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SUPERANNUATION AND FAMILY BENEFITS ACT 1938 - SECT 37

37 .         Scale of units of pension

        (1)         Subject to this Act, contributions by a contributor and by a qualified contributor shall be in respect of units of pension as defined in section 58, and the maximum number of units in respect of which a contributor or a qualified contributor may contribute shall have relation to the salary of the employee

            (a)         in accordance with scale A appended to this subsection if the employee commenced contributing before 1 January 1958; or

            (b)         in accordance with column 2 of scale B appended to this subsection if the employee

                  (i)         commences contributing on or after that day; or

                  (ii)         having commenced contributing before that day in respect of any number of units elects to contribute after that day for an increase in the number of units, in which case scale B applies only in respect of the increase in the number of units.

Scale A

Column 1

Column 2

Where the annual salary of the employee in terms of the currency existing at 1 January 1958

The employee may contribute the amount necessary to provide units of pension as under

exceeds

does not exceed


£

£


-

130

2

130

156


156

208

3

208

260

4

260

312

5

312

364

6

364

416

7

416

468

8

468

520

9

520

572

10

572

624

11

624

676

12

676

728

13

728

780

14

780

832

15

832

884

16

884

936

17

936

988

18

988

1 040

19

1 040

1 144

20

1 144

1 248

21

1 248

1 352

22

1 352

1 456

23

1 456

1 560

24

1 560

1 664

25

1 664

-

26

Scale B

Column 1

Column 2

Column 3

Column 4

where annual salary exceeds

does not exceed

total unit entitlement

primary unit entitlement

non-contributory unit entitlement

$

$




-

324

2

2

-

324

390



-

390

520

3

3

-

520

650

4

4

-

650

780

5

5

-

780

910

6

6

-

910

1 040

7

7

-

1 040

1 170

8

8

-

1 170

1 300

9

9

-

1 300

1 430

10

10

-

1 430

1 560

11

11

-

1 560

1 690

12

12

-

1 690

1 820

13

13

-

1 820

1 950

14

14

-

1 950

2 080

15

15

-

2 080

2 210

16

16

-

2 210

2 340

17

17

-

2 340

2 470

18

18

-

2 470

2 600

19

19

-

2 600

2 860

20

20

-

2 860

3 120

22

21

1

3 120

3 380

24

22

2

3 380

3 640

26

23

3

3 640

3 900

28

24

4

3 900

4 160

30

25

5

4 160

4 420

32

26

6

4 420

4 680

34

27

7

4 680

4 940

36

28

8

4 940

5 200

38

29

9

5 200

5 460

40

30

10

5 460

5 720

42

31

11

5 720

5 980

44

32

12

5 980

6 240

46

33

13

6 240

6 500

48

34

14

6 500

6 760

50

35

15

6 760

7 020

52

36

16

7 020

7 280

54

37

17

7 280

7 540

56

38

18

7 540

7 800

58

39

19

                and thereafter total unit entitlement is increased by 2, primary unit entitlement by 1, and non-contributory unit entitlement by 1, units respectively for each $260 of annual salary, or part thereof, above $7 800.

        [(2)         deleted]

        (3)         A contributor or a qualified contributor whose salary does not exceed $416 per annum may elect to contribute in respect of additional units or half units to make up a total number of 2½, 3, or 4 units.

        (4)         Where an employee enters the service after the commencement of this subsection and becomes a contributor, the Board may grant an application by him for a number of units less than the relative number for his salary group as shown in the scale in subsection (1).

        (5)         Subject to subsection (9), if the salary of a contributor is increased and by reason of that increase falls within a higher salary group in column one of the scale contained in subsection (1) than the salary group in which it fell prior to the increase, the following provisions shall apply to the contributor — 

            (a)         if he has attained the age of 40 years, or, being an employee at the commencement of this Act, was not less than 30 years of age when he became a contributor, he may increase the amount of his contribution to an amount not exceeding the sum which will provide units of pension to the number specified in column 2 opposite to that higher salary group; and

            (b)         in all other cases he may increase the amount of his contribution to such a sum as will provide units of pension to the number so specified. Any such increased contribution shall be payable as from the date upon which the contributor elects to increase the amount of his contribution:

                Provided that — 

                  (i)         where any increase of salary is due to the operation of an award of a court or body having power to fix rates of pay, which award makes the amount of salary liable to be increased if an increase occurs in a declared basic wage, and by reason of such increase the salary of a contributor or of a qualified contributor falls within a higher salary group than the salary group in which it fell prior to the increase, the contributor or the qualified contributor may elect to increase the amount of his contribution accordingly; and

                  (ii)         in any instance in which a declaration of the basic wage as mentioned in paragraph (i) of this proviso has the effect of placing employees in the service outside the metropolitan area in a salary group higher than that for the same grade or class of employees in the service within the metropolitan area, the employees in the service outside the metropolitan area who are contributors or qualified contributors may, at their option, continue to contribute in respect of the same number of units for which they were contributing prior to such declaration of the basic wage, or may contribute for the additional unit or units prescribed for the higher salary group in which they have been placed by reason of the operation of the declaration of the basic wage as aforesaid; and

                  (iii)         for the purpose of paragraph (ii) of this proviso the metropolitan area means that portion of the State comprised within an imaginary circle having a radius of 50 kilometres from the General Post Office, at Perth, as the centre of such circle.

        (6)         An employee employed in the service at the commencement of this Act who, when he becomes a contributor, is not less than 30 years of age shall not in any case be compelled to contribute for more than 2 units but may, within 6 months after he becomes a contributor, elect to take the benefit of this subsection and thereupon the following provisions shall apply to him: — 

            (a)         Subject to paragraph (c) he may elect within the said 6 months to contribute, at the rates prescribed for the age of 30 years, for 2, 2½, 3 or 4 units; and

            (b)         if his period of his service under the State is not less than 10 years, he may elect within the said 6 months to contribute at the rate appropriate to his age as provided in the Schedules for units additional to those contributed for under the last preceding paragraph: Provided that — 

                  (i)         the total number of units contributed for by any such employee shall not exceed the number of units prescribed for the salary group to which, according to the scale contained in subsection (1) he belongs or the number of 4 units, whichever is the greater;

                  (ii)         where an employee satisfies the Board that he has failed to make an election under paragraph (a) within the time specified in that paragraph owing to circumstances not within his own control, the employee may — 

            (a)         contribute for 2 units as at the rate for the age of 30, as from the commencement of his contributions under this Act; and

            (b)         elect, within such further time as is prescribed, to contribute as at the rate for the age of 30 for additional units so that the total number of units for which he contributes at that rate is either 2½, 2, 3 or 4 units;

                or

            (c)         if the period of his service under the State is less than 10 years he may, in addition to his election under paragraph (a), but subject as hereinafter provided, elect to contribute from the date on which his period of service will be not less than 10 years at the rate appropriate to his age at that date for units additional to those for which he has elected to contribute under paragraph (a).

                Provided that — 

                  (i)         he shall make his election under this paragraph within 2 months after the date on which his period of service under the State will be not less than 10 years as aforesaid; and

                  (ii)         the total number of units contributed for by such employee shall not exceed the number of units prescribed for the salary group to which, according to the scale contained in subsection (1) he belongs.

        (7)         An employee employed in the service at the commencement of this Act who, when he becomes a contributor, is not less than 30 years of age, and who has not elected to take the benefit of the last preceding subsection, may, subject to subsection (2), elect to contribute for any number of units not being less than 2 and not exceeding the number prescribed for the salary-group to which, according to the scale contained in subsection (1), he belongs.

        (8)         An employee who has exercised any power of election in pursuance of either of the last 2 preceding subsections, shall pay, as from the date when he became a contributor, his contributions for the units for which he has elected to contribute.

                Provided that where the employee exercises a power of election within a further prescribed time, the employee shall pay as from the first day of the month in which he makes the election his contributions for the units for which he has so elected to contribute.

        (9)         The provisions of subsection (5) do not apply to or in relation to an election made by a contributor on or after 1 January 1971 for units in accordance with Scale B.

        (10)         Where the salary of a contributor is increased and by reason of that increase there is an increase in his total unit entitlement, he may, within 2 months from the day upon which payment of his salary at the increased rate is approved or the day upon which the increased salary is payable, whichever is the later, elect to contribute for any number of additional units that does not exceed the number of units by which his total unit entitlement was so increased.

        (10a)         Without limiting, the operation of subsection (10), a contributor may, under and subject to the regulations, elect to contribute for the whole of any increase in his total unit entitlement, or the whole of any increase in his primary unit entitlement, which may, from time to time, occur by reason of any increase in his salary which occurs while the election remains in force.

        (10b)         Regulations made for the purposes of subsection (10a) may — 

            (a)         provide that units of pension to which the election related are, in the prescribed circumstances, valid for the purposes of this Act in the event of the death or invalidity of the contributor, notwithstanding that no contributions have been made in respect of those units;

            (b)         specify the times at which contributions in respect of those units shall commence and the ages upon which the rates of contribution are to be assessed;

            (ba)         provide that the operation of an election in relation to increases in primary unit entitlement made by a contributor who, at the time of the election, is contributing for a number of units exceeding his primary unit entitlement shall, if the contributor so requests, be deferred until it becomes necessary for the contributor to contribute for additional units in order to continue contributing for not less than his primary unit entitlement;

            (c)         provide for the manner of making and revoking elections and the limiting of the circumstances in which contributors, having revoked an election, may subsequently make further elections; and

            (d)         prescribe any other matter necessary or convenient for giving effect to the purposes of subsection (10a),

                but nothing in subsection (10a), or this subsection shall relieve the contributor of the obligation (except in relation to the payment of pension in respect of units in cases of death or invalidity) to make not less than 26 fortnightly contributions in relation to any unit of pension.

        (11)         Subject to subsections (12), (12c) and (12d) and section 38(3), a contributor who is not contributing for a number of units equal to his total unit entitlement may at any time elect to contribute for an additional number of units so that his total number of units will be equal to, or less than, his total unit entitlement but, except where — 

            (a)         the election is made under subsection (10); or

            (b)         because of the impending retirement of the contributor, the Board dispenses with the succeeding requirements of this subsection,

                the election is not effective unless the Board, after having considered the report or reports of such medical examination or examinations as it directs the contributor to undergo, or such other information or evidence as to the health of the contributor as it directs the contributor to provide, is satisfied that the contributor is not suffering from any physical or mental defect or condition which is likely to render him incapable, before his attaining his maximum age for retirement, of performing his duties as an employee.

        (12)         Subject to subsection (12a) on and from the expiration of the relevant period the number of additional units for which a contributor who was a contributor at the commencement of that period may elect to contribute under subsection (11) is reduced by the number (if any) by which the contributor’s total unit entitlement at the commencement of that period exceeds the sum of — 

            (a)         the number of units for which the contributor was contributing at the commencement of that period; and

            (b)         the number of additional units (if any) for which the contributor elected to contribute during that period.

        (12a)         Subsection (12) does not apply to a contributor if at any time during the relevant period the sum of the units referred to in subsection (12)(a) and (b) was — 

            (a)         a number of units not less than his primary unit entitlement as at the commencement of that period; or

            (b)         a number of units not less than the smallest number of units that would render him liable to make fortnightly contributions of at least 5% of his normal fortnightly salary as at the commencement of that period,

                and does not apply to any contributor for limited benefits under section 61.

        (12b)         For the purposes of subsections (12) and (12a) a reference in subsection (12)(b) to units for which a contributor has elected to contribute includes a reference to units that are the subject of an election that is not effective by reason only of his suffering from a physical or mental defect or condition, but does not include a reference to units that comprise any part of an increase in the contributor’s total unit entitlement that occurs during the relevant period.

        (12c)         Where, after the commencement of the 1987 Act, a person elects under section 32(1) to become a contributor for a number of units that is — 

            (a)         less than his primary unit entitlement; and

            (b)         less than the smallest number of units that would render him liable to make fortnightly contributions of at least 5% of his normal fortnightly salary,

                the number of additional units for which the contributor may subsequently elect to contribute under subsection (11) is reduced by the number by which the contributor’s total unit entitlement at the time when he becomes a contributor exceeds the number of units for which he elects under section 32(1) to become a contributor.

        (12d)         Where — 

            (a)         an increase in the total unit entitlement of a contributor occurs after the relevant time;

            (b)         the contributor does not elect under subsection (10) to contribute for at least the increase in his primary unit entitlement; and

            (c)         no election is in force under subsection (10a) in respect of the contributor,

                then on and from the expiration of the period of 2 months mentioned in subsection (10) the number of additional units for which the contributor may elect to contribute under subsection (11) is reduced by the number by which that increase in his total unit entitlement exceeds the number of additional units (if any) for which he elected to contribute under subsection (10).

        (12e)         In subsection (12d) the relevant time means — 

            (a)         in the case of a contributor who became a contributor after the commencement of the 1987 Act — the time at which he became a contributor;

            (b)         in any other case — the commencement of the relevant period.

        (12f)         In subsections (12), (12a), (12b) and (12e) the relevant period means the period of 12 months that commences 6 months after the commencement of the 1987 Act.

        (13)         Subject to subsection (14), in subsections (9) to (12d), and in section 37A — 

        non-contributory unit means a unit of pension as defined by section 37A;

        primary unit entitlement , in relation to a contributor, means the number of units specified in column 3 of Scale B opposite to the salary group in column one within which the contributor’s salary falls;

        Scale B means Scale B appended to subsection (1);

        total unit entitlement , in relation to a contributor, means the number of units specified in column 2 of Scale B opposite to the salary group in column one within which the contributor’s salary falls.

        (14)         In subsections (10a), (10b), (12a), (12c) and (12d) primary unit entitlement in relation to a contributor to whom section 60(4) or (7) applies means the smallest number of units for which the contributor would need to be contributing in order to receive an annual pension on retirement of which the share payable by the State would be not less than the amount calculated in accordance with the formula — 


                where — 

        F         is the amount of the share of the pension payable by the State that would be payable, but for section 60(4) or (7), if the contributor — 

            (a)         was eligible to retire immediately;

            (b)         had completed an aggregate period of 7 years service with the State; and

            (c)         was contributing for a number of units equal to the number specified in column 3 of Scale B appended to subsection (1) opposite to the salary group in column 1 within which the contributor’s salary falls;

        Y         is the number of months of aggregate service that the contributor has served with the State;

        S         is the number of months remaining until the contributor attains the age at which he has elected to retire; and

        T         is 240 in the case of a contributor to whom section 60(4) applies and 360 in the case of a contributor to whom section 60(7) applies.

        [Section 37 8 amended by No. 43 of 1939 s.8; No. 55 of 1945 s.10; No. 65 of 1947 s.8; No. 35 of 1950 s.7; No. 25 of 1951 s.2; No. 36 of 1955 s.3; No. 55 of 1957 s.2; No. 61 of 1960 s.3; No. 43 of 1963 s.4; No. 101 of 1964 s.3; No. 106 of 1965 s.4; No. 27 of 1969 s.4; No. 108 of 1970 s.4; No. 75 of 1973 s.4; No. 47 of 1974 s.5; No. 134 of 1976 s.9; No. 17 of 1987 s.13; No. 73 of 1994 s.4.]



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