New South Wales Consolidated Acts

SUPERANNUATION ACT 1916 - SECT 37B

37B Deferral of payment of benefits on retrenchment

(1) This section applies to a contributor who is retrenched from the service of an employer and who, at the time of retrenchment, is not less than 50 years of age.

(2) A contributor to whom this section applies is entitled, subject to section 38B and only with the concurrence of his or her employer, to elect to retire on pension at the early retirement date instead of taking any pension, benefit or other amount that would be payable to the contributor under this Part on the retrenchment of the contributor.

(3) If a contributor makes such an election, the contributor is entitled, on the early retirement date, to a pension under section 28, 28A or 28AA (whichever is applicable), as if the contributor had continued in the service of the employer and had elected to retire, and retired, on the early retirement date. Section 21C applies accordingly.

(4) The entitlement under this section arises only if the contributor agrees to pay to the Fund, and does pay to the Fund, within the time required by STC, an amount determined by STC, on the basis of actuarial advice, as the present value of the total of all further amounts that the contributor would have been required to contribute to the Fund had the contributor not been retrenched and had continued in service with the employer until the early retirement date.

(5) If a contributor elects to take the benefit of this section, Division 7 of Part 3 applies, and continues to apply, in respect of the contributor’s employer, as if the contributor were still employed by the employer and had continued in the service of the employer until the early retirement date. Accordingly, the employer must contribute to the Fund as required by those provisions.

(6) For the purposes of Division 7 of Part 3, the contributions to be made by the employer are to be determined by STC on the basis of the contributions that would have been payable by the contributor had he or she continued in the service of the employer at the same salary and on the same basis as immediately before his or her retrenchment.

(7) If a contributor who has been retrenched elects to take the benefit of this section and afterwards enters the service of the same or a different employer, the contributor is not entitled to claim any further benefit in respect of the contributor’s previous service, except in accordance with section 38C.

(8) If a contributor who elects to take the benefit of this section:

(a) becomes incapacitated before the early retirement date, or

(b) dies before the early retirement date,

STC may treat the contributor (whether or not the election has already taken effect) as having elected to take the benefit of Division 3A immediately before he or she became incapacitated or died, and apply those provisions accordingly. If the contributor has paid a lump sum to the Fund in accordance with this section, STC is to refund to the contributor, or the contributor’s personal representatives, an amount determined by STC as being the value of excess contributions paid by the contributor (that is, contributions paid in respect of a period commencing after the contributor’s incapacity or death).

(9) In this section:
"early retirement date", in relation to a contributor to whom this section applies, means the date on which the contributor will reach the age of 55 years.