New South Wales Consolidated Acts

LOCAL GOVERNMENT AND OTHER AUTHORITIES (SUPERANNUATION) ACT 1927 - SECT 13

13 Contribution by councils in certain cases

(1) Every council which at or after the commencement of this Act employs a permanent servant who is exempted from the obligations of section 4 or who has requested in pursuance of section 7B or 7C that contributions be made to the Provident Fund on his behalf shall make annual contributions to the Provident Fund in respect of such permanent servant at or within such time or times as may be prescribed:
Provided that every permanent servant whose application for insurance in accordance with Part 2 has resulted in such permanent servant being deferred, refused insurance, or required to pay a loading in excess of that referred to in subparagraph (ii) of paragraph (c) of subsection (1) of section 7 either in respect of compulsory or optional units of cover shall be deemed for the purpose of this Part to be exempted from the obligation under section 4 with regard to such part of the compulsory units of cover as are affected by such deferment, refusal or loading. The contribution of the council and of the permanent servant under this Part shall in such cases but in respect of such part only be the same as it would have been under Part 2 in respect of both compulsory and optional insurance cover if there had not been such deferment, refusal or loading.

(1A) The board may in any particular case charge interest at a rate to be prescribed calculated on a daily basis on any contribution payable by a council which is not paid at or within the time or times at or within which it is required by this Act to be paid.
Such interest shall be recoverable by the board in the same way in which contributions are recoverable.
Such interest shall not be chargeable by the council against any permanent servant.

(2) Every council which makes any such contribution as aforesaid shall be entitled to receive and recover from the permanent servant in respect of whom such contribution shall have been made one moiety thereof, and shall be at liberty to deduct, by periodical instalments as prescribed, the same or any part thereof from any sum or sums which may be or become due by the council to such permanent servant by way of salary or otherwise.

(3) The annual contributions to be made under this section shall subject to the provisions of subsections (1), (3A) and (3B) be of such an amount as would, if paid at the beginning of each year and accumulated at compound interest after the rate of five per centum per annum, produce a sum which would, if and when such permanent servant reached the retiring age mentioned in section 14, be equal to one-twentieth part of such permanent servant’s salary at the commencement of this Act, or at the date upon which the provisions of this Act are applied to him or upon his appointment to the council’s service (as the case may be), for each year of service which such permanent servant would have to his credit if he remained in the service of the council until he reached such retiring age, but so as not to include more than twenty years’ service prior to the commencement of this Act or the date upon which the provisions of this Act are applied to him (as the case may be):
Provided always that:

(a) in no case shall any annual contribution payable under this subsection be less than seven per centum of the salary for the time being of such permanent servant.

(3A)

(a) Where the salary of a permanent servant is increased subsequently to the first assessment of contribution made in respect of such permanent servant under subsection (3) the contribution payable by the council in respect of such permanent servant shall be adjusted to the basis of the increased salary:
Provided that this provision shall not apply to any increases less in the aggregate than forty dollars in excess of the last salary basis of assessment in respect of such permanent servant.

(b) Such adjustment shall only apply as from the commencement of the next succeeding contribution period following that during which the increase or increases took effect.

(c) Any permanent servant who has attained the age of fifty years and whose salary is increased may, in such manner and within such time as may be prescribed, elect that the provisions of paragraph (a) shall not apply in respect of such increase and thereafter such provisions shall not apply to or in respect of such permanent servant.

(3B) The annual contributions to be made under this section in respect of a permanent servant who has made a request under and in accordance with section 7B shall be an amount equivalent to the premium payable if a new policy were effected under Part 2, at the age of the permanent servant at the time of making such request, for an amount equivalent to the number of cover units specified in his request.
The annual contributions to be made under this section in respect of a permanent servant who has made a request under and in accordance with section 7C shall be an amount equivalent to the total of the amount specified in his request and the amount (if any) payable in respect of him under subsection (3).

(3C) The contributions payable under this section shall cease to be payable when such permanent servant ceases to be employed by a council or reaches the retiring age mentioned in section 14 or dies, whichever event first happens.

(4) All amounts received in respect of contributions under this part of the system shall be recorded to credit of a separate account for each permanent servant, and at the end of each year the board shall credit the account of each participating permanent servant with interest at a rate determined by the board.

(6) This section has effect subject to section 13AA.