82ZHSpecial provisions affecting former members of certain superannuation schemes

#### 82ZH Special provisions affecting former members of certain superannuation schemes (1) Where: (a) a person who becomes a contributor after the commencement of this section was, at any time before becoming a contributor, a member of: (i) a superannuation scheme conducted in accordance with the system established in the United Kingdom of Great Britain and Northern Ireland and known as the Federated Superannuation System for Universities; or (ii) a superannuation scheme that was, or is to be deemed to have been, an approved superannuation scheme for the purposes of this section at the time when the person became a contributor; (b) by virtue of subsection 82L(3), a transfer value is to be deemed for the purposes of Division 2 to have become payable in respect of the person after the commencement of this section under that superannuation scheme because the person was the owner of a life policy or policies of a kind referred to in that subsection, or because the person was entitled to have the rights of the owner of such a policy or policies assigned to him or her; and (c) the person has elected in accordance with paragraph 82R(1)(b) to pay to the Board an amount equal to the amount of that transfer value; the succeeding provisions of this section have effect. (2) The person may, within the period within which he was entitled to make an election under paragraph 82R(1)(b), elect that this section shall have effect in relation to him and, where an election is so made, section 82R has effect as if the amount referred to in paragraph 82R(1)(c), or, if part only of that amount relates to the transfer value referred to in subsection (1), that part of that amount, had been paid to the Board in accordance with that paragraph and the Board had made the payments referred to in subsections 82R(3) and (4) in relation to that amount or that part of that amount, as the case may be. (3) An election under subsection (2) does not have effect unless the person causes to be assigned to the Board, within the period referred to in that subsection, the life policy or life policies referred to in paragraph (1)(b) free from any mortgages, charges or other encumbrances. (4) If: (a) the annual pay of the person upon his becoming a member was greater than the annual remuneration that was payable to him in respect of the last employment in which he was employed and to which a superannuation scheme referred to in subsection (1) related; or (b) after the person became a member his annual pay is increased; the Board shall so far as is practicable arrange for the amount or amounts of any life policy or life policies assigned to the Board by the person to be increased by the amount or amounts by which the life policy or life policies would have been increased under that scheme, or for the issue of such additional life policy or life policies in relation to the person as would have been issued under that scheme, if he had remained a member of the scheme and had been in receipt of an annual remuneration equal to that annual pay or that increased annual pay, as the case may be. (5) So much of any premium payable in respect of any life policy assigned to the Board in accordance with subsection (3) or issued in accordance with subsection (4) as relates to a period during which the person is a member shall be paid by the Commonwealth out of the Consolidated Revenue Fund, which is appropriated accordingly. (6) Where the amount of the fortnightly contributions payable by the person to the Fund at any time is less than the amount that is the prescribed amount in relation to him at that time, he is liable to pay to the Commonwealth an amount equal to the difference. (7) Where the person (in this subsection referred to as the former contributor) makes an election under subsection 82Z(1) and, within the period that is the prescribed period in relation to him for the purposes of Division 3, he becomes employed in employment in respect of which a superannuation scheme referred to in paragraph (1)(a) of this section is applicable and becomes a member of that scheme, then: (a) subject to paragraph (c) of this subsection, Division 3 has effect in relation to him as if that employment were public employment and that superannuation scheme were an eligible superannuation scheme; (b) the Board shall assign to the person administering that superannuation scheme the life policies assigned by the former contributor to the Board in accordance with subsection (3) of this section or issued in relation to the former contributor in accordance with subsection (4) of this section; (c) the assignment of those life policies in accordance with paragraph (b) shall be deemed to constitute the payment of a transfer value in respect of the former contributor in accordance with section 82ZA to the person administering that scheme; and (d) the Board shall: (i) if the amount of any fortnightly contribution paid by the former contributor to the Fund exceeded the amount that was the prescribed amount in relation to him at the time of the payment—pay to him out of the Fund an amount equal to the amount of the excess; and (ii) pay to the Commonwealth out of the Fund an amount equal to the amount that, but for this Part, would have been payable to the former contributor under section 60 less any amounts paid to him under subparagraph (i). (8) If the life policy or life policies assigned by the person to the Board in accordance with subsection (3) or issued in relation to him in accordance with subsection (4) becomes or become payable at or before the time when he ceases to be a contributor: (a) the Board shall, out of the amount paid to it under the policy or policies: (i) pay to the Fund an amount equal to the amount that, but for subsection (2) of this section, would have been paid by the Board to the Fund under subsection 82R(3) together with compound interest on that amount, in respect of the period that commenced on the date on which the person made an election in accordance with paragraph 82R(1)(b) and ended on the date on which the life policy or life policies became payable, at the rate or rates applicable under subsection (15) of this section; (ii) in the case of a policy or policies assigned by the person to the Board in accordance with subsection (3)—pay to the person, or, if he is dead, to his legal personal representative, an amount equal to so much of any premiums paid by the person in respect of the policy or policies as related to, or to any part of, the period that commenced on the date on which the transfer value referred to in paragraph (1)(b) is to be deemed for the purposes of Division 2 to have become payable in respect of him and ended on the date on which he became a contributor; and (iii) pay the balance to the Commonwealth; and (b) the Commonwealth shall pay to the person, or, if he is dead, to his legal personal representative, an amount equal to the sum of any amounts paid by the person to the Commonwealth under subsection (6). (9) Where the person ceases to be a contributor and neither subsection (7) nor subsection (8) applies in relation to him, then, if the election made by him under subsection (2) of this section has not been revoked in accordance with subsection (10): (a) the Board shall surrender the life policy or life policies assigned by him to the Board in accordance with subsection (3) of this section or issued in relation to him in accordance with subsection (4) of this section and, out of the proceeds of the surrender, shall: (i) pay to the Fund an amount equal to the amount that, but for subsection (2) of this section, would have been paid by the Board to the Fund under subsection 82R(3) together with compound interest on that amount, in respect of the period that commenced on the date on which the person made an election in accordance with paragraph 82R(1)(b) and ended on the date as at which the surrender value or surrender values of the life policy or life policies was or were calculated, at the rate or rates applicable under subsection (15) of this section; (ii) in the case of a policy or policies assigned by the person to the Board in accordance with subsection (3) of this section—pay to the person an amount equal to so much of any premiums paid by the person in respect of the policy or policies as related to, or to any part of, the period that commenced on the date on which the transfer value referred to in paragraph (1)(b) is to be deemed for the purposes of Division 2 to have become payable in respect of him and ended on the date on which he became a contributor; and (iii) pay the balance to the Commonwealth; and (b) the Commonwealth shall pay to the person an amount equal to the sum of any amounts paid by him to the Commonwealth under subsection (6) of this section. (10) A person who has made an election under subsection (2) may, if: (a) he has not ceased to be a contributor; and (b) the life policy or life policies assigned by him to the Board in accordance with subsection (3) or issued in relation to him in accordance with subsection (4) has not or have not become payable; by notice in writing to the Board revoke the election and, in that case, paragraphs (9)(a) and (b) have effect in relation to him. (11) The Finance Minister may, by instrument under his hand published in the Gazette, declare a superannuation scheme, being a scheme under which benefits are provided for by means of life policies, to be an approved superannuation scheme for the purposes of this section. (12) A declaration under subsection (11) shall come into force on the day on which the instrument of declaration is published in the Gazette or, if an earlier day (not being earlier than 1 January 1970) is specified in the instrument as the day on which the declaration is to be deemed to have come into force, shall be deemed to have come into force on that earlier day. (13) A superannuation scheme shall be taken, for the purposes of this section, to have been an approved superannuation scheme at a particular time if a declaration by the Finance Minister under subsection (11) in respect of that scheme was, or is to be deemed to have been, in force at that time. (14) In this section, the prescribed amount, in relation to a person in relation to any time, is an amount ascertained in accordance with the formula , where: a is amount of the annual premium, or the sum of the amounts of the annual premiums, applicable at that time under the life policy or life policies assigned by him to the Board in accordance with subsection (3) or issued in relation to him in accordance with subsection (4); b is the amount, or the sum of the amounts, payable by him under the superannuation scheme referred to in subsection (4) immediately before he ceased to be a member of that scheme in respect of the annual premium or the annual premiums under the life policy or life policies assigned by him to the Board in accordance with subsection (3); c is the amount of the annual premium, or the sum of the amounts of the annual premiums, applicable under the life policy or life policies assigned by him to the Board in accordance with subsection (3) immediately before he ceased to be a member of the superannuation scheme referred to in subsection (4). (15) For the purposes of this section, the rate of compound interest in respect of any period that is a financial year or a part of a financial year is the rate of interest determined by the Finance Minister in respect of that financial year or, if the Finance Minister has not determined a rate of interest in respect of that financial year, the rate of interest determined by the Finance Minister in respect of the last preceding financial year in respect of which the Finance Minister has determined a rate of interest. (16) In determining a rate of interest in respect of a financial year for the purposes of this section, the Finance Minister shall have regard to the average rate of interest that was earned by the Fund in that financial year and to such other matters as he thinks relevant.