Parliamentary Contributory Superannuation Act 1971

The Act’s core concept is the Parliamentary Contributory Superannuation Fund, a trust fund maintained in the Treasury or another place determined by the trustees (s 5). The Fund holds all deductions from members’ salaries, salary sacrifice contributions, payments from members under s 31A (to cover the superannuation contributions surcharge), payments by the Treasurer, and investment earnings (s 6). All pensions, lump sums, and other benefits are paid from the Fund (s 6(2)).

Trustees of the Fund are constituted as a body corporate under s 14A. Under the current s 14 (as amended in 2022), the trustees consist of seven members of the Parliamentary Contributory Superannuation Scheme appointed by the trustees (appointed trustees) plus the Secretary of the Treasury. Appointed trustees hold office for up to four years and may be removed by the trustees or by the Treasurer after consultation with the trustees. The trustees’ functions are to administer the scheme, ensure the Fund is invested and managed in accordance with the Act, pay benefits, and make other payments as provided (s 15). The trustees are trustees for the purposes of the Trustee Act 1925 and must hold contributions and other money in trust for persons entitled to benefits (s 15(2)). The trustees may delegate functions but not the power of delegation itself (s 15A).

Contributions are primarily mandatory deductions of 12½ per cent of gross salary from each instalment payable to a member (s 18). Members may elect to make salary sacrifice contributions with the approval of the designated employer and the trustees; the contribution element plus any tax payable meets the required deduction (s 18AA). The trustees may determine periods during which deductions are not accepted if needed to comply with a relevant Commonwealth superannuation standard (s 18A). Members aged 65 or over with at least 20 years’ aggregate salary entitlement may elect to cease deductions (s 18B).

Pension benefits are calculated under s 19 for members who have been entitled to salary for an aggregate period of seven years or more. The annual pension rate is A × (B/C), where A is the lesser of (48.8 per cent of current basic salary plus 0.2 per cent per month of service exceeding seven years) or 80 per cent of current basic salary, B is total salary received, and C is total basic salary. Current basic salary is the salary payable to an ordinary member of the relevant House at the time the instalment is calculated. There are special rules for members who served in both Houses (s 19(5) and (9)) and for vacancies arising under s 13A of the Constitution Act 1902 (s 19(8)).

Deferred pensions apply to former members who first became members after the 1999 amendment: their pension is not payable until age 55 unless pension is paid under the hardship (s 19D) or ill-health/incapacity (s 19E) provisions. The value is calculated as at the cessation date but using current basic salary as at the payment commencement date (s 19C).

Lump sum conversion is available under s 20: a former member entitled to a pension may elect within three months to convert the whole or part of the pension to a lump sum equal to ten times the annual pension entitlement converted. The pension is then reduced under the formula in s 21B. A former member who later returns to membership and again becomes entitled to a pension has that pension reduced by the amount of previous conversion (s 21).

Preservation of benefits is required under s 22B: when a lump sum becomes payable, the trustees must preserve all or so much as is required to comply with a relevant Commonwealth superannuation standard, with interest from the exit date to payment date. Preserved benefits are payable in the circumstances permitted by that standard, including transfer to a regulated superannuation fund, approved deposit fund, RSA, or deferred annuity (s 22BA). Benefit can also be released on severe financial hardship or compassionate grounds (ss 28A, 28B), but subsequent benefits are reduced accordingly (s 28C).

Family law superannuation is addressed in Part 4A. The Act defines key terms from the Family Law Act 1975 (Cth) and its regulations, and provides for payment splits: on notice of a family law superannuation entitlement, the trustees must either pay or release the amount to the non-member spouse or transfer it to a complying superannuation fund (s 29C(3)). Transfers to the Aware Super Fund via FTC occur if no nomination is made (s 29C(5)). The member spouse’s benefits may be reduced accordingly (s 29D).

Closure of the scheme (Part 1A) is a fundamental concept: from the 2007 general election, only continuing members (those who were members within three months before that election and have not been non-members for more than three continuous months since) can participate. All other newly elected members are not entitled to deductions or service accrual under the Act (s 4A).

The Act directly affects members of the New South Wales Parliament (both Legislative Council and Legislative Assembly) who are continuing members under s 4A - that is, those who were members at any time within three months before the 2007 general election and who have not ceased to be members for more than three continuous months. For those members, the Act mandates ongoing deductions of 12½ per cent of gross salary (s 18) and entitles them to a pension after seven years’ aggregate service (s 19). The Act also affects former members who are receiving or are entitled to receive a pension, including those with deferred pensions under s 19B. Spouses or de facto partners of deceased members or former members may receive a pension under s 23, generally at three-quarters of the member’s pension or 45 per cent of current basic salary, whichever is greater, with a reduced entitlement for marriages or relationships of less than three years (s 23(1A)). Dependent children may receive a pension of 10 per cent or 5 per cent of current basic salary depending on whether a spouse survives (s 23B). Non-member spouses affected by family law payment splits are directly impacted, as the trustees may pay out or transfer their entitlement from the Fund (s 29C). The trustees - comprising the Secretary of the Treasury and seven appointed trustees who are scheme members - are central to administration, investment, and benefit determination. The Treasurer is obliged to pay annual contributions and interim advances into the Fund as determined after considering advice from the trustees (s 11). The designated employer (as defined in the Parliamentary Remuneration Act 1989) is involved in approving salary sacrifice arrangements (s 18AA). Federal members who become NSW members may pay into the Fund the lump sum benefit they received as a federal member, thereby increasing their service period for NSW purposes (ss 26B, 26BA, 26C). The Act does not affect members elected after the 2007 general election who are not continuing members - they are not entitled to make deductions or accrue service under the Act (s 4A). Actuaries appointed by the trustees or the Minister conduct triennial and interim investigations (ss 10, 10A). The Insurance and Superannuation Commissioner may receive information under s 32B. The Public is not directly affected, but the Act appropriates money from the Consolidated Fund (s 11(3)) and imposes a legislative veto: the Legislative Assembly cannot amend the Act without a certificate of approval from the Parliamentary Remuneration Tribunal (s 4).

The Act imposes a number of key duties. The trustees must maintain the Fund in the Treasury or other place (s 5). They must determine and give effect to an investment strategy and a reserves strategy for the Fund, having regard to risk, diversification, liquidity, and ability to discharge liabilities (s 8). They must invest money available for investment through investment managers (s 7(2)) and must not lend to contributors, borrow except for temporary finance, or invest on a non-arm’s length basis except for in-house assets as defined in the SIS Act (s 7(4)). The trustees must conduct triennial actuarial investigations as at 30 June 1972 and every three years thereafter (s 10(1)), with the actuary reporting within six months (s 10(2A)). The trustees must forward the report to the Minister within three months with comments (s 10(2C)). The trustees must give advice to the Treasurer on contributions and interim advances needed (s 11(1)). The trustees must pay benefits from the Fund as provided (s 6(2)). They must use the assets of the Fund to pay benefits and costs of investment and management (s 15(3)). In exercising functions, trustees must have regard to the interests of members and other entitled persons, the Heads of Government Agreement of 1 July 1996 regarding exemption from SIS, and the future liabilities of the Fund (s 15(5)). They must pay a benefit to a member who has attained age 65 if necessary to comply with a relevant Commonwealth superannuation standard (s 28E). The designated employer must deduct 12½ per cent from each salary instalment (s 18). The Treasurer must pay into the Fund annual contributions and interim advances as determined (s 11(2)), and may act under s 26B or 26BA for former federal members.

Members have the right to have deductions made and to accrue service (if continuing members). They have the right to receive a pension after seven years’ aggregate entitlement (s 19). They have the right to convert part of the pension to a lump sum within three months of becoming entitled (s 20). They have the right to salary sacrifice contributions (s 18AA) and to elect to cease deductions at age 65 with 20 years’ service (s 18B). Members may elect to make payments to cover superannuation contributions surcharge (s 31A) and are entitled to a refund of excess payments with interest (s 31B). Former members have the right to apply for deferred pension in cases of financial hardship (s 19D) or ill-health/incapacity (s 19E). They have the right to elect to receive a pension in a form consistent with Commonwealth superannuation standards (s 27A). Spouses and de facto partners have a right to a pension on the death of a member or former member (s 23), and dependent children have a right to a children’s pension (s 23B). Non-member spouses have a right to a family law superannuation payment (s 29C). The Act also provides a minimum benefit: if total payments under the Act in respect of a member are less than the refund plus supplementary benefit under s 22A(4), the difference is payable to persons directed by the trustees (s 27).

The Act imposes a duty on the Legislative Assembly not to originate or pass a Bill to amend the Act unless a certificate of approval has been issued by the Parliamentary Remuneration Tribunal (s 4). It also imposes a duty on the trustees to furnish information to the Insurance and Superannuation Commissioner as reasonably required (s 32B) and to give information to members as determined (s 32A).

The Act does not create criminal offences or civil penalties in the usual sense. Instead, enforcement mechanisms take the form of benefit suspension, forfeiture, or recovery. The primary penalty provision is s 19AA, which applies when a person ceases to be a member while proceedings for a serious offence (punishable by life or five years or more imprisonment, or an infamous crime) are pending. The person’s pension entitlement is suspended during proceedings, though the trustees may lift the suspension if satisfied it is not in the public interest (s 19AA(2)). If the person is convicted, they cease to have any entitlement to a pension; any pension already paid must be repaid to the Fund; any election under s 20 to convert to lump sum is void and any lump sum paid must be repaid; and only the person’s net contributions are refunded (s 19AA(4)). If the conviction is later quashed, the trustees must reinstate the pension and repay any amounts recovered (s 19AA(4B)). Proceedings are not finalised until after the appeal period (12 months or the period to lodge an appeal, whichever is earlier) and any appeal determined (s 19AA(8)). The section extends to proceedings taken outside New South Wales (s 19AA(9)). These provisions also apply to persons who ceased to be members before the commencement of s 19AA if proceedings were pending at that time and ongoing (Schedule 1, cl 11). The 2017 amendments extended the provisions to any serious offence, conviction, or cessation before the amendments (Schedule 1, cl 11A).

The Act also provides for suspension of pension when the recipient becomes a member of the Commonwealth Parliament or another State Parliament, or again becomes a NSW member without being a continuing member (s 25(2)). If the person becomes a NSW continuing member, the pension ceases (s 25(1)). Suspension also occurs if the person becomes entitled to another parliamentary pension from the Commonwealth or another State (s 26(1)), though the trustees may direct payment of a reduced pension to ensure the total does not exceed the NSW pension (s 26(2)). The suspension under s 26 does not apply to certain Commonwealth pensions elected under s 20A(1AC) of the Commonwealth Act or for federal members from 1 July 1994 (s 26(4)), nor if the person pays an amount under s 26B in respect of the commuted value (s 26(5)).

Non-assignability is enforced under s 32: pensions and other benefits shall not be assigned, charged, or pass by operation of law to any person other than the person entitled. This provision effectively prevents creditors from attaching benefits. The requirement to repay excess pensions under s 19AA(4) is backed by the trustees’ power to deduct from refunds of net contributions (s 19AA(4A)). The trustees may recover overpayments through deduction from future benefits, as illustrated by s 20(5) where lump sums are first applied to outstanding repayments under s 24. The validation provisions in Schedule 1, cll 8 and 10 confirm that certain reductions of benefits for surcharge were valid, implying that improper reductions could otherwise be challenged. The Act does not provide for monetary penalties or imprisonment for non-compliance by trustees or others; enforcement relies on the statutory duties and the trustees’ obligations under the Trustee Act 1925. The trustees are indemnified against personal liability for acts done in good faith (s 17A), though the trustees as a body corporate may still be subject to actions (s 17A(2)). The Treasurer may remove an appointed trustee on reasonable grounds after consultation (s 14(4)(b)). No general enforcement provision exists; the Act is administered largely through the trustees’ powers and the Minister’s oversight.

The Act interacts extensively with Commonwealth superannuation law. It repeatedly references relevant Commonwealth superannuation standards - standards that would apply under the Superannuation Industry (Supervision) Act 1993 (Cth) if the Fund were a regulated superannuation fund (definition in s 3). The trustees must determine periods when contributions are not accepted to be consistent with such standards (s 18A). Benefits must be preserved in accordance with those standards (s 22B), and preserved benefits may be paid only in circumstances permitted by those standards (s 22BA). The trustees must pay benefits on severe financial hardship only if the same criteria apply as under SIS (s 28A(2)), and on compassionate grounds only if APRA would release the amount under SIS (s 28B(2)). The trustees must pay a member who has attained 65 the whole or part of the benefit if needed to comply with a standard (s 28E). The trustees’ investment strategy must have regard to matters required under SIS (s 8(2)(e), (4)). The trustees are taken to have complied with s 7(4) from 1 July 1990 despite any non-compliance (s 7(5)), and the Fund is likely exempted from SIS by the Heads of Government Agreement (s 15(5)(b) and s 32B). The superannuation guarantee legislation (Superannuation Guarantee (Administration) Act 1992 (Cth)) is addressed in s 30: the trustees must determine the minimum employer-financed benefit to avoid a superannuation guarantee shortfall, and the pension or lump sum must not be less than that minimum; benefits are increased as necessary and debited from the Fund.

The superannuation contributions surcharge under the Superannuation Contributions Tax Imposition Act 1997 (Cth) and related legislation is addressed directly. The trustees must reduce benefits by a “surcharge deduction amount” when a right to a benefit accrues and they have paid or are liable for surcharge in respect of employer contributions (s 26D). The deduction is capped at 15 per cent of the employer-financed portion accrued after 20 August 1996, or another prescribed amount. Members may make voluntary payments to cover the surcharge (s 31A). The trustees may commute part of a pension to a lump sum to pay the reduction (s 28D). The family law superannuation legislation (Part VIIIB of the Family Law Act 1975 (Cth) and the Family Law (Superannuation) Regulations 2001) is given effect through Part 4A. The trustees must not pay a benefit to the extent it would contravene that legislation, and may pay or reduce a benefit as required (s 29B). They must process payment splits by paying the non-member spouse or transferring to a complying fund (s 29C). The Aware Super Fund (formerly First State Super) and the FTC (FSS Trustee Corporation) are directly referenced in s 29A and s 29C(5) as default recipients for family law payments. The Insurance and Superannuation Commissioner may require information under s 32B for monitoring the Heads of Government Agreement. The Act interacts with State legislation: the Interpretation Act 1987 contains definitions that affect interpretation (note to s 3). The Parliamentary Remuneration Act 1989 defines “designated employer” (s 3). The Constitution Act 1902 matters are relevant for salary definitions (s 3, definition of “salary”). The Trustee Act 1925 applies to the trustees (s 15(2)). The Government Sector Finance Act 2018 governs financial arrangements for the trustees (s 7(1)). The Stamp Duties Act 1920 exemption applies (s 31). The Act overrides other State laws where necessary, e.g., salary sacrifice contributions under s 18AA have effect despite any other provision of the Act (s 18AA(8)). The regulations under s 33 may address matters relating to family law and surcharge adjustments. The Act also includes savings and transitional provisions consequent on numerous amending Acts (Schedule 1), preserving pre-existing rights and validating past administrative actions.

The Act has been amended frequently since its commencement. Notable amending Acts include: 1979 No 132 (Parliamentary Contributory Superannuation (Amendment) Act 1979) which substituted s 18 to set the deduction rate at 12½ per cent and made changes to pension calculations. 1981 No 86 introduced the supplementary benefit for contributors not entitled to a pension (s 22A) and children’s pensions (s 23B). 1989 No 159 amended the lump sum conversion provisions and introduced s 21B for calculating reductions. 1991 No 95 substantially restructured the administration provisions, inserting s 14A (trustees as body corporate), new s 15 (functions), and s 15A-15C (delegation, staff, committees). 1993 No 111 introduced s 30 (compliance with superannuation guarantee) and s 22B (compulsory preservation). 1995 No 99 amended preservation and added s 26A (later repealed). 1996 No 92 made extensive changes to spouse provisions and introduced s 26B-26C for former federal members. 1997 No 42 amended investment strategy, actuarial investigations, and preservation. 1997 No 149 inserted s 26D (surcharge adjustments), ss 28A-28C (hardship and compassionate grounds), and s 31A-31B (voluntary surcharge payments), and added Schedule 1. 1999 No 89 introduced deferred pensions (ss 19B-19F), replaced s 22B with new preservation provisions, and amended s 20 and lump sum conversion. 2000 No 114 amended definitions to include same-sex partners. 2002 No 110 amended actuarial investigation provisions, introduced s 10A (interim investigation), s 26BA (additional federal member payments), and s 28E (benefits at age 65). It also repealed s 22C (benefits at ages 65/70) and validated prior reductions. 2003 No 77 inserted Part 4A (family law superannuation). 2005 No 110 inserted Part 1A (closure of scheme from 2007 general election) and s 18B (election to cease deductions at 65). 2006 No 93 inserted s 19AA (serious offences) and s 32C (member dying on polling day). 2006 No 53 inserted s 32D (nominating commencement date of pension). 2009 No 62 inserted s 18AA (salary sacrifice contributions) and amended the definition of salary. 2010 No 56 amended s 4A to remove the requirement for a continuing member to have been a member immediately before polling day. 2014 No 88 made minor amendments to s 14. 2017 No 18 significantly amended s 19AA, 20, and 23A to extend the serious offence provisions, and added Schedule 1 cl 11A. 2018 No 70 substituted references to the Government Sector Finance Act 2018 in s 7. 2022 No 29 substituted s 14 (trustees) to reduce the number of appointed trustees from seven to seven? Actually s 14 was substituted to provide for 7 appointed trustees plus the Secretary of the Treasury, and replaced the previous composition. It also amended s 29A (family law definitions) and Schedule 1 cl 13 (existing trustees continue). The Act also contains provisions that were repealed (e.g., s 2, s 9, s 12, s 22C, s 27B, s 27C). The Act is subject to a special amendment procedure: s 4 requires a certificate of approval from the Parliamentary Remuneration Tribunal before the Legislative Assembly can pass an amending Bill (this section itself was reinserted in 1998 after a previous repeal).

The Act itself does not record any litigation history. The source text contains no references to court proceedings, decisions, or cases. The Act’s provisions have not been the subject of any litigation mentioned in the legislation. However, the Act includes several provisions that could give rise to disputes: the power of the trustees to suspend or terminate pension entitlements under s 19AA for serious offences may be challenged on natural justice or administrative law grounds. The trustees’ discretion under s 19(9) (additional pension for cross-House service) and s 26(2) (directing payment of a reduced pension when another parliamentary pension is received) are absolute discretions that could be judicially reviewed. The family law payment split provisions may lead to disputes between member and non-member spouses, though the Act defers to the family law superannuation legislation and the trustees’ determinations. The validation clauses in Schedule 1 (cll 8, 10) indicate that prior reductions of benefits were potentially invalid and required legislative validation, suggesting that there may have been challenges to those reductions. The Act’s interaction with the Commonwealth superannuation standards and the superannuation guarantee legislation could give rise to disputes about whether the Fund complies with those standards. The closure of the scheme from the 2007 general election may have been the subject of political rather than legal challenge. The requirement for a certificate of approval under s 4 could be litigated if a Bill were passed without the certificate. Practitioners should be aware that the Act provides internal mechanisms for resolution: the trustees may determine disputes, and the Minister may extend time periods for actuarial investigations (s 10(2B)) and appoint interim actuaries (s 10A). There is no internal review or appeal body specified in the Act; any judicial review would be in the Supreme Court of New South Wales under the general law. The absence of recorded litigation in the source does not mean the Act has not been considered by courts; it simply means the source does not cite any cases.

Several provisions contain traps for the unwary. Closure of the scheme: a member who is not a continuing member under s 4A cannot make deductions or accrue service. A person who was a member before the 2007 general election must be careful not to have a break in membership exceeding three months - if the break exceeds three months, they lose continuing member status and cannot rejoin the scheme (s 4A(3)(c)). The test uses “continuous period exceeding 3 months” - any gap longer than three months is fatal. The Act does not provide for a grace period or discretion. Deferred pension: members who first became members after the 1999 amendment (that is, after the date of assent to the Parliamentary Contributory Superannuation Amendment Act 1999) are subject to deferral until age 55 (s 19B). This applies even if they have served over seven years. They cannot access the pension before 55 unless the trustees approve on grounds of hardship (s 19D) or ill-health/incapacity (s 19E). The hardship ground is severe - the trustees must have regard to the former member’s capacity to meet reasonable and immediate financial commitments (s 19D(2)). Ill-health requires certification by two medical practitioners that the person would be incapable of performing parliamentary duties (s 19E(4)). A former member who does not apply under these provisions simply receives nothing until age 55. Lump sum conversion: the election under s 20 must be made within three months of becoming entitled to a pension (or after suspension lifted under s 25(2) or a direction under s 26(2)). If the election is not made within that window, the right is lost (s 20(11)). The trustees have no power to extend this period. A former member who converts part of the pension to a lump sum (ten times the annual amount) will have the pension reduced under the formula in s 21B, which uses the current annual pension entitlement and the amount that would be payable if no election had been made. This can result in a significant reduction, and the formula is not intuitive. Cessation of pension on return to membership: if a person receiving a pension becomes a continuing member again, the pension ceases completely (s 25(1)). If they become a non-continuing member or a federal/other state member, the pension is suspended (s 25(2)). Many may not realise that a short break of membership can trigger the loss of continuing status, and a return to the NSW Parliament as a non-continuing member will suspend the pension (but not terminate it). Serious offence provisions: s 19AA applies to any person who ceases to be a member while proceedings for a serious offence are pending, or who ceased to be a member and proceedings are later instituted for conduct when they were a member. The definition of serious offence includes offences punishable by five years or more imprisonment and infamous crimes. The suspension of pension is automatic upon the person ceasing to be a member while proceedings are pending - the trustees can lift suspension only if satisfied it is not in the public interest (s 19AA(2)). The provision also requires repayment of any pension already paid if convicted (s 19AA(4)). This can be financially devastating. The provisions apply retrospectively to pre-commencement offences and convictions (Schedule 1, cl 11A). Family law payment splits: the trustees may pay the non-member spouse even if the member spouse is receiving a pension at the time (s 29C(4)). The member spouse’s pension is then reduced under s 29D and regulations. The reduction can apply to a pension already being paid (s 29D(3)). Compulsory preservation: a lump sum under s 20 may be subject to preservation under s 22B. The trustee must preserve all or so much as required by a relevant Commonwealth superannuation standard. This may mean the member cannot access the lump sum immediately. Non-assignability: benefits cannot be assigned or charged (s 32). This protects the benefit from creditors but also means a member cannot use the benefit as security for a loan. Salary sacrifice: while s 18AA allows salary sacrifice, the contribution element must be sufficient to meet the 12½ per cent deduction after accounting for tax on the contribution (s 18AA(3)(b)). The member must also have the election approved by both the designated employer and the trustees (s 18AA(1)). Election to cease deductions at 65 (s 18B): a member who elects to cease deductions at 65 with 20 years’ service cannot revoke the election (s 18B(2)). The benefit is then calculated as if the member ceased to be entitled to salary on the day the election took effect (s 18B(6)). This means the pension is frozen at that point and future salary increases do not affect it. Minimum benefit trap: the minimum benefit under s 27 ensures total payments are at least equal to the refund plus supplementary benefit. But if a pension has been paid for many years, the aggregate may exceed that amount, and the minimum benefit does not apply. Surcharge reduction: the trustees must reduce benefits by a surcharge deduction amount under s 26D, capped at 15 per cent of the employer-financed portion accrued after 20 August 1996. This reduction applies to pensions under s 19, 22, 22A, 23(1)(except (a)), 23(2), (3), and 27. A recipient may receive a reduced pension years after commencement if a surcharge assessment is later received (s 26D(8)).

Compliance with the Act primarily falls on the trustees. They must ensure the Fund is maintained properly and administered in accordance with the Act. The following are key operational requirements.

Maintain the Fund: s 5 requires the trustees to maintain the Fund in the Treasury or other place they determine. All contributions and payments must be paid into the Fund (s 6), and all pensions and benefits must be paid from it (s 6(2)). The trustees must ensure that bank accounts are operated with cheques signed as prescribed by regulations (s 13).

Investment and financial management: The trustees must enter into financial arrangements under Part 6 of the Government Sector Finance Act 2018 (s 7(1)). They must invest money available for investment through investment managers appointed for that purpose (s 7(2), (3)). The trustees must not lend to contributors or beneficiaries, borrow except for temporary finance, or invest except at arm’s length unless it is an in-house asset under SIS (s 7(4)). They must determine and give effect to an investment strategy and a reserves strategy (s 8(1)). The investment strategy must have regard to risk, return, diversification, liquidity, ability to discharge liabilities, and any other matter required under SIS (s 8(2)). The reserves strategy must be consistent with the investment strategy and the ability to pay liabilities (s 8(3)). The trustees must ensure that any investment of assets complies with these strategies.

Actuarial investigations: The trustees must arrange for triennial actuarial investigations as at each 30 June following 1972 (s 10(1)). They must appoint an actuary to conduct each investigation (s 10(2)). The actuary must complete the investigation and report within six months (s 10(2A)). The Minister may extend this period for special circumstances (s 10(2B)). The report must include statements of the value of assets and liabilities, uncovered liabilities, membership numbers, benefit payments, investment earnings, expenses, and major changes since the last investigation (s 10(3B)). The trustees must forward the report to the Minister within three months (or another period approved by the Minister) with their comments (s 10(2C)). The actuary must recommend annual amounts to be paid into the Fund for the following three years (s 10(3)). The trustees may also seek interim actuarial recommendations if investments may need to be realised (s 10(4)). The Minister may require an interim investigation between triennial investigations, but not within three months of a completed investigation or within six months of the next triennial investigation (s 10A).

Contributions: The designated employer must deduct 12½ per cent from each salary instalment of each continuing member (s 18). If a member has elected salary sacrifice, the designated employer must apply the foregone remuneration to the deduction requirement (s 18AA). The trustees must approve the salary sacrifice election (s 18AA(1)). The trustees may determine periods when deductions are not accepted, but only if necessary for Commonwealth superannuation standard compliance (s 18A). A member aged 65 with 20 years’ service may elect to cease deductions; the trustees must approve the election (s 18B(3)). The trustees must give advice to the Treasurer on contributions and interim advances needed (s 11(1)). The Treasurer then determines the amounts to be paid into the Fund from the Consolidated Fund (s 11(2), (3)).

Payment of benefits: The trustees must pay benefits in accordance with Part 3. For a pension under s 19, the trustees must calculate the annual rate using the formula, current basic salary at the time of each instalment, and the member’s total salary and total basic salary. They must pay by instalments at intervals they determine (s 28). When a member becomes entitled to a pension, the trustees must allow the former member to elect within three months to convert part to a lump sum (s 20). The trustees must calculate the lump sum as ten times the annual pension amount converted, and reduce the pension accordingly under s 21B. The trustees must preserve benefits as required by Commonwealth standards (s 22B), and pay preserved benefits only in circumstances permitted by those standards (s 22BA). For deferred pensions, the trustees must pay only when the former member reaches 55, or earlier if approved for hardship (s 19D) or ill-health (s 19E). For hardship, the trustees must have regard to the former member’s financial circumstances and capacity to meet reasonable and immediate commitments (s 19D(2)). For ill-health, the trustees must be satisfied the member would be incapable of performing duties, based on medical certificates from two practitioners (s 19E(2)-(4)). The trustees must also pay children’s pensions (s 23B) and spouse/partner pensions (s 23) on death. For spouse pensions, the trustees must calculate the pension as three-quarters of the member’s pension or 45 per cent of current basic salary, whichever is greater, and apply the three-year marriage rule (s 23(1A)). The trustees must handle competing claims for spouse benefits under s 30B, including apportionment and withholding payment for 30 days.

Compliance with Commonwealth standards: The trustees must ensure all benefits comply with relevant Commonwealth superannuation standards. They must determine the minimum employer-financed benefit to avoid a superannuation guarantee shortfall (s 30(1)). They must increase any pension or lump sum that is employer-financed if it is below that minimum (s 30(2)). They must make adjustments to benefits paid after 1 July 1992 retrospectively if necessary (s 30A). The trustees may commute part of a pension to a lump sum for surcharge adjustment (s 28D). They must pay a member who has attained age 65 the whole or part of the benefit if needed for standard compliance (s 28E).

Family law: On receiving notice of a family law superannuation entitlement, the trustees must take action within the timeframes set by regulations: either pay the non-member spouse (if the member spouse is in receipt of pension or the non-member has met a condition of release) or transfer the amount to a complying superannuation fund or RSA nominated by the non-member spouse (s 29C(3)). If the non-member fails to nominate, the trustees must transfer the payment to the FTC for crediting to the Aware Super Fund (s 29C(5)). The trustees must reduce the member spouse’s benefits in accordance with regulations (s 29D). They may charge costs (s 29C(3)(a),(b); regs under s 29E cover fees).

Reporting and transparency: The trustees must give information to members and other persons as determined under s 32A, having regard to what a regulated superannuation fund would provide. They must furnish information to the Insurance and Superannuation Commissioner as reasonably required (s 32B). They must forward actuarial reports to the Minister (s 10(2C)). They must keep the Fund’s accounts and ensure that cheques are signed properly (s 13). The trustees must maintain accounts and reserves for preserved benefits (s 22B(4)). They must also make regulations as required for matters including family law payment splits, surcharge adjustments, and transitional provisions (s 33). The trustees should ensure that any benefit reduction or suspension under s 19AA is documented and that appeals are handled carefully. They should also ensure that elections under s 20 and s 27A are handled promptly and that the three-month time limits are strictly applied. Trustees must be aware of their duties under the Trustee Act 1925 and their fiduciary duties, and must act in good faith, as they are indemnified under s 17A only for acts done in good faith. They must also ensure that the Fund’s investment and reserves strategies are documented and regularly reviewed, and that all financial arrangements comply with the Government Sector Finance Act 2018.