub-section (18)(b) determine that it is appropriate in the circumstances to apply a negative interest rate.
(21)If benefits become payable under the provisions of the governing instrument of the MTA Superannuation Fund to or in respect of a person who has been an employee, the Trustee of the MTA Superannuation Fund must ensure that the person receives an additional benefit equal to the net balance of the employee's eligible member account as at the date of the payment of the benefits.
(22)The net balance of the employee's eligible member account as at the date of the payment of the benefits must be paid—
(a)as a lump sum; and
(b)in accordance with the specified standards.
(23)Eligible contributions—
(a)do not constitute member contributions which are required to be paid under the provisions of the governing instrument of the MTA Superannuation Fund;
(b)do not create a corresponding liability requiring the employer to make contributions to the MTA Superannuation Fund;
(c)must not be taken into account in the calculation of any benefits under the provisions of the governing instrument of the MTA Superannuation Fund other than this section.
(24)A benefit paid in accordance with this section—
(a)does not affect the payment of any other benefits under the provisions of the governing instrument of the MTA Superannuation Fund; and
(b)must not be taken into account in determining any minimum or maximum benefit entitlement under the provisions of the governing instrument of the MTA Superannuation Fund.'.
Division 2—State Employees Retirement Benefits Act 1979
12.Amendment of section 2—Definitions
In section 2(1) of the State Employees Retirement Benefits Act 1979, after the definition of "domestic partner" insert—
' "eligible contribution" means the Government co-contribution payable under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth that the Commissioner of Taxation determines under that Act is to be paid to the Fund or to the person;
"eligible member" means a member who is a person in respect of whom a Government co‑contribution is payable in accordance with section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 of the Commonwealth;
"eligible member account" means the account established under section 24A;'.
13.New section 24A inserted—Eligible member account
After section 24 of the State Employees Retirement Benefits Act 1979 insert—
"24A.Eligible member account
(1)The Board must establish and maintain a separate eligible member account for each member who is an eligible member.
(2)The Board must credit to a member's eligible member account—
(a)eligible contributions received on behalf of, or from, the member; and
(b)interest on the amount in the account at the rate determined by the Board.
(3)The Board must debit to a member's eligible member account—
(a)any reasonable costs incurred in maintaining the account as determined by the Board; and
(b)any taxes payable in respect of the account; and
(c)any refund of overpaid or ineligible contributions required to be made to the Commissioner of Taxation under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth.
(4)The Board may for the purposes of sub-section (2)(b) determine that it is appropriate in the circumstances to apply a negative interest rate.
(5)If benefits become payable under this Act to or in respect of a person who has been a member, the Board must ensure that the person receives an additional benefit equal to the net balance of the member's eligible member account as at the date of the payment of the benefits.
(6)The net balance of the member's eligible member account as at the date of the payment of the benefits must be paid—
(a)as a lump sum; and
(b)in accordance with the specified standards.
(7)Eligible contributions—
(a)do not constitute member contributions which are required to be paid under this Act;
(b)do not create a corresponding liability requiring the employer to make contributions to the Fund;
(c)must not be taken into account in the calculation of any benefits under this Act other than this section.
(8)A benefit paid in accordance with this section—
(a)does not affect the payment of any other benefits under this Act; and
(b)must not be taken into account in determining any minimum or maximum benefit entitlement under this Act.".
Division 3—State Superannuation Act 1988
14.Amendment of section 3—Definitions
In section 3(1) of the State Superannuation Act 1988, after the definition of "domestic partner" insert—
' "eligible contribution" means the Government co-contribution payable under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth that the Commissioner of Taxation determines under that Act is to be paid to the Fund or to the person;
"eligible member" means a contributor who is a person in respect of whom a Government co‑contribution is payable in accordance with section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 of the Commonwealth;
"eligible member account" means the account established under section 60A;'.
15.New section 60A inserted—Eligible member account
After section 60 of the State Superannuation Act 1988 insert—
"60A.Eligible member account
(1)The Board must establish and maintain a separate eligible member account for each contributor who is an eligible member.
(2)The Board must credit to a contributor's eligible member account—
(a)eligible contributions received on behalf of, or from, the contributor; and
(b)interest on the amount in the account at the rate determined by the Board.
(3)The Board must debit to a contributor's eligible member account—
(a)any reasonable costs incurred in maintaining the account as determined by the Board; and
(b)any taxes payable in respect of the account; and
(c)any refund of overpaid or ineligible contributions required to be made to the Commissioner of Taxation under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth.
(4)The Board may for the purposes of sub-section (2)(b) determine that it is appropriate in the circumstances to apply a negative interest rate.
(5)If benefits become payable under this Act to or in respect of a person who has been a contributor, the Board must ensure that the person receives an additional benefit equal to the net balance of the contributor's eligible member account as at the date of the payment of the benefits.
(6)The net balance of the contributor's eligible member account as at the date of the payment of the benefits must be paid—
(a)as a lump sum; and
(b)in accordance with the specified standards.
(7)Eligible contributions—
(a)do not constitute member contributions which are required to be paid under this Act;
(b)do not create a corresponding liability requiring the employing authority to make contributions to the Fund;
(c)must not be taken into account in the calculation of any benefits under this Act other than this section.
(8)A benefit paid in accordance with this section—
(a)does not affect the payment of any other benefits under this Act; and
(b)must not be taken into account in determining any minimum or maximum benefit entitlement under this Act.".
Division 4—Transport Superannuation Act 1988
16.Amendment of section 3—Definitions
In section 3(1) of the Transport Superannuation Act 1988, after the definition of "domestic partner" insert—
' "eligible contribution" means the Government co-contribution payable under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth that the Commissioner of Taxation determines under that Act is to be paid to the Fund or to the person;
"eligible member" means a member who is a person in respect of whom a Government co‑contribution is payable in accordance with section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 of the Commonwealth;
"eligible member account" means the account established under section 28A;'.
17.New section 28A inserted—Eligible member account
After section 28 of the Transport Superannuation Act 1988 insert—
"28A.Eligible member account
(1)The Board must establish and maintain a separate eligible member account for each member who is an eligible member.
(2)The Board must credit to a member's eligible member account—
(a)eligible contributions received on behalf of, or from, the member; and
(b)interest on the amount in the account at the rate determined by the Board.
(3)The Board must debit to a member's eligible member account—
(a)any reasonable costs incurred in maintaining the account as determined by the Board; and
(b)any taxes payable in respect of the account; and
(c)any refund of overpaid or ineligible contributions required to be made to the Commissioner of Taxation under the Superannuation (Government Co‑contributions for Low Income Earners) Act 2003 of the Commonwealth.
(4)The Board may for the purposes of sub-section (2)(b) determine that it is appropriate in the circumstances to apply a negative interest rate.
(5)If benefits become payable under this Act to or in respect of a person who has been a member, the Board must ensure that the person receives an additional benefit equal to the net balance of the member's eligible member account as at the date of the payment of the benefits.
(6)The net balance of the member's eligible member account as at the date of the payment of the benefits must be paid—
(a)as a lump sum; and
(b)in accordance with the specified standards.
(7)Eligible contributions—
(a)do not constitute member contributions which are required to be paid under this Act;
(b)do not create a corresponding liability requiring the employing transport authority to make contributions to the Fund;
(c)must not be taken into account in the calculation of any benefits under this Act other than this section.
(8)A benefit paid in accordance with this section—
(a)does not affect the payment of any other benefits under this Act; and
(b)must not be taken into account in determining any minimum or maximum benefit entitlement under this Act.".
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Endnotes
Minister's second reading speech—
Legislative Assembly: 16 September 2004
Legislative Council: 3 November 2004
The long title for the Bill for this Act was "to amend the Parliamentary Salaries and Superannuation Act 1968 to reform parliamentary superannuation, to make miscellaneous amendments to other specified superannuation legislation and for other purposes."
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