Part 4Pension and benefits for former members

Part 4—Pension and benefits for former members Division 1—Entitlement to pension 15—Application of Division This Division applies in relation to PSS 1 and PSS 2 members. 16—Entitlement to a pension on retirement A former PSS 1 or PSS 2 member who— (a) has retired involuntarily, having had not less than 6 years service; or (b) has retired voluntarily— (i) having had not less than 15 years service; or (ii) having been a member of not less than four Parliaments and having had not less than 13 years service; or (c) having attained the age of 60 years, has retired voluntarily having had not less than 6 years service, shall, on and from the day next succeeding the day on which he retired, be entitled to a pension for life in an amount calculated by reference to this Division. 17—Amount of pension for PSS 1 member pensioners (1) Subject to this section, the amount of annual pension payable to a former PSS 1 member referred to in section 16 shall be an amount equal to 41.2 per cent of the salary payable to him immediately before he ceased to be a member plus 0.2 per cent of that salary for each whole month of the member's service after 6 years service but the annual pension shall not, in any case, exceed 75 per cent of that salary. (2) Where a former PSS 1 member was in receipt of additional salary at any time during his service, the amount of the annual pension payable to that former member shall be determined by reference to the following formula: P is the annual pension payable to the former member; BP is the annual pension that would, apart from this subsection, be payable to the former member; X is an amount arrived at by subtracting from BP the amount of the annual pension that would, apart from this subsection, be payable to the former member if the reference to 6 years service in subsection (1) were a reference to 8 years service; HS is the sum of BS and the amount arrived at by calculating the total amount that would have been payable to the former member by way of additional salary— (a) upon the assumption that the rates of additional salary applicable on the date of his retirement had applied during the whole of his period of service; and (b) where he held prescribed offices during his period of service for a total period of more than 6 years—by taking into account only periods of his service for which he held prescribed office that equal in aggregate 6 years, those periods that would have been the most remunerative for him in terms of additional salary at the rates referred to in paragraph (a) being first taken into account and (if necessary) those periods that would have been the next most remunerative for him in terms of additional salary at those rates being next taken into account and so on until the periods equal in aggregate 6 years; BS is an amount equal to 6 times the salary applicable to the member on the date of his retirement. 17A—Amount of pension for PSS 2 member pensioners (1) Subject to this section, the amount of the annual pension payable to a former PSS 2 member referred to in section 16 is— (a) 41.2 per cent of the salary payable to the former member immediately before he or she ceased to be a member plus 0.2 per cent of that salary for each completed month of service in addition to the first six years of service of the former member; and (b) where the former member held a prescribed office at any time during his or her service—a percentage, calculated in accordance with the following formula, of the additional salary (expressed as an annual amount) payable in respect of the prescribed office on the date of the former member's retirement: P is the percentage of the additional salary; M is the number of complete months during which the former member held the prescribed office. (2) Where— (a) a former PSS 2 member had been a member of the Parliament of another State or the Commonwealth before becoming a member of the South Australian Parliament; and (b) the former member is entitled to a pension in respect of his or her service as a member of that other Parliament, the former member's period of service as a member of that other Parliament will be counted as service for the purposes of section 16 and the amount of the annual pension (if any) payable to the former PSS 2 member under this Act will be— (c) 0.2 per cent of the salary payable to the former member immediately before he or she ceased to be a member for each completed month of the member's service in the South Australian Parliament; and (d) where the former member held a prescribed office at any time during his or her service in the South Australian Parliament—a percentage, calculated in accordance with the formula in subsection (1)(b), of the additional salary (expressed as an annual amount) payable in respect of the prescribed office on the date of the former member's retirement. (3) If the former member held two or more prescribed offices during his or her service, the pension under subsection (1) or (2) will include a percentage of the additional salary payable in respect of each office calculated under subsection (1)(b). (4) The component of the pension determined under subsection (1)(a) or (2)(c) cannot exceed 75 per cent of the former member's salary immediately before he or she ceased to be a member. (5) The component of the pension determined under subsection (1)(b) or (2)(d) cannot exceed 75 per cent of the additional salary payable in respect of the prescribed office on the date of the former member's retirement but, if the former member held two or more such offices, the component cannot exceed 75 per cent of the highest of the salaries attached to those offices on the date of the former member's retirement. (6) Where, in relation to a particular period— (a) a PSS 2 member pensioner who has not reached the age of 60 years is receiving, or would but for this subsection be entitled to receive, a pension under this section; and (b) the pensioner is also receiving or entitled to receive income from remunerative activities engaged in by the pensioner or another person is receiving or entitled to receive income from remunerative activities engaged in by the pensioner, the pension payable in respect of that period will be reduced by one dollar for each two dollars of income referred to in paragraph (b). (7) In the application of subsection (6), income that does not comprise money will be taken to have the monetary value determined by the Board. (8) In this section— income includes goods, services and any other thing of value; remunerative activity engaged in by a pensioner means an activity of the pensioner that produces income for the benefit of the pensioner or for the benefit of another person either at the pensioner's direction or by means of a company, trust or other device used by the pensioner to direct the income to the other person. 17B—Supplementary provisions (1) If a member held a prescribed office during the member's period of service and the prescribed office does not exist on the date of the member's retirement, the rate of additional salary applicable to that office on that date for the purposes of this Division will be taken to be a rate of salary determined by the Board having regard to the rate of additional salary last applicable to that office before the date of retirement of the member and the movements (if any) in salaries and additional salaries up to the date of retirement of the member. (2) If— (a) a member held a prescribed office during the member's period of service; and (b) the additional salary payable in respect of that prescribed office is, in comparison with the additional salaries payable in respect of other prescribed offices, proportionately less on the date of the member's retirement than it was at any time at which the member actually held that office; and (c) the Board is of the opinion that a determination under this subsection is necessary in order to avoid substantial injustice, the rate of additional salary applicable to that office on the date of the member's retirement for the purposes of this Division will be taken to be the rate of salary determined by the Board on the assumption that the additional salary in question had not been reduced in comparison to additional salaries payable in respect of other prescribed offices. 18—Invalidity retirement (1) Where a PSS 1 or PSS 2 member satisfies a judge that he is unable to continue as a member on the grounds of invalidity that prevents the member from being able to carry out the duties of office to a reasonable degree, that member shall, on and from the day next succeeding the day on which he so satisfies that judge, be entitled to an annual pension for life ascertained by reference to subsection (2). (2) The amount of annual pension referred to in subsection (1) shall be— (a) in the case of a member who had less than 6 years service, the amount of annual pension that he would have received ascertained by reference to section 17 or 17A if, on the day on which he so satisfied the judge, he had retired involuntarily having, on that day, attained 6 years service; or (b) in any other case, the amount of annual pension ascertained by reference to section 17 or 17A that he would have received if, on the day on which he so satisfied the judge, he had retired involuntarily. 19—Reduction of pension in certain circumstances (1) Where a member pensioner occupies a prescribed office or position, the pension payable to the member pensioner pursuant to this Act shall be reduced by the amount of the salary, or other remuneration, paid in respect of that office or position. (2) Subject to subsections (2a) and (2b), where a member pensioner, or the member pensioner's spouse or child or another person, becomes entitled to superannuation or a retirement allowance by virtue of the member pensioner having held or occupied a prescribed office or position, any pension or child benefit payable under this Act to the member pensioner, the member pensioner's spouse or child or that other person shall be reduced by the prescribed amount. (2a) A pension payable under section 17A(2) to a former PSS 2 member and a pension or child benefit payable under this Act to such a former member's spouse or child or to any other person in relation to such a former member will not be reduced under subsection (2) because of the pension payable to, or in relation to, the former member in respect of his or her service as a member of the other Parliament referred to in section 17A(2). (2b) A pension payable under this Act to a member pensioner to whom section 19A applies and the pension or child benefit payable under this Act to the spouse or child of such a member pensioner or to any other person in relation to such a member pensioner will not be reduced under subsection (2). (3) For the purposes of subsection (2), the prescribed amount is— (a) where the whole of the superannuation or retirement allowance referred to in that subsection is paid to the member pensioner, the member pensioner's spouse or child or another person by way of a pension and no part of it has been paid by way of a lump sum—the pension so paid; (b) where, as the result of an election made by the member pensioner, the member pensioner's spouse or child or that other person, the whole or a part of that superannuation or retirement allowance is paid as a lump sum—the amount of the pension that would have been payable in respect of that superannuation or retirement allowance if that election had not been made; (c) where, without an election being made, the whole or a part of that superannuation or retirement allowance is paid as a lump sum—the amount determined in accordance with the following formula: PA is the prescribed amount expressed as an annual pension; P is that part (if any) (expressed as an annual pension) of the superannuation or retirement allowance that is paid as a pension; LS is the lump sum that was paid in total or partial satisfaction of the entitlement of the member pensioner (or of the member pensioner's spouse or child or another person) to the superannuation or retirement allowance. (4) Where a pension or child benefit is reduced pursuant to this section, the person entitled (or who would have been entitled but for the reduction) or, where 2 or more persons are so entitled, all of those persons acting together, may by notice in writing to the Board require the Treasurer to pay to that person, or to those persons, an amount ascertained by reference to the following formula: A is the amount expressed in dollars and cents; TC is the total contributions expressed in dollars and cents made by the member pensioner under this Act or under the repealed Act other than any such contributions that have been refunded to the member pensioner and have not been repaid; N is one or the number of whole years of service of the member pensioner whichever is the greater; P is the total of all pensions and benefits (if any) received by the member pensioner, his spouse or an eligible child in respect of the member pensioner under this Act and under the repealed Act, and upon payment of that amount no further pension or benefit shall be paid to, or in respect of, the member pensioner. (5) A notice referred to in subsection (4) may be given on behalf of a child who is under the age of 18 years by the child's parent or guardian. (6) A payment under subsection (4) shall— (a) if made to a spouse and a child or children—be divided between them as to ¾ to the spouse and as to ¼ to the child or children; (b) if made only to children—be divided equally between them. prescribed office or position means an office or position established under the law of this State, the Commonwealth, another State of the Commonwealth or a Territory of the Commonwealth which has been declared by regulation to be a prescribed office or position for the purposes of this section. 19A—Preservation of pension in certain cases (1) This section applies to, and in relation to, a member pensioner if the member pensioner— (a) is deemed to have retired (whether before or after the commencement of the Parliamentary Superannuation (New Scheme) Amendment Act 1995) involuntarily because of election to the Parliament of another State or the Commonwealth; and (b) — (i) the superannuation scheme available to the member pensioner as a member of that other Parliament does not provide for the member pensioner to be credited with his or her service as a member of the South Australian Parliament; or (ii) the superannuation scheme available to the member pensioner as a member of that other Parliament provides for the member pensioner to make an election under which he or she will not be credited with that service and the member pensioner makes that election. (2) If a member pensioner to whom this section applies has not reached the age of 55 years at the time of his or her retirement or at the time of making the election referred to in subsection (1)(b)(ii), the pension payable to the pensioner under this Act is preserved. (3) Where a pension is preserved by subsection (2) the following provisions apply: (aa) the Board must, not less than 6 months before the member pensioner's 55th birthday, notify the member pensioner in writing of the member pensioner's entitlement to require the payment of a pension under paragraph (a); (a) the member pensioner may, at any time after reaching the age of 55 years, require the Board to commence paying the pension to the member pensioner and if no such requirement has been made on or before the date on which the member pensioner reaches 60 years of age, the Board will commence payment of the pension; (b) if the member pensioner satisfies the Board that he or she has ceased to be a member of the Parliament referred to in subsection (1), the Board will commence payment of the pension, (and a payment under paragraph (a) or (b) excludes further rights so that a claim cannot be subsequently made under the other paragraph). (4) Section 19(1) will not apply in relation to a pension payable under subsection (3)(a). 20—Suspension of pension (1) If a member pensioner again becomes a member of either House of Parliament, the pension payable to that pensioner will be suspended during the period for which the member is again a member of the Parliament (and will then become payable again after he or she ceases to be a member of the Parliament on the basis of his or her previous service). Division 2—Commutation of pension 21—Commutation of pension (1) Subject to this Division, a former PSS 1 member who is entitled to a pension under this Act may, by notice in writing to the Board, elect to commute a percentage of that pension, not exceeding the maximum percentage of that pension ascertained by reference to Schedule 2. (1a) Subject to this Division, a former PSS 2 member who is in receipt of a pension or who is entitled to receive a pension under this Act may, by notice in writing to the Board, elect to commute the whole of the pension or such lesser proportion of it as he or she thinks fit. (1b) A member pensioner who is deemed by this Act to have retired involuntarily by virtue of seeking and obtaining election to the Parliament of another State or the Commonwealth may not commute a pension under subsection (1) or (1a) unless, on ceasing to be a member of that Parliament— (a) the member pensioner is not entitled to superannuation or a retirement allowance by virtue of having been a member of that Parliament; or (b) no part of the superannuation or retirement allowance to which the member pensioner is entitled by virtue of having been a member of that Parliament is attributable to his or her period of service as a member of the South Australian Parliament. (1c) A member pensioner who wishes to commute a percentage of the pension must do so within 3 months after first becoming so entitled. (2) Where a member pensioner elects to commute a percentage of his pension pursuant to this section, the Treasurer must pay to the member pensioner an amount equal to $10 for each $1 of annual pension so commuted. 21A—Application of section 21 to certain member pensioners In the application of section 21 to a PSS 1 member pensioner who has had not less than 20 years service, Schedule 2 shall apply and have effect as if for the expressions "30%", "34%" and "38%" there were substituted, in each case, the expression "40%".