Victorian Consolidated Legislation

Emergency Services Superannuation Act 1986 - SECT 20A

Contributions

20A. Contributions



(1) Subject to subsection (2), a contributor must make contributions to the
Scheme on each date for payment of salary or, except when the contributor has
become entitled to a benefit under section 20D, 20F, 20J or 20K, periodic
payments under the Accident Compensation Act 1985.

(2) Subject to subsections (5), (6), (7) and (8), a contributor may elect to
make no contributions or to make contributions at a rate of 3%, 5%, 6%, 7% or
8% of salary.

(2A) An eligible salary sacrifice contributor may by notice in writing to his
or her employer elect to make his or her member contributions by way of salary
sacrifice at the rate calculated to the nearest highest 0×1% in accordance
with the following formula-

where-



"M" is the applicable member contribution rate in accordance with subsection
(2) without salary sacrifice;



"R" is the tax rate for the financial year on taxable contributions to the
Scheme under the Income Tax Assessment Act 1936 of the Commonwealth.





(2B) An election under subsection (2A)-

   (a)  can only be made if there is in force an agreement between the
        employer and the contributor under which the employer can make the
        member contributions required by this Act by way of salary sacrifice;

   (b)  is subject to the terms and conditions specified in the agreement
        referred to in paragraph (a);

   (c)  can only be made in respect of the whole of the member contributions;

   (d)  can not be made in respect of any contributions made by a contributor
        in addition to the member contributions required under subsection (2).

(2C) Member contributions made in accordance with the rate determined under
subsection (2A) are for the purposes of this Act (other than sections 25B to
25C) to be taken to be-

   (a)  the member contributions required to be paid under this Act; and

   (b)  the member contributions that would have been payable if an election
        had not been made under subsection (2A).

Note The effect of paragraph (b) is that, for the purpose of calculating
benefit entitlements, the member contributions are taken to be the member
contributions that would have been payable if no election had been made.

(2D) An election under subsection (2A) does not affect the amount that would
otherwise constitute the salary of the contributor for the purposes of this
Act.

(3) The contributions payable by a part-time contributor are that proportion
of the contributions otherwise determined in accordance with this section that
the service of the part-time contributor (at the time the contributions fall
due) bears to the service of a person in similar employment on a full-time
basis.

(3A) For the purposes of subsection (3), the Board may review the
contributions payable by a part-time contributor.

(3B) If after a review under subsection (3A), the Board considers that the
contributions paid by the part-time contributor during the period reviewed do
not bear the same proportion to the contributions otherwise determined in
accordance with this section that the service of the part-time contributor
bears to the service of a person in similar employment on a full-time basis,
the Board may require the part-time contributor to make additional
contributions as determined by the Board.

(4) Subject to giving 2 months' notice in writing, a contributor may vary the
rate of contribution once in any calendar year.

(5) A contributor who is not an operational staff member is permitted to
contribute at a rate of 6% of salary only if the contributor is a transferred
officer.

(6) A contributor who is not an operational staff member is permitted to
contribute at a rate of 7% of salary only if the contributor is a transferred
officer.





(7) A contributor is permitted to contribute at a rate of 8% of salary only if
at the time of the first election under this section or at any subsequent date
on which contributions may be varied-

   (a)  the contributor is a transferred officer and has contributed to the
        Fund established under the Superannuation Act 1958 and the Scheme for
        a total period of not less than 5 years; or

   (b)  the contributor is a transferred officer and has contributed to the
        Fund established under the Metropolitan Fire Brigades Superannuation
        Act 1976 and the Scheme for a total period of not less than 15 years;
        or

   (c)  the contributor is a transferred officer and has contributed to the
        Fund established under the Hospitals Superannuation Act 1965 and the
        Scheme for a total period of not less than 10 years; or

   (d)  the contributor is an operational staff member whose average
        contribution rate is less than 7% of his or her salary for each year
        of his or her membership.

(8) Contributions must cease when the accrued benefit of the member equals the
maximum specified in section 20C.

(9) The Board may at its discretion accept on behalf of a contributor a
transfer of money or other assets from an approved superannuation arrangement.

(10) Contributors must make elections under this section in the form specified
by the Board.

(11) Employers must deduct contributions from the salaries of contributors and
pay them without deduction to the Board.

(12) On and from 1 January 1994 a contributor who had been a contributor at
the rate of 9% of salary prior to 1 January 1994 is to be deemed to have
elected to contribute at a rate of 8% of salary with effect from the first
full pay day in January 1994.