EXPLANATORY STATEMENT
FAMILY LAW (SUPERANNUATION) (METHODS AND FACTORS FOR VALUING PARTICULAR SUPERANNUATION INTERESTS) AMENDMENT APPROVAL 2005 (No.2)
ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL
In this instrument methods are approved, for the purpose of the provisions of the Family Law Act 1975 that allow for superannuation to be split on marriage breakdown, for determining the gross value of interests in the scheme established by Part 2 of the Judges’ Pensions Act 1971 (SA), the scheme which provides pensions for Judges and their surviving spouses in South Australia.
The gross value is one element in the determination of an amount which is taken to be the value of a superannuation interest in property settlement proceedings under the Family Law Act.
Three methods are approved for interests in the scheme.
The first method approved is for the interests that current South Australian Judges have in the scheme. The method provides for an actuarial value of these interests, and assumes an even accrual of benefits until 10 years judicial service is attained. From that time, provided that a Judge, if able to do so, then continues to serve until age 60, he or she is entitled to an indexed lifetime pension linked to salary on retirement or resignation. The factors that apply under the method reflect the mortality and invalidity experience of South Australian public sector employees.
A method is also approved for interests that former South Australian Judges have in the scheme where they resigned with 15 years or more judicial service before reaching age 60.
Such former judges are entitled to an indexed lifetime pension at age 60.
This second method values the interests of such former South Australian Judges by reference to the pension that is then payable to the person, the length of time until he or she attains age 60 and the mortality experience of South Australian public sector employees.
Finally, a method is also approved for former South Australian Judges or their surviving spouses with pension entitlements under the scheme.
This method values the interests of such former Judges or surviving spouses by reference to their pension entitlements and the mortality experience of South Australian public sector employees.
The instrument incorporates by reference the Judges’ Pensions Act 1971 (SA), the Act of the State of South Australia which established the scheme providing pensions for Judges of that State and their surviving spouses.
The South Australian Judges’ Pensions Act may be viewed at the following website:
http://www.parliament.sa.gov.au/Catalog/legislation/Acts/j/1971.30.un.htm
A copy of the Act may be purchased from the Service SA Government Legislation Outlet (GLO), situated at Ground Floor, Land Titles Office, 101 Grenfell Street, Adelaide, South Australia (telephone: 13 23 24).
Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Australian Government Actuary and the South Australian Department of Treasury and Finance (the South Australian Department) by way of exchange of correspondence, discussions and a meeting. In addition, the South Australian Department also consulted with the Chief Justice of the Supreme Court of South Australia and the Chief Judge of the District Court of South Australia, by way of exchange of correspondence and discussions.
Overview
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2005 (No.2) was enacted to address the need for standardised methods to value specific superannuation interests in property settlement proceedings under the Family Law Act 1975. This legislative instrument was approved by the authority of the Attorney-General and aims to provide clarity and consistency in the valuation of superannuation interests, particularly those related to the Judges’ Pensions Act 1971 (SA). The instrument was developed through consultations with the Australian Government Actuary, the South Australian Department of Treasury and Finance, as well as judicial representatives, to ensure that the approved methods accurately reflect the unique nature of superannuation interests held by current and former South Australian judges and their spouses. The policy objective is to facilitate equitable property settlements by providing a reliable framework for valuing these superannuation interests.
Scope and Application
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2005 (No. 2) applies to the valuation of superannuation interests under the Judges' Pensions Act 1971 (SA) in the context of property settlement proceedings under the Family Law Act 1975. Specifically, it establishes three distinct methods for determining the gross value of interests in the superannuation scheme for current and former South Australian Judges and their surviving spouses. These methods take into account actuarial values, pension entitlements, and relevant mortality experiences, tailored to the circumstances of the respective beneficiaries. The instrument operates within the jurisdiction of the Commonwealth of Australia but pertains specifically to superannuation interests governed by South Australian law. It does not extend beyond the specified valuation methods and the scope of the superannuation scheme established by the Judges' Pensions Act 1971 (SA). The approval does not alter the underlying provisions of the Family Law Act 1975 or the Judges' Pensions Act 1971 (SA) but rather provides a framework for the implementation of these Acts in the context of family law proceedings.
Key Provisions
The Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Amendment Approval 2005 (No. 2) establishes specific methods for determining the gross value of superannuation interests in the scheme provided by the Judges’ Pensions Act 1971 (SA) for the purposes of property settlement under the Family Law Act 1975. This instrument focuses on the superannuation interests of current and former South Australian Judges, as well as their surviving spouses, ensuring that these interests are accurately valued when marital breakdowns occur. The three approved methods are tailored to different categories of superannuation interests: the first method is for current South Australian Judges, the second for former Judges who resigned with at least 15 years of service before reaching age 60, and the third for former Judges or their surviving spouses with pension entitlements under the scheme.
Under this Act, specific obligations and requirements are placed on the parties involved in determining these superannuation interests. For current South Australian Judges, the method involves calculating an actuarial value of their interests, assuming an even accrual of benefits until 10 years of judicial service is attained. This calculation continues to consider the Judge’s ability to serve until age 60, entitling them to an indexed lifetime pension linked to their salary at retirement or resignation. The second method for former Judges who resigned with at least 15 years of service before age 60 involves valuing their interests by considering the pension payable at age 60, the time until they reach that age, and the mortality experience of South Australian public sector employees. The third method for former Judges or their surviving spouses values their interests based on their pension entitlements and the mortality experience of South Australian public sector employees.
Failure to comply with the approved methods and requirements outlined in this legislation may result in legal consequences. However, the specific offences, penalties, or consequences for non-compliance are not explicitly detailed in the provided text. Typically, breaches of such legislative requirements may lead to disputes in property settlement proceedings under the Family Law Act 1975, potentially resulting in legal costs and other civil liabilities. The Act incorporates the Judges’ Pensions Act 1971 (SA) by reference, ensuring that all relevant provisions and factors are considered in determining the value of superannuation interests. The instrument was developed through consultations with relevant authorities, including the Australian Government Actuary and the South Australian Department of Treasury and Finance, as well as judicial representatives from South Australia.