Tasmanian Bills Tasmanian Bills[Index] [Search] [Download] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
TASMANIA
__________
RETIREMENT BENEFITS AMENDMENT
(EARLY RELEASE OF BENEFITS) BILL 2004
__________
CONTENTS
PART 1 PRELIMINARY
1. Short title
2. Commencement
PART 2 RETIREMENT BENEFITS ACT 1993
AMENDED
3. Principal Act
4. Section 29G inserted
29G. Validation of certain payments by Board
PART 3 RETIREMENT BENEFITS (PARLIAMENTARY
SUPERANNUATION) REGULATIONS 2002 AMENDED
5. Principal Regulations
6. Regulation 3 amended (Interpretation)
7. Regulation 24 amended (Preservation of benefits)
8. Regulation 67 amended (Preservation of benefits)
PART 4 RETIREMENT BENEFITS REGULATIONS
1994 AMENDED
9. Principal Regulations
10. Regulation 3 amended (Interpretation)
[Bill 46]-IV
11. Regulation 26 amended (Obligation of certain employees
to contribute)
12. Regulation 43 amended (Preservation of contributions)
13. Regulation 60 amended (Establishment of investment
account for contributors, eligible employees and their
spouses)
14. Regulation 63 amended (Establishment of compulsory
preservation account)
15. Regulation 69 amended (Release of preserved benefits)
16. Regulation 69A inserted
69A. Early release of benefits
17. Regulation 88D rescinded
2
RETIREMENT BENEFITS AMENDMENT
(EARLY RELEASE OF BENEFITS) BILL 2004
(Brought in by the Minister for Finance, the Honourable
James Glennister Cox)
A BILL FOR
An Act to amend the Retirement Benefits Act 1993,
the Retirement Benefits Regulations 1994 and the
Retirement Benefits (Parliamentary
Superannuation) Regulations 2002 to provide for
the early release of benefits
Be it enacted by His Excellency the Governor of Tasmania,
by and with the advice and consent of the Legislative
Council and House of Assembly, in Parliament assembled,
as follows:
PART 1 PRELIMINARY
Short title
1. This Act may be cited as the Retirement Benefits
Amendment (Early Release of Benefits) Act 2004.
Commencement
2. This Act commences on the day on which this Act
receives the Royal Assent.
[Bill 46] 3
s. 3 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
PART 2 RETIREMENT BENEFITS ACT 1993
AMENDED
Principal Act
3. In this Part, the Retirement Benefits Act 1993* is
referred to as the Principal Act.
Section 29G inserted
4. After section 29F of the Principal Act, the following
section is inserted in Part 4:
Validation of certain payments by Board
29G. Where
(a) the Board has made a payment of a
benefit to, or on behalf of, a person on or
after 1 July 1994 and before the
commencement of the Retirement
Benefits Amendment (Early Release of
Benefits) Act 2004; and
(b) a regulated superannuation fund, within
the meaning of the Superannuation
Industry (Supervision) Act 1993 of the
Commonwealth, would have been
permitted to make such a payment
under that Act
that payment by the Board is taken to have been
validly made.
*No. 103 of 1993
4
2004 Retirement Benefits Amendment (Early No. s. 5
Release of Benefits)
PART 3 RETIREMENT BENEFITS
(PARLIAMENTARY SUPERANNUATION)
REGULATIONS 2002 AMENDED
Principal Regulations
5. In this Part, the Retirement Benefits (Parliamentary
Superannuation) Regulations 2002* are referred to as the
Principal Regulations.
Regulation 3 amended (Interpretation)
6. Regulation 3 of the Principal Regulations is amended
by inserting after the definition of "PSRB Trust" the
following definition:
"regulated superannuation fund" means a
regulated superannuation fund within the
meaning of the SIS Act;
Regulation 24 amended (Preservation of benefits)
7. Regulation 24 of the Principal Regulations is amended
by omitting subregulation (3) and substituting the
following subregulation:
(3) Notwithstanding subregulation (1), a
member who is under the preservation age is
entitled to be paid by the Board the whole or a part
of his or her benefit if a regulated superannuation
fund would be permitted under the SIS Act to make
such a payment in similar circumstances.
*S.R. 2002, No. 176
5
s. 8 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
Regulation 67 amended (Preservation of benefits)
8. Regulation 67 of the Principal Regulations is amended
by omitting subregulation (3) and substituting the
following subregulation:
(3) Notwithstanding subregulation (1), a
member who is under the preservation age is
entitled to be paid by the Board the whole or a part
of his or her benefit if a regulated superannuation
fund would be permitted under the SIS Act to make
such a payment in similar circumstances.
6
2004 Retirement Benefits Amendment (Early No. s. 9
Release of Benefits)
PART 4 RETIREMENT BENEFITS REGULATIONS
1994 AMENDED
Principal Regulations
9. In this Part, the Retirement Benefits Regulations 1994*
are referred to as the Principal Regulations.
Regulation 3 amended (Interpretation)
10. Regulation 3(1) of the Principal Regulations is
amended as follows:
(a) by omitting the definition of "regulated
superannuation fund" and substituting the
following definition:
"regulated superannuation fund"
means a regulated
superannuation fund within the
meaning of the SIS Act;
(b) by inserting the following definition after the
definition of "service":
"SIS Act" means the Superannuation
Industry (Supervision) Act 1993 of
the Commonwealth;
Regulation 26 amended (Obligation of certain
employees to contribute)
11. Regulation 26 of the Principal Regulations is amended
as follows:
*S.R. 1994, No. 83
7
s. 12 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
(a) by omitting paragraph (b) from subregulation
(11) and substituting the following paragraph:
(b) refund to him or her the total of all
excess contributions paid above
that rate after 30 June 1999
together with accrued interest, but
only if a regulated superannuation
fund would be permitted under the
SIS Act to make such a payment
in similar circumstances.
(b) by inserting the following subregulation after
subregulation (11):
(12) On payment of a refund of
additional contributions under
subregulation (11), the contributor is taken to
have contributed at the basic contribution rate
during the period of service to which the
refund of those additional contributions
relates.
Regulation 43 amended (Preservation of
contributions)
12. Regulation 43(8) of the Principal Regulations is
amended by omitting paragraph (c) and substituting the
following paragraph:
(c) if the benefit is calculated under regulation 41,
the amount of the employee component
calculated as at 30 June 1999.
8
2004 Retirement Benefits Amendment (Early No. s. 13
Release of Benefits)
Regulation 60 amended (Establishment of
investment account for contributors, eligible
employees and their spouses)
13. Regulation 60 of the Principal Regulations is amended
as follows:
(a) by omitting from subregulation (4) ", unless
prohibited from doing so by the law of the
Commonwealth,";
(b) by inserting the following subregulation after
subregulation (4):
(4A) On receipt of an election under
subregulation (4), the Board must, subject to
subregulation (5A), give effect to that election
and reduce the balance of the person's
investment account accordingly.
(c) by inserting the following subregulation after
subregulation (5):
(5A) Any amount standing to the credit
of an investment account may be paid by the
Board only if a regulated superannuation fund
would be permitted under the SIS Act to make
such a payment in similar circumstances.
Regulation 63 amended (Establishment of
compulsory preservation account)
14. Regulation 63(5) of the Principal Regulations is
amended by omitting "A benefit" and substituting "Except
as provided by regulation 69A, a benefit".
9
s. 15 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
Regulation 69 amended (Release of preserved
benefits)
15. Regulation 69 of the Principal Regulations is amended
by omitting subregulation (2) and substituting the
following subregulation:
(2) Where the Board is required to preserve a
lump sum benefit entitlement under Part 4 or 5,
that benefit entitlement may be paid by the Board
only if a regulated superannuation fund would be
permitted under the SIS Act to make such a
payment in similar circumstances.
Regulation 69A inserted
16. After regulation 69 of the Principal Regulations, the
following regulation is inserted in Part 6:
Early release of benefits
69A. (1) In this regulation
"child", in respect of a person, includes a
step-child of the person;
"dependant", in respect of a person,
includes
(a) the spouse of the person; and
(b) a child of the person; and
(c) any other person with whom the
first-mentioned person has an
interdependency relationship
within the meaning of section 10A
of the SIS Act;
10
2004 Retirement Benefits Amendment (Early No. s. 16
Release of Benefits)
"medical transport" means transport by
land, water or air for the purposes of
medical attention.
(2) This regulation applies only to a person
who holds an account under regulation 60 or 63.
(3) A person to whom this regulation applies
may apply to the Board in a form approved by the
Board for a determination in accordance with this
regulation for the early release of the whole or a part
of an amount standing to the credit of his or her
account under regulation 60 or 63.
(4) Subject to Part 7A but notwithstanding
any other provision of these regulations, the Board
may make a determination for the early release of
the whole or a part of a person's benefit as
mentioned in subregulation (3) if the Board is
satisfied that
(a) the amount to be released is required
(i) to pay for medical treatment or
medical transport for the person or
a dependant; or
(ii) to enable the person to make a
payment on a loan, to prevent
(A) foreclosure of a mortgage on
the person's principal place
of residence; or
(B) exercise by the mortgagee of
an express or statutory
power of sale over the
person's principal place of
residence; or
11
s. 16 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
(iii) to modify the person's principal
place of residence, or vehicle, to
accommodate the special needs of
the person, or a dependant, arising
from severe disability; or
(iv) to pay for expenses associated
with the person's palliative care,
in the case of impending death; or
(v) to pay for expenses associated
with a dependant's death, funeral,
burial or, in the case of impending
death, palliative care; or
(vi) to meet expenses for any other
purpose which the Board
determines to be consistent with a
ground mentioned in the
preceding subparagraphs of this
paragraph; or
(b) the person to whom this regulation
applies is in severe financial hardship as
mentioned in subregulation (9)(a); or
(c) the person to whom this regulation
applies is in severe financial hardship as
mentioned in subregulation (9)(b).
(5) The Board must not make a determination
under this regulation that money is required for
medical treatment unless 2 legally qualified medical
practitioners (at least one of whom must be a
specialist) certify that
(a) the medical treatment is necessary to
(i) treat a life-threatening illness or
injury; or
12
2004 Retirement Benefits Amendment (Early No. s. 16
Release of Benefits)
(ii) alleviate acute or chronic pain; or
(iii) alleviate an acute or chronic
mental disturbance; and
(b) the treatment is not readily available to
the person, or the dependant, through
the public health system.
(6) The Board must not make a determination
under this regulation that money is required for
medical transport unless the medical treatment for
which the medical transport is required has been
certified, under subregulation (5), as necessary for a
reason mentioned in subregulation (5)(a).
(7) The Board must not make a determination
under this regulation that money is required on the
ground mentioned in subregulation (4)(a)(ii) unless
the person provides the Board with a written
statement from the mortgagee that
(a) payment of an amount is overdue; and
(b) if the person fails to pay the amount, the
mortgagee will
(i) foreclose the mortgage on the
person's principal place of
residence; or
(ii) exercise its express or statutory
power of sale over the person's
principal place of residence.
(8) A statement under subregulation (7) must
specify
(a) an amount that is equal to 3 months'
repayments under the mortgage; and
13
s. 16 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
(b) an amount that is equal to 12 months'
interest on the outstanding balance of
the loan at the time the statement is
made.
(9) For the purposes of subregulation (4), a
person is taken to be in severe financial hardship
if
(a) the Board is satisfied that
(i) based on written evidence
provided by at least one
department or agency of the
Commonwealth responsible for
administering a class of
Commonwealth income support
payments
(A) the person has received
Commonwealth income
support payments for a
continuous period of 26
weeks; and
(B) the person was in receipt of
payments of that kind on the
date of the written evidence;
and
(ii) the person is unable to meet
reasonable and immediate family
living expenses; or
(b) the person has reached the age that is
the person's preservation age plus 39
weeks and the Board is satisfied that
(i) based on written evidence
provided by at least one
department or agency of the
14
2004 Retirement Benefits Amendment (Early No. s. 16
Release of Benefits)
Commonwealth responsible for
administering a class of
Commonwealth income support
payments, the person received
Commonwealth income support
payments for a cumulative period
of 39 weeks after the person
reached his or her preservation
age; and
(ii) the person was not gainfully
employed on a full-time or part-
time basis on the date of his or her
application under this regulation.
(10) The written evidence referred to in
subregulation (9)(a) is of no effect if it is dated more
than 21 days before the date of the relevant
application to the Board.
(11) In each 12-month period, beginning on
the date of the first payment, the Board may, under
this regulation, pay by way of early release of a
person's benefit a single lump sum payment that is
to be
(a) in respect of an amount released under
subregulation (4)(a)(ii), not more than
the total of the amounts referred to in
subregulation (8); or
(b) in respect of a person who is in severe
financial hardship as mentioned in
subregulation (9)(a), an amount not less
than $1 000 and not more than $10 000
or, if the amount of the person's benefit
is less than $1 000, the amount of that
benefit; or
15
s. 17 No. Retirement Benefits Amendment (Early 2004
Release of Benefits)
(c) in respect of a person who is in severe
financial hardship as mentioned in
subregulation (9)(b), an amount not
more than the amount of the person's
benefit; or
(d) in respect of any other amount released
under subregulation (4), such amount as
the Board considers appropriate after
consideration of the relevant application
and accompanying evidence.
(12) An amount released under this regulation
may be paid to any person that the Board
determines.
(13) Where the Board has paid an amount by
way of early release under this regulation, the Board
must reduce the balance of the relevant person's
account or accounts under regulation 60 or 63
accordingly.
(14) If the Board is not satisfied that an
applicant has established grounds for the early
release of the whole or a part of his or her benefit,
the Board may decline to proceed with consideration
of the application until the applicant has produced
such relevant information as the Board may require.
Regulation 88D rescinded
17. Regulation 88D of the Principal Regulations is
rescinded.
16 Government Printer, Tasmania