Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT ACT 1991 No. 130, 1991 - SECT 36

36. After section 110S of the Principal Act the following Part is inserted:

"PART VIB - POSTPONEMENT OF BENEFITS OF RETIREMENT PENSIONERS Circumstances in
which benefits may be postponed

"110T. (1) A person who is, or is about to become, a person who:

   (a)  has attained his or her minimum retiring age but has not attained the
        age of 65 years; and

   (b)  has become entitled to benefits under section 55 or 59; may, not later
        than 3 months after but not earlier than 3 months before becoming such
        a person, by notice in writing given to the Commissioner, elect that
        this Part apply to him or her.

"(2) An election under subsection (1) is only valid if the person provides the
Commissioner, not later than 3 months after, but not earlier than, the day on
which the person becomes a person mentioned in that subsection, with a
statement to the effect that he or she has not retired from the workforce.
Effect of election

"110TA. (1) If a person makes an election under section 110T, payment to the
person of:

   (a)  standard age retirement pension or standard early retirement pension,
        as the case may be, to which the person is, or is about to become,
        entitled; and

   (b)  any productivity benefit which is, or is about to become, payable in
        respect of the person under section 110P; is postponed until a date
        worked out under section 110TB.

"(2) If a person who makes an election under section 110T specifies in that
election that payment of the additional age retirement pension or additional
early retirement pension, as the case may be, to which the person is, or is
about to become, entitled, is to be postponed, payment of that pension is
postponed until a date worked out under section 110TB. Date on which postponed
benefits become payable

"110TB. A benefit, the payment of which has been postponed under this Part,
becomes payable on the earlier of the following dates:

   (a)  the date on which the person attains the age of 65 years;

   (b)  if the person provides the Commissioner with a statement to the effect
        that he or she has retired from the workforce - the date on which the
        statement is so provided. Rates of pension after postponement of
        payment

"110TC. (1) For the purposes of calculating the rate or amount of a benefit
payable on a date worked out under section 110TB:

   (a)  if the benefit became payable on the date on which the person attained
        the age of 65 years - the person is taken to be entitled to standard
        age retirement pension under subsection 55 (1); and

   (b)  if the benefit did not become payable on the date mentioned in
        paragraph (a) - the person's age on the date on which the benefit
        became payable is substituted for the person's age on his or her last
        day of service; and

   (c)  the person's period of contributory service at the date of ceasing to
        be an eligible employee continues to be the person's period of
        contributory service; and

   (d)  the amount worked out under subsection (2) is taken to be the person's
        final annual rate of salary.

"(2) The amount mentioned in paragraph (1) (d) is an amount equal to the
amount per annum that the Commissioner determines would have been the final
annual rate of salary of the person on the day immediately before the date on
which the benefit became payable if:

   (a)  the person had not ceased to be an eligible employee; and

   (b)  the person had continued to occupy the office or position in respect
        of which the person's final annual rate of salary was calculated; and

   (c)  account were taken of any increase in salary that would have been
        received had the person continued to be an eligible employee and
        continued to occupy that office or position, other than an increase
        resulting from the person progressing to a higher level of salary
        within a graduated range of salaries applicable to the office or
        position held by the person; and

   (d)  there were excluded any allowance or part of a salary (other than an
        increase in salary mentioned in paragraph (c) that is to be taken into
        account) that would have been included in the person's final annual
        rate of salary had the person been an eligible employee on that day
        but was not included in the person's final annual rate of salary when
        the person ceased to be an eligible employee. Application of Parts VI
        and VIA in relation to postponed benefits

"110TD. Where a person who, under this Part, has postponed the payment of
benefits dies before the benefits become payable:

   (a)  Part VI applies in relation to those benefits as if the benefits
        became payable immediately before the person's death; and

   (b)  Part VIA applies in relation to those benefits as if the benefits
        became payable because of the person's death. Election by spouse to
        commute

"110TE. (1) Where:

   (a)  payment of a pension to a person is postponed under subsection 110TA
        (2); and

   (b)  the person dies before the pension becomes payable; and

   (c)  the person is survived by a spouse; then, whether or not the person
        made an election under subsection 64 (2), the spouse may make, not
        later than 3 months after the death of the person, by notice in
        writing to the Commissioner, an election to commute that pension into
        a lump sum benefit payable to him or her.

"(2) If a spouse makes an election under subsection (1) to commute a pension,
a lump sum benefit equal to the amount of the accumulated contributions of the
deceased person is payable to the spouse and spouse's additional pension is
not payable under paragraph 93 (1) (b) to the spouse. Payment of lump sum
benefit to orphan

"110TF. Where:

   (a)  payment of a pension to a person is postponed under subsection 110TA
        (2); and

   (b)  the person dies before the pension becomes payable; and

   (c)  the person is not survived by a spouse but is survived by the person's
        child or children; then, whether or not the person made an election
        under subsection 64 (2), if the surviving child or one or more of the
        surviving children are, immediately after his or her death, an
        eligible child or eligible children or, in the opinion of the
        Commissioner, are likely to become an eligible child or eligible
        children - a lump sum benefit equal to the sum of the amount of the
        accumulated contributions of the deceased person and the accumulated
        employer contributions in respect of the deceased person is payable in
        respect of that child or those children. Effect of election on
        benefits already paid

"110TG. (1) Where a person has been paid:

   (a)  an amount or amounts by way of pension or by way of pension and lump
        sum benefit to which the person has become entitled under section 55
        or 59 or Part VIA or an amount by way of lump sum benefit to which the
        person has become entitled under section 62 or Part VIA; and

   (b)  after that amount was, or those amounts were, paid, the person makes
        an election under section 110T; the election does not have effect
        unless an amount equal to that amount or to the aggregate of those
        amounts, as the case requires, is paid to the Commissioner within 7
        days after the date of the election or within such further period as
        the Commissioner, in special circumstances, allows.

"(2) Where an amount is paid to the Commissioner by a person under subsection
(1), the Commissioner must pay that amount into the Consolidated Revenue Fund
and there must be paid out of the Consolidated Revenue Fund (which is
appropriated accordingly) into the Superannuation Fund an amount equal to so
much of the amount paid to the Commissioner as is equal to the amount that was
paid to the Consolidated Revenue Fund under section 112 at the time that the
person ceased to be an eligible employee.".