Div 2ASuperannuation benefits for PSS 3 members

Division 2A—Superannuation benefits for PSS 3 members 21AB—Application of Division This Division applies in relation to PSS 3 members. 21AC—Interpretation In this Division— co-contribution component in relation to a member means the amount standing to the credit of the member's co‑contribution account; Government-funded component in relation to a member (other than a member who is a PSS 3 member by virtue only of section 7F) means the amount standing to the credit of the member's Government contribution account; member-funded component in relation to a member (other than a member who is a PSS 3 member by virtue of section 7F or 7G) means the amount standing to the credit of the member's contribution account; rollover component in relation to a member means the amount standing to the credit of the member's rollover account. 21ACA—Early access to superannuation benefits in case of severe financial hardship or on compassionate grounds (1) A PSS 3 member may apply to the Board for the early release of an amount of the member's benefit— (a) if the member is in severe financial hardship; or (b) on a compassionate ground. (2) The Board may require that an application under subsection (1) be made in such manner, comply with such requirements and be on such terms and conditions as the Board thinks fit. (3) The Board must, on receipt of an application under subsection (1), determine whether, in the Board's opinion, if the SIS regulations applied, the member would be taken for the purposes of those regulations— (a) to be in severe financial hardship; or (b) to satisfy a condition of release on a compassionate ground. (4) If the Board makes a determination that subsection (3)(a) or (b) applies to the member, the Board must— (a) determine the maximum amount that the SIS regulations would permit to be paid to the member in those circumstances; and (b) if the Board considers it appropriate to do so in all the circumstances, pay to the member— (i) the amount applied for by the member; or (ii) the amount determined by the Board under paragraph (a); or (iii) the combined balance of the member‑funded component, the Government‑funded component, the rollover component (if any) and the co‑contribution component (if any) (subject to any minimum account balance required by the Board), whichever is the lesser. (5) If the Board makes a payment to a PSS 3 member under subsection (4)(b), the Board must debit the amount of the payment against the member's employee contribution account or, if the credit balance of the member's contribution account is not sufficient to make the payment, the member's Government contribution account, rollover account or co‑contribution account. (6) A member making an application under subsection (1) must furnish the Board with any information that it requires for the purposes of making a determination under this section. compassionate ground and condition of release have the same respective meanings as in Part 6 of the SIS regulations; severe financial hardship has the same meaning as in Part 6 of the SIS regulations; SIS regulations means the Superannuation Industry (Supervision) Regulations 1994 of the Commonwealth. 21AD—Retirement at or above age 55 (1) A PSS 3 member who— (a) has retired (either voluntarily or involuntarily); and (b) has reached the age of 55 years, is entitled to payment of the member-funded component and the Government-funded component and to payment of the rollover component (if any) to the extent that that payment can be made in accordance with the SIS Act. (2) Subject to subsection (3), a PSS 3 member who does not apply to the Board in writing for the payment of an entitlement under subsection (1) within 3 months after retirement will be taken to have preserved the relevant components and section 21AF will apply to and in relation to them. (3) A PSS 3 member who has retired and reached the age of 70 years must immediately be paid any entitlement under subsection (1). (4) However, a rollover component, or part of a rollover component, that cannot be paid in accordance with the SIS Act must be preserved and section 21AF will apply to and in relation to it. (5) This section does not apply to or in relation to a case involving the death of a PSS 3 member (see section 21AH) and does not derogate from the ability of a member to apply for a benefit under section 21AG (rather than taking a benefit under this section). 21AE—Cessation of membership before age 55 (1) Subject to this section, a PSS 3 member who retires (either voluntarily or involuntarily) before reaching the age of 55 years may— (a) elect— (i) to take immediately the member-funded component; or (ii) to preserve the member-funded component; or (iii) to carry the member-funded component over to another superannuation fund or scheme that is a complying superannuation fund (as a preserved employee component); and (b) elect— (i) to preserve the Government-funded component; or (ii) to carry the Government-funded component over to another superannuation fund or scheme that is a complying superannuation fund (as a preserved employer component); and (c) elect— (i) to take immediately the rollover component (if any) to the extent that payment of that component can be made in accordance with the SIS Act; or (ii) to preserve the rollover component; or (iii) to carry the rollover component over to another superannuation fund or scheme that is a complying superannuation fund. (2) A PSS 3 member who does not inform the Board in writing of his or her election under subsection (1) within 3 months after ceasing to be a member will be taken to have elected to preserve the relevant components and section 21AF will apply to and in relation to them. (3) If the Board is of the opinion that the limitation period referred to in subsection (2) would unfairly prejudice a member, the Board may extend the period that applies to the member. (4) A PSS 3 member who has elected, or has been taken to have elected, to preserve his or her member-funded component, Government-funded component or rollover component and to whom the component has not been paid under section 21AF, may elect to withdraw the election and to elect to carry the component over to a complying superannuation fund. (5) If 2 or 3 components have been preserved, a member cannot make an election under subsection (4) to carry 1 or 2 but not both or all of them over. (6) If a member elects to carry over a component to a complying superannuation fund, the following provisions apply: (a) the member must satisfy the Board by such evidence as it may require that he or she has been admitted to membership of the fund; and (b) on being so satisfied the Board will authorise payment of the component on behalf of the member to the fund. (7) If a PSS 3 member has ceased to be a member of the Parliament of the State and has elected to preserve the member-funded, Government-funded or rollover component but has subsequently again become a member of the Parliament, the Board may maintain separate member's contribution accounts or Government contribution accounts or rollover accounts or a combined member's contribution account or Government contribution account or rollover account in the name of the member. (8) This section does not apply to or in relation to a case involving— (a) a cessation of membership on the ground of invalidity (in circumstances entitling the member to a benefit under section 21AG); or (b) the death of a PSS 3 member (see section 21AH). 21AF—Preservation of components (1) If a superannuation component has been preserved under section 21AD(2) or (4) or 21AE, then the following provisions will apply (subject to subsection (2)): (a) the Board must in relation to a component preserved under section 21AE, not less than 6 months before the relevant member's 55th birthday (unless that period has already been reached), notify the relevant member in writing of his or her entitlement to require the Board to make a payment under paragraph (b); (b) the relevant member may at any time after reaching 55 years of age require the Board to authorise payment of the component and, if no such requirement has been made on or before the date on which the member reaches 70 years of age, the Board will authorise payment of the component to the member; (c) if the relevant member has become incapacitated and satisfies the Board that his or her incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent, the Board will authorise payment of the component to the member; (d) if the relevant member dies, the component will be paid— (i) if the member has a legal personal representative—to the representative; and (ii) if the member does not have a legal personal representative but is survived by a spouse—to the spouse; and (iii) if the member does not have a legal personal representative and is not survived by a spouse—to the member's estate, (and a payment under any of the above paragraphs excludes further rights so that a claim cannot be subsequently made under some other paragraph). (2) Subsection (1) applies to a rollover component subject to restrictions imposed by the SIS Act. 21AG—Cessation of membership on ground of invalidity (1) If— (a) a PSS 3 member ceases to be a member of the Parliament of the State before reaching the age of 70 years; and (b) a judge is satisfied that the cessation is due to ill health that prevents the member from being able to carry out the duties of office to a reasonable degree, then the member is entitled to benefits made up of the following components: (c) the member-funded component; and (d) the Government-funded component; and (e) the rollover component (if any); and (f) subject to this section, the invalidity insurance benefit (if any) for PSS 3 members (see section 21AI). (2) The invalidity insurance benefits are not payable unless the Board is satisfied that the member's incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent. (3) The invalidity insurance benefit is not payable to a member within 1 year after becoming a PSS 3 member unless the Board is satisfied (by the production of such evidence as the Board thinks fit) that— (a) the invalidity is attributable to a medical condition arising after the member became a PSS 3 member and is not attributable (or is not attributable in any material degree) to a medical condition existing before the member became a PSS 3 member; or (b) the invalidity is attributable to a medical condition existing before the member became a PSS 3 member in a situation where, at the time of becoming a PSS 3 member, there was no reason for the member to believe that such a condition existed; or (c) the invalidity was caused by accidental injury. (4) A member who claims to be entitled to benefits under this section (or a person acting on his or her behalf) must make the claim (being a claim for benefits that have not otherwise been paid) to the Board within 3 months after ceasing to be a member of the Parliament of the State. 21AH—Death of PSS 3 member (1) Subject to this section, a payment will be made as follows on the death of a PSS 3 member: (a) if the deceased member has a legal personal representative—a payment will be made to the representative; and (b) if the deceased member does not have a legal personal representative but is survived by a spouse—a payment will be made to the spouse; and (c) if the deceased member does not have a legal personal representative and is not survived by a spouse—a payment will be made to the member's estate. (2) A payment under subsection (1)(a), (b) or (c) is to be made up of the following components: (a) the member-funded component; and (b) the Government-funded component; and (c) the rollover component (if any); and (d) subject to this section, the death insurance benefit (if any). (2a) Subsection (2)(d) does not apply in relation to a PSS 3 member— (a) who ceased to be a member of the Parliament of this State before the commencement of this subsection; or (b) who is over the age of 70 years at the time of their death; or (c) whose insurance has been cancelled on application by the member under section 21AHA(4). (3) A surviving spouse will not be entitled to a benefit under this section if section 23J applies to the spouse. (4) The death insurance benefit is not payable in respect of a member who dies within 1 year after becoming a PSS 3 member unless the Board is satisfied (by the production of such evidence as the Board thinks fit) that— (a) the death is attributable to a medical condition arising after the member became a PSS 3 member and is not attributable (or is not attributable in any material degree) to a medical condition existing before the member became a PSS 3 member; or (b) the death is attributable to a medical condition existing before the member became a PSS 3 member in a situation where, at the time of becoming a PSS 3 member, there was no reason for the member to believe that such a condition existed; or (c) death was caused by accidental injury. (5) If a benefit is payable to the legal personal representative or estate of a deceased PSS 3 member and probate or letters of administration in relation to the deceased's estate have not been granted to any person, the Board may use the amount payable under this section, or such part of it as is required, to pay the funeral expenses of the deceased member or to reimburse a person who has paid those expenses. 21AHA—Premiums for death insurance after PSS 3 member ceases to be member of Parliament (1) Subject to this section, a PSS 3 member who has ceased to be a member of the Parliament of the State and is under the age of 70 years is liable for premiums in respect of death insurance cover to which the member is entitled following that cessation. (2) The amount of premiums payable in respect of death insurance cover is to be fixed by the Board. (3) The amount of any premium payable by a member under this section will be charged against the member's Government contribution account at a time determined by the Board. (4) A PSS 3 member who has ceased to be a member of the Parliament of the State may apply to the Board, in the approved form, to cancel death insurance to which the member is entitled following that cessation, and, in that case, premiums for that insurance will cease to be payable from a day determined by the Board. (5) Death insurance to which a PSS 3 member is entitled after they have ceased to be a member of the Parliament of the State will cease if— (a) there are insufficient funds in the member's Government contribution account to enable the debiting of a premium; or (b) the member has reached the age of 70 years; or (c) the insurance has been cancelled on application by the member under subsection (4); or (d) the member is no longer a member of PSS 3. 21AI—Determination of invalidity/death insurance (1) For the purposes of this Division, a PSS 3 member is entitled to the following level of invalidity/death insurance by virtue of his or her membership of PSS 3: B is the amount of benefit; F is— (a) in the case of a PSS 3 member who has not reached the age of 66 years on the relevant day—5; (b) in the case of a PSS 3 member who is 66 years of age on the relevant day—4; (c) in the case of a PSS 3 member who is 67 years of age on the relevant day—3; (d) in the case of a PSS 3 member who is 68 years of age on the relevant day—2; (e) in the case of a PSS 3 member who is 69 years of age on the relevant day—1; (f) in the case of a PSS 3 member who has reached the age of 70 years on the relevant day—0; BS is the member's basic salary at the relevant time (expressed as an annual salary); AS is— (a) in the case of a member who has held a prescribed office at any time—an amount arrived at by taking the rate of remuneration for the highest prescribed office that the member held, being the rate applying to the holder or holders of such an office immediately before the relevant time, and— (i) in the case of a member who held prescribed offices for a total period exceeding 4 years, or who held any prescribed office immediately before the relevant time—applying that rate over a period of 4 years; (ii) in any other case—applying that rate over the period or periods over which the member held any prescribed office before the relevant time; (b) in any other case—0. (2) For the purposes of subsection (1)— (a) the relevant day is— (i) in the case of invalidity insurance—the day on which the relevant member ceases to be a member of the Parliament of the State; and (ii) in the case of death insurance—the day on which the relevant member dies; and (b) the relevant time is— (i) in the case of invalidity insurance—the day on which the relevant member ceases to be a member of the Parliament of the State; and (ii) in the case of death insurance—the day on which the relevant member dies or, if the relevant member died after leaving the Parliament of the State, the day on which they ceased to be a member of the Parliament of the State. (3) If an entitlement under this section would be a negative number (or zero), there is no entitlement. 21AJ—Special benefit for PSS 3 members aged 65 or over (1) A PSS 3 member who has reached the age of 65 years may apply to the Board for the payment of a specified proportion of the balance of the member's eligible contribution accounts. (2) The Board may— (a) require that an application under this section be made in such manner, and comply with such requirements, as the Board thinks fit; and (b) fix a maximum number of payments that may be made to a PSS 3 member under this section in a financial year; and (c) determine the eligible contribution account or accounts of a PSS 3 member from which a payment is to be made to the member under this section. (3) The amount of a payment made to a PSS 3 member under this section may not be less than the applicable minimum withdrawal amount for the member. (4) The combined balance of accounts maintained by the Board on behalf of a PSS 3 member to whom a payment has been made under this section must be equal to, or greater than, the applicable minimum balance amount for the member. (5) For the purposes of subsections (3) and (4), the applicable minimum withdrawal amount and the applicable minimum balance amount for a PSS 3 member are minimum amounts determined by the Board. (6) The Board may, for the purposes of subsection (5), determine that different minimum amounts apply to different PSS 3 members or classes of PSS 3 member. (7) The making of a payment under this section must take into account the operation of any provision under Part 4A. (8) Amounts standing to the credit of a PSS 3 member's eligible contribution accounts cannot be withdrawn under this section if— (a) the member is prevented from dealing with their superannuation interests by an instrument in force under the Family Law Act 1975 of the Commonwealth; or (b) the member has a liability that arose under this Act. (9) However, the Board may determine to permit a PSS 3 member to withdraw amounts standing to the credit of the member's eligible contribution accounts despite the member having a liability that arose under this Act if the Board is satisfied that the liability will be discharged in full. (10) In this section— eligible contribution accounts of a PSS 3 member means the member's— (a) Government contribution account; or (b) contribution account; or (c) rollover account; or (d) co-contribution account. Division 2B—Income protection for PSS 3 members 21AK—Application of Division This Division applies in relation to a PSS 3 member who— (a) ceases to be a member of the Parliament of the State after the commencement of this section; and (b) is not also a member of PSS 2. 21AL—Disability pension (1) Subject to this Division, a PSS 3 member to whom this Division applies who is incapacitated for work on account of a disability is entitled to a disability pension. (2) A PSS 3 member will be taken to be incapacitated for work on account of a disability for the purposes of this Division if the Board is satisfied, on the basis of medical evidence provided by the member, that the member is incapable, because of ill health or a disability, of performing work for which the member is suitably qualified by training, education or experience. (3) A PSS 3 member is not entitled to a disability pension under this section if— (a) the member is aged 65 years or over; or (b) there are insufficient funds in the member's Government contribution account to enable the debiting of a disability pension premium as required under section 14D. (4) In this section— medical evidence means a report or certificate of a medical practitioner. 21AM—Amount of pension (1) The amount of a disability pension will be 75% of— (a) the basic salary payable to a member of Parliament under the Parliamentary Remuneration Act 1990 at the time payment of the pension commences; and (b) if the member was at any time entitled to additional salary in respect of an office specified in the Schedule of the Parliamentary Remuneration Act 1990—the average of the additional salary paid to the member during the designated 4 year period. designated 4 year period, in relation to a member who received additional salary under the Schedule of the Parliamentary Remuneration Act 1990, means the period of 4 years during which the member received the highest amount of such additional salary. 21AN—Matters affecting entitlement to pension (1) A disability pension is payable to a PSS 3 member in respect of a disability— (a) only if the member is incapacitated on account of the disability for a period that exceeds 30 days; and (b) only in relation to a period of incapacity that occurs after the end of that 30 day period. (2) A disability pension is not payable to a PSS 3 member if— (a) the member has ceased to be a member of the Parliament of the State due to ill health and has received, or is entitled to receive, the invalidity insurance benefit under section 21AG; or (b) the member has received a disability pension under this Division in respect of 1 or more disabilities for a continuous period of 5 years or for periods that, in aggregate, total 5 years. (3) A disability pension is not payable to a PSS 3 member in respect of a period for which the member is on recreation leave, long service leave, paid sick leave or any other form of paid leave. (4) If a PSS 3 member to whom a disability pension is payable is in receipt of income from employment, workers compensation or some other form of income protection during the period of incapacity, the pension will be reduced by the amount of that income. 21AO—Duration of disability pension (1) Payment of a disability pension to a PSS 3 member will cease— (a) when the member ceases to be incapacitated for work on account of the disability; or (b) if the member has received a disability pension under this Division in respect of 1 or more disabilities for a continuous period of 5 years or for periods that, in aggregate, total 5 years—at the end of that period or those periods; or (c) when the member reaches the age of 65 years, whichever occurs first. (2) A PSS 3 member is not entitled to payment of a disability pension during any period for which there are insufficient funds in the member's Government contribution account to enable the debiting of a disability pension premium as required under section 14D. 21AP—Cancellation of income protection A PSS 3 member may apply to the Board, in the approved form, to cancel the income protection to which the member is entitled under this Division (and the cancellation will take effect, and premiums will cease to be payable, from a day determined by the Board). 21AQ—Procedural matters The Board may make further provision in relation to procedural and other matters, including terms and conditions, associated with income protection provided under this Division. Division 3—Related matters 22—Other benefits under PSS 1 (1) Where a PSS 1 member ceases to be a member and no pension or other benefit under this Act is payable to, or in relation to, the former member, there is payable to the former member a lump sum equivalent to the balance standing to the credit of the former member's contribution account. 22A—Other benefits under PSS 2 (1) Where a PSS 2 member ceases to be a member and no pension or other benefit under this Act is payable to, or in relation to, the former member, the following benefits are payable to the former member: (a) a lump sum made up of an employee component and a Government-funded component; and (b) where the former member retired involuntarily—a lump sum calculated in accordance with subsection (6). (2) The values of the components referred to in subsection (1)(a) are as follows: (a) the value of the employee component is equal to the balance standing to the credit of the former member's contribution account; (b) the value of the Government-funded component is— (i) if the employee component is to be paid to or in respect of the former member at the same time as the employer component—equal to the value of the employee component; (ii) in any other case—equal to the amount that would be the value of the employee component if it were paid when the Government-funded component is paid. (2a) The value of the employee component under subsection (2) in respect of a former member who ceased to be a member before 1 July 1998 will be determined as follows: (a) the balance standing to the credit of the former member's notional contribution account as at 30 June 1998 will be determined under section 21B as though that section had not been repealed; (b) the value of the former member's employee component for the purposes of subsection (2) will be taken to be the balance of the former member's notional contribution account referred to in paragraph (a) adjusted under section 13B as though it were the former member's contribution account. (3) If the former member had reached the age of 55 years when he or she ceased to be a member both components are payable to the member. (4) If the former member had not reached that age when he or she ceased to be a member, the former member may— (a) in the case of the employee component, elect— (i) to take the component immediately; or (ii) to preserve the component; or (iii) to carry the component over to some other superannuation fund or scheme approved by the Board; (b) in the case of the Government-funded component, elect— (i) to preserve the component; or (ii) to carry the component over to some other superannuation fund or scheme approved by the Board. (4a) A former member who fails to inform the Board in writing of his or her election under subsection (4)(a) or (b) within three months after he or she ceases to be a member will be taken to have elected to preserve the employee or the Government-funded component (as the case requires). (4b) If the Board is of the opinion that the limitation period referred to in subsection (4a) would unfairly prejudice the former member, the Board may extend the period as it applies to the former member. (4c) Where the former member elects to carry over the employee or the Government‑funded component to an approved superannuation fund or scheme, the following provisions apply: (a) the former member must satisfy the Board by such evidence as it may require that he or she has been admitted to membership of the fund or scheme; and (b) on being so satisfied the Board will authorise payment of the component on behalf of the former member to the fund or scheme. (5) The following provisions apply to the payment of a component preserved by or under subsection (4): (aa) the Board must, not less than 6 months before the former member's 55th birthday, notify the former member in writing of the former member's entitlement to require payment of the component under paragraph (a); (a) the former member may at any time after reaching 55 years of age require the Board to pay the component to him or her and, if no such requirement has been made on or before the date on which the former member reaches 65 years of age, the Board will make the payment; (b) if the former member satisfies the Board that he or she has become totally and permanently incapacitated for work, the Board will pay the component to the former member; (c) if the former member satisfies the Board that he or she is suffering financial hardship and that the Board should pay the component to the former member to relieve that hardship, the Board will pay the component to the former member; (d) if the former member dies, the component will be paid to the spouse of the deceased former member or, if he or she left no surviving spouse, to the former member's estate, (and a payment under any of the above paragraphs excludes further rights so that a claim cannot be subsequently made under some other paragraph). (5a) A former member who has elected, or has been taken to have elected, to preserve his or her employee or Government-funded component and to whom the component has not been paid under this section, may elect to withdraw that election and to elect to carry the component over to some other superannuation fund or scheme approved by the Board. (6) The lump sum referred to in subsection (1)(b) is calculated as follows: LS is the lump sum; S is the salary payable to the former member immediately before he or she retired; M is the number of complete months of the former member's period of service. (7) A benefit is not payable under subsection (6) to a former member who is deemed to have retired involuntarily by reason of having been elected to the Parliament of another State or the Commonwealth. 23—Pension paid for limited period (1) If— (a) a PSS 1 or PSS 2 member ceases to be a member of the Parliament of the State; and (b) either immediately or after a period of preservation of the former member's benefits— (i) a pension is paid under this Act to the former member; or (ii) a pension is paid under this Act to the former member and then, on his or her death, a pension is paid under this Act to his or her spouse or an eligible child (or both); or (iii) the cessation of membership is by reason of his or her death and a pension is paid under this Act to his or her spouse or an eligible child (or both); or (iv) the former member dies after a period of preservation before receiving a pension and a pension is paid under this Act to his or her spouse or an eligible child (or both); and (c) the pension, or the last of the pensions to be payable, ceases before the expiration of the period of 4.5 years after the pension, or the first of the pensions, commenced and no actual or prospective right to a pension exists and no other benefit is payable under this Act, an amount determined in accordance with subsection (2) or (2a) (as the case requires) is payable to the former member's estate. (2) The amount referred to in subsection (1) is the amount of the pension or pensions that would have been payable to, or in relation to, the former member during the period referred to in subsection (1)(c) if the pension or pensions had not ceased, reduced by— (a) the amount of the lump sum, or the aggregate of the lump sums, (if any) paid on commutation of the pension or pensions; and (b) the amount of the pension or pensions actually paid to, or in relation to, the former member. (2a) However, if a pension was paid to 1 or more eligible children but not to a spouse, the amount referred to in subsection (1) is the amount of the pension or pensions that would have been payable to, or in relation to, the former member during the period referred to in subsection (1)(c) if— (a) a pension had been payable to a spouse of the former member during that period (in addition to any pension payable to the former member or an eligible child); and (b) the pension or pensions had not ceased, reduced by— (c) the amount of the lump sum, or the aggregate of the lump sums, (if any) paid on commutation of the pension or pensions; and (d) the amount of the pension or pensions actually paid to, or in relation to, the former member. (3) When computing the amount of the pension or pensions that would have been payable during the period referred to in subsection (1)(c)— (a) it will be assumed that the pension or pensions were not reduced by commutation; and (b) the provisions of this Act for indexation of pensions will be ignored. (4) For the purposes of this section, if the cessation under subsection (1)(a) relates to a PSS 1 or PSS 2 member who had been a member of the Parliament, then ceased to be a member and then, after a period of time, returned as a member and has again ceased to be a member, then any previous cessation of service, and any previous benefits paid on account of that cessation, will be disregarded. 23AA—Commutation to pay deferred superannuation contributions surcharge—pension entitlements (1) The Board will, on the application of a former PSS 1 or PSS 2 member who is entitled to a pension and who is liable for a deferred superannuation contributions surcharge, commute so much of the pension as is required to provide a lump sum equivalent to the amount of the surcharge. (2) An application under subsection (1) must be made in writing to the Board before the expiration of the period of three months immediately following the date on which the notice given to the former member by the Commissioner of Taxation under section 15(7) of the Commonwealth Act was issued. (3) Where— (a) — (i) a PSS 1 or PSS 2 member, or a former PSS 1 or PSS 2 member, who is liable for a deferred superannuation contributions surcharge dies before notice by the Commissioner of Taxation under section 15(7) of the Commonwealth Act is issued; or (ii) a former PSS 1 or PSS 2 member who is liable for a deferred superannuation contributions surcharge dies within three months after the issue of such a notice without having commuted his or her pension under subsection (1); and (b) the former member is survived by a spouse who is entitled to a pension as the former member's spouse under this Act, the Board will, subject to subsection (5) on the application of the spouse, commute so much of the spouse's pension as is required to provide a lump sum equivalent to the amount of the surcharge. (4) An application under subsection (3) must be made in writing to the Board before the expiration of the period of six months immediately following the former member's death or the issue of the notice under section 15(7) of the Commonwealth Act, whichever is the later. (5) The Board must not commute a pension under subsection (3) unless it is satisfied that the resulting lump sum will be applied in payment of the surcharge or be used to reimburse the deceased former member's estate or the spouse or other person who has paid the surcharge on behalf of the estate. (6) The commutation factors to be applied in the commutation of a pension under this section will be determined by the Treasurer on the recommendation of an actuary. (7) If the Board is satisfied that— (a) a former member, or the spouse of a member or former member, is entitled to commute the whole of his or her pension under section 21 or 26AA and has done so except for a part that the former member or spouse wishes to retain for the purpose of commutation under this section in order to pay the former member's deferred superannuation contributions surcharge; and (b) after commutation under this section for that purpose there will still be a part of the pension remaining uncommuted; and (c) the part of the pension originally retained for commutation under this section was a reasonable estimate of the amount of the pension that would be required for that purpose, the Board will, on the application of the former member or spouse made at the same time as his or her application under subsection (1) or (3), commute the remaining uncommuted part of the pension using the factors applicable under section 21 or 26AA. (8) In this section— actuary means a Fellow or Accredited Member of the Institute of Actuaries of Australia; the Commonwealth Act means the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997. 23AAB—Commutation to pay deferred superannuation contributions surcharge—lump sum entitlements prescribed member means— (a) a former PSS 2 member who has an amount preserved under this Part by virtue of his or her membership of PSS 2; or (b) a PSS 3 member, or a former PSS 3 member. (2) A prescribed member who is liable for a deferred superannuation contributions surcharge as a result of a benefit becoming payable to the prescribed member may apply to the Board, in accordance with this section— (a) to receive part of the benefit in the form of a commutable pension; and (b) to fully commute the pension. (3) A prescribed member who has become entitled to a benefit, or will shortly become entitled to a benefit, may— (a) estimate the amount of the surcharge the prescribed member will become liable to pay (the estimated surcharge amount); and (b) request the Board, in the approved form, to— (i) withhold from the prescribed member's benefit an amount equal to the estimated surcharge amount (the withheld amount); and (ii) pay the balance of the benefit to the prescribed member (being, in the case of a benefit to which the prescribed member is yet to become entitled, a payment after the entitlement arises), and the Board must, subject to subsection (5), comply with the prescribed member's request. (4) If a prescribed member has made a request under subsection (3)(b), the prescribed member must, before the expiration of 2 months following the issue of a surcharge notice in respect of the prescribed member, advise the Board in the approved form that the notice has been issued and the Board must, within 7 days of receiving that advice— (i) if the amount of the surcharge payable by the prescribed member is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the prescribed member— (5) The Board may reject an application under subsection (2) if— (a) it is not satisfied that, if the application were accepted, the resulting lump sum will be applied in payment of the surcharge; or (b) the prescribed member fails to satisfy the Board that the prescribed member has, or will have, a surcharge liability to the Commissioner of Taxation. (6) The factors to be applied in— (a) the conversion of a withheld amount (or part of a withheld amount) into a pension; and (b) the commutation of a pension, will be determined by the Treasurer on the recommendation of an actuary. 23AAC—Commutation to pay deferred superannuation contributions surcharge following death of member prescribed member has the same meaning as in section 23AAB. (2) If a prescribed member who is liable for a deferred superannuation contributions surcharge dies— (a) having made a request of the Board under section 23AAB for part of his or her benefit to be withheld but before receiving a surcharge notice; or (b) having received a surcharge notice but before requesting commutation of his or her pension under section 23AAB, the prescribed member's spouse or legal representative may, if entitled to be paid a benefit on the death of the prescribed member, before the expiration of the period of 2 months immediately following the prescribed member's death or the issue of the surcharge notice (whichever is the later), apply to the Board— (c) to receive the amount withheld by the Board on behalf of the deceased prescribed member under section 23AAB in the form of a commutable pension; and (d) to fully commute the pension. (3) The Board must, on receipt of an application under subsection (2)— (i) if the amount of the surcharge payable is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the spouse or representative— (4) If a prescribed member dies without having made a request under section 23AAB, the prescribed member's spouse or legal representative may, if entitled to be paid a benefit on the death of the prescribed member— (a) estimate the amount of the surcharge the spouse or representative will become liable to pay (the estimated surcharge amount); and (b) request the Board, in the approved form, to— (i) withhold from the benefit an amount equal to the estimated surcharge amount (the withheld amount); and (ii) pay the balance of the benefit to the spouse or representative, and the Board must, subject to subsection (7), comply with the request. (5) An application under subsection (4) must be made in writing to the Board before payment of the benefit to the spouse or legal representative. (6) The spouse or legal representative must, before the expiration of 2 months following the issue of a surcharge notice in respect of the member, advise the Board in the approved form that the notice has been issued and the Board must, within 7 days of receiving that advice— (i) if the amount of the surcharge payable is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the spouse or representative— (7) The Board may reject an application under subsection (2) or (4) if it is not satisfied that, if the application were accepted, the resulting lump sum will be applied in payment of the surcharge or be used to reimburse the deceased prescribed member's estate, or the spouse or other person who has paid the surcharge on behalf of the estate. (8) The factors to be applied in— (a) the conversion of a withheld amount (or part of a withheld amount) into a pension; and (b) the commutation of a pension, will be determined by the Treasurer on the recommendation of an actuary. (9) In this section— legal representative, in relation to a deceased prescribed member, means a person— (a) holding office as executor of the will of the deceased prescribed member where probate of the will has been granted or resealed in South Australia or any other State or a Territory; or (b) holding office in South Australia or any other State or a Territory as administrator of the estate of the deceased prescribed member. 23AAD—Withheld amount An amount withheld under section 23AAB or 23AAC— (a) must be retained in the PSS 3—Government Contributions Division of the Fund; and (b) will be credited with interest at the rate of return determined by the Board under section 14D(3); and (c) may be paid to the prescribed member (or the prescribed member's spouse or legal representative)— (i) in accordance with section 23AAB or 23AAC; or (ii) at the direction of the Board if the Board— (A) has not, within 2 years of withholding the amount, received advice that a surcharge notice has been issued in respect of the prescribed member; or (B) considers, at any time, there is other good reason for doing so. 23AAE—Payment of Division 293 tax (1) For the purposes of facilitating the payment of Division 293 tax, the Board may pay an amount on behalf of a member to the Commissioner of Taxation, or to the member, as required by, and in accordance with, the requirements of the Taxation Administration Act 1953 of the Commonwealth. (2) If the Board makes a payment to or on behalf of a member under subsection (1), the Board must debit the amount of the payment against the member's Government contribution account or, if the credit balance of the member's Government contribution account is not sufficient to make the payment, the member's contribution account, rollover account or co‑contribution account.