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SUPERANNUATION LEGISLATION (AMENDMENT)
BILL 1991
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to amend the Coal and Oil Shale Mine Workers
(Superannuation) Act 1941, the Local Government and Other Authorities
(Superannuation) Act 1927, the Parliamentary Contributory Superannuation Act 1971,
the Police Association Employees (Superannuation) Act 1969, the Police Regulation
(Superannuation) Act 1906, the Public Authorities (Financial Arrangements) Act 1987,
the Public Sector Executives Superannuation Act 1989, the State Authorities
Non-contributory Superannuation Act 1987, the State Authorities Superannuation Act
1987 and the Superannuation Act 1916 so as:
(a) to ensure that the superannuation schemes comply with the standards laid down
by the Occupational Superannuation Standards Act 1987 of the Commonwealth
("COSSA"); and
(b) to preserve the rights of certain mine workers under the Coal and Oil Shale
Mine Workers (Superaunuation) Act 1941 m consequence of the closure of the
Queensland Coal Mine Workers' Pensions Fund; and
(c) to provide for the payment of an additional lump sum benefit to the spouse of a
deceased mine worker who is accidentally killed in the course of employment
as a mine worker; and
(d) to provide for the reorganisation of the Parliamentary Contributory
Superannuation Scheme; and
(e) to provide for other miscellaneous matters.
The Bill will also repeal the Government Railways (Superannuation) Act 1912.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act. Most of the
provisions relating to Commonwealth occupational superannuation standards are to be
taken to have commenced on 1 July 1990. The provisions preserving the rights of
certain mine workers in consequence of the closure of the Queensland Coal Mine
Superannuation Legislation (Amendment) 1991
Workers' Pension Fund are to be taken to have commenced on 4 December 1989, the
date of closure of that scheme. The other provisions of the proposed Act are to
commence, or arc to be taken to have commenced, .on the date of assent, 1 July 1991, 1
October 1991, 1 January 1992 or a day to be proclaimed.
Clause 3 gives effect to Schedules 110 to the proposed Act. The Schedules contain
amendments to the Acts listed above.
Clause 4 will repeal the Government Railways (Superannuation) Act 1912 and
certain related legislation. Railway employees who were formerly covered by that Act
are now covered by the State Authorities Superannuation Act 1987. The clause formally
abolishes the Railway Service superannuation Board.
Clause 5 will give effect to Schedule 11, which contains savings and transitional
provisions.
SCHEDULE 1--AMENDMENT OF COAL AND OIL SHALE MINE
WORKERS (SUPERANNUATION) ACT 1941
PART 1--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION
STANDARDS
Schedule 1 ( l ) (a) inserts in section 2 (Definitions) a definition of "Insurance and
Superannuation Commissioner". Schedule 1 (1) (b) makes a minor consequential
amendment to the definition of "Mine worker" in that section and Schedule 1 (1) (c)
further amends that definition to provide that the expression does not include a person
who ordinarily works in the coal or oil shale mining industries for less than 10 hours a
week.
Schedule 1 (2) makes an amendment, similar to that made by Schedule 1 (1) (c), to
the definition of "Mine worker" in section 2J (Further extension of the definition of
"Mine worker").
Schedule 1 (3) amends section 8 (Hard luck cases) and is designed to ensure that the
superannuation scheme established by the Act complies with the "sole purpose'' test
laid down by the COSSA
Schedule 1 (4) amends section 10EA (Appropriate amounts of pensions and
additions to pensions) in consequence of the repeal of section 13 (Deductions from
pensions). The amendment is designed to ensure that the Act does not contravene the
Commonwealth occupational superannuation standard which prohibits reductions in
accrued superannuation benefits.
Schedule 1 (5) amends section 10F (Amendment of Schedule 1 following variation
in Reference Rate). This amendment is also designed to ensure that the Act does not
violate the Commonwealth occupational superannuation standard prohibiting the
reduction of accrued superannuation befits.
Schedule 1 (6) amends section 10H (Suspension of part of pension m certain
circumstances) so as to ensure that the section does not contravene the standard referred
to above and the minimum vesting standard prescribed by regulation 6 (1) of the
Commonwealth Occupational Standards Regulations ("COSSR"). (The latter standard
is designed to ensure that a person who is a member of a superannuation scheme does
not receive benefits less than "the vested benefits". Broadly speaking, "vested benefits"
Schedule 1 (9) amends section 14B (Prescribed amount for purposes of sections 14A
and 14AA). The amendment is designed to ensure that a benefit to which the section
applies cannot be reduced once it has accrued and thus will avoid contravening
regulation 17 (1) (d) of the COSSR
Schedule 1 (10) amends section 14FA (Lump sum benefit payable: from 3 July
1988). The amendment will preclude the Coal and Oil Shale Mine Workers'
Superannuation Tribunal from being satisfied as to the incapacity of a mine worker who
is seeking an incapacity benefit unless a certificate or certificates as to the mine
worker's incapacity signed by at least 2 medical practitioners, is or are provided to the
Tribunal.
Schedule 1 (11) amends section 14H (Applications for lump sum benefit payment) to
ensure that the section does not contravene regulation 5AB (2) of the COSSR (See
Schedule 1 (8) above.)
Schedule 1 (12) amends section 15B (Power of the Tribunal to make orders
declaring certain persons to be mine workers for the purposes of this Act) so as to
ensure that the Tribunal cannot make orders under the section in respect of persons
ordinarily engaged in the coal or oil shale mine working industries for less than 10
hours per week (Also see Schedule 1 (1) (c) and (2) above.)
Schedule 1 (13) amends section 19 (Contributions to Fund). One of the amendments
is designed to ensure that section 19 (2C complies with the relevant Commonwealth
occupational superannuation standards and the other repeals section 19 (4). whose
operation is now spent
Schedule 1 (14) amends section 19B (Amount of subsidy). The amendment is
consequential on the repeal of section 13.
Schedule 1 ( 1 5 ) and (17) amend section 19J (Refund) and section 19L (Refund of
contributions where mine worker ceases to be employed
ensure that a mine worker entitled to a refund under those sections does not receive an
amount less than that which regulation 6 (1) of the COSSR requires to be treated as
vested.
Schedule 1 (16) amends section 19K (Reduction of amount of refund). As a result of
the amendment, a refund of mint worker's contributions under section 19J will no
longer be reduced by the amount of any contributions that the mine worker has paid to
the Coal and Oil Shale Mine Workers Superannuation Fund for a period before 25 May
1971, the date of commencement of section 10 of the Coal and Oil Shale Mine Workers
(Superannuation) Amendment Act 1971.
Superannuation Legislation (Amendment) 1991
Schedule 1 (18) replaces section 19M (Reduction of amount of refund under section
19L). Under the substituted section, a refund of mine worker's Contributions under
section 19L will no longer be reduced by the amount of any contributions that the mine
worker has paid to the Coal and Oil Shale Mine Workers Superannuation Fund for a
period before 25 May 1971.
Schedule 1 (19) inserts proposed section 19MA which will ensure that a mine worker
who is entitled to a pension or lump sum benefit under the Act, or a dependant of the
mine worker, will in no circumstances receive a benefit that is less than the amount to
be treated as vested in the mine worker, as required by regulation 6 (1) of the COSSR
Schedule 1 (20) amends section 27 (Actuarial investigation and report) so as to
ensure that actuarial reports under the section will comply with regulation 17 (1) (a) and
(b) of the COSSR.
Schedule 1 (21) inserts proposed section 27B which will require the Tribal to
provide mine workers and certain former mine workers with details with respect to the
superannuation scheme established by the Act and of the interests of the mine worker
under the scheme. The Tribunal will also be required to provide mine workers with
details of changes to the scheme. The amendments are designed to comply with the
provisions of regulation 17 (1) (e)(i) of the COSSR (which prescribe certain standards
relating to the disclosure of relevant information).
Schedule l (22) repeals section 28 (Advances by Treasury). The section is
inconsistent with the Public Authorities (Financial Arrangements) Act 1987 and SO is
now redundant.
PART 2--AMENDMENTS IN CONSEQUENCE OF T H E CLOSURE OF
THE QUEENSLAND COAL MINE WORKERS' PENSIONS FUND
Schedule 1 (23) inserts proposed section 4A, which provides that, for the purpose of
certain provisions of the Act, service of a mine worker in the coal mining industry in
Queensland is to be treated as if it were service in the coal or oil shale mining industries
in New South Wales. Until 4 December 1989 there was a reciprocal agreement in
existence for members of the New South Wales Coal and Oil Shale Mine Workers
Superannuation Scheme and the Queensland Coal Mine Workers' Pensions Fund, but
the agreement has been abrogated as a result of the closure of that Fund and the repeal
of the corresponding Queensland legislation. Mine workers whose service includes
service in the Queensland coal mining industry will, despite the abrogation of the
agreement, be able to treat their service in that industry as service qualifying them for
pensions and lump sum benefits under the Act. However, the service in the Queensland
coal mining industry will not be counted for the purpose of computing the amounts of
those pensions and benefits.
If a mine worker dies while employed m the coal mining industry in Queensland, the
mine worker's dependants will be entitled to a benefit under section 14B. However,
instead of the benefit prescribed by that section, the mine worker's dependants will be
entitled to such lump sum benefit as would have been payable under section 14A or
14AA (both of which provide for the payment of lump sum benefits to retired mine
workers) if the mine worker had reached the relevant retirement age on the last day on
which he or she was actually engaged in the coal or oil shale mining industries in New
South Wales and had retired on that day. Similarly, a mine worker who is incapacitated
by injury while employed in the coal mining industry in Queensland will be entitled to
Schedule 1 (24) amends section 7 (Pension--permanent incapacity). The
amendments are consequential on proposed section 4A and the closure of the
Queensland Coal Mine Workers' Pensions Fund.
PART 3--FURTHER AMENDMENTS
Schedule 1 (25) amends section 14D (Lump sum benefit payment on death of mine
worker) so as to provide for an additional lump sum benefit to be paid to the spouse of a
mine worker who is accidentally killed in the course of his or her employment as a mine
worker.
Schedule 1 (26) inserts proposed section 25A which will empower the Coal and Oil
Shale Mine Workers' Superannuation Tribunal to award interest whenever a payment of
a pension or lump sum benefit under the Act has been delayed for any reason. The
proposed section is to apply to and in respect of any person who has ceased to be a mine
worker on or after 4 December 1989.
SCHEDULE 2--AMENDMENT OF LOCAL GOVERNMENT AND OTHER
AUTHORITIES (SUPERANNUATION) ACT 1927
Schedule 2 substitutes section 15Y (which provides for payment to be made to a
contributor to the benefits fund established under the Act when the contributor resigns
or is dismissed). Under the Act, accumulated employer contributions were, m the case
of employees who resigned, required to be repaid to their employers because the
benefits payable to those employees consisted only of their contributions and interest.
Some amounts which were payable to certain hospital employers were in fact transferred
to a suspense account pending payment to the appropriate employer reserve established
under the State Authorities Superannuation Act 1987. The amendment validates the
actions of the State Authorities Superannuation Board m respect of the money and
authorises payment of the money to that reserve.
SCHEDULE 3--AMENDMENT OF PARLIAMENTARY CONTRIBUTORY
SUPERANNUATION ACT 1971
PART 1--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION STANDARDS
Schedule 3 (1) inserts in section 3 (Definitions) a number of new definitions. The
expressions defined are "Commonwealth occupational superannuation standard",
"Commonwealth taxation law", "Insurance and Superannuation commissioner",
"Parliamentary Contributory Superannuation Scheme" and "penalty" (in relation to a
commonwealth taxation law).
Schedule 3 (2) amends section 10 (Acturial investigation) so as to ensure that the
section complies with the provisions of regulation 17 (1) (a) and (b) of the COSSR,
which prescribe standards for the conduct of actuarial investigations and the reports
resulting from those investigations.
Superannuation Legislation (Amendment) 1991
Schedule 3 (3) amends section 22 (Pension on retirement on grounds of ill-health) so
as to require that a certificate or certificates of at least 2 medical practitioners is or are to
be produced before a member may be regarded as being incapable of performing the
duties of a member of Parliament due to ill-health or physical or mental incapacity (and
thus be entitled to a pension under the section).
Schedule 3 (4) amends section 23 (Pension for widows and widowers) so as to
comply with regulation 4ZC of the COSSR (which requires pension benefits to be paid
for the lives of the beneficiaries). As a result of the amendment a pension payable to the
widow or widower of a member or former member will no longer cease if the widow or
widower remarries.
Schedule 3 (5) inserts the following sections:
Proposed section 27A, which will empower the Trustees of the Parliamentary
Superannuation Fund to adjust benefits under the Act to comply with the standards
prescribed by the COSSA and the COSSR
Proposed section 27B, which will confer on the trustees a discretion not to accept
contributions in respect of a member who has reached 65 years of age, or to impose
terms and conditions with respect to the payment of a benefit to or in respect of such
a member, if, as a result of the trustees receiving those contributions or paying the
benefit without imposing such terms and conditions, the trustees or the Fund would
be in breach of a Commonwealth occupational superannuation standard.
Proposed section 27C, which prescribes the duties of the trustees when the
Commonwealth Insurance and Superannuation Commissioner makes a determination
under the COSSA in respect of a pension payable under the Act because the pension
contravenes the reasonable benefit limits prescribed by the COSSR.
Under proposed section 27A, members are to be given a choice as to whether they
wish to receive a pension that complies with all relevant Commonwealth occupational
superannuation standards or one that is in accordance with the Act (apart from proposed
sections 27A and 27C). If a member or former member adopts the latter course, he or
she may be liable to a penalty under relevant Commonwealth tax legslation if the
benefit, as assessed, would exceed the reasonable benefit limits prescribed by the
COSSR for lump sum benefits, as compared with more favourable limits applying to
complying pension benefits.
Schedule 3 (6) inserts proposed section 32A which will require the trustees to
provide members with information with respect to the details of the Parliamentary
Contributory Superannuation Scheme and the respective members' interests in the
Scheme and information with respect to changes in the Scheme. The proposed section
will comply with the provisions of regulation 17 (1) (e)(i) of the COSSR (which
prescribes standards with respect to the disclosure of information about superannuation
schemes).
PART 2--AMENDMENTS RELATING TO T H E REORGANISATION OF
THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION SCHEME
Schedule 3 (7) amends section 3 (Definitions). One amendment makes a minor
alteration to the definition of "Fund" and the other amendment inserts in the section a
definition of "trustees".
Schedule 3 (9) substitutes section 7 of the Act (Financial accommodation and
investment). The substituted section is designed to confer on the trustees of the
Parliamentary Contributory Superannuation Fund the investment powers set out in the
Public Authorities (Financial Arrangements) Act 1987.
Schedule 3 (10) repeals Section 8 (Uninvested moneys) and section 9 (Borrowing
powers). Both sections are inconsistent with the provisions of the Public Authorities
(Financial Arrangements) Act 1987.
Schedule 3 (11) amends section 14 (Trustees of the Fund). As a result of the
amendment, the distinction between the managing trustees and the custodian trustee will
be abolished. Under the new arrangements, the trustees will adopt a supervisory role
rather than a managerial one.
Schedule 3 (12) inserts proposed section 14A, which will provide for the trustees to
be incoprated.
Schedule 3 (13) substitutes section 15 (Functions of the trustees). Under the
substituted section, the functions of the trustees include responsibility for the
administration of the Parliamentary Contributory Superannuation Scheme and for
ensuring that the Parliamentary Contributory Superannuation Fund is invested and
managed in accordance with the Act. The trustees will be trustees for the purposes of
the Trustee Act 1925 and will be required to hold the assets of the Fund in trust for
members of Parliament and other persons entitled to receive benefits from the Fund.
Schedule 3 (14) inserts proposed sections 15A15C, which will respectively enable
the trustees:
· to delegate certain of their function; and
· to arrange for the use of the services of staff employed in a Government
department, an administrative officer or a public or local authority; and
· to establish committees to assist it in the exercise of its functions.
Schedule 3 (15) and (16) amend section 16 (Meetings of trustees) and section 17
(Appointment of person to act in the absence of the Secretary of the Treasury). The
amendments are consequential on the abolition of the distinction between managing
trustees and the custodian trustee.
Schedule 3 (17) inserts proposed section 17A, which provides for the trustees to be
indemnified against legal proceedings arising out of acts or omissions done or omitted
to be done in good faith m the course of their duties as trustees. However, the proposed
section will not absolve the trustees from liability m their capacity as a body corporate.
Schedule 3 (18)-(24) and (26) respectively amend sections 19, 20, 22, 23, 26, 28, 29
and 31. The amendments are consequential on the abolition of the distinction between
the managing trustees and the custodian trustee.
Schedule 3 (25) repeals section 30 (Persons who elected not to contribute under
former Act) since the operation of that section is now spent.
Superannuation Legislation (Amendment) 1991
SCHEDULE 4--AMENDMENT OF POLICE ASSOCIATION EMPLOYEES
(SUPERANNUATION) ACT 1991
Schedule 4 (1) amends section 2 (Definitions). The amendment inserts definitions of
``executive officer " and ``superannuation scheme" and replaces the definition of ``salary
of office"
Schedule 4 (2) inserts proposed section 2B, which defines ``salary of office" in
relation to an executive officer. An executive officer's salary of office will consist of the
officer's monetary remuneration and the cost to the Police Association of providing
employment benefits other than superannuation.
Schedule 4 (3) amends section 3 (Employees of Association transferring from police
force). Subsection (2) of the section is to be replaced by three new subsections, which,
among other things, will require the Police Association to pay to the State Authorities
Superannuation Board a contribution in respect of superannuation benefits to be
provided to any employee of the Association to whom section 3 applies. The
contribution is to be an amount determined by the Board on actuarial advice and will
replace the existing provision which, in effect, requires the Association to pay an
amount qual to 1.5 times the employee's contributions to the Police Superannuation
Fund. The amendments also remove references in the existing provision to notional
promotion in the police force and to any rank that that employee would have attained as
a result of the promotion.
Schedule 4 (4) repeals section 4 (Payment of superannuation allowance to F. C. Laut
or his widow). The effect of the section is now spent.
SCHEDULE 5--AMENDMENT OF POLICE REGULATION
(SUPERANNUATION) ACT 1906
PART 1--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION STANDARDS
Schedule 5 (1) inserts m section 1 (Short title, commencement and definitions)
definitions of the expressions "Commonwealth occupational superannuation standard",
"Insurance and Superannuation commissioner" and "penalty" (in relation to a
Commonwealth taxation law).
Schedule 5 (2) amends section 14AA (Power of the Board to reduce benefits to
offset certain tax liabilities of the Fund) by replacing the reference to "member or
former member of the police force" with a reference to "contributor or former
contributor". The amendment is designed to bring the wording of the section into
conformity with related sections of the Act.
Schedule 5 (3) amends section 14AB (Power of the Board to reduce benefits to
comply with certain standards relating to occupational superannuation). As a result of
the amendments, the State Authorities Superannuation Board will have additional
powers to adjust superannuation allowances payable under the Act so as to ensure that
the allowances comply with the relevant Commonwealth occupational superannuation
standards. If such an allowance does not comply with those standards, the contributor or
former contributor who is entitled to the allowancc will have the option of electing to
receive the allowance either in a form that complies with those standards or in a form
that is in accordance with the Act (apart from section 14AB and the proposed section
14AC). If the contributor or former contributor adopts the latter course, he or she may
Schedule 5 (4) inserts proposed section 14AC, which prescribes the duties of the
Board when the Insurance and Superannuation Commissioner has made a determination
under the COSSA with respect to a superannuation allowance payable under the Act
because the allowance contravenes the reasonable benefit limits prescribed by the
COSSR
Schedule 5 (5) inserts proposed sections 23A and 23B.
Proposed section 23A will require the Board to provide contributors with
information with respect to the details of the Police Superannuation Scheme and the
respective contributors' interests in the Scheme and information with respect to
changes in the Scheme. The proposed section will comply with the provisions of
regulation 17 (1) (e)--(i) of the COSSR (which prescribes standards with respect to
the disclosure of information about superannuation schemes).
Proposed section 23B will require the Board to appoint actuaries every 3 years to
carry out an actuarial investigation into the state and sufficiency of the Police
Superannuation Fund and will require the actuaries to make a report of its
investigation to the Board The proposed section also specifies the matters that are to
be included in such a report so as to ensure that the section complies with the
requirements of regulation 17 (1) (a) and (b) of the COSSR (which prescribes
standards for the conduct of actuarial investigations and the reports resulting from
those investigations).
PART 2--MISCELLANEOUS AMENDMENTS
Schedule 5 (6) (b) amends section 5B (Contributor eligible for membership or a
member of the Public Sector Executives Superannuation Scheme) so as to replace
subsection (7) with a new provision which prescribes a formula for calculating the
benefit payable to a contributor to the Police Superannuation Fund who, not having
reached 55 years of age, elects to make provision for the benefit under subsection (6) (a)
of the section on becoming a member of the Police Service Senior Executive Service.
The amendment also inserts m the section proposed subsection (7A) which prescribes
the benefit payable to a contributor who elects to make such provision after having
reached that age. Schedule 5 (6) (a) makes a minor amendment to section 5B
consequential on the amendment made by Schedule 5 (6) (b).
Schedule 5 (7) amends section 9B (Preserved benefit) so as to provide that, if a
former member of the police force who has elected to preserve a benefit has, on appeal,
been granted an incapacity benefit under section 7 or 14, any lump sum benefit that has
been paid to the former member under section 9B (9) (which provides for a refund of
contributions and interest) in conjunction with the preservation of a benefit is to be
deducted from the incapacity benefit.
Schedule 5 (8) amends section 14J (Commutation on normal or early retirement of
member). The section does not provide for the date on which an election to commute a
superannuation allowance payable under section 7 or 7AA is to take effect. The
amendment rectifies this omission by providing that the effective date for commuting
such an allowance is to be the day following the last Bay of service of the relevant
retired member of the police force.
Superannuation Legislation (Amendment) 1991
Schedule 5 (9) amends section 14K (Commutation on discharge of disabled
member). Section 14K allows a member of the police force who is discharged because
of disablement to commute his or her superannuation allowance. The amendment
provides that the effective date for commutation of the allowance is to be the date on
which a former member reaches 60 years of age or, if the fomer member is granted a
hurt-on-duty allowance under section 10, the day on which he or she is granted that
allowance. This is designed to ensure that any additions that are made to a
superannuation allowance before a claim for a hurt-on-duty allowance is determined are
taken into account when a commutation under section 14K is made.
Schedule 5 (10) amends section 17 (Refund of deductions) so as to provide that, if a
former member of the police force who has received an amount by way of a refund of
deductions under section 17 (I) subsequently becomes entitled to receive a
superannuation allowance or a commuted superannuation allowance as a result of being
hurt on duty or a superannuation allowance or a gratuity as a result of bodily or mental
incapacity to perform his or her duties, the amount of the refund is to be deducted from
the allowance, commuted allowance or gratuity.
SCHEDULE 6--AMENDMENT OF PUBLIC AUTHORITIES (FINANCIAL
ARRANGEMENTS) ACT 1987
Schedule 6 amends Schedule 1 to the Act (Authorities) by adding the name of the
Trustees of the Parliamentary Contributory Superannuation Fund thus making the
trustees subject to the Act.
SCHEDULE 7--AMENDMENT OF PUBLIC SECTOR EXECUTIVES
SUPERANNUATION ACT 1989
PART 1--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION STANDARDS
Schedule 7 (1) inserts in section 3 (Definitions) a definition of "Insurance and
Superannuation Commissioner".
Schedule 7 (2) substitutes section 32 (which specifies the information that is required
to be disclosed to members of the Public Sector Executives Superannuation Scheme).
The substituted section will require more comprehensive information to be provided to
those members than the present section requires and is designed to ensure that the
Scheme complies with the provisions of regulation 17 (1) (e)--(i) of the COSSR (which
prescribes standards with respect to the disclosure of information about superannuation
schemes).
Schedule 7 (3) amends section 33 (Actuarial investigation) so as to require reports of
acturial investigations carried out under the section to be completed and presented
within 12 months after the date on which the investigation is required to start (and not
13 months as at present). The amendment also provides that an extension of time for
reporting the result of such an investigation will be required to be sanctioned by the
Insurance and Superannuation Commissioner as well as the Minister. Both amendments
are designed to ensure that the Public Sector Executives Superannuation Scheme
complies with the standards prescribed by regulation 17 (l) (a) and (b) of the COSSR
Schedule 7 (4) amends section 3 (Definitions). The amendment defines the
expressions "discharged" and "retrenched" for the purposes of the Act.
Schedule 7 (5) inserts proposed section 49A, which will provide a retrenchment or
discharge benefit for those members of the Public Sector Executives Superannuation
Scheme who are retrenched or discharged from their employment. Retrenched or
discharged members of the Scheme will have the option of being paid a cash benefit,
having their benefits transferred to another superannuation scheme or having their
benefits preserved until they reach the early retirement age or some other relevant
contingency occurs. Retrenched or discharged members who do not exercise the option
will be taken to have elected to preserve their benefits.
Schedule 7 (6) and (7) amend section 50 (Benefit on termination of employment
before early retirement age) and section 53 (How does a member or other person apply
for payment or preservation of a benefit?). The amendments are consequential on
Schedule 7 (5).
SCHEDULE 8--AMENDMENT OF STATE AUTHORITIES
NON-CONTRIBUTORY SUPERANNUATION ACT 1987
Schedule 8 (1) amends section 3 (Definitions) by inserting a definition of "Insurance
and Superannuation Commissioner".
Schedule 8 (2) amends section 13 (Actuarial investigation) so as to require reports of
actuarial investigations carried out under the section to be completed and presented
within 12 months after the date on which the investigation is required to start (and not
13 months as at present). The amendment also specifies the contents required to be
included in an actuarial report and provides that an extension of time for reporting the
result of such an investigation will be required to be sanctioned by the Insurance and
Superannuation Commissioner as well as the Minister. The amendments are designed to
ensure that the State Authorities Non-contributory Superannuation Scheme complies
with the standards prescribed by regulation 17 (1) (a) and (b) of the COSSR
Schedule 8 (3) inserts proposed section 33A. The proposed section will require the
State Authorities Superannuation Board to provide employees (as defined by the Act)
with information with respect to the details of the State Authorities Non-contributory
Superannuation Scheme and the respective employees' interests in the Scheme and
information with respect to changes in the Scheme. The proposed section will comply
with the provisions of regulation 17 (1) (e)--(i) of the COSSR (which prescribes
standards with respect to the disclosure of information about superannuation schemes).
SCHEDULE 9--AMENDMENT OF STATE AUTHORITIES
SUPERANNUATION ACT 1987
PART l--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION STANDARDS
Schedule 9 (1) inserts in section 3 (Definitions) definitions of the expressions
"Commonwealth
occupational
superannuation
Standard'',
"Insurance
and
Superannuation commissioner" and "penalty" (in relation to a Commonwealth taxation
law).
Superannuation Legislation (Amendment) 1991
Schedule 9 (2) amends section 18 (Actuarial investigation) so as to require reports of
actuarial investigations carried out under the section to be completed and presented
within 12 months after the date on which the investigation is required to start (and not
13 months as at present). The amendment also specifies the contents required to be
included in an actuarial report and provides that an extension of time for reporting the
result of such an investigation will be required to be sanctioned by the Insurance and
Superannuation Commissioner as well as the Minister. The amendments arc designed to
ensure that the State Authorities Superannuation Scheme complies with the standards
prescribed by regulation 17
(a) and (b) of the COSSR.
Schedule 9 (3) amends section 45B (Power of the Board to reduce benefits to
comply with certain Commonwealth standards relating to occupational superannuation)
by replacing subsection (2). The amendment is consequential on the amendments being
made by Schedule 9 (1).
Schedule 9 (4) inserts proposed section 45C, which prescribes the duties of the
Board when the Insurance and Superannuation Commissioner has made a determination
under the COSSA with respect to a pension payable under regulations made under the
Act because the pension contravenes the reasonable benefit limits prescribed by the
COSSR.
Schedule 9 (5) inserts proposed section 54A. The proposed Section will require the
State Authorities Superannuation Board to provide contributors under the Act with
information with respect to the details of the State Authorities Superannuation Scheme
and the respective contributors' interests in the Scheme and information with respect to
changes in the Scheme. The proposed section will comply with the provisions of
regulation 17 (1) (e)--(i) of the COSSR (which prescribes standards with respect to the
disclosure of information about superannuation schemes).
PART 2--MISCELLANEOUS AMENDMENTS
Schedule 9 (6) amends section 21 (Medical examination) so as to make it clear that
more than one medical examination can be ordered under that section.
Schedule 9 (7) amends section 29 (Contributions during leave without pay) so as to
cure a problem that has arisen with respect to the operation of the section in relation to a
contributor who takes leave without pay. The amendment will ensure that the employers
and contributors will not be required to pay contributions in respect of a contribution
period where the contributor concerned begins his or her leave on the first day of the
period, or ends the leave on the last day of the period, and the period is less than the
period of leave.
Schedule 9 (8) amends section 30A (Contributor eligible for membership or a
member of the Public Sector Executives Superannuation Scheme). The amendment is
consequential on the substitution of section 43 (1) (See Schedule 9 (11) below.)
Schedule 9 (9) and (11) respectively amend section 41 (Benefit on resignation,
dismissal or discharge before early retirement age) and section 43 (Preserved benefit) so
as to provide that a contributor who resigns or is dismissed or discharged before early
retirement and who does not elect within the prescribed period to take the benefit
provided by section 41 will, unless the benefit is less than the prescribed amount (which
is at present $500), be taken to have elected to preserve the benefit under section 43.
Schedule 9 (12) amends section 44 (Application for payment of benefit). The
amendment will enable the Board to require the production of all documents that it
reasonably requires to process an application for a benefit payable under the Act. As
presently worded, the Board can only require production of documents of the kinds
specified in regulations in force under the Act. Other amendments to the section are
consequential on the amendments effected by Schedule 9 (9) and (1 1). Since there will
no longer be any need to make an application to preserve a benefit, it is inappropriate
for the section to continue to apply to such an application.
Schedule 9 (13) amends section 48 (Employee or claimant to provide information) so
as to make it clear that more than one medical examination can be ordered under that
section.
SCHEDULE 10--AMENDMENT OF SUPERANNUATION ACT 1916
PART 1--AMENDMENTS RELATING TO OCCUPATIONAL
SUPERANNUATION STANDARDS
Schedule 10 (l) inserts in section 3 (Definitions) definitions of the expressions
"Commonwealth
occupational
superannuation
standard",
``Insurance
and
Superannuation Commissioner" and "Penalty" (m relation to a Commonwealth taxation
law).
Schedule 10 (2) amends section 5 (Board required to establish certain reserves within
the [State Superannuation] Fund). The amendment, which provides for the repeal of
section 5 (1) (c), is consequential on the amendment being made by Schedule 10 (11).
Schedule 10 (3) amends section 10 (Actuary or actuaries to conduct periodic
investigations into the Fund) so as to require reports of actuarial investigations carried
out under the section to be completed and presented within 12 months after the date on
which the investigation is required to start (and not 13 months as at present). The
amendment also specifies the contents required to be included in an actuarial report and
provides that an extension of time for reporting the result of such an investigation will
be required to be sanctioned by the Insurance and Superamuation Commissioner as well
as the Minister. The amendments are designed to ensure that the state superannuation
Scheme complies with the standards prescribed by regulation 17 (1) (a) and (b) of the
COSSR
Schedule 10 (4) amends section 15A (Reserve units). Contributors for reserve units
under that section have at present a right to discontinue contributing for those units at
any time. The amendment provides that after 1 January 1992 contributors will no longer
have that right. The removal of the right is necessary because the right to cease
contributing for superannuation and obtain a refund of contributions is inconsistent with
the COSSR.
Superannuation Legislation (Amendment) 1991
Schedule 10 (5) replaces section 33B (Board to apportion benefit between the
Contributors' reserve and the appropriate employer reserve). As presently drafted section
33B provides for the portion of a benefit that is to be debited to the contributors' reserve
to be tied to the withdrawal benefit payable under section 38A. The proposed section
prescribes an interest component different from that provided for in section 38A and in
consequence has the effect of providing that, when a benefit becomes payable under the
Act to or in respect of a contributor, slightly more of the benefit will be apportioned to
the contributors' reserve and slightly less to the appropriate employer reserve.
Schedule 10 (6), (7) and (15) respectively amend the following sections:
· section 38 (Refund of contributions);
· section 38A (Withdrawal benefit);
· section 99 (Pensions emerging during suspension period).
The amendments are consequential on the amendments made by Schedule 10 (4).
Schedule 10 (8) amends section 61 (Surrender of policies). The amendment is
consequential on the repeal of Part 5. (See Schedule 10 (11).)
Schedule 10 (9) amends section 61RB (Power of the Board to reduce benefits to
comply with certain Commonwealth standards relating to occupational superannuation).
As a result of the amendments, the State Authorities Superannuation Board will have
additional powers to adjust pensions payable under the Act so as to ensure that the
pensions comply with the relevant Commonwealth occupational superannuation
standards. If such a pension does not comply with those standards, the contributor or
former contributor who is entitled to the pension will have the option of electing to
receive the pension either in a form that complies with those standards or m a form that
is in accordance with the Act (apart from section 61RB and the proposed section 61RC).
If the contributor or former contributor adopts the latter course, he or she may be liable
to a penalty under relevant Commonwealth tax legislation if the benefit, as assessed,
would exceed the reasonable benefit limits prescribed by the COSSR for lump sum
benefits, as compared with more favourable limits applying to complying pension
benefits.
Schedule 10 (10) inserts proposed section 61RC which prescribes the duties of the
Board when the Insurance and Superannuation Commissioner has made a determination
under the COSSA with respect to a pension payable under the Act because the pension
contravenes the reasonable benefit limits prescribed by the COSSR.
Schedule 10 (11) repeals Part 5, which provides for a voluntary saving scheme for
public sector employees and certain other persons. The existence of the scheme is
inconsistent with the "sole purpose test" prescribed by the COSSR and is therefore to
be wound up. (Also see Part 3 of Schedule 11 to the proposed Act.)
Schedule 10 (12) inserts proposed section 85. The proposed sectopm will require the
State Authorities Superannuation Board to provide contributors under the Act with
information with respect to the details of the State Superannuation Scheme and the
respective contributors' interests in the Scheme and information with respect to changes
in the Scheme. The proposed section will comply with the provisions of regulation 17
(1) (e)--(i) of the COSSR (which prescribes standards with respect to the disclosure of
information about superannuation schemes).
The amendment is consequential on Schedule 10 (9) and provides that the provisions of
section 91 (1) (b) and (d) arc not to apply to an election under section 61RB.
PART 2--MISCELLANEOUS AMENDMENTS
Schedule 10 (16) amends section 12B, which requires the Board to apply a deduction
factor in respect of a contributor who takes leave of absence without pay, so as to make
it clear that the reference in section 12B (1) to that kind of leave does not include (and
has not since 1 July 1985 included) a reference to maternity leave.
Schedule 10 (17) and (18) (b) and (c) effect minor consequential amendments to the
following sections of the Act:
· section 28AA (Pension on retirement before age 60--component pension);
· section 37 (Retrenchment benefits payable to an employee who is retrenched
after completing 10 years' service).
Schedule 10 (18) (a) also amends section 37. As a result of the amendment,
employees who are members, or who are eligible to be members, of the Public Sector
Executives Superannuation Scheme will be eligible to receive retrenchment benefits
under the section if they are retrenched from their employment.
Schedule 10 (19) amends section 37A (Retrenchment benefits payable to
contributors having less than 3 years' contributory service) by repealing subsection (1).
The amendment has, with respect to retrenchment benefits payable under the section, a
similar effect to the amendment made by Schedule 10 (18) (a).
Schedule 10 (20) amends section 52B (Adjustment of pension components). The
amendment replaces section 52B (4) with a new subsection which is intended to address
two problems that have arisen with respect to the application of the formula specified in
the existing subsection, which provides for the adjustment of preserved benefits (based
on the movement of the Consumer Price Index) once the pension starts to be paid. One
of the problems arises because the formula does not enable the employer-financed
component to be adjusted in respect of the quarterly period in which it stops being a
preserved benefit and starts to be paid as a pension. The amendment to the formula will
allow the CPI adjustment to include whole quarters, including the one m which the
benefit emerges as a pension. The second problem is that the subsection does not
adequately deal with the situation that arises when a benefit is preserved and emerges as
a pension in the same year. This problem is to be resolved by redefining the symbol
"Q" in the existing formula.
SCHEDULE 11--SAVINGS AND TRANSITIONAL PROVISIONS
Schedule 11 contains provisions of a savings and transitional nature that are
consequential on the enactment of the proposed Act.