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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Emergency Services Superannuation (Amendment)
Act 2005
Act No.
TABLE OF PROVISIONS
Clause Page
1. Purpose 1
2. Commencement 2
3. Amendment of section 20C--Accrued benefits 2
4. Amendment of section 20E--Death of contributor or police
recruit 6
5. Amendment of section 20G--Temporary pension for illness or
injury 6
6. Amendment of section 21B--Membership of ESSPLAN 6
7. Amendment of section 21J--Beneficiaries Accounts 6
8. Amendment of section 25A--Taxation on benefits 7
9. New section 25AA inserted--No detriment provision 7
25AA. No detriment provision 7
10. New section 27A inserted--Unpaid lump sum benefits 10
27A. Unpaid lump sum benefits 10
ENDNOTES 11
i
551285B.I1-3/5/2005 BILL LA INTRODUCTION 3/5/2005
PARLIAMENT OF VICTORIA
A BILL
to amend the Emergency Services Superannuation Act 1986 and for
other purposes.
Emergency Services Superannuation
(Amendment) Act 2005
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to amend the
Emergency Services Superannuation Act
1986--
(a) to enable the payment of certain benefits as a
5
lump sum on a taxed basis and enshrine the
84 multiple for benefits on an untaxed basis;
(b) to improve the operation of the Act.
1
551285B.I1-3/5/2005 BILL LA INTRODUCTION 3/5/2005
Emergency Services Superannuation (Amendment) Act 2005
s. 2
Act No.
2. Commencement
This Act comes into operation on the day after the
day on which it receives the Royal Assent.
3. Amendment of section 20C--Accrued benefits
See: (1) After section 20C(2) of the Emergency Services
5 Act No.
Superannuation Act 1986 insert--
94/1986.
Reprint No. 5
'(2AA) Sub-sections (1) and (2) apply for the
as at
15 October
purposes of calculating--
2003
and
(a) the relevant lump sum payable to a
amending
contributor who becomes entitled to a
10 Act No.
40/2004.
benefit before 1 July 2005 under
LawToday:
section 20D, 20F, 20G, 20H, 20J
www.dms.
dpc.vic.
or 20K; or
gov.au
(b) the relevant lump sum payable to a
contributor who--
15
(i) becomes entitled to a benefit on or
after 1 July 2005 under section
20D, 20F, 20G, 20H, 20J or 20K
to which a determination made
under section 25A(3) applies; and
20
(ii) makes an election under sub-
section (2AF); or
(c) the relevant lump sum payable in
accordance with section 20E.
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Emergency Services Superannuation (Amendment) Act 2005
s. 3
Act No.
(2AB) For the purposes of calculating the relevant
lump sum payable to a contributor who--
(a) becomes entitled to a benefit on or after
1 July 2005 under section 20D, 20F,
20G, 20H, 20J or 20K to which a
5
determination made under section
25A(3) applies; and
(b) does not make an election under sub-
section (2AF)--
the accrued benefit of a contributor is the
10
sum determined in accordance with the
formula--
(A + B) C--
where--
"A" is the sum of the percentage of salary of
15
the contributor (accrual rate) dependent
on the contribution level over the
period of membership of the
contributor in accordance with the
Table in sub-section (2AC);
20
"B" is the sum of the percentage of salary of
the contributor specified in sub-section
(2AD);
"C" is 107% of the amount of the total of
"A" and "B" which is attributable to
25
any period of membership of the
contributor during the period
commencing 1 July 1988 and ending
30 June 2005.
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Emergency Services Superannuation (Amendment) Act 2005
s. 3
Act No.
(2AC) The Table referred to in sub-section (2AB)
is--
Annual Annual
Contribution accrual rate accrual rate
rate by for each year for each year
contributor as of of
percentage of membership membership
salary of the before 1 July after 1 July
contributor 2005 2005
0 10 85
3 16 14
5 20 18
6 24 215
7 28 25
8 32 285
9 36 Not Applicable
(2AD) For the purposes of the definition of "B" in
sub-section (2AB), the sum of the percentage
of salary of the contributor is the sum of--
5
(a) the percentage of the salary of the
contributor that is determined by the
Board having regard to the period of
membership and contributions of the
contributor under any prior fund and
10
any benefits paid to the contributor
from any prior fund; and
(b) the percentage of the salary of the
contributor that is determined by the
Board having regard to any money or
15
assets transferred from an approved
superannuation arrangement.
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Emergency Services Superannuation (Amendment) Act 2005
s. 3
Act No.
(2AE) For the purposes of sub-section (2AB), the
accrued benefit of a contributor or the benefit
paid under section 20K to a contributor must
not exceed whichever is the lesser of--
(a) the sum of--
5
(i) 75 times the salary of the
contributor; and
(ii) 107% of the amount of the total
of "A" and "B" (within the
meaning of sub-section (2AB))
10
which is attributable to any period
of membership of the contributor
before 1 July 1988; or
(b) 84 times the salary of the contributor.
(2AF) A contributor who becomes entitled to a
15
lump sum benefit on or after 1 July 2005
under section 20D, 20F, 20G, 20H, 20J
or 20K to which a determination made under
section 25A(3) applies may within 60 days
of becoming entitled to the lump sum
20
benefit--
(a) make a request for the whole of the
lump sum benefit to be transferred to a
beneficiary account established under
section 21J; and
25
(b) elect in the form approved by the Board
to have the benefit calculated in
accordance with sub-sections (1)
and (2) as a benefit to which a
determination made under section
30
25A(3) does not apply.'.
(2) In section 20C(2A) of the Emergency Services
Superannuation Act 1986 after "(2)" insert
"or (2AE)".
5
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Emergency Services Superannuation (Amendment) Act 2005
s. 4
Act No.
4. Amendment of section 20E--Death of contributor
or police recruit
In section 20E(1) of the Emergency Services
Superannuation Act 1986 omit "retirement".
5. Amendment of section 20G--Temporary pension
5
for illness or injury
In section 20G(6) of the Emergency Services
Superannuation Act 1986 after "(3)(b)" insert
"(ii)".
6. Amendment of section 21B--Membership of
10
ESSPLAN
For section 21B(4)(b) of the Emergency Services
Superannuation Act 1986 substitute--
"(b) the person is employed on a basis which
satisfies the requirements specified in Part 7
15
of the Superannuation Industry (Supervision)
Regulations 1994 of the Commonwealth.".
7. Amendment of section 21J--Beneficiaries Accounts
(1) In section 21J(2) of the Emergency Services
Superannuation Act 1986 for "The" substitute
20
"Subject to sub-section (2A), the".
(2) After section 21J(2) of the Emergency Services
Superannuation Act 1986 insert--
"(2A) If an election has been made under section
20C(2AF), the whole of the lump sum
25
benefit is to be transferred to the beneficiary
account.".
(3) In section 21J(4) of the Emergency Services
Superannuation Act 1986 for "14 days"
substitute "60 days".
30
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Emergency Services Superannuation (Amendment) Act 2005
s. 8
Act No.
8. Amendment of section 25A--Taxation on benefits
In section 25A of the Emergency Services
Superannuation Act 1986--
(a) in sub-section (6) for "an unreasonable"
substitute "any";
5
(b) in sub-section (9) omit "unreasonable";
(c) in sub-section (10) for "an unreasonable"
substitute "any".
9. New section 25AA inserted--No detriment provision
After section 25A of the Emergency Services
10
Superannuation Act 1986 insert--
'25AA. No detriment provision
(1) In this section--
"actuary" means a person who is--
(a) a fellow or an accredited member
15
of the Institute of Actuaries of
Australia; and
(b) approved by the Minister; and
(c) appointed by the Board as the
actuary for the purpose of this
20
section;
"affected member" means a person who
becomes a contributor on or after 1 July
2005 and becomes entitled to a benefit
part of which is subject to a
25
determination made under section
25A(3);
"after-tax benefit" has the same meaning as
it has in section 25A;
7
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Emergency Services Superannuation (Amendment) Act 2005
s. 9
Act No.
"detriment" means receiving a lesser
amount of after-tax benefit than would
have been received if the benefit had
not been subject to a determination
made under section 25A(3);
5
"post-June 1983 component" has the same
meaning as it has in section 25A;
"rebatable 27H amount" has the same
meaning as it has in section 25A;
"tax law" has the same meaning as it has in
10
section 25A;
"taxed element" has the same meaning as it
has in section 25A;
"taxed" has the same meaning as it has in
section 25A;
15
"untaxed" has the same meaning as it has in
section 25A.
(2) If, having received an application from an
affected member in accordance with sub-
section (3), the Board is satisfied that a
20
reduction in benefits has resulted in a
detriment to the member in respect of a
benefit which has become payable to the
member, the Board may take such steps,
including without limitation increasing the
25
benefit, as the Board considers necessary to
avoid or compensate for that detriment.
(3) An affected member may within 3 months of
a benefit becoming payable from the Fund
(or any longer period approved by the Board
30
if the Board considers that there are special
circumstances) apply to the Board for a
review of the amount of the benefit.
8
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Emergency Services Superannuation (Amendment) Act 2005
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Act No.
(4) The application must be in a form and
contain and be accompanied by information
required by the Board.
(5) The Board must not consider an application
for review under this sub-section on any
5
ground other than detriment.
(6) In determining whether a detriment exists
and the extent of that detriment--
(a) the Board must act on the advice of the
actuary, given either generally or in any
10
specific case; and
(b) the actuary must have regard to the
following factors--
(i) the receipt by a member of a post-
June 1983 component of the
15
benefit classified for the purposes
of the tax law as a taxed element
rather than as an untaxed element;
and
(ii) the rates of tax and the basis for its
20
assessment under the tax law as at
the commencement of section 145
of the Public Sector
Superannuation
(Administration) Act 1993 in
25
respect of a benefit that becomes
payable to a person aged 55 years
or more; and
(iii) any other matters the actuary
considers relevant.'.
30
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551285B.I1-3/5/2005 BILL LA INTRODUCTION 3/5/2005
Emergency Services Superannuation (Amendment) Act 2005
s. 10
Act No.
10. New section 27A inserted--Unpaid lump sum
benefits
After section 27 of the Emergency Services
Superannuation Act 1986 insert--
"27A. Unpaid lump sum benefits
5
If any lump sum benefit is not paid within
14 days of the date of termination of service
of a contributor, the unpaid benefit is
deemed to yield net earnings at a net earning
rate as the Board in its discretion considers
10
appropriate in the circumstances at that time
from the date of termination of service until
the date on which the lump sum benefit is
paid or transferred to an account established
under this Act at the request of the
15
contributor.".
10
551285B.I1-3/5/2005 BILL LA INTRODUCTION 3/5/2005
Emergency Services Superannuation (Amendment) Act 2005
Endnotes
Act No.
ENDNOTES
By Authority. Government Printer for the State of Victoria.
11
551285B.I1-3/5/2005 BILL LA INTRODUCTION 3/5/2005
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