New South Wales Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1971 - SECT 20

20 Right to convert pension to lump sum entitlement

(1) In this section:
"entitled" to a pension means that a pension is payable by the trustees under this Part.
"former member" does not include a person who is entitled to a pension under section 22.

(2) Despite anything in this Act, except subsection (2A), the following former members may elect, by notice in writing served on the trustees, to convert the whole or part of the former members’ pension entitlements to lump sum entitlements determined in accordance with subsection (3):

(a) a former member who is entitled to a pension under this Part but who is not a former member referred to in paragraph (b) or (c),

(b) a former member who becomes, on ceasing to be a person whose right to a pension is suspended under section 25 (2), entitled to a pension under this Part,

(c) a former member who is entitled to a pension as a result of a direction given by the trustees under section 26 (2).

(2A) Notwithstanding subsection (2), a former member referred to in subsection (2) (b) or (c) is not entitled to make an election under subsection (2) if he or she has in respect of any previous event had an opportunity to make an election under subsection (2) since he or she last ceased to be a member.

(2B) For the purposes of subsection (2A), where any event has occurred which entitled a former member to make an election under subsection (2) within the period of three months after the occurrence of that event, as referred to in subsection (11), that former member shall be deemed to have had, in respect of that event, an opportunity to make an election under subsection (2) if:

(a) his or her right to receive a pension under this Part was not suspended under section 25 (2) or section 26 (1) within the period of three months after the occurrence of that event, or

(b) having made an election under subsection (2) within the period of three months after the occurrence of that event, that election was not, by subsection (9), deemed never to have been made.

(3) A lump sum payment referred to in subsection (2) shall be the amount that is ten times the amount of the annual pension entitlement in respect of which the election is made.

(3A) For the purposes of subsection (2), the maximum amount of pension entitlement that may be the subject of an election under that subsection by a former member referred to in subsection (2) (c), is the lesser of the following amounts:

(a) the pension entitlement of the former member, if the entitlement had not been suspended under section 26 (1),

(b) the annual pension entitlement directed to be paid to the former member under section 26 (2) as at the date from which a pension is first payable to the former member under section 26 (2),

(c) the annual pension entitlement of the former member as at the date immediately before the election under this section is received by the trustees.

(4) A former member who makes an election under subsection (2) shall be entitled to receive from the trustees a lump sum payment calculated under subsection (3) and any pension payable under this Part to that former member in respect of any period which commenced on or after the day on which the election is received by the trustees shall (except a pension payable pursuant to a pension entitlement arising by virtue of a direction given under section 26 (2) the amount of which has been reduced by reason of his or her having received that lump sum) be reduced in accordance with section 21B.

(5) Notwithstanding any other provision of this section, any lump sum payment under this section shall first be applied by the trustees in or towards paying into the Fund the outstanding amount of any repayment under section 24 by the former member who made the election under this section in respect of that lump sum.

(6) Notwithstanding anything in this section, where the trustees are of the opinion that a former member:

(a) who has become entitled to a pension under this Part, and

(b) who has, under subsection (2), made an election in respect of a prescribed part of his or her pension entitlement,

would, within twelve months after his or her so becoming entitled, be likely to have his or her pension cease or suspended under section 25, the operation of that election shall, subject to subsection (7), be deferred for such period not exceeding twelve months as the trustees may determine.

(7) The trustees may at any time reduce the period of deferment of an election under subsection (6).

(8) During the period of deferment of his or her election, a former member is entitled to payment of his or her annual pension entitlement under this Part.

(9) If, during the period of deferment of his or her election, the pension of a former member ceases or is suspended under section 25, that election shall be deemed never to have been made.

(10) Where, during the period of deferment of his or her election, the pension of a former member does not cease or is not suspended under section 25, the lump sum that would have been payable under subsection (3) but for the deferment shall become payable to him or her less payments made to him or her pursuant to subsection (8) in respect of that part of his or her annual pension entitlement that was the subject of his or her election.

(11) An election under subsection (2) must be made:

(a) in the case of a former member referred to in subsection (2) (a)-not later than 3 months after the former member becomes entitled to a pension under this Part,

(b) in the case of a former member referred to in subsection (2) (b)-not later than 3 months after the former member ceases to be a person whose right to a pension is suspended under section 25 (2),

(c) in the case of a former member referred to in subsection (2) (c)-not later than 3 months after the giving of the direction under section 26 (2) that resulted in the former member first becoming entitled to a pension under section 26 (2) and that was given after the former member’s pension was last suspended under section 26 (1).