New South Wales Consolidated Acts

STATE AUTHORITIES SUPERANNUATION ACT 1987 - SECT 14

14 Reserves for employers

(1) STC shall, in relation to each employer specified in Part 1 of Schedule 1, establish and maintain within the Fund a separate employer reserve.

(2) STC shall, in relation to each of Parts 2 and 3 of Schedule 1, establish and maintain within the Fund a separate employer reserve.

(3) There shall be credited to such an employer reserve the contributions made by the employer or employers to whom the reserve relates, other than salary sacrifice contributions made under Part 3.

(4) There shall be debited to such an employer reserve:

(a) the amount of the employer-financed benefit (including three-quarters of any payment of any additional benefits) included in the amount of any benefit paid to, or in relation to, a contributor who, immediately before the benefit became payable, was an employee of the employer or an employer to whom the reserve relates, and

(b) administration costs incurred by STC under the Superannuation Administration Act 1996 or under the family law superannuation legislation or Part 5AA in relation to the employer or an employer to whom the reserve relates, and

(c) the whole or part (as determined by STC) of an amount that is payable by STC and that arises under the family law superannuation legislation or Part 5AA and that is payable to, or in respect of:

(i) a spouse or former spouse of an employee or former employee who, immediately before the payment, was an employee or former employee of the employer or an employer to whom the reserve relates, or

(ii) a person whose superannuation interest (within the meaning of Part 5AA) is derived from any such employee or former employee.

(4A) Despite any other provision of this Act, there is to be debited to the Crown employer reserve such amount of the administration costs incurred by STC in respect of the transfer of an eligible deferred benefit under Part 5B as is approved by the Treasurer.

(5) If the amount standing to the credit of the employer reserve established for Part 3 of Schedule 1 is insufficient to meet the amounts payable from the reserve, the deficiency shall be recouped from the Consolidated Fund which is, to the necessary extent, appropriated accordingly.

(6) STC may, with the concurrence of the Treasurer and after obtaining actuarial advice, adjust the amount credited to an employer reserve by crediting or debiting an amount, if it appears to STC appropriate to do so because of a change in the constitution or nature of an employer.

(7) Subsection (6) does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative or other Government initiative.