Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT ACT 1992 No. 187, 1992 - SECT 18

18. After Division 2 of Part V of the Principal Act the following Division is
inserted:

"Division 2A - Preservation of benefit payable under subsection 62(2)
Interpretation

"62A.(1) In this Division:
'accumulated government body contributions', in relation to a person's
relevant period of employment, means the total of:

   (a)  the total amount of the productivity contributions applicable to the
        person in respect of the period; and

   (b)  notional interest on the amount worked out under paragraph (a);
'government body scheme' means a superannuation scheme:

   (a)  established by, or operating for the benefit of employees of:

        (i)    an authority of the Commonwealth; or

        (ii)   a State or an authority of a State; or

        (iii)  a Territory or an authority of a Territory; or

        (iv)   a body corporate in which the Commonwealth, or a person of the
               kind referred to in paragraph (i), (ii) or (iii), either
               individually or in combination with one or more other such
               persons, has a controlling interest; and

   (b)  that has eligible employees as members; and

   (c)  under which productivity contributions accrue in respect of those
        eligible employees;
'notional accumulated SG contributions', in relation to a person's relevant
period of employment, means an amount equal to the sum of:

   (a)  the person's SG minimum contributions in relation to that period as
        reduced by an amount specified in, or worked out in accordance with, a
        determination made by the Australian Government Actuary under
        subsection (4); and

   (b)  notional interest on the amount worked out under paragraph (a);
'period of actual contributory service', in relation to a person, means the
person's period of contributory service other than any part of that period
added by the operation of subsection 128(5) that is not attributable to a
transfer value previously paid under Division 3 of Part IX;
'productivity contribution' means:

   (a)  in relation to a person who is a productivity employee within the
        meaning of Part VIA-a productivity contribution within the meaning of
        that Part (other than an amount taken to be a productivity
        contribution by virtue of the operation of paragraph 128(2)(c)); or

   (b)  in relation to any other person-an amount similar in kind to such a
        productivity contribution, whether worked out under an industrial
        award or otherwise;
'rate of fund contribution tax' means 15% or such other rate as is determined
by the Minister under section 110SD;
'relevant period of employment', in relation to a person, means:

   (a)  if the whole of the person's period of actual contributory service
        occurred after 30 June 1993 - that period; or

   (b)  if part only of the person's period of actual contributory service
        occurred after that date-that part of the person's period of actual
        contributory service; but does not include any period for which the
        person is engaged or appointed exclusively for employment outside
        Australia unless that period:

   (c)  is a period during which the person is on leave of absence without
        pay; and

   (d)  is a period in respect of which the person is entitled to make
        contributions in accordance with a direction under subsection 51(1);
'SG minimum contribution' has the same meaning as in Part VIAA;
'top-up benefit' means superannuation guarantee top-up benefit payable under
section 110SE.

"(2) For the purposes of paragraph (a) of the definition of 'accumulated
government body contributions' in subsection (1), the amount of a productivity
contribution applicable to a person in relation to a particular period ("the
accrual period") is:

   (a)  if the relevant government body scheme provides for productivity
        contributions (applicable to all eligible employees who are members of
        the scheme) that may be expressed as a percentage of the earnings (as
        described for the purposes of the scheme) of each employee-that
        percentage of the earnings of the person for the accrual period based
        on the person's fortnightly rate of salary that, for the purposes of
        section 46, was payable on the most recent anniversary of birth of the
        person; or

   (b)  if the relevant government body scheme provides for productivity
        contributions (applicable to a class of eligible employees identified
        by the scheme) that may be expressed as a percentage of the earnings
        (as described for the purposes of the scheme) of each employee in the
        class, and the percentage is lower than the corresponding percentage
        of the earnings of the person for the accrual period based on the
        person's fortnightly rate of salary that, for the purposes of section
        46, was payable on the most recent anniversary of birth of the person;
        or

   (c)  if the relevant government body scheme is a defined benefit
        superannuation scheme within the meaning of the
        Superannuation Guarantee (Administration) Act 1992 that provides for a
        productivity related benefit applicable to all eligible employees who
        are members of the scheme-the contribution percentage, in relation to
        that benefit, of the earnings of the person for the accrual period
        based on the person's fortnightly rate of salary that, for the
        purposes of section 46, was payable on the most recent anniversary of
        birth of the person.

"(3) For the purposes of paragraph (2)(c), 'contribution percentage' means the
rate of contribution, expressed as a percentage of the eligible employees'
earnings and certified by an actuary, required to provide the productivity
related benefit.

"(4) The percentage referred to in paragraph (2)(a) or (b) must be certified
by the person's employer.

"(5) For the purposes of the definition of 'notional accumulated SG
contributions' in subsection (1), the Australian Government Actuary is to
determine:

   (a)  an amount representing the cost of death and invalidity cover relevant
        to the person's SG minimum contributions; or

   (b)  a means of working out such an amount Preservation of portion of
        benefit

"62B.(1) Subject to subsection (2), if a benefit is payable to a person under
subsection 62(2), the portion of that benefit worked out under whichever of
subsections (3) and (4) is applicable must be:

   (a)  paid, for the benefit of the person, to a preservation fund nominated
        by the person; or

   (b)  applied, on behalf of the person, for the purchase of a deferred
        annuity nominated by the person; or

   (c)  if the person does not make a nomination within 2 months after the
        benefit becomes payable-paid, for the benefit of the person, to
        preservation fund nominated by the Commissioner.

"(2) Subsection (1) does not apply to a benefit payable to a person if:

   (a)  the person is 65 or over; or

   (b)  the person is 55 or over and has given the Commissioner a written
        statement to the effect that he or she has retired from the workforce;
        or

   (c)  the total of the following amounts is less than $500:

        (i)    the amount of the accumulated employer contributions in respect
               of the person;

        (ii)   the amount that would be preserved or applied under subsection
               (1) in relation to the person but for the operation of this
               subsection; or

   (d)  the Commissioner is satisfied that the person is departing permanently
        from Australia.

"(3) If a person's employer was liable to pay productivity contributions under
section 110H in respect of the person for the person's relevant period of
employment, the portion of the benefit referred to in subsection (1) is the
amount worked out using the formula:
NASGC - AEC X 100
(100 - TR) where:
'NASGC' is the notional accumulated SG contributions in respect of the person
for the person's relevant period of employment;
'AEC' is that part of the accumulated employer contributions in respect of the
person that is based on the operation of paragraphs 110Q(1)(a) and (b) in
relation to productivity contributions paid or payable after 30 June 1993;
'TR' is the percentage figure representing the rate of fund contribution tax
applicable to the relevant period of employment.

"(4) If a person's employer was liable to pay productivity contributions to a
government body scheme in respect of the person for the person's relevant
period of employment, the portion of the benefit referred to in subsection (1)
is whichever of the following amounts is determined by the Commissioner after
having regard to the views of the government body:

   (a)  an amount worked out using the formula:
NASGC - AGBC;

   (b)  an amount worked out using the formula:
NASGC - GBB X 100
(100 - TR);

   (c)  an amount worked out using the formula:
NASGC - GBPROD X 100
(100 - TR); where:
'NASGC' is the notional accumulated SG contributions in respect of the person
for the person's relevant period of employment;
'AGBC" is the accumulated government body contributions in respect of the
person for the person's relevant period of employment;;
'GBB' is the benefit paid or payable from the government body scheme in
respect of the person for the person's relevant period of employment together
with, except where the person ceases to be both a member of the government
body scheme and an eligible employee, notional interest on that benefit;
'TR' is the percentage figure representing the rate of fund contribution tax
applicable to the relevant period of employment;
'GBPROD' is the total of:

   (a)  that part of the amount that has been paid to the Commissioner under
        section 110MA in respect of the person for the person's relevant
        period of employment less the amount in the nature of income tax (if
        any) that is relevant to that amount; and

   (b)  interest on the paid amount referred to in paragraph (a).

"(5) In determining the benefit paid or payable from a government body scheme
in respect of a person, the Commissioner may accept a statement from the
trustees, the administrator on behalf of the trustees or, if there are no
trustees, the administrator of the government body scheme as to:

   (a)  the amount of benefit paid or payable; or

   (b)  the date on which it was paid or is payable; or

   (c)  the period in respect of which the benefit was paid or is payable; or

   (d)  rates of interest applicable to amounts of money paid to the scheme;
        or

   (e)  any other matter in connection with the payment of the benefit.
        Application of formulae

"62C. If a single application of a formula set out in section 62B cannot
properly be made for the whole of a person's relevant period of employment
because of a change in the person's employment, the rate of fund contribution
tax or any other thing:

   (a)  that period is to be broken up into such separate periods as is
        appropriate for the proper application of such a formula in respect of
        each such period; and

   (b)  the resulting amounts (including negative amounts) are to be
        aggregated in respect of the whole of the person's period of actual
        contributory service.".