26DPower of trustees to adjust benefits in relation to certain liabilities

26D Power of trustees to adjust benefits in relation to certain liabilities

26D Power of trustees to adjust benefits in relation to certain liabilities

(1) Whenever—

(a) a right to a benefit under this Act accrues to or in respect of a member or former member, and

(b) the trustees have paid or are liable to pay an amount of superannuation contributions surcharge in respect of the employer contributions paid to the Fund on behalf of the member or former member,

the trustees must determine in writing the surcharge deduction amount that, in the opinion of the trustees, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.

(2) In determining the surcharge deduction amount in respect of a benefit payable to a member or former member, the trustees may have regard to any or all of the following matters—

(a) the amount of superannuation contributions surcharge payable or paid by the trustees in respect of the member or former member,

(b) the amount by which the member’s or former member’s surcharge debt account is in debit when the benefit emerges or commences to be paid,

(c) the value of the employer-financed portion of the benefit,

(d) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional surchargeable contribution factors applicable to the member or former member, were assumed to be likely to be payable to the member or former member on his or her ceasing to hold office as a member of the Legislative Council or Legislative Assembly,

(e) whether the member or former member has qualified for a benefit after having been a member for an aggregate period of 7 years or more,

(f) the amount of any payments under section 31A,

(g) any other matter the trustees consider relevant.

(3) The surcharge deduction amount determined by the trustees must not exceed—

(a) an amount that is 15% of the employer-financed portion of that part of the benefit payable to the member or former member that accrued after 20 August 1996, or