Untitled document

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2

PART 2—AMENDMENT OF STATE SUPERANNUATION ACT

1988   3

3.	Establishment of Beneficiary Choice Scheme	3
PART 3A—BENEFICIARY CHOICE SCHEME	3

23A.	Establishment of Scheme	3
23B.	Membership of Scheme	3
23C.	Entitlements of member	4
23D.	Transfer of assets to Scheme	4
23E.	Payments from Scheme	4
23F.	Winding up of Scheme	4
23G.	No stamp duty or other tax payable	4

4.	Beneficiary Choice Program	5
PART 9—BENEFICIARY CHOICE PROGRAM	5

102.	Definitions	5
103.	Declaration in relation to Commonwealth funded
pensioners	7
104.	Application to participate	7
105.	Commutation—eligible beneficiaries	8
106.	Commutation—eligible pensioners	9

5.	New Schedule 2 inserted	9
6.	Amendments relating to future commutation entitlements	11
7.	Re-instatement of certain disability pensioners	16

77B. Re-instatement of certain disability pensioners 16

i

Section	Page
PART 3—AMENDMENT OF EMERGENCY SERVICES
SUPERANNUATION ACT 1986	19

8. Spouse Accounts 19

21JA. Spouse Accounts 19

9. Amendments consequential on section 8 21

PART 4—AMENDMENT OF GOVERNMENT

SUPERANNUATION ACT 1999 22

10. Specified standards 22

46A. Commencement of specified standards Order 22

11. Repeal of spent provisions 22

PART 5—AMENDMENT OF POLICE REGULATION ACT 1958 23

12.	Beneficiary Choice Program	23
Division 5—Beneficiary Choice Program	23

67C.	Definitions	23
67D.	Application to participate	24
67E.	Commutation	24

PART 6—AMENDMENT OF STATE EMPLOYEES

RETIREMENT BENEFITS ACT 1979 26

13.	Beneficiary Choice Program	26
PART VI—BENEFICIARY CHOICE PROGRAM	26

79.	Definitions	26
80.	Declaration in relation to Commonwealth funded
pensioners	27
81.	Application to participate	28
82.	Commutation—eligible beneficiaries	28
83.	Commutation—eligible pensioners	29

14.	Consequential	30
15.	New Schedule inserted	30
16.	Amendments relating to future commutation entitlements	30

PART 7—AMENDMENT OF SUPERANNUATION

(PORTABILITY) ACT 1989 33

17. Beneficiary Choice Program 33

5A. Beneficiary Choice Program 33

18. Amendments relating to future commutation entitlements 35

PART 8—AMENDMENT OF THE CONSTITUTION ACT

AMENDMENT ACT 1958 37

ii

Section Page

19. Privileges of certain former members 37

PART 9—AMENDMENT OF TRANSPORT SUPERANNUATION

ACT 1988 40

20.	Beneficiary Choice Program	40
PART 9—BENEFICIARY CHOICE PROGRAM	40

54.	Definitions	40
55.	Application to participate	41
56.	Commutation—eligible beneficiaries	42
57.	Commutation—eligible pensioners	42

21. Amendments relating to future commutation entitlements 43

═══════════════

ENDNOTES 45

iii

Victoria

No. 95 of 2000

Superannuation Acts (Beneficiary

Choice) Act 2000†

[Assented to 5 December 2000]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to amend certain

Superannuation Acts—

(a) to provide for greater choice by way of a one-off election and future options to commute pension and deferred benefit entitlements; and

Superannuation Acts (Beneficiary Choice) Act 2000

s. 2 Act No. 95/2000

(b) to improve the administration of certain superannuation schemes.

2. Commencement

(1) This Act, except sections 3, 6, 10, 16, 18, 19 and 21, comes into operation on the day after the day on which it receives the Royal Assent.

(2) Section 19(1) is deemed to have come into

operation on 23 January 1980.

(3) Section 19(2) is deemed to have come into

operation on 1 January 1987.

(4) Section 19(3) is deemed to have come into

operation on 1 July 1988.

(5) Section 10 is deemed to have come into operation on 1 July 1999.

(6) Sections 3, 6, 16, 18 and 21 come into operation on 1 July 2001.

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 3

PART 2—AMENDMENT OF STATE SUPERANNUATION

ACT 1988

3. Establishment of Beneficiary Choice Scheme

After Part 3 of the State Superannuation Act

1988 insert—

"PART 3A—BENEFICIARY CHOICE SCHEME

23A. Establishment of Scheme

(1) There is established a Scheme within the
Fund called the Beneficiary Choice Scheme.

(2) The rules of the Beneficiary Choice Scheme

are the rules as specified in relation to
pensions in regulation 1.06 of the
Commonwealth Superannuation Industry

(Supervision) Regulations 1994.

23B. Membership of Scheme

The following are members of the

Beneficiary Choice Scheme—

(a)	an eligible pensioner whose application is accepted under section 104;
(b)	an eligible pensioner whose application is accepted under section 67D of the Police Regulation Act 1958;
(c)	is accepted under section 81 of the

an eligible pensioner whose application Act 1979;

(d) an eligible pensioner whose application is accepted under section 55 of the Transport Superannuation Act 1988.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 3 Act No. 95/2000

23C. Entitlements of member

A member is entitled to a complying pension from the Beneficiary Choice Scheme.

23D. Transfer of assets to Scheme

(1) The Emergency Services Superannuation

Choice Scheme assets of the Emergency
Services Superannuation Scheme equal to
the entitlements of a member of the
Beneficiary Choice Scheme whose pension
entitlements were administered under section
22 or 22A of the Emergency Services

Board must transfer to the Beneficiary an actuary appointed by the Minister.

(2) As soon as the assets have been transferred, the assets form part of the Fund.

23E. Payments from Scheme

(1) The Board must commute a member's

complying pension into a lump sum payable
out of the Beneficiary Choice Scheme.

(2) The method of calculating the commutation benefit of a member under sub-section (1) is to be determined by the Minister on the

advice of an actuary appointed by the Board. (3) The payment under this section releases the Board from any liability to make any further payments to, or in respect of, any

entitlements of the member under the

Beneficiary Choice Scheme.

23F. Winding up of Scheme

If there are no members left in the close the Beneficiary Choice Scheme.

23G. No stamp duty or other tax payable
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 4

No stamp duty or other tax is payable under any Act in respect of anything done under this Part.".

4. Beneficiary Choice Program

After Part 8 of the State Superannuation Act

1988 insert—

'PART 9—BENEFICIARY CHOICE PROGRAM

102. Definitions

(1) In this Part—

"Beneficiary Choice Scheme" means the

Beneficiary Choice Scheme established
under Part 3A;

"Commonwealth funded pensioner"

means a person receiving a pension
specified in the definition of "eligible

pensioner"—

(a) period of employment with an

any part of which relates to a and

(b)

which is partly or wholly funded Commonwealth of Australia;

"eligible beneficiary" means a person who at any time during the election period—

(a) a deferred pension under section
44(1)(b), 44(2), 45, 46(1)(a),

is entitled, or becomes entitled, to 101; or

(b) is entitled, or becomes entitled, to a deferred benefit under section

Superannuation Acts (Beneficiary Choice) Act 2000

s. 4 Act No. 95/2000

58(1), 61A(2), 69(4)(b), 69B(3)(b), 94 or 101; or

(c) is entitled to a deferred pension under section 61(2) or a reduced deferred pension under section

61(2A) and is not eligible to make contributions under section 50; or

(d)	is entitled to a deferred pension under section 61(5) or a reduced deferred pension under section
61(5)(b) and is not eligible to make contributions under section 28 of the Transport Superannuation Act 1988;

"eligible pensioner" means a person who at

any time during the election period is
receiving, or becomes entitled to
receive—

(a)	a pension under section 31(1), 94 or 101; or
(b)	a pension as a spouse under section 36 or 37; or
(c)	a pension under section 31(2), 54 or 65(b) and has attained 55 years of age; or
(d)	a pension under section 31(2), 54 or 65(b) and has not attained the age of 55 years, at the discretion of the Board; or

(e) a pension under section 80—

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000	s. 4
but does not include a Commonwealth funded pensioner unless a declaration is made under section 103;

"election period" means the period—

(a) notice published in the
Government Gazette in respect of
all or particular classes of eligible

specified by the Minister in a pensioners; and

(b)	if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the
Minister in a further notice published in the Government Gazette.

(2) In this Part, a reference to the Board in relation to an eligible pensioner whose pension entitlements are administered under

section 22 of the Emergency Services as a reference to the ESS Board.

103.  Declaration in relation to Commonwealth funded pensioners

(1) This section applies if an agreement in

respect of this Part is entered into between
the Government of Victoria and the
Government of the Commonwealth of
Australia in relation to Commonwealth
funded pensioners.

(2) If this section applies, the Minister must publish a declaration in the Government Gazette.

104. Application to participate

Superannuation Acts (Beneficiary Choice) Act 2000

s. 4 Act No. 95/2000

(1) An eligible beneficiary or eligible pensioner

may during the relevant election period
apply in writing to the Board to participate in
the beneficiary choice program in the form
approved by the Board.

(2) An eligible beneficiary must elect to

commute the whole of his or her deferred
pension entitlement or deferred benefit
entitlement.

(3) An eligible pensioner must elect to convert

the whole or 50 per cent of his or her pension
entitlement.

(4) If an eligible pensioner has a spouse, the

eligible pensioner must also elect to convert
the same percentage of his or her spouse's
pension entitlement.

(5) An application under this section—

(a)	can not be withdrawn after it has been accepted by the Board;
(b)	ceases to have any effect if the applicant dies before the application is accepted by the Board.

105. Commutation—eligible beneficiaries

(1) If the Board accepts an application by an

eligible beneficiary under section 104, the
eligible beneficiary is entitled to a
commutation benefit equal to a lump sum
determined by the Board.

(2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the

Minister on the advice of an actuary appointed by the Board.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 4
s. 5

Act No. 95/2000

(3) As soon as the commutation benefit is

transferred to a complying superannuation
fund nominated by the eligible beneficiary—

(a)	the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 104; and
(b)	the eligible beneficiary ceases to be a member of the Fund.

106. Commutation—eligible pensioners

(1) If the Board accepts an application by an eligible pensioner under section 104, the Board must commute the pension entitlement

specified in the application into a complying
pension under the Beneficiary Choice

Scheme.

(2) The method of calculating the commutation

section (1) is to be determined by the

benefit of an eligible pensioner under sub- appointed by the Board having regard to the commutation factors specified in Schedule 1.

(3) The Board is released from any liability in

respect of the entitlements of an eligible
pensioner and of any spouse specified in the
application under section 104 as soon as the
eligible pensioner becomes entitled to a
complying pension under the Beneficiary
Choice Scheme.'.

5. New Schedule 2 inserted

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000

After Schedule 1 of the State Superannuation

Act 1988 insert—

"SCHEDULE 2

BALLARAT INSTITUTE

BENDIGO COLLEGE

BENDIGO INSTITUTE

CHISHOLM INSTITUTE

CHISHOLM INSTITUTE—FRANKSTON

DEAKIN UNIVERSITY

DEAKIN UNIVERSITY—WARRNAMBOOL

FOOTSCRAY INSTITUTE GIPPSLAND INSTITUTE HAWTHORN INSTITUTE INSTITUTE OF CATHOLIC EDUCATION

INSTITUTE OF CATHOLIC EDUCATION—ASCOT

VALE

INSTITUTE OF CATHOLIC EDUCATION—OAKLEIGH
LATROBE UNIVERSITY
LINCOLN INSTITUTE
MELBOURNE COLLEGE
MELBOURNE UNIVERSITY
MONASH UNIVERSITY—GIPPSLAND
PHILLIP INSTITUTE
PHILLIP INSTITUTE—COBURG
ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY
STATE COLLEGE OF VICTORIA—BALLARAT
STATE COLLEGE OF VICTORIA—BENDIGO
STATE COLLEGE OF VICTORIA—GEELONG
STATE COLLEGE OF VICTORIA—HAWTHORN
SWINBURNE UNIVERSITY OF TECHNOLOGY

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 6

UNIVERSITY OF BALLARAT
VICTORIA COLLEGE
VICTORIA COLLEGE—RUSDEN
VICTORIA COLLEGE OF THE ARTS
VICTORIAN COLLEGE
VICTORIA UNIVERSITY
WARRNAMBOOL INSTITUTE
WESTERN INSTITUTE".

6.  Amendments relating to future commutation entitlements

(1) In sections 39(1) and 39(3) of the State

Superannuation Act 1988 after "convert" insert
"the whole of or".

(2) In section 39(3) of the State Superannuation Act 1988 omit "or a greater amount of pension as may be prescribed".

(3) In section 40(1) of the State Superannuation Act

1988 after "convert" insert "the whole of or".

(4) For section 40(2) of the State Superannuation

Act 1988 substitute—
"(2) A person must elect under sub-section (1) to

convert to an equivalent lump sum payment

an amount—

(a) equal to the whole; or

(b) not greater than 50 per cent—

of his or her fortnightly pension
entitlement.".

Superannuation Acts (Beneficiary Choice) Act 2000

s. 6 Act No. 95/2000

(5) After section 47(9) of the State Superannuation Act 1988 insert—

"(10) A revised scheme member who is entitled to

a deferred pension under section 44(1)(b), 44(2), 45, 46(1)(a) or 46(1)(b) may elect in writing to the Board to—

(a)	convert the entitlement to a lump sum; and
(b)	complying superannuation fund

have the lump sum transferred to a member.

(11) The method of calculating the conversion

under sub-section (10) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

(6) After section 58(3) of the State Superannuation

Act 1988 insert—
"(4) A new scheme member who is entitled under

sub-section (1) to a deferred benefit on
resignation may elect in writing to the Board

to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the new scheme member.

(5) The method of calculating the conversion

under sub-section (4) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 6

(7) After section 61(6) of the State Superannuation

Act 1988 insert—
"(7) Sub-section (8) applies to a person who—

(a)	is entitled to a deferred pension under section 61(2) or a reduced deferred pension under section 61(2A) and is not eligible to make contributions under section 50; or
(b)	is entitled to a deferred pension under section 61(5) or a reduced deferred pension under section 61(5)(b) and is not eligible to make contributions under section 28 of the Transport Superannuation Act 1988.

(8) A former revised scheme member referred to in sub-section (7) may elect in writing to the Board to—

(a)	convert the entitlement to a lump sum; and
(b)	complying superannuation fund

have the lump sum transferred to a scheme member.

(8A) The method of calculating the conversion

under sub-section (8) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

(8) After section 61A(3) of the State

Superannuation Act 1988 insert—

"(4) A revised scheme member who is entitled to

a deferred pension under sub-section (1) may

elect in writing to the Board to—

(a) convert the entitlement to a lump sum; and

Superannuation Acts (Beneficiary Choice) Act 2000

s. 6 Act No. 95/2000

(b) complying superannuation fund

have the lump sum transferred to a member.

(5) A new scheme member who is entitled to a deferred benefit under sub-section (2) may elect in writing to the Board to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the new scheme member.

(6) The method of calculating the conversion

under sub-section (4) or (5) is to be
determined by the Minister on the advice of
an actuary appointed by the Board.".

(9) After section 69(4) of the State Superannuation Act 1988 insert—

"(4A) A contributor who is entitled to a deferred

retirement benefit under sub-section (4) may
elect in writing to the Board to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the contributor.

(4B) The method of calculating the conversion

under sub-section (4) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

(10) In section 69B(4) of the State Superannuation

Act 1988 after "section 61A(3)" insert ", 61A(4) or 61A(5)".

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 6

(11) After section 94(1D) of the State

Superannuation Act 1988 insert—

"(1E) Without derogating from sub-sections (1A)

and (1B), a transferred member who is
entitled to a deferred benefit under section
94 or 95 may elect in writing to the Board
to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

(1F) The method of calculating the conversion under sub-section (1E) is to be determined by the Minister on the advice of an actuary appointed by the Board.".

(12) After section 101(4) of the State Superannuation

Act 1988 insert—

"(5) Without derogating from sub-sections (1)

and (2), a transferred beneficiary who is
entitled to a deferred benefit under this
section may elect in writing to the Board

to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the beneficiary.

(6) The method of calculating the conversion

under sub-section (5) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

Superannuation Acts (Beneficiary Choice) Act 2000

s. 7 Act No. 95/2000

7. Re-instatement of certain disability pensioners

After section 77A of the State Superannuation

Act 1988 insert—

'77B. Re-instatement of certain disability

pensioners

(1) This section applies if the Board is satisfied

that the application of a former disability
pensioner to retire on the grounds of ill
health and receive a payment under section

77A was materially influenced by an offer,
or the prospect of an offer, of employment
by the Department of Education,
Employment and Training under the New
Start Program or any other program which
the Board determines to be similar to the
New Start Program.

(2) An application for re-instatement under this section must be made—

(a) commencement of section 7 of the

within the period of 6 months after the Choice) Act 2000; or

(b) within such further period of time as the Board may determine.

(3) If this section applies, subject to sub-section

(4), the Board must re-instate the former
disability pensioner as an officer entitled to a
disability pension with the same rights and
entitlements that he or she would have had if
he or she had not retired on the grounds of ill
health and sections 75, 76 and 77 apply
accordingly.

(4) It is a condition of any re-instatement under

this section that the former disability
pensioner must immediately repay to the

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 7

Board an amount determined by the Board
on the advice of an actuary appointed by the

Board.

(5) The advice of the actuary should take into

account—

(a)	the amount received under section 77A(2);
(b)	interest at the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983 on the amount

received under section 77A(2);

(c)	any amount received in the course of gainful employment within the meaning of section 77(2) during the relevant period;
(d)	an amount determined by the Board on the advice of the actuary to be equal to the present value of the disability
pension that the former disability pensioner would have received during the relevant period had he or she remained a disability pensioner;
(e)	any other amount which the Board determines to be relevant.

(6) In sub-section (5), "relevant period" means

the period beginning on the date of
retirement under section 77A and ending on
the proposed date of re-instatement.

(7) For the purposes of sub-section (4)—

(a) the Board may require the former disability pensioner to provide to the Board within 45 days any returns and information which the Board specifies; and

Superannuation Acts (Beneficiary Choice) Act 2000

s. 7 Act No. 95/2000

(b) the determination of the Board has effect as at the date of re-instatement.

(8) If in the opinion of the Board the former

disability pensioner is willing but financially
unable to immediately repay the amount
determined by the Board under sub-section
(4), the Board may re-instate the former
disability pensioner if he or she enters an
agreement with the Board to accept a
reduction in his or her pension entitlement of
an amount and for a period as is determined
by the Board so as to recover the amount
determined under sub-section (4) and interest
on that amount at the rate for the time being
fixed under section 2 of the Penalty Interest
Rates Act 1983 for that period.

(9) An agreement under sub-section (8) must contain a condition that if the person or a dependent, spouse or other beneficiary of that person becomes entitled to a pension or

benefit under this Act and any amount is still
owing under the agreement, the pension or
benefit is to be reduced by that amount.

(10) The Board may deduct from any money

payable out of the Fund to any person
referred to in sub-section (9) in respect of
any pension or benefit under this Act any
money owing under an agreement under this
section.'.

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 8

PART 3—AMENDMENT OF EMERGENCY SERVICES

SUPERANNUATION ACT 1986

8. Spouse Accounts

After section 21J of the Emergency Services

Superannuation Act 1986 insert—

"21JA. Spouse Accounts

(1) The Board may establish upon the request of

an eligible spouse a special arrangement
called a spouse account.

(2) The Board may accept for payment into a

spouse account any amount in respect of an
eligible spouse in accordance with section
159TC of the Commonwealth Income Tax
Assessment Act 1936.

(3) The Board must credit to a spouse's

account—

(a)	any eligible spouse contribution made in respect of that spouse; and
(b)	any eligible spouse contribution made by the spouse; and
(c)	any net earnings calculated on the basis of section 21L; and
(d)	spouse's account, including any amount

any other amount payable to the superannuation fund.

(4) The Board must debit to a spouse's

account—

(a) respect of management and

an amount determined by the Board in Board; and

Superannuation Acts (Beneficiary Choice) Act 2000

s. 8 Act No. 95/2000

(b)	any net loss calculated on the basis of section 21L; and
(c)	any amounts transferred to another complying superannuation fund; and
(d)	any other amount payable by the spouse.

(5) The Board must not accept any contributions

by or in respect of a spouse after the date of
termination of service of a member or
contributor.

(6) Section 23AA applies in respect of any

payment out of a spouse account under sub-
section (7) or (8) as if the payment were a
benefit under this Act.

(7) The balance of a spouse account is

payable—

(a)	to the spouse on the request of the spouse, in a form approved by the Board; or
(b)	such one or more of the spouse's dependants and legal personal

in the case of the death of the spouse, to of the whole of the balance as the Board in its absolute discretion determines.

(8) If a spouse ceases to be an eligible spouse or

the member, contributor or former
contributor dies, the spouse may elect to—

(a)	maintain the account in an investment fund in accordance with section 21K; or
(b)	transfer the account balance to another complying superannuation fund; or

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 9

(c) receive the whole of the account balance.".

9. Amendments consequential on section 8

(1) In section 21 of the Emergency Services

Superannuation Act 1986—

(a) after the definition of "child" insert— ' "eligible spouse" in relation to a member,

contributor or former contributor, has the same meaning as in section 159TC of the Commonwealth Income Tax

Assessment Act 1936;';

(b)

after the definition of "participating ' "spouse account" means a spouse's

account established and maintained by the Board for an eligible spouse under section 21JA.'.

(2) In the Emergency Services Superannuation Act

1986—

(a)

in sections 21K(2) and 21K(3) for "or ", member or spouse";

(b) and 21L(2), for "or member's account"

in sections 21K(2), 21K(3), 21K(4), 21L(1) or spouse's account".

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

s. 10 Act No. 95/2000

PART 4—AMENDMENT OF GOVERNMENT

SUPERANNUATION ACT 1999

10. Specified standards

After section 46 of the Government Superannuation Act 1999 insert—

"46A. Commencement of specified standards

Order

(1) This section applies to the Order in Council

cited as Specified Standards for the
Preservation of Superannuation Benefits
which was—

(a) made on 16 June 1999; and

(b) published in the Government Gazette on 20 July 2000.

(2) Notwithstanding anything to the contrary in

any Act under which the Order in Council
was made or the failure to publish the Order
in Council on or before 1 July 1999, the
Order in Council is deemed—

(a)	to have come into operation on 1 July 1999 as specified in the Order in Council; and
(b)	to have full force and effect from 1 July 1999.".

11. Repeal of spent provisions

Part 6 of the Government Superannuation Act

1999 is repealed.

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 12

PART 5—AMENDMENT OF POLICE REGULATION ACT

1958

12. Beneficiary Choice Program

In Part III of the Police Regulation Act 1958, after Division 4 insert—

'Division 5—Beneficiary Choice Program 67C. Definitions

In this Division—

"Beneficiary Choice Scheme" means the

Beneficiary Choice Scheme established
under Part 3A of the State
Superannuation Act 1988;

"eligible pensioner" means a person who at

any time during the election period is
receiving, or becomes entitled to
receive—

(a) a pension under section 42; or

(b)	a pension as a spouse under section 44; or
(c)	a pension or a gratuity under section 43 and has attained 55 years of age; or
(d)	a pension or a gratuity under section 43 and has not attained the age of 55 years, at the discretion of the ESS Board;

"election period" means the period—

(a)

specified by the Minister in a Government Gazette in respect of

Superannuation Acts (Beneficiary Choice) Act 2000

s. 12 Act No. 95/2000

all or particular classes of eligible

pensioners; and

(b) ESS Board so decides, as

if the Minister on the advice of the specified by the Minister in a further notice published in the Government Gazette.

67D. Application to participate

(1) An eligible pensioner may during the

relevant election period apply in writing to
the ESS Board to participate in the
beneficiary choice program in the form
approved by the ESS Board.

(2) An eligible pensioner must elect to convert

the whole or 50 per cent of his or her pension
or gratuity entitlement.

(3) If an eligible pensioner has a spouse, the

eligible pensioner must also elect to convert
the same percentage of his or her spouse's
pension entitlement.

(4) An application under this section—

(a)	can not be withdrawn after it has been accepted by the ESS Board;
(b)	ceases to have any effect if the applicant dies before the application is accepted by the ESS Board.

67E. Commutation

(1) If the ESS Board accepts an application under section 67D, the ESS Board must commute the pension entitlement specified

in the application into a complying pension
under the Beneficiary Choice Scheme.

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 12

(2) The method of calculating the commutation

section (1) is to be determined by the

benefit of an eligible pensioner under sub- appointed by the ESS Board.

(3) The ESS Board is released from any liability

in respect of the entitlements of an eligible
pensioner and of any spouse specified in the
application under section 67D as soon as the
eligible pensioner becomes entitled to a
complying pension under the Beneficiary
Choice Scheme.'.

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

s. 13 Act No. 95/2000

PART 6—AMENDMENT OF STATE EMPLOYEES

RETIREMENT BENEFITS ACT 1979

13. Beneficiary Choice Program

After Part V of the State Employees Retirement

Benefits Act 1979 insert—

'PART VI—BENEFICIARY CHOICE PROGRAM

79. Definitions
In this Part—
"Beneficiary Choice Scheme" means the

Beneficiary Choice Scheme established
under Part 3A of the State

Superannuation Act 1988;

"Commonwealth funded pensioner"

means a person receiving a pension
specified in the definition of "eligible

pensioner"—

(a) period of employment with an

any part of which relates to a and

(b)

which is partly or wholly funded Commonwealth of Australia;

"eligible beneficiary" means a person who

at any time during the election period is
entitled, or becomes entitled, to a
deferred retirement benefit under
section 22A, 34A, 34AB, 37 or 38;

"eligible pensioner" means a person who at any time during the election period is

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000	s. 13
receiving, or becomes entitled to receive—
(a)	a pension under section 39, 40 or 75; or
(b)	a pension as a spouse under section 38(3), 44, 45 or 57; or
(c)	a pension under section 55 and has attained 55 years of age; or
(d)	a pension under section 55 and has not attained the age of 55 years, at the discretion of the Board—

but does not include a Commonwealth
funded pensioner unless a declaration is

made under section 80;

"election period" means the period—

(a) notice published in the
Government Gazette in respect of
all or particular classes of eligible

specified by the Minister in a pensioners; and

(b)	if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the
Minister in a further notice published in the Government Gazette.

80.  Declaration in relation to Commonwealth funded pensioners

(1) This section applies if an agreement is

entered into between the Government of
Victoria and the Government of the

Superannuation Acts (Beneficiary Choice) Act 2000

s. 13 Act No. 95/2000

Commonwealth of Australia in relation to
Commonwealth funded pensioners.

(2) If this section applies, the Minister must publish a declaration in the Government Gazette.

81. Application to participate

(1) An eligible beneficiary or eligible pensioner

may during the relevant election period
apply in writing to the Board to participate in
the beneficiary choice program in the form
approved by the Board.

(2) An eligible beneficiary must elect to

commute the whole of his or her deferred
retirement benefit entitlement.

(3) An eligible pensioner must elect to convert

the whole or 50 per cent of his or her pension
entitlement.

(4) If an eligible pensioner has a spouse, the

eligible pensioner must also elect to convert
the same percentage of his or her spouse's
pension entitlement.

(5) An application under this section—

(a)	can not be withdrawn after it has been accepted by the Board;
(b)	ceases to have any effect if the applicant dies before the application is accepted by the Board.

82. Commutation—eligible beneficiaries

(1) If the Board accepts an application by an

eligible beneficiary under section 81, the
eligible beneficiary is entitled to a
commutation benefit equal to a lump sum
determined by the Board.

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 13

(2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the

Minister on the advice of an actuary appointed by the Board.

(3) As soon as the commutation benefit is

transferred to a complying superannuation
fund nominated by the eligible beneficiary—

(a)	the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 81; and
(b)	the eligible beneficiary ceases to be a member of the Fund.

83. Commutation—eligible pensioners

(1) If the Board accepts an application by an

eligible pensioner under section 81, the specified in the application into a complying pension under the Beneficiary Choice Scheme.

(2) The method of calculating the commutation

section (1) is to be determined by the

benefit of an eligible pensioner under sub- appointed by the Board having regard to the commutation factors specified in Schedule 1.

(3) The Board is released from any liability in

respect of the entitlements of an eligible
pensioner and of any spouse specified in the
application under section 81 as soon as the
eligible pensioner becomes entitled to a
complying pension under the Beneficiary
Choice Scheme.'.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 14 Act No. 95/2000

14. Consequential

In the State Employees Retirement Benefits Act

1979—

(a)

in section 40(1A) for "the Schedule" "Schedule 1";

(b) in the Schedule after "SCHEDULE" insert "1".

15. New Schedule inserted

After Schedule 1 of the State Employees Retirement Benefits Act 1979 insert—

"SCHEDULE 2

DEAKIN UNIVERSITY

LATROBE UNIVERSITY—BENDIGO

MELBOURNE UNIVERSITY

MONASH UNIVERSITY

RMIT—(FORMERLY PHILLIP INSTITUTE)

RMIT—HIGHER EDUCATION

SWINBURNE UNIVERSITY

UNIVERSITY OF BALLARAT

UNIVERSITY OF MELBOURNE—VICTORIAN

COLLEGE OF AGRICULTURE AND HORTICULTURE

VICTORIA UNIVERSITY".

16.  Amendments relating to future commutation entitlements

(1) After section 34AB(2) of the State Employees Retirement Benefits Act 1979 insert— "(3) A member who is entitled to a deferred

retirement benefit under sub-section (1) may
elect in writing to the Board to—

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 16

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

(4) The method of calculating the conversion

under sub-section (3) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

(2) After section 37(1A) of the State Employees

Retirement Benefits Act 1979 insert—

"(1B) A member who is entitled to a deferred

retirement benefit under sub-section (1)(b)
may elect in writing to the Board to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

(1C) The method of calculating the conversion

under sub-section (1B) is to be determined by the Minister on the advice of an actuary appointed by the Board.".

(3) After section 38(2) of the State Employees
Retirement Benefits Act 1979 insert—

"(2A) A member who is entitled to a deferred

retirement benefit under sub-section (1) may
elect in writing to the Board to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 16 Act No. 95/2000

(2B) The method of calculating the conversion

under sub-section (2A) is to be determined by the Minister on the advice of an actuary appointed by the Board.".

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 17

PART 7—AMENDMENT OF SUPERANNUATION

(PORTABILITY) ACT 1989

17. Beneficiary Choice Program

After section 5 of the Superannuation
(Portability) Act 1989 insert—

'5A. Beneficiary Choice Program

(1) In this section—

"Beneficiary Choice Scheme" means the

Beneficiary Choice Scheme established
under Part 3A of the State
Superannuation Act 1988;

"eligible beneficiary" means a person who

at any time during the election period is
entitled, or becomes entitled, to a
deferred retirement benefit by the
operation of section 5;

"election period" means the period—

(a) notice published in the
Government Gazette in respect of

specified by the Minister in a beneficiaries; and

(b) if the Minister so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette.

(2) An eligible beneficiary may during the

relevant election period apply in writing to
the administrator to participate in the
beneficiary choice program in the form
approved by the administrator.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 17 Act No. 95/2000

(3) An eligible beneficiary must elect to

commute the whole of his or her deferred
retirement benefit entitlement.

(4) An application under this section—

(a)	can not be withdrawn after it has been accepted by the administrator;
(b)	ceases to have any effect if the applicant dies before the application is accepted by the administrator.

(5) If the administrator accepts an application

under sub-section (2), the eligible
beneficiary is entitled to a commutation
benefit of a lump sum determined by the
administrator.

(6) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (5) is to be determined by the

Minister on the advice of an actuary appointed by the administrator.

(7) As soon as the commutation benefit is

transferred to a complying superannuation
fund nominated by the eligible beneficiary—

(a)	the administrator is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under sub-section (3); and
(b)	the eligible beneficiary ceases to be a member of the statutory superannuation scheme to which their deferred benefit relates.'.

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 18

18.  Amendments relating to future commutation entitlements

(1) After section 5(2) of the Superannuation

(Portability) Act 1989 insert—

"(2A) A member who is entitled to a deferred

retirement benefit by the operation of this
section may elect in writing to the
administrators to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

(2B) The method of calculating the conversion

under sub-section (2A) is to be determined by the Minister on the advice of an actuary appointed by the administrators.".

(2) After section 7(7) of the Superannuation

(Portability) Act 1989 insert—

"(7A) A person who is entitled under sub-section

(7) to a deferred retirement benefit by the
operation of section 5 may elect in writing to
the administrators to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the person.

(7B) The method of calculating the conversion

under sub-section (7A) is to be determined by the Minister on the advice of an actuary appointed by the administrators.".

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 19

PART 8—AMENDMENT OF THE CONSTITUTION ACT

AMENDMENT ACT 1958

19. Privileges of certain former members

(1) After section 30(2)(ba) of The Constitution Act Amendment Act 1958 insert—

"(bb) 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 service, he or she pays into the Fund under that Act an amount equal to the sum paid to him or her out of that Fund when he or she so ceased to be employed
together with 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 service during the period as if he or she had continued to be a contributor under that Act during that period;".
from so ceasing to be employed until re-
employment in the service and on payment
of that amount into the Fund he or she is to
be treated for the purposes of the State

(2) After section 30(2)(bb) of The Constitution Act

Amendment Act 1958 insert—
"(bc) if immediately before he or she so ceased to

be employed, he or she was a contributor becomes a contributor under that Act if, on being re-employed in the service, he or she
under the Emergency Services

Superannuation Acts (Beneficiary Choice) Act 2000

s. 19

s. 19 Act No. 95/2000

pays into the Scheme under that Act an 1986 if he or she had remained in the service during the period from so ceasing to be employed until re-employment in the 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;".

amount equal to the sum paid to him or her
out of that Scheme when he or she so ceased
to be employed together with an additional
amount equal to the contributions he or she
would have been required to make under the

(3) After section 30(2)(bc) of The Constitution Act Amendment Act 1958 insert—

"(bd) 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 or she had remained in the service during the period from so ceasing to be employed until re-employment in the service and on payment of that amount into the 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;".
if, on being re-employed in the service, he or
she pays into the Fund under that Act an
amount equal to the sum paid to him or her
out of that Fund when he or she so ceased to
be employed together with an additional
amount equal to the contributions he or she
would have been required to make under the

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000

_______________
Superannuation Acts (Beneficiary Choice) Act 2000

s. 20 Act No. 95/2000

PART 9—AMENDMENT OF TRANSPORT

SUPERANNUATION ACT 1988

20. Beneficiary Choice Program

After Part 8 of the Transport Superannuation

Act 1988 insert—

'PART 9—BENEFICIARY CHOICE PROGRAM

54. Definitions
In this Part—
"Beneficiary Choice Scheme" means the

Beneficiary Choice Scheme established
under Part 3A of the State
Superannuation Act 1988;

"eligible beneficiary" means a person who

at any time during the election period is
entitled, or becomes entitled, to a
deferred benefit under section 34A or
35;

"eligible pensioner" means a person who at

any time during the election period is
receiving, or becomes entitled to
receive—

(a) a pension under section 48; or

(b)	a pension under section 31 and has attained 55 years of age; or
(c)	a pension under section 31 and has not attained the age of 55 years, at the discretion of the Board;

"election period" means the period—

(a) specified by the Minister in a notice published in the

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 20

Government Gazette in respect of all or particular classes of eligible beneficiaries and eligible

pensioners; and

(b)	if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the
Minister in a further notice published in the Government Gazette.

55. Application to participate

(1) An eligible beneficiary or eligible pensioner

may during the relevant election period
apply in writing to the Board to participate in
the beneficiary choice program in the form
approved by the Board.

(2) An eligible beneficiary must elect to

commute the whole of his or her deferred
pension entitlement or deferred benefit
entitlement.

(3) An eligible pensioner must elect to convert

the whole or 50 per cent of his or her pension
entitlement.

(4) If an eligible pensioner has a spouse, the

eligible pensioner must also elect to convert
the same percentage of his or her spouse's
pension entitlement.

(5) An application under this section—

(a)	can not be withdrawn after it has been accepted by the Board;
(b)	ceases to have any effect if the applicant dies before the application is accepted by the Board.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 20 Act No. 95/2000

56. Commutation—eligible beneficiaries

(1) If the Board accepts an application by an

eligible beneficiary under section 55, the
eligible beneficiary is entitled to a
commutation benefit equal to a lump sum
determined by the Board.

(2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the

Minister on the advice of an actuary appointed by the Board.

(3) As soon as the commutation benefit is

transferred to a complying superannuation
fund nominated by the eligible beneficiary—

(a)	the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 55; and
(b)	the eligible beneficiary ceases to be a member of the Fund.

57. Commutation—eligible pensioners

(1) If the Board accepts an application by an

eligible pensioner under section 55, the specified in the application into a complying pension under the Beneficiary Choice Scheme.

(2) The method of calculating the commutation

section (1) is to be determined by the

benefit of an eligible pensioner under sub- appointed by the Board.

Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 s. 21

(3) The Board is released from any liability in

respect of the entitlements of an eligible
pensioner and of any spouse specified in the
application under section 55 as soon as the
eligible pensioner becomes entitled to a
complying pension under the Beneficiary
Choice Scheme.'.

21.  Amendments relating to future commutation entitlements

(1) After section 34A(2) of the Transport

Superannuation Act 1988 insert—

"(3) A member who is entitled to a deferred

benefit may elect in writing to the Board

to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

(4) The method of calculating the conversion

under sub-section (3) is to be determined by
the Minister on the advice of an actuary
appointed by the Board.".

(2) After section 35(4) of the Transport
Superannuation Act 1988 insert—

"(4A) A member who is entitled to a deferred

benefit may elect in writing to the Board
to—

(a)	convert the entitlement to a present lump sum; and
(b)

have the lump sum transferred to a nominated by the member.

Superannuation Acts (Beneficiary Choice) Act 2000

s. 21 Act No. 95/2000

(4B) The method of calculating the conversion

under sub-section (4A) is to be determined by the Minister on the advice of an actuary appointed by the Board.".

═══════════════
Superannuation Acts (Beneficiary Choice) Act 2000

Act No. 95/2000 Endnotes

ENDNOTES

†

Minister's second reading speech—

Legislative Assembly: 2 November 2000

Legislative Council: 23 November 2000

The long title for the Bill for this Act was "to enable the commutation of certain pension entitlements and deferred benefit entitlements under the State Superannuation Act 1988, the Police Regulation Act 1958, the State Employees Retirement Benefits Act 1979, the Superannuation (Portability) Act 1989 and the Transport Superannuation Act 1988, to

make miscellaneous amendments to certain Superannuation Acts and for
other purposes."