New South Wales Consolidated Acts

TRANSPORT EMPLOYEES RETIREMENT BENEFITS ACT 1967 - SECT 16

16 Reduction of benefits where annual wages reduced

(1) Where the annual wages of a contributor are reduced and as a result of the reduction his annual wages are in a lower wage group, then if the benefit for which he was, immediately before the reduction, contributing is greater than his maximum benefit calculated by reference to his new wage group, the lump sum benefit for which he shall be entitled to contribute shall be reduced to that maximum benefit, his contributions shall be adjusted actuarially and any excess contributions may be refunded by the Board.

(2) Where the reduction in annual wages (in this section referred to as "the reduction") has not been made for disciplinary reasons and the contributor applies to the Board to be allowed to continue to contribute for the whole or part of the lump sum benefit for which he was contributing before the reduction:

(a) the Board may allow him to do so if the application is made by the contributor within such time as may be prescribed or such longer time as the Board may, in any particular case, allow and:

(i) the reduction is due to medical reasons,

(ii) the contributor has held, for the period of not less than five years next preceding the reduction, the employment classification that he held immediately before the reduction,

(iii) the employer certifies that within a period of three years next following the date from which the reduction was made, the whole of which period is before the date on which he would attain the age of sixty-five years, the contributor’s annual wages are likely to be restored to the wage group applicable to him before the reduction, or

(iv) there are special circumstances other than those referred to in subparagraph (i), (ii) or (iii) on the basis of which the employer recommends that benefits and contributions should not be reduced following the reduction, and

(b) if the Board so allows him, the contributor shall contribute for the benefit applied for, his contributions shall be adjusted actuarially and any excess contributions may be refunded by the Board.