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This is a Bill, not an Act. For current law, see the Acts databases.
SUPERANNUATION LAW REFORM BILL 2007
Serial
118
Superannuation Law Reform Bill
2007
Mr
Stirling
A Bill for an Act to establish a
superannuation scheme providing benefits on death or invalidity; to make other
reforms to superannuation law; to amend the Superannuation Act and the
Legislative Assembly Members' Superannuation Fund Act; and for other
purposes
NORTHERN TERRITORY OF
AUSTRALIA
Superannuation LAW REFORM ACT
2007
____________________
Act No. [ ] of
2007
____________________
TABLE OF PROVISIONS
NORTHERN
TERRITORY OF AUSTRALIA
____________________
Act No. [ ] of
2007
____________________
Act to establish a superannuation
scheme providing benefits on death or invalidity; to make other reforms to
superannuation law; to amend the Superannuation Act and the
Legislative Assembly Members' Superannuation Fund Act; and for other
purposes
[Assented to [ ]
2007]
[Second reading [ ]
2007]
The Legislative Assembly of the Northern
Territory enacts as follows:
Part
1 Preliminary
Short title
This Act may be cited as the Superannuation Law
Reform Act 2007.
This Act commences on the date fixed by the
Administrator by Gazette notice.
Part 2 Amendment of Superannuation
Act
Act amended
This Part amends the Superannuation
Act.
Repeal and substitution of long
title
Long title
repeal, substitute
An Act to provide for the administration of the
(closed) Northern Territory Government and Public Authorities' Superannuation
Scheme and for the establishment and administration of the Northern Territory
Government Death and Invalidity Scheme, and for related
purposes.
Amendment of Part I
heading
omit
PART I
substitute
PART 1
Amendment of section 3
(Interpretation)
(1) Section 3(1)
omit
In this Act, unless the contrary intention appears
–
substitute
In this Act:
(2) Section 3(1), definitions accumulation
account, Acting Chairperson, approved
deposit, Chairperson, Commonwealth Act,
dependant, Fund, Police Associations,
public authority, Public Service,
Rules, Scheme, spouse and Trades
and Labor Council
omit
(3) Section 3(1)
insert (in alphabetical
order)
accumulation account means an account
kept in the name of a member or adherent of the NTGPAS Scheme of the amount in
the Fund standing to the credit of the member or adherent.
adherent, of the NTGPAS Scheme, means
a person who is not an eligible employee (and hence not a member of that Scheme)
but in whose name an accumulation account exists in the Fund.
allocated pension
means:
(a) a pension that complies with the requirements
for an allocated pension under relevant Commonwealth laws regulating the payment
of superannuation benefits; or
(b) any other form of periodic payment of
superannuation benefits (however described) recognised as permissible under
relevant Commonwealth laws regulating the payment of superannuation
benefits.
approved deposit means an amount
accepted by the Commissioner for deposit to the credit of an accumulation
account (and may include an amount rolled over from another superannuation
fund).
Chair, of a Board, includes an Acting
Chair while acting in the place of the Chair.
dependant, of another person,
means:
(a) a spouse, widow, widower or child of the other
person; or
(b) a person who, in the Commissioner's
opinion:
(i) was, at the date of the other person's death,
wholly or partially dependent on the other person; or
(ii) had, at the date of the other person's death, a
legal right to look to the other person for support.
exempt public sector superannuation
scheme, see section 10 of the Superannuation Industry (Supervision)
Act 1993 (Cth).
Fund means the Northern Territory
Government and Public Authorities Employees' Superannuation
Fund.
NTGDI Scheme means the Northern
Territory Government Death and Invalidity Scheme.
NTGPAS Scheme means the Northern
Territory Government and Public Authorities' Superannuation
Scheme.
Police Association means The Northern
Territory Police Association Incorporated.
public authority
means:
(a) an Agency; or
(b) an authority or body classified by the
regulations as a public authority.
Rules means the Northern Territory
Government and Public Authorities' Superannuation Scheme
Rules.
Scheme means (according to
context):
(a) the NTGPAS Scheme; or
(b) the NTGDI Scheme.
spouse includes a de facto
partner.
Unions NT means the Northern Territory
Trades and Labor Council Incorporated trading as Unions NT.
(4) Section 3(1), definition eligible
employee, paragraph (b)(i)
omit, substitute
(i) the NTGPAS Scheme; or
Repeal and substitution of section
3A
Section 3A
repeal, substitute
3A Schemes to be
administered in accordance with agreements with the
Commonwealth
The NTGPAS Scheme and the NTGDI Scheme are to be
administered in accordance with a written agreement entered into by the
Territory and the Commonwealth relating to exempt public sector superannuation
schemes.
Amendment of Part II
heading
Part II, heading
omit
PART II
substitute
PART 2
Amendment of section 9 (Superannuation Review
Board)
Section 9(2) and (3)
omit, substitute
(2) The Review Board consists of:
(a) the Chair; and
(b) 3 other residents of the Territory appointed by
the Minister.
(3) The membership of the Review Board must
include:
(a) a nominee of Unions NT (the Unions NT
nominee), who must be a member of a union drawing its membership wholly
or substantially from public employees; and
(b) a nominee of the Police Association (the
Police Association nominee).
(4) The Police Association nominee alternates as a
member of the Review Board with the Union NT nominee as
follows:
(a) the Police Association nominee sits as a member
when the Review Board:
(i) is conducting a review under Part 4 concerning a
member of the Police Force; or
(ii) is considering a proposed amendment to the
Rules that has, in the opinion of the Chair, particular significance for members
of the Police Force; and
(b) on other occasions the Unions NT nominee sits as
a member of the Review Board (to the exclusion of the Police Association
nominee).
Amendment of section 10 (Functions and powers
of Review Board)
Section 10(1)(a)
omit, substitute
(a) to review, in accordance with Part 5, a decision
or action of the Commissioner, or the Commissioner's failure to make a decision
or to act; and
Amendment of section 11 (Superannuation
Investment Board)
Section 11(2)
omit, substitute
(2) The Investment Board consists
of:
(a) the Chair; and
(b) 2 other residents of the Territory appointed by
the Minister.
(3) The membership of the Investment Board must
include a nominee of Unions NT (who must be a member of a union drawing its
membership wholly or substantially from public employees).
Amendment of section 12 (Functions and powers
of Investment Board)
(1) Section 12(4)(c)
omit, substitute
(c) to ensure the sound management of the assets of
the Fund; and
(2) Section 12(4)(e), (f) and (g)
omit, substitute
(e) to determine, authorise or approve policies,
programs and strategies for the investment of the Fund that are consistent with
the need to ensure an adequate spread of investments and provide for investor
choice.
(3) Section 12(4)(a), (b) and (d), at the
end
insert
and
Repeal and substitution of sections 13 to
17
Sections 13 to 17
repeal, substitute
In this Division:
member means a member of a Board and
includes:
(a) the Chair or an Acting Chair;
and
(b) an alternate member.
(1) If:
(a) the Minister asks Unions NT, in writing, to
nominate a suitable person for appointment to a Board; and
(b) Unions NT fails to nominate a person, qualified
for appointment, within 28 days of the date of the request;
the Minister may appoint a resident of the Territory
to the Board in place of the nominee.
(2) If:
(a) the Minister asks the Police Association, in
writing, to nominate a suitable person for appointment to a Board;
and
(b) the Police Association fails to nominate a
person, qualified for appointment, within 28 days of the date of the
request;
the Minister may appoint a resident of the Territory
to the Board in place of the nominee.
(3) A person appointed under this section is taken
to be a nominee of Unions NT or the Police Association (as the case
requires).
(1) The Minister may appoint a person as an
alternate member for a member of a Board (other than the
Chair).
(2) If a member of a Board is unable or unavailable
to act, the member's alternate may act in place of that member.
(3) If the Minister proposes to appoint an
alternate member for a member nominated by Unions NT or the Police Association,
the Minister must follow the procedures applicable to the appointment of the
principal member.
(4) When a member of a Board is appointed, an
alternate member should (wherever practicable) be appointed at the same
time.
16 Chair and Acting
Chair
(1) The Minister must consult with Unions NT before
appointing a person as the Chair of a Board.
(2) The Minister may, after consultation with
Unions NT, appoint a person as the Acting Chair of a Board.
(3) The Acting Chair of a Board may, when there is
a vacancy in the office of the Chair, or the Chair is unable or unavailable to
act, act as the Chair of the Board.
(4) When the Chair of a Board is appointed, an
Acting Chair should (wherever practicable) be appointed at the same
time.
(1) The Chair or another member of a Board will be
appointed for a term of 5 years.
(2) The term of appointment for an Acting Chair or
an alternate member ends:
(a) if the Chair or principal member is re-appointed
– when the
re-appointment takes effect
(unless the Acting Chair or alternate member is also re-appointed for a further
term); or
(b) if the Chair or principal member ceases to hold
office (either prematurely or at the end of a term of appointment) – when
the appointment of a successor to the Chair or principal member takes effect
(unless the Acting Chair or alternate member is then re-appointed for a further
term).
Amendment of section 21 (Disclosure of
interest)
Section 21(1)
omit, substitute
(1) A member who has a direct or indirect monetary
interest in a matter before the Board must, as soon as practicable, disclose the
interest at a meeting of the Board.
Exception:
Disclosure of the following interests is not
required:
(a) an interest as a member or adherent of the
NTGPAS Scheme;
(b) an interest as a member of the NTGDI
Scheme;
(c) an interest shared in common with at least 25
other people.
Repeal and substitution of section
22
Section 22
repeal, substitute
(1) The Chair of a Board may at any time, and must
if requested by a member, convene a meeting of the Board.
(2) A meeting to be convened at the request of a
member must be held on a date requested by the member (which cannot be earlier
than 7 days after the date of the request) or as soon as practicable after
that date.
(3) The Chair of a Board, if present at a meeting
of the Board, must preside at the meeting.
(4) In the absence of the Chair, the Acting Chair
must preside.
(5) At a meeting of a Board:
(a) the Chair or Acting Chair and 2 other members
constitute a quorum; and
(b) questions arising for decision are to be decided
by majority vote; and
(c) the Board will determine its own
procedure.
(6) A Board must keep records of its
proceedings.
Amendment of Part III
heading
Part III, heading
omit
PART III
substitute
PART 3
Before section 26, in Part 3, Division
1
insert
25A References to the
Scheme
In this Part, references to the Scheme
are references to the NTGPAS Scheme.
Section 27
repeal
Repeal and substitution of section
28
Section 28
repeal, substitute
28 Records of
accumulation accounts
The Commissioner must keep records
of:
(a) contributions and approved deposits to each
accumulation account in the Fund; and
(b) the return on the account.
Amendment of section 29 (Payment of
benefits)
Section 29(2)(b)
omit, substitute
(b) to the extent those moneys are inadequate
– the Territory's public account (which is appropriated to the necessary
extent).
Repeal and substitution of sections 31 to
35
Sections 31 to 35
repeal, substitute
The Commissioner may, at the request of a person in
whose name an accumulation account is held in the Fund, pay a benefit to which
the person is entitled from the Fund in the form of an allocated
pension.
Amendment of section 39 (Fund
accounts)
Section 39(2)(b)(iii)
omit, substitute
(iii) unclaimed benefits payable under the Scheme
into the Territory's public account.
Repeal and substitution of section
41
Section 41
repeal, substitute
(1) The Commissioner may, with the Investment
Board's approval, offer members and adherents of the Scheme a choice between
various investment options approved by the Investment Board.
(2) When the Commissioner offers investment
options, one of the options is to be designated as the default
option.
(3) A member or adherent of the Scheme may choose a
particular investment option, or change from one investment option to another,
by giving the Commissioner a notice in the approved form.
(4) A member or adherent who has not made a choice
between investment options is taken to have chosen the default option until a
choice to change from that option is made.
(5) The money standing to the credit of the
accumulation account of a member or adherent is to be allocated to investments
of a class determined by the Commissioner to be appropriate to the investment
option chosen, or taken to have been chosen, by the member or
adherent.
(6) The Commissioner may charge an administration
fee fixed by the Commissioner against an accumulation account when the member or
adherent changes from one investment option to another.
41A Return on
accumulation accounts
(1) The Commissioner:
(a) must, as soon as practicable after the end of
each financial year, publish a notice (a final investment return
notice) showing the net rate of return (which may be positive, neutral
or negative) for the financial year on the investments corresponding to each
investment option; and
(b) may at other times, as the Commissioner
considers appropriate, publish a notice (an interim investment return
notice) showing the rate of return (which may be positive, neutral or
negative) for part of a financial year.
(2) An investment return notice is to be published
as follows:
(a) a final investment return notice is to be
published in the Gazette and in any other way the Commissioner considers
appropriate;
(b) an interim investment return notice is to be
published in any way the Commissioner considers appropriate.
(3) On publication of the final investment return
notice for a financial year, each accumulation account will be credited (or
debited), as at the end of the financial year, with an investment return at the
rate appropriate to the investment option chosen, or taken to have been chosen,
by the member or adherent in whose name the account is
established.
(4) If the balance standing to the credit of an
accumulation account is to be rolled over into another superannuation fund, or
paid out for some other reason, during the course of a financial year, the
Commissioner will, having regard to any relevant interim investment return
notice and other relevant information available to the Commissioner, determine
an interim rate of return for the relevant investment option to the date of the
rollover or payout, and adjust the final balance of the account
accordingly.
(5) If, after the publication of an interim or
final investment return notice under this section, it appears that an error was
made in determining the rate of return for one or more investment options, the
Commissioner may:
(a) publish a fresh notice in the Gazette
correcting the error; and
(b) make consequential adjustments (if required)
increasing or reducing the balances of accumulation accounts.
Amendment of section 42 (Recovery of money
owing to fund or Territory)
(1) Section 42, heading
omit
or Territory
(2) Section 42(4)
omit
Amendment of section 43 (Annual reports and
audit)
Section 43(2) and (3)
omit, substitute
(2) The Investment Board must, within 3 months
after the end of each financial year, forward the financial statement for the
financial year to the Auditor-General.
(3) The Auditor-General must, within 3 months after
receiving the statement, or a longer period allowed by the Administrator, audit
the statement and report on the audit to the Investment Board and the
Minister.
(4) The Minister must table the reports, together
with the financial statement and the Auditor-General's report on the audit, in
the Legislative Assembly within 6 sitting days after the Minister receives the
last of the reports.
Section 45
repeal
Amendment of section 45A (Accounts for
spouses)
(1) Section 45A(2)(b)
omit, substitute
(b) an approved deposit.
(2) Section 45A(4) and (5)
omit
Amendment of section 45D (Superannuation
accounts for non-member
spouses)
(1) Section 45D(2)(c)
omit, substitute
(c) an approved deposit.
(2) Section 45D(4) and (5)
omit
After section 45D
insert
Part
4 Northern Territory Government Death and Invalidity Scheme
(1) In this Part:
approved allowances means allowances
or entitlements that are, by determination of the Commissioner under subsection
(2), to be taken into account in determining the member's benefit
salary.
benefit salary means:
(a) for a member employed under an Executive
Contract of Employment –
(i) in the case of a member employed on a full-time
basis – the member's notional salary (as defined in the contract) as at
the member's exit date or such other amount as may be determined by the
Commissioner; or
(ii) in the case of a member employed on a part-time
basis – the full-time equivalent of the member's notional salary (as
defined in the contract) as at the member's exit date or such other amount as
may be determined by the Commissioner; or
(b) for a member employed in the Police Force (other
than a police auxiliary or a person employed under an Executive Contract of
Employment) – an amount calculated as follows:
BS = 1.3S + A
where:
BS is the amount to be ascertained;
and
S is:
(i) for a member employed on a full-time basis
immediately before the member's exit date, the member's salary (exclusive of
approved allowances) as at the member's exit date as certified by the member's
employer and accepted by the Commissioner; or
(ii) for a member employed on a part-time basis
immediately before the member's exit date – the full-time equivalent of
the member's salary (exclusive of approved allowances) as at the member's exit
date as certified by the member's employer and accepted by the Commissioner;
and
A is the amount of the member's approved allowances
immediately before the member's exit date as certified by the member's employer
and accepted by the Commissioner; or
(c) for any other employee member – the
member's actual salary, or in the case of a part-time employee, the full-time
equivalent of the member's salary, as at the member's exit date, as certified by
the member's employer and accepted by the Commissioner; or
(d) for a parliamentary member – the member's
basic salary as a Member of the Legislative Assembly as at the member's exit
date plus any additional salary to which the member was then entitled for a
ministerial or parliamentary office as certified by the Clerk of the Legislative
Assembly and accepted by the Commissioner.
death benefit, see section
45P.
employee member means a member who is
a permanent employee.
employment means:
(a) service as a permanent employee under a contract
of service or in a statutory or other public office; or
(b) service as a Member of the Legislative
Assembly.
entry date, see section
45H(3).
exit date means the date on which a
person ceases to be a member of the Scheme.
invalidity retirement means retirement
on the ground of invalidity (see section 45F).
invalidity retirement benefit, see
section 45Q.
medical condition means a physical or
mental condition (or combination of conditions) that could increase a person's
risk of death or invalidity.
member means a member of the
Scheme.
nominal retirement age, for a member,
means the age of 65 years, or if retirement is compulsory at a younger age,
the age at which retirement becomes compulsory.
NTGDIS benefit, see section 45N.
parliamentary member means a member
who is a Member of the Legislative Assembly.
part-time member means a member who
is, immediately before the member's exit date, in part-time
employment.
part-time ratio, for a part-time
member, means the quotient obtained:
(a) by dividing the member's actual hours of work
immediately before the member's exit date by the number of hours of work that
would constitute full-time employment; or
(b) on some other basis (which may involve
estimation or supposition) the Commissioner considers fair to the member in the
circumstances.
reduced benefit classification means a
classification assigned, or taken to have been assigned under section
45K.
reduced benefit classification adjustment
factor, see section 45L.
salary includes approved allowances.
Scheme means the NTGDI
Scheme.
workers' compensation agreement means
an agreement under which:
(a) an amount is payable instead of periodic
payments under workers' compensation legislation; and
(b) there is no exclusion or limitation of the
application of, or the rights or entitlements of a person under, that
legislation; and
(c) the amount is repayable if those rights or
entitlements are pursued.
(2) The Commissioner may determine, in relation to
a particular class of members, that allowances of a particular kind are to be
taken into account, in a particular way, for calculating the benefit salary of a
member of the relevant class.
Examples
1 The Commissioner might determine that
allowances of a particular kind are to be taken into account as if they formed
part of the salary of members of a particular class.
2 The Commissioner might determine for members
employed in the Police Force (other than a police auxiliary or person employed
under an Executive Contract of Employment) that an allowance of a particular
kind is to be taken into account for the purposes of the relevant formula in the
definition of benefit salary.
45F Invalidity
retirement
(1) A member of the Scheme retires from employment
on the ground of invalidity if, and only if:
(a) the member is involuntarily retired from
employment with the Commissioner's approval under section 50;
or
(b) the member resigns or retires from employment
(voluntarily or involuntarily) and the Commissioner approves the payment of an
invalidity retirement benefit; or
(c) the member's employment terminates or is
terminated and the Commissioner approves the payment of an invalidity retirement
benefit.
(2) The Commissioner may only give an approval
under subsection (1) if the Commissioner makes an assessment, after considering
medical and other relevant evidence, that the member has (or had) become, by the
date of resignation, retirement or termination of employment, physically or
mentally so incapacitated that the member is (or was) unfit for any available
employment (on a
full-time or part-time basis)
for which the member is reasonably qualified by education, training or
experience.
(3) In considering whether suitable employment is
available to a member, the Commissioner will have regard only to employment
available from employers whose employees are covered by the
Scheme.
Division
2 Establishment and membership of the Northern Territory Government Death and
Invalidity Scheme
45G Establishment of
the Scheme
The Northern Territory Government Death and
Invalidity Scheme is established.
(1) A person is a member of the Scheme if both of
the following conditions are satisfied:
(a) the person:
(i) is a permanent employee employed in a full-time
or
part-time capacity under the Public
Sector Employment and Management Act or as a member of the Police Force;
or
(ii) is employed in the public sector under an
Executive Contract of Employment;
(b) the person is not an eligible employee (and
hence is not a member of the NTGPAS Scheme).
Note
This means that a permanent employee's last
period of continuous employment must have commenced after 9 August
1999.
(2) Members of the Legislative Assembly elected for
the first time at the general election held on 18 June 2005 or a later general
election or by-election are also members of the Scheme.
(3) If a person:
(a) becomes a member of the Scheme on the
commencement of this Part; but
(b) would have become a member of the Scheme on an
earlier date if this Part had then been in force;
the member's entry date to the Scheme is taken to be
the earlier date.
Division
3 Medical classification
45J Medical
classification on entry
(1) A member must complete and submit to the
Commissioner a medical declaration in the approved form on, or as soon as
practicable after, the member's entry date.
Exceptions:
1 A member whose entry date falls before 1 July 2007
is not obliged to submit a medical declaration (but may do so).
2 A member need not submit a medical declaration if
the Commissioner accepts a medical classification or status that applies or
applied to the member under another superannuation scheme or for purposes of the
same or other public sector employment (in the Territory or
elsewhere).
(2) The Commissioner may, as soon as practicable
after receiving a completed medical declaration form, require the
member:
(a) to provide further medical information;
or
(b) to undergo a medical examination or examinations
by an approved medical practitioner.
45K Reduced benefit
classification
(1) The Commissioner may, after receiving medical
advice, issue a reduced benefit classification certificate for a member if the
Commissioner is of the opinion that the member has a significant risk of death
or invalidity retirement in the first 10 years of membership because of a
medical condition existing on the member's entry date.
(2) If the Commissioner accepts a medical
classification or status that applies or applied to the member under another
superannuation scheme or for the purposes of public sector employment in the
Territory or elsewhere (the accepted classification), the
Commissioner must assign a reduced benefit classification to the member
conforming with the accepted classification unless the accepted classification
indicates no significant risk to the member's health.
(3) A reduced benefit classification certificate
must specify the medical conditions to which the certificate
relates.
(4) When the Commissioner issues a reduced benefit
classification certificate for a member, the Commissioner must give the member
written notice of the reasons for issuing the certificate.
(5) If a member who is required under this Division
to complete and submit a medical declaration form to the Commissioner, to
provide further medical information, or to undergo a medical examination or
examinations, fails to comply with any such requirement, a reduced benefit
classification certificate is taken to have been issued by the Commissioner in
respect of any medical condition that may have existed at the member's entry
date and gives rise to a claim under the Scheme within the 10 years after the
entry date.
45L Reduced benefit
in certain cases
(1) A reduction of a death or invalidity retirement
benefit is to be made under this section if:
(a) a reduced benefit classification certificate has
been issued (or is taken to have been issued) for a member; and
(b) an entitlement to a benefit under the Scheme
arises within the first 10 years after the member's entry date;
and
(c) the entitlement arises for reasons directly
attributable to a medical condition to which the certificate (or presumptive
certificate) relates.
(2) A reduction of an invalidity retirement benefit
is also to be made under this section if:
(a) an entitlement to an invalidity retirement
benefit arises within the first 10 years after the member's entry date;
and
(b) the entitlement arises for reasons directly
attributable to a medical condition; and
(c) the Commissioner has reasonable grounds for
believing that:
(i) the condition existed on the member's entry
date; and
(ii) the condition was known to the member at the
entry date but was not disclosed by the member; and
(d) the condition, if disclosed to the Commissioner
would have resulted in the issue of a reduced benefit classification
certificate.
(3) The extent of a reduction of benefit under this
section is indicated by a reduced benefit classification adjustment
factor.
(4) The reduced benefit classification adjustment
factor is a fraction calculated by dividing the number of complete months
between the member's entry date and exit date by 120.
(5) The Commissioner may fix a greater fraction in
a particular instance if satisfied that there is good reason to do
so.
45M Entitlement to
benefits under the Scheme
A benefit is payable under the Scheme
if:
(a) a member dies leaving a dependant or dependants
who survive the member; or
(b) a member retires from employment on the ground
of invalidity.
(1) The NTGDIS benefit is calculated in accordance
with the following formula:
B = 17.5% x S x Y x P x A
where:
B is the amount of the benefit; and
S is the member's benefit salary;
and
Y is a multiplier based on the member's age, as at
the member's exit date, in accordance with subsection (2); and
P is, for a part-time member, the member's part-time
ratio and, for any other member, 1; and
A is, if the benefit is subject to reduction under
Division 3, the reduced benefit classification adjustment factor and, in any
other case, 1.
(2) The age-based multiplier is determined as
follows:
(a) if the member is, on the exit date, 60 years of
age or above – the multiplier is zero;
(b) if the member is, on the exit date, 55 years of
age or above but less than 60 years of age – the multiplier is the number
of years between the member's age at the exit date and 60 years (expressing a
part of a year as a decimal fraction);
(c) if the member is, on the exit date, 50 years of
age or above but less than 55 years – the multiplier is the number of
years between the member's age at the exit date and the member's nominal
retirement age less the number of years between the exit date and the date on
which the member attained 50 years of age (expressing a part of a year as a
decimal fraction);
(d) if the member is, on the exit date, less than 50
years of age – the multiplier is the number of years between the member's
age on the exit date and the member's nominal retirement age (expressing a part
of a year as a decimal fraction).
45P Benefit payable
on death
(1) If a member dies leaving a dependant or
dependants, the NTGDIS benefit is payable to the estate of the deceased
member.
(2) However, if a benefit (a workers'
compensation benefit) is payable in respect of the member's death to a
dependant or dependants of the deceased member under workers' compensation
legislation or a workers' compensation agreement, the NTGDIS benefit is to be
reduced by the amount of the workers' compensation benefit.
(3) If a workers' compensation benefit consists of
periodic payments, the amount of the benefit is taken to be the notional
redemption value (as determined by an approved actuary) of the periodic
payments.
45Q Benefit payable
on invalidity retirement
(1) If a member is entitled to a benefit on
invalidity retirement, the NTGDIS benefit is payable to the
member.
(2) However, if a benefit (a workers'
compensation benefit) is payable to the member under workers'
compensation legislation or a workers' compensation agreement, the NTGDIS
benefit is to be reduced by the amount of the worker's compensation
benefit.
(3) If a workers' compensation benefit consists of
periodic payments, the amount of the benefit is taken to be the notional
redemption value (as determined by an approved actuary) of the periodic
payments.
45R Anticipatory
payments
(1) If a member's salary is suspended or reduced
because of the member's physical or mental incapacity, the Commissioner may, on
application in the approved form by the member, authorise a payment or payments
to the member to relieve financial hardship.
(2) The Commissioner is not to authorise a payment
to a member under this section unless:
(a) the member is currently undergoing assessment
for invalidity retirement; or
(b) the Commissioner has assessed the member as
substantially incapacitated for employment.
(3) The amount paid to a member under this section
cannot exceed:
(a) the amount necessary to make up relevant salary
loss; or
(b) the amount that would be payable to the member
on the assumption that the member's employment had terminated in circumstances
entitling the member to an invalidity retirement benefit.
(4) A payment cannot be made to a member under this
section after the member's exit date.
(5) If a benefit later becomes payable in respect
of the member's death or invalidity, the benefit is to be reduced by the amount
of any payment or payments made under subsection (1).
(6) In subsection (3)(a):
relevant salary loss means the amount
by which the member's loss of salary resulting from the physical or mental
incapacity exceeds 20% of the salary that would have been earned apart from the
incapacity.
(1) The benefits payable under the Scheme to, or in
relation to, a member or former member are to be paid out of the Territory's
public account (which is appropriated to the necessary extent).
(2) A public authority by which a member was
employed for the whole, or any part, of the period of the member's membership of
the Scheme is liable to reimburse the Territory for a fair proportion (to be
determined by the Minister) of the amount paid from the public account to, or in
relation to, the member or former member.
(3) A public authority must, if the Minister
requires:
(a) enter into an arrangement with the Territory for
contributing, on a basis the Minister considers fair to the Territory, to the
cost of paying benefits under the Scheme to, or in relation to, employees or
former employees of the public authority; and
(b) make payments to the Territory in accordance
with the arrangement.
(4) The Minister may exempt a public authority from
a liability under subsection (2).
Part
5 Provisions of general application to both Schemes
45T Information to be
provided by Commissioner
(1) A member or former member of either Scheme may
ask the Commissioner for information about actual or prospective entitlements
under the Scheme and for information relevant to the calculation of those
entitlements.
Example
A member of the NTGPAS Scheme might ask for a
statement of the balance of the member's accumulation account or the member's
surcharge debt account (or both) or for a statement of the number of annual
benefit points to which the member is entitled.
(2) The Commissioner must, as soon as practicable
after receiving a request under subsection (1), supply the information
requested.
45U Information to be
provided by member or employer
(1) A member of either Scheme must, if the
Commissioner requires, provide the Commissioner with specified information
relevant to the administration of the Scheme.
Maximum penalty: 20 penalty units
(2) The employer of a member of either Scheme must,
if the Commissioner requires, provide the Commissioner with specified
information relevant to the administration of the Scheme.
Maximum penalty: 50 penalty units.
45V Discretionary
benefits
The Commissioner may, with the written approval of
the Minister and the Review Board, approve a payment of a benefit for which no
provision is made, or in addition to a benefit for which provision is made, in
either Scheme.
45W Assignment, etc.
of benefit
(1) A purported assignment of, or purported charge
over, a benefit payable under either Scheme is void.
(2) Where, but for this subsection, a benefit would
pass by operation of law to a person other than a person to whom the benefit is
payable under the Scheme, the benefit does not pass.
45X Payment without
grant of probate etc.
(1) If a benefit is payable under either Scheme on
death, and the benefit would, but for this section, be payable to the estate of
the deceased, the Commissioner may, without production of probate of the will or
letters of administration of the estate of the deceased, pay the benefit for one
or more of the following purposes:
(a) towards the expenses of the deceased's
funeral;
(b) to a dependant or dependants of the deceased;
(c) if the deceased left no dependant, but the
Commissioner is satisfied that the deceased intended to benefit some other
person – to the other person.
(2) The amount the Commissioner may pay under
subsection (1) is subject to a limit of $20 000 or, if a higher limit is fixed
by regulation, the higher limit.
Exception:
The Commissioner may make a payment in excess of the
limit if the payment is made to a dependant who, in the Commissioner's opinion,
requires the payment to alleviate financial hardship.
(3) The receipt in writing of a person to whom a
payment is made under subsection (1) discharges the Commissioner (and, if
relevant, the Investment Board) from further liability for the portion of the
benefit to which the payment relates.
(4) If a benefit is payable to the estate of a
deceased person, the Commissioner may instead of paying the benefit to the legal
personal representative of the deceased, pay the benefit to the Public
Trustee.
(5) The Public Trustee's receipt for the payment
discharges the Commissioner (and, if relevant, the Investment Board) from
further liability in respect of the benefit or the portion of the benefit that
the payment represents.
45Y Payment where
beneficiary incapable
(1) If a person to whom a benefit under either
Scheme is payable is, in the opinion of the Commissioner, incapable of
administering the person's own affairs because of illness or imprisonment or for
any other reason, the Commissioner may pay the benefit to the Public
Trustee.
(2) A payment made under subsection (1) is taken to
have been made to the person entitled to the benefit.
If a benefit is not claimed within 6 years after it
became payable, the Commissioner may pay the benefit to the credit of the
Territory's public account.
Division
3 Actuarial review
(1) The Commissioner must have an actuarial review
of both Schemes carried out as at 30 June 2010 or an earlier date directed by
the Minister.
(2) A further actuarial review is to be carried out
at an interval of 3 years from the previous one or, if the Minister directs
an earlier review, as directed by the Minister.
(3) The Commissioner may engage an actuary to carry
out a review.
(4) The cost of engaging an actuary for the
purposes of this section and the costs of the review are to be met by the
Territory.
Repeal and substitution of Part IV
heading
Part IV, heading
repeal, substitute
Division
4 Claims for benefits and review of decisions
Amendment of section 46 (Claim for benefit
under Scheme)
Section 46(1) and (2)
omit, substitute
(1) A person entitled, or claiming to be entitled,
to a benefit under either Scheme may apply to the Commissioner, in the approved
manner and form, for the payment of that benefit.
(2) A person who could be affected by a decision or
an action that the Commissioner is authorised or required to make or take under
this Act may apply to the Commissioner, in the approved form, for the
Commissioner to make the relevant decision or to take the relevant
action.
Repeal and substitution of Part V
heading
Part V, heading
repeal, substitute
Amendment of section 50 (Approval for
retirement for invalidity)
Section 50
omit
an eligible employee
substitute
a member of either Scheme
Repeal and substitution of section
50A
Section 50A
repeal, substitute
50A Power to charge
fees for service
(1) The Commissioner may charge fees for services
provided at the request of a person.
(2) If the person requesting the service has an
accumulation account in the Fund, the Commissioner may charge the fee against
the accumulation account.
Examples
1 The Commissioner might charge a fee for
changing the investment of an accumulation account from one investment option to
another.
2 The Commissioner might charge periodic fees
against an accumulation account for paying a benefit, in the form of an
allocated pension, from the account.
(3) The Commissioner may levy a general charge, on
a basis the Commissioner considers appropriate, against accumulation accounts
for providing incidental services (such as financial advice) for members and
adherents of the NTGPAS Scheme.
50B Power to recover
money on behalf of the Territory
If the Territory makes a payment to any person under
either Scheme to which the person was not entitled, or in excess of the person's
entitlement, the Commissioner may, on behalf of the Territory, recover the
amount of the payment or the amount of the excess (as the case requires) as a
debt.
Repeal of sections 52 and
53
Sections 52 and 53
repeal
Part 3 Amendment of Legislative
Assembly Members' Superannuation Fund
Act
Act amended
This Part amends the Legislative Assembly
Members' Superannuation Fund Act.
Amendment of section 3
(Definitions)
Section 3, definition
member
omit, substitute
member means a member of the Assembly
who:
(a) was elected before the scheme closure date; and
(b) has been a member of the Assembly continuously
since that date.
Repeal and substitution of sections 4A and
4B
Sections 4A and 4B
repeal, substitute
4A Members'
accumulation accounts
(1) The Trustees must keep a separate account in
the accounts of the Fund for each member and each former member who retains an
interest in the Fund.
(2) The account must record:
(a) all contributions made by the member;
and
(b) the return on the account for each financial
year.
4B Return on
accumulation accounts
(1) The Trustees must, as soon as practicable after
the end of each financial year, determine the rate of return (which may be
positive, neutral or negative) on accumulation accounts for the financial
year.
(2) The return is to be credited (or debited) to
accumulation accounts as at the end of the financial year.
(3) If an accumulation account is to be closed
during the course of a financial year, the Trustees must determine the rate of
return (which may be positive, neutral or negative) on the accumulation account
for the relevant part of the financial year.
(4) The return is to be credited (or debited) to
the relevant accumulation account as at the date of closure of the
account.
(5) A rate of return determined under this section
must approximate, in the Trustees' opinion, the net rate of return on the
investment of the Fund for the relevant period.
(6) When a member's accumulation account is
credited (or debited) under this section, the Trustees must forward to the
member a statement showing:
(a) the amount standing to the member's credit in
the accumulation account; and
(b) the amount and rate of the
return.
Part 4 Amendment of Northern
Territory Government and Public Authorities' Superannuation Scheme
Rules
Rules amended
The Schedule amends the Northern Territory
Government and Public Authorities' Superannuation Scheme
Rules.
Schedule Amendment of Northern
Territory Government and Public Authorities' Superannuation Scheme
Rules
section 39
|
Provision
|
Amendment
|
|
omit
|
substitute
|
|
rule 1, definition declared interest
rate
|
whole definition
|
|
|
rules 5B(3), 5C(3), 5D(2), 5E(5) and
5F(5)
|
Part III
|
Part 3
|
|
rule 13(2)
|
second sentence
|
|
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