New South Wales Consolidated Acts

SUPERANNUATION ACT 1916 - SECT 10WC

10WC Commencement of or change to part-time employment

(1) In this section, a reference to a change in the employment status of a contributor is a reference:

(a) to a contributor who is appointed to a full-time position being appointed to a part-time position, or

(b) to a contributor who is appointed to a full-time position and who is on part-time leave without pay making an election under section 12C (1A) to be treated as a part-time employee, or

(c) to the salary ratio (as defined in section 12C (1)) of a contributor who is appointed to a part-time position changing so that it is less than it was previously, or

(d) to a contributor who is appointed to a full-time position and who is on part-time leave without pay making an election under section 12C (3A) in respect of a decrease in the salary ratio (as defined in section 12C (1)) of the contributor.

(2) On a change in the employment status of a contributor, the contributor shall cease to be a contributor for the units of pension in respect of which contributions were payable by the contributor, or for which the contributor had completed contributing, before that change (other than any reserve units in respect of which contributions are payable under section 15A).

(3) No person has any rights in the Fund in respect of units of pension for which a person has ceased to be a contributor pursuant to subsection (2).

(4) Where a contributor whose employment status changes ceases to be a contributor for units of pension pursuant to subsection (2), the contributor’s contributions to the Fund in respect of those units of pension shall cease, as on and from the first day of the contribution period in which the change occurred.

(5) Any contributions paid in respect of units of pension for which a person has ceased to be a contributor on a change in employment status shall be allocated towards the purchase of the number of fully paid up units calculated in accordance with the following formula:

"PUU" is the number of units purchased.
"TU" is the highest whole number obtained from the calculation of the formula .
"UHn" is the number of units of pension for which contributions were payable by the contributor immediately before the change occurred in accordance with the tables of contributions fixed by or under this Act, but excluding:

(a) any such units of pension which are excess units of pension referred to in section 10W (1) and in respect of which no person has any rights in the Fund, and

(b) any such units of pension, being reserve units, for which contributions were being made under section 15A.

"Cn" is the amount of contributions due, for the contribution period preceding that in which the change occurred, in respect of that number of units of pension.
"Rn" is the relevant amount under subsection (6) in relation to the contributor for an additional unit of pension.
"IU" is the highest whole number obtained from the calculation of the formula .
"TCB" is the total amount paid in respect of instalments payable by the person on or before the time the change occurred for units of pension for which the contributor contributed in accordance with Division 6 (but deducting therefrom any part of that amount allocated under this Act to the purchase of fully paid up units).
"RB" is the amount specified in section 10AG (1) as the cost of a unit of pension in relation to the contributor.
"UC" is the number of units (if any) purchased by the person and credited to the person as fully paid up units under this section, section 20C, or otherwise.

(6) For the purposes of subsection (5), the relevant amount in relation to a contributor whose employment status changes for an additional unit of pension is:

(a) where the contributor has attained the prescribed age on or before the last day of the contribution period preceding that in which the change occurred, the amount which, if the contributor were required under Division 5 to commence to contribute for an additional unit of pension on that day, would be the amount payable in accordance with the tables of contributions fixed under section 10AD for that unit for a contribution period, or

(b) where the contributor has not attained the prescribed age on or before that day, the amount equal to the sum of:

(i) the amount payable by the contributor for any additional unit of pension for which the contributor had been required to commence contributing on and from the contributor’s last annual adjustment day before the change occurred for a contribution period or, as the case may be, the amount that would have been so payable if the contributor had been so required, and

(ii) for each day of the period commencing on the day following that annual adjustment day and ending on the last day of the contribution period preceding that in which the change occurred, the amount equal to 1/364th part of the difference between the amount referred to in subparagraph (i) and the amount which that amount would have been if, on that annual adjustment day, the contributor had been 1 year older than the age actually attained.

(7) Where, in relation to a contributor whose employment status has changed, the figure obtained pursuant to subsection (5) from the calculation of the formula is or includes a fraction, there shall be paid to the contributor from the Fund, as a refund of contributions not allocated towards the purchase of fully paid up units, the amount calculated in accordance with the following formula:

"Q1" is the amount to be paid.
"S" is the amount of the contributions paid by the contributor in respect of the units the number of which is attributed to the symbol UHn pursuant to subsection (5).
"F1" is the fraction which is or is included in the figure obtained.
"P1" is the figure obtained.

(8) Where, in relation to a contributor whose employment status has changed, the figure obtained pursuant to subsection (5) from the calculation of the formula is or includes a fraction, there shall be paid to the contributor from the Fund, as a refund of instalments not allocated towards the purchase of fully paid up units, the amount calculated in accordance with the following formula:

"Q2" is the amount to be paid.
"TCB" is the amount attributed to that symbol pursuant to subsection (5).
"F2" is the fraction which is or is included in the figure obtained.
"P2" is the figure obtained.

(9) Where a person’s contributions are allocated to the purchase of paid up units under this section on a change in employment status:

(a) the person shall, on and from that change occurring, be deemed to be a contributor for the number of units purchased and to have contributed for those units for a period of 2 years and 6 months but shall not be required to make further contributions in respect of those units, and

(b) the employer in whose service the person is employed will not be required to make, before the retirement of the person, any further contribution in respect of those units of pension.

(10) Subject to this or any other Act, where the number of units of pension that, pursuant to section 12 (1), is appropriate for the salary certified by the employer of a contributor to be the salary which would be paid to the contributor if employed full-time in the position in which the contributor is employed on a change in employment status is higher than the number of fully paid up units credited to the contributor under this section, the contributor shall, as on and from the first day of the contribution period in which the change occurs, contribute to the Fund in respect of the additional number of units of pension in accordance with this Act.

(11) On the day on which the employment status of a contributor changes, if the number of additional units of pension referred to in subsection (10) is in excess of the number for which the annual cost to the contributor is equal to an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid, the excess units of pension are optional units of pension.

(12) A contributor may, within 2 months after the day on which the employment status of the contributor changes, elect to abandon any one or more of the optional units of pension in respect of which, but for the election, the contributor would be required by this section to commence contributing to the Fund.

(13) Where a contributor elects not to contribute for a unit of pension under subsection (12), contributions to the Fund in respect of the unit shall cease as on and from the first day of the contribution period in which the employment status of the contributor changes and any contributions paid in respect of the unit shall be refunded to the contributor.

(14) No person has any rights in the Fund in respect of a unit of pension to which an election under subsection (12) relates.

(15) Where no person has any rights in the Fund in respect of an excess unit of pension of a contributor referred to in section 10W (1) and the employment status of the contributor changes, any contributions made by the contributor in respect of the unit shall be refunded to the contributor.

(16) Where a person whose contributions are allocated to the purchase of fully paid up units under this section dies, retires under section 21 (1B) before attaining the age of 60 years, or is retired under section 22 before attaining that age, STC may, except where the contributions are refunded pursuant to section 32A or 32B, determine that a specified amount, being part of those contributions, be refunded to the person or, where the person is dead, to the person’s personal representatives, and may act in accordance with its determination.

(17) Where a contributor whose employment status changes is a contributor whose entry payment day occurred before the commencement of Schedule 4 to the Superannuation (Amendment) Act 1985 and, immediately before the change occurred:

(a) the contributor had any abandoned units, and

(b) the annual cost to the contributor for the units of pension for which contributions were payable by the contributor was an amount representing a percentage which was less than 6 per cent of the annual salary of the contributor at the rate actually being paid on the contributor’s previous annual review day or, if there was no such day, the contributor’s entry review day, the number of those units being less than the number for which the annual cost was equal to an amount representing 6 per cent of that annual salary,

such of the additional units of pension (if any) referred to in subsection (10) as are in excess of the number for which the annual cost to the contributor is equal to an amount representing that lesser percentage of the annual salary at the rate actually being paid to the contributor on the day the change occurred are optional units of pension for the purposes of subsection (12), notwithstanding anything to the contrary in subsection (11).