{"id":"F1996B00036","name":"Superannuation (Former HLIC Employees) Regulations","slug":"superannuation-former-hlic-employees-regulations","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"22 of 1991","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":28468,"registerId":"commonwealth-F1996B00036-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"schedule","heading":"Subsection 3 (1):","content":"## 1 Subsection 3 (1):\n\nInsert:\n\n‘buyer has the same meaning as in the Sale Act.\n\nCorporation Act has the same meaning as in the Sale Act.\n\nSale Act means the Housing Loans Insurance Corporation (Sale of Assets and Abolition) Act 1990.\n\nsale day has the same meaning as in the Sale Act.\n\nsubsidiary has the same meaning as in the Sale Act.\n\ntransferee means a person who:\n\n(a) is a person to whom the Superannuation (Former HLIC Employees) Regulations apply; and\n\n(b) accepts an offer of employment beginning on sale day that is made by the buyer or a subsidiary of the buyer.’.","sortOrder":0},{"sectionNumber":"2","sectionType":"schedule","heading":"Section 58:","content":"## 2 Section 58:\n\nAdd at the end:\n\n‘(6) Subsection (3) does not apply to a person to whom the Superannuation (Former HLIC Employees) Regulations apply if the person is taken, under subsection 15 (1) of the Sale Act, to have resigned on sale day from an appointment or engagement under the Corporation Act.’.","sortOrder":1},{"sectionNumber":"3","sectionType":"schedule","heading":"Subsection 62 (1):","content":"## 3 Subsection 62 (1):\n\nOmit ‘Where’, substitute ‘Subject to subsection (1A), where’.","sortOrder":2},{"sectionNumber":"4","sectionType":"schedule","heading":"Subsection 62 (1):","content":"## 4 Subsection 62 (1):\n\nOmit ‘a lump sum benefit’, substitute ‘benefits’.","sortOrder":3},{"sectionNumber":"5","sectionType":"schedule","heading":"Section 62:","content":"## 5 Section 62:\n\nAfter subsection 62 (1), insert:\n\n‘(1A) An election under subsection (1) by a transferee is not effective unless it includes, or is accompanied by, the nomination in writing by the transferee of:\n\n(a) a superannuation fund of which the transferee is, or intends to become, a member, being a fund that is required to preserve superannuation benefits in accordance with standards prescribed under the Occupational Superannuation Standards Act 1987; or\n\n(b) an approved deposit fund or a deferred annuity fund, being a fund that is required to preserve superannuation benefits under standards of that kind;\n\nas the fund to which the amount referred to in paragraph (3) (a) is to be paid.’.","sortOrder":4},{"sectionNumber":"6","sectionType":"schedule","heading":"Section 62:","content":"## 6 Section 62:\n\nAdd at the end:\n\n‘(3) Subsection (2) does not apply in relation to a transferee who makes an election under subsection (1) and, instead, the transferee is entitled, in lieu of pension and lump sum benefit to which, but for the election, the transferee would be entitled under section 55 or 59:\n\n(a) to have an amount equal to 2.5 times the transferee’s accumulated basic contributions paid to the fund nominated under subsection (1A); and\n\n(b) to be paid a lump sum benefit equal to the sum of:\n\n(i) the amount of the transferee’s accumulated basic contributions; and\n\n(ii) the amount of the transferee’s accumulated supplementary contributions (if any).’.","sortOrder":5},{"sectionNumber":"7","sectionType":"schedule","heading":"Part V:","content":"## 7 Part V:\n\nAfter Division 3, insert:\n\n‘Division 3A Deferral of payment of benefits","sortOrder":6},{"sectionNumber":"65A","sectionType":"schedule","heading":"Application","content":"## 65A Application\n\nThis Division applies in relation to transferees in addition to Divisions 1, 2 and 3.","sortOrder":7},{"sectionNumber":"65B","sectionType":"schedule","heading":"Deferral of benefits by transferees above minimum retiring age","content":"## 65B Deferral of benefits by transferees above minimum retiring age\n\n(1) A transferee who is, or is about to become, a person who:\n\n(a) has attained his or her minimum retiring age; and\n\n(b) has become entitled to one or more benefits under section 55 or 59;\n\nmay, not later than 3 months after, but not earlier than 3 months before becoming such a person, by notice given to the Commissioner, elect to defer payment of those benefits.\n\n(2) If a transferee gives notice to the Commissioner in accordance with this section, payment of the benefits referred to in the notice is deferred until:\n\n(a) the transferee gives notice to the Commissioner requesting payment of those benefits; or\n\n(b) the transferee attains age 65;\n\nwhichever first occurs.","sortOrder":8},{"sectionNumber":"65C","sectionType":"schedule","heading":"Rates of pension after deferral of payment","content":"## 65C Rates of pension after deferral of payment\n\n(1) For the purposes of calculating the rate or amount of a benefit that has become payable on the occurrence of a circumstance specified in subsection 65B (2):\n\n(a) the transferee’s age on the date to which payment of benefits is deferred under that subsection is to be taken to be the transferee’s age on his or her last day of service; and\n\n(b) the transferee’s period of contributory service at the date of ceasing to be an eligible employee is the transferee’s period of contributory service; and\n\n(c) the amount calculated in accordance with subsection (2) is to be taken to be the transferee’s final annual rate of salary.\n\n(2) The amount referred to in paragraph (1) (c) is an amount equal to the amount per annum that the Commissioner, having regard to:\n\n(a) any changes in the rates of remuneration that have occurred since the transferee ceased to be an eligible employee; and\n\n(b) any other matters that the Commissioner considers relevant;\n\ndetermines would have been the final annual rate of salary of the transferee if the transferee:\n\n(c) had not ceased to be an eligible employee; and\n\n(d) had continued to occupy the position held immediately before so ceasing.’.","sortOrder":9},{"sectionNumber":"8","sectionType":"schedule","heading":"Part VI, Division 5:","content":"## 8 Part VI, Division 5:\n\nAfter section 110, insert:","sortOrder":10},{"sectionNumber":"‘110AA Application of Part in relation t","sectionType":"schedule","heading":"‘110AA Application of Part in relation to deferred benefits — transferees","content":"## ‘110AA Application of Part in relation to deferred benefits — transferees\n\nIn the application of this Part in relation to benefits deferred under Division 3A of Part V, those benefits are to be taken to have become payable on the day immediately preceding the day on which the transferee to whom those benefits relate died.’.","sortOrder":11},{"sectionNumber":"9","sectionType":"schedule","heading":"Paragraph 139 (1) (b):","content":"## 9 Paragraph 139 (1) (b):\n\nOmit ‘eligible employment,’, substitute ‘eligible employment or, in the case of a transferee, one year’s eligible employment,’.","sortOrder":12}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: managing the superannuation consequences of the HLIC privatisation for affected employees. While it creates detailed bespoke rules (deferral mechanisms, alternative lump sum calculations), these are all directly consequential to the original sale transaction and do not expand into broader superannuation policy or other employee groups."},"complexity_factors":["Heavy cross-referencing to external legislation (Housing Loans Insurance Corporation (Sale of Assets and Abolition) Act 1990) for definitions — 5 terms defined by reference to another Act","Nested conditional logic: deferral elections have timing windows ('not later than 3 months after, but not earlier than 3 months before') and multiple triggering events","Complex benefit calculations involving multiplication factors (2.5x), accumulated contributions, and alternative payment structures","Interaction between multiple Divisions and Parts — creates a parallel regime (Division 3A) that applies 'in addition to' existing divisions","Hypothetical salary calculations requiring Commissioner discretion ('having regard to any changes in rates of remuneration... determines would have been')","Retroactive/deemed timing provisions for death benefits ('taken to have become payable on the day immediately preceding the day on which the transferee... died')","Amendment structure requires reader to mentally reconstruct the base legislation being modified"],"plain_english_summary":"This legislation deals with **superannuation (retirement savings) for former employees of the Housing Loans Insurance Corporation (HLIC)** when that government body was sold off to a private buyer in 1990.\n\n**What it does:**\n- **Defines key terms** like \"transferee\" (an HLIC employee who accepts a job offer from the new private owner) and links to the main \"Sale Act\" that privatised HLIC.\n- **Creates special superannuation rules** for these transferred employees that differ from standard public service arrangements:\n  - They can **elect to take a lump sum payment** instead of a pension, with the money going to a nominated superannuation fund that meets preservation standards (meaning the money is locked away until retirement age).\n  - The lump sum is calculated at **2.5 times their accumulated basic contributions** plus any supplementary contributions.\n  - They can **defer their benefits** if they're above minimum retirement age, with special rules for calculating pension rates when they eventually claim.\n- **Adjusts death benefit rules** so that deferred benefits are treated as if they became payable just before death.\n- **Modifies employment history requirements** for transferees, reducing the required period of eligible employment from what would normally apply.\n\n**Who it affects:**\n- Former HLIC employees who transferred to the private buyer when HLIC was sold in 1990.\n- The Commissioner for Superannuation (who administers these benefits).\n\n**Why it matters:**\nWhen government businesses are privatised, employees often lose access to generous public sector superannuation schemes. This legislation creates a **bridge arrangement** — giving transferred employees options to either preserve their public service benefits (with deferral options) or convert them to private superannuation, while ensuring they don't lose the value of their accrued benefits due to the sale."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The instrument expands the Regulations to expressly cover employees who transfer under the Sale Act by creating a 'transferee' category and bespoke rules: mandatory preserving‑fund nomination, an alternative cash payment calculation, a new deferral regime to age 65, modified death‑benefit timing, an exception for those deemed to have resigned on sale day, and a one‑year service rule for transferees. Net effect: coverage is broadened and tailored for Sale Act transfers, adding procedural and substantive rules specific to those persons."},"complexity_factors":["Introduces cross-references to another Act (Housing Loans Insurance Corporation (Sale of Assets and Abolition) Act 1990) and depends on Sale Act terms such as buyer, sale day and subsidiary (insertion to subsection 3(1)).","Creates a new legal class 'transferee' whose status depends on employment offers tied to sale day (definition in subsection 3(1)).","Adds a compulsory fund‑nomination and preservation requirement for transferees making an election (new subsection 62(1A)), involving standards under the Occupational Superannuation Standards Act 1987.","Replaces single 'lump sum benefit' language with plural 'benefits' and introduces an alternative cash-equivalent payment formula for transferees (amendments and new subsection 62(3)).","Imposes a deferral regime (new Division 3A: sections 65A–65C) with strict election windows (3 months before to 3 months after reaching minimum retiring age) and a latest deferral date (age 65).","Delegates discretionary factual determinations to the Commissioner when estimating a deferred final annual salary (65C(2)(b)), creating administrative discretion and modelling requirements.","Adjusts treatment of deferred benefits for death-payments (new 110AA), requiring cross-application between Parts and dates of payment that differ from original accrual.","Creates an exception to an earlier provision for persons treated as resigning on sale day (new subsection 58(6)), changing eligibility outcomes depending on Sale Act treatment.","Alters service-count eligibility (paragraph 139(1)(b)) for transferees by specifying a one‑year eligible employment requirement, adding bespoke service rules to existing tests."],"plain_english_summary":"This instrument creates a new \"transferee\" class linked to the Housing Loans Insurance Corporation (Sale of Assets and Abolition) Act 1990 and changes how their superannuation is handled: transferees must nominate a preserving fund, a specific cash-equivalent payout option is prescribed, and payment may be deferred until age 65. It affects employees who transfer to a buyer or the buyer’s subsidiary on sale day, shifting administrative duties to transferees (fund nomination) and the Commissioner (deferred‑salary calculations) and adding timing and compliance tasks for employers and administrators."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-former-hlic-employees-regulations","history":"/api/acts/superannuation-former-hlic-employees-regulations/history","analysis":"/api/acts/superannuation-former-hlic-employees-regulations/analysis","conflicts":"/api/acts/superannuation-former-hlic-employees-regulations/conflicts","importantCases":"/api/acts/superannuation-former-hlic-employees-regulations/important-cases","documents":"/api/acts/superannuation-former-hlic-employees-regulations/documents"}}