Victorian Consolidated Legislation

Emergency Services Superannuation Act 1986 - SECT 20C

Accrued benefits

20C. Accrued benefits



(1) The accrued benefit of a contributor is the sum of-

   (a)  10% of the salary of the contributor for each year of membership in
        which the contributor was entitled to make but did not make
        contributions to the Scheme; and

   (b)  16% of the salary of the contributor for each year of membership in
        which the contributor contributed 3% of salary to the Scheme; and

   (c)  20% of the salary of the contributor for each year of membership in
        which the contributor contributed 5% of salary to the Scheme; and

   (d)  24% of the salary of the contributor for each year of membership in
        which the contributor contributed 6% of salary to the Scheme; and

   (e)  28% of the salary of the contributor for each year of membership in
        which the contributor contributed 7% of salary to the Scheme; and

   (f)  32% of the salary of the contributor for each year of membership in
        which the contributor contributed 8% of salary to the Scheme; and

   (g)  36% of the salary of the contributor for each year of membership in
        which the contributor contributed 9% of salary to the Scheme prior to
        1 January 1994; and

   (h)  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 any benefits paid to the
        contributor from any prior fund; and

        (i)    the percentage of the salary of the contributor that is
               determined by the Board having regard to any money or assets
               transferred from an approved superannuation arrangement.

(2) The accrued benefit of a contributor must not exceed a maximum of 8×40
times the salary of the contributor.

(2AA) Subsections (1) and (2) apply for the purposes of calculating-

   (a)  the relevant lump sum payable to a contributor who becomes entitled to
        a benefit before 1 July 2005 under section 20D, 20F, 20G, 20H, 20J or
        20K; or

   (b)  the relevant lump sum payable to a contributor who-

   (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

   (ii) makes an election under subsection (2AF); or

   (c)  the relevant lump sum payable in accordance with section 20E.

(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 determination made under
        section 25A(3) applies; and

   (b)  does not make an election under subsection (2AF)-

the accrued benefit of a contributor is the sum determined in accordance with
the formula- (A + B) - C- where- "A" is the sum of the percentage of salary of
the contributor (accrual rate) dependent on the contribution level over the
period of membership of the contributor in accordance with the Table in
subsection (2AC); "B" is the sum of the percentage of salary of the
contributor specified in subsection (2AD); "C" is 10×7% of the amount of the
total of "A" and "B" which is attributable to any period of membership of the
contributor during the period commencing 1 July 1988 and ending 30 June 2005.



(2AC) The Table referred to in subsection (2AB) is-

Contribution rate by contributor as percentage of salary of the contributor
Annual accrual rate for each year of membership before 1 July 2005 Annual
accrual rate for each year of membership after 1 July 2005 0 10 8×5 3 16 14 5
20 18 6 24 21×5 7 28 25 8 32 28×5 9 36 Not Applicable

(2AD) For the purposes of the definition of "B" in subsection (2AB), the sum
of the percentage of salary of the contributor is the sum of-

   (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 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 assets transferred from an
        approved superannuation arrangement.

(2AE) For the purposes of subsection (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-

   (i)  7×5 times the salary of the contributor; and

   (ii) 10×7% of the amount of the total of "A" and "B" (within the meaning of
        subsection (2AB)) which is attributable to any period of membership of
        the contributor before 1 July 1988; or

   (b)  8×4 times the salary of the contributor.

(2AF) A contributor who becomes entitled to a 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 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

   (b)  elect in the form approved by the Board to have the benefit calculated
        in accordance with subsections (1) and (2) as a benefit to which a
        determination made under section 25A(3) does not apply.

(2A) For the purposes of subsection (2) or (2AE), if a payment or transfer to
a non-member spouse is made for the purposes of Part VIIIB of the Commonwealth
Family Law Act 1975 whether under Part 4A or otherwise, the maximum accrued
benefit of the member spouse must be adjusted by the Board in accordance with
a methodology approved by the Minister, on the advice of an actuary appointed
by the Board.





(3) For the purposes of sections 20F(8), 20F(9), 20F(10), 20F(19) and
20G(3)(b)(ii), the salary used to determine the accrued benefit of a former
contributor is the current equivalent of salary on termination of service.

(4) In any case of a payment under this Part and which is made on or after 1
January 1994, the benefit calculated to be payable by the Board must not be
less than any benefit that would have been payable if the benefit had been
paid prior to 1 January 1994.