Parliamentary Contributory Superannuation Amendment Act 1979

Overview

The Parliamentary Contributory Superannuation Amendment Act 1979 was enacted by the Commonwealth Parliament to amend the Parliamentary Contributory Superannuation Act 1948. This amendment aimed to address certain gaps and issues within the existing superannuation scheme for Members of Parliament, ensuring that it remained fair, flexible, and adequately catered to the needs of its beneficiaries. The Act introduced changes to the additional contributions by office holders, the commutation of retiring allowances, and benefits payable to widows, widowers, and orphaned children. By enacting this legislation, the Parliament sought to update and enhance the superannuation provisions for Members of Parliament, ensuring that they were better equipped to support the retirement and dependants of those who have served in the Parliament. The policy objective of the Parliamentary Contributory Superannuation Amendment Act 1979 was to provide a more comprehensive and adaptable superannuation scheme for Members of Parliament. This was achieved through various amendments, including the allowance for office holders to convert the entirety of their retiring allowance to a lump sum payment, adjustments to benefits payable to widows, widowers, and orphaned children, and the re-election provisions for Members who had previously received a retiring allowance. By addressing these issues, the Act aimed to ensure that the superannuation scheme continued to meet the evolving needs of Members of Parliament and their dependants.

Scope and Application

The Parliamentary Contributory Superannuation Amendment Act 1979 applies to persons who are members of the Australian Parliament, specifically those who are entitled to parliamentary allowances or retiring allowances under the Parliamentary Contributory Superannuation Act 1948. This Act primarily concerns the amendment of the conditions under which additional contributions can be made by office holders, the commutation of retiring allowances into lump sum payments, and the eligibility and amount of benefits payable to widows, widowers, and orphaned children of deceased members. The Act extends to the entire Commonwealth of Australia and operates at the federal level. There are no specific exclusions or exemptions mentioned in the text, though it is implicit that the benefits and provisions are limited to members of the Parliament and their dependants. The Act may be further refined or extended through subordinate instruments, which would detail the administrative and procedural aspects of the legislation.

Key Provisions

The Parliamentary Contributory Superannuation Amendment Act 1979 (Act) amends the Parliamentary Contributory Superannuation Act 1948 (Principal Act) in several key areas. First, Section 3 of the Act amends Section 14 of the Principal Act by inserting "the whole or" after "to convert" in sub-section (7), allowing office holders to convert the entirety of their contributions into a lump sum payment. Section 4 of the Act further amends Section 18b of the Principal Act by allowing individuals to elect to convert the whole or a percentage of their retiring allowance into a lump sum payment. This is achieved by omitting certain restrictions and inserting new sub-sections to clarify the conversion process, including the reduction of lump sum payments by any pre-existing retiring allowance payments. The amendments impose specific obligations on the parties involved. For instance, when a person elects to convert their retiring allowance to a lump sum payment, they lose their entitlement to the retiring allowance itself (Section 4(5a)). Additionally, individuals who have already received payments of their retiring allowance prior to their election to convert must have those amounts deducted from their lump sum payment (Section 4(5a)(b)). Furthermore, when a person who would have been entitled to a retiring allowance becomes a member again, their rights and liabilities under the Act revert to what they would have been if they had never received a retiring allowance (Section 7(3aa)). The Act also outlines consequences for non-compliance with its provisions. Although specific offences and penalties are not detailed within the provided sections, the nature of the changes suggests that failure to correctly follow the stipulated processes for converting superannuation benefits could lead to legal complications. For instance, if an individual incorrectly calculates the lump sum payment due to a misunderstanding of the provisions regarding prior payments, they might face disputes over the correct amount owed. While the exact penalties are not specified, breaches of superannuation laws in Australia typically result in civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach.