Public Authorities Superannuation (Transitional Provisions) Regulation 1985
In ForceNSW
Jurisdiction
New South Wales
Act Number
245 of 1985
Collection
regulation
Plain English Summary
6/10 complexity
This Regulation sets transitional rules for persons transferred from earlier New South Wales superannuation schemes into the Public Authorities Superannuation Act 1985. It prescribes how transferred contributors or their spouses may elect to convert employer- or contributor‑financed lump sums into life pensions, the formulas and age-based tables used, entry dates, timing for payments, and election deadlines. Payments are calculated and paid by the Board in fortnightly instalments, employers’ reserves may be debited for employer-financed shares, and the Board has specified discretions (see cls 4–7, 9, 13).
This Regulation sets out transitional administrative rules and conversion mechanics that apply to persons and dependants who became members of the public authorities superannuation arrangements on the transition to the Public Authorities Superannuation Act 1985 (the Act) on 1 July 1985. Its operation is entirely procedural and formulaic: it prescribes the form and timing of elections to convert lump-sum entitlements into pensions, the statutory formulas and conversion factors for calculating those pensions, the dates from which pensions are payable and how often they are paid, and the accounting allocation rules for employer contributions arising under the earlier New South Wales Retirement Benefits Act 1972 (the earlier Act). The Regulation commenced on 1 July 1985 (cl 2).
Mechanically, the Regulation:
Defines its key terms by reference to the Act and Part 5 of the Act (cl 3).
Requires that elections by transferred contributors or their spouses to take specified pensions be made in Board‑approved forms, accompanied by employer‑provided information, and lodged within short statutory windows (cl 4, cl 8).
Fixes the pension commencement date and payment frequency for contributors and spouses (cl 5, cl 9).
Prescribes statutory formulas for employer‑financed pensions (cl 6) and for converting contributor‑financed lump sums into ongoing pensions using age, sex and spouse‑option division factors (cl 7 and its Table).
Authorises spouses of deceased transferred contributors to elect a life pension in lieu of employer‑financed lump sums under specified formulas, with special rules where the transferred contributor is from the Local Government Pension Fund or the Retirement Fund (cl 10-12).
Provides administrative rules for allocating employer liabilities that would have arisen under the earlier Act between primary and secondary employers by Board determination, and for debiting and crediting employers’ reserves accordingly (cl 13).
Current sections
Direct links to the current provisions in Public Authorities Superannuation (Transitional Provisions) Regulation 1985.
transferred contributor means a transferred contributor as defined in clause 1 of Schedule 6, or clause 1 of Schedule 7, to the Act.
(2) Expressions used in this Regulation have the same respective meanings as they have in Part 5 of the Act.
4
Election by transferred contributor to take pension benefit
4 Election by transferred contributor to take pension benefit
4 Election by transferred contributor to take pension benefit
(1) An election by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6, or clause 8 (2) or (3) of Schedule 7, to the Act shall:
(a) be in a form approved by the Board, and
(b) specify such matters and be accompanied by such information provided by the employer of the transferred contributor at the time of retirement as the Board reasonably requires.
(2) The election shall be lodged at the office of the Board:
(a) in the case of an election to take a benefit referred to in subclause (1) instead of the whole or a specified part of the benefit provided by section 26 of the Act (benefit at age 65 or on early retirement or on death on or after age 60)—before or within the period of 2 months that next succeeds the date of the transferred contributor’s ceasing to be an employee or attaining the age of 65 years, whichever first occurs, or
(b) in the case of an election to take a benefit referred to in subclause (1) instead of the whole or a specified part of the benefit provided by section 28 of the Act (benefit on total and permanent disablement before age 60)—within the period of 3 months (or such further period as the Board may in special circumstances allow) that next succeeds the date of the transferred contributor’s ceasing to be an employee.
5
Payment of pension benefit to transferred contributor
5 Payment of pension benefit to transferred contributor
5 Payment of pension benefit to transferred contributor
The benefit provided by clause 8 (2) and (3) of Schedule 6, or clause 8 (2) or (3) of Schedule 7, to the Act shall be calculated with effect from the exit date of the transferred contributor who elected to take the benefit or the date on which that transferred contributor attains the age of 65 years, whichever first occurs, and shall be payable in equal fortnightly instalments.
6
Employer-financed benefit as pension
6 Employer-financed benefit as pension
6 Employer-financed benefit as pension
(1) Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or part of the benefit provided by section 26 of the Act, the pension which is the benefit provided by clause 8 (2) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
F is the final average salary of the transferred contributor,
Q is the number of benefit points to which the election relates, and
T is the number of whole years (a fraction of a year which does not form part of a whole year counting as a whole year) by which the exit date of the transferred contributor precedes the date of the transferred contributor’s 65th birthday.
(2) Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or part of the benefit provided by section 28 of the Act, the pension which is the benefit provided by clause 8 (2) of Schedule 6 to the Act shall be determined accordingly to the following formula:
where:
P is the annual pension payable,
S is:
(a) where the transferred contributor has not attained the age of 58 years on or before the exit date—the transferred contributor’s final salary,
(b) where the transferred contributor has attained the age of 58 years, but has not attained the age of 59 years, on or before the exit date—the average of the transferred contributor’s final salary and salary at 31st December last preceding the exit date, or
(c) where the transferred contributor has attained the age of 59 years on or before the exit date—the transferred contributor’s final average salary, and
Q is the number of benefit points to which the election relates.
7
Contributor-financed benefit as pension
7 Contributor-financed benefit as pension
7 Contributor-financed benefit as pension
Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or a specified part of the benefit provided by section 26 of the Act, the pension which is the benefit provided by clause 8 (3) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
L is the amount of the benefit provided by section 26 of the Act or, as the case may be, the specified part of that benefit, and
C is the appropriate number in Column 2, 3 or 4 of the Table to this clause, having regard to the transferred contributor’s age as from when the pension is calculated, and to whether the transferred contributor is a man or a woman.
Table
Division factor for converting lump sum to annual pension
| Column 1 | Column 2 | Column 3 | Column 4 |
| | Male(No pensionto spouse) | Male or female (with pension to spouse) | Female (no pension to spouse) |
| Person who attained age of 60 but not 61 | 11.4 | 14.0 | 13.3 |
| Person who attained age of 61 but not 62 | 11.1 | 13.7 | 13.0 |
| Person who attained age of 62 but not 63 | 10.8 | 13.4 | 12.6 |
| Person who attained age of 63 but not 64 | 10.6 | 13.1 | 12.3 |
| Person who attained age of 64 but not 65 | 10.3 | 12.8 | 11.9 |
| Person who attained age of 65 | 10.0 | 12.5 | 11.5 |
8
Election by spouse of deceased contributor to take pension benefit
8 Election by spouse of deceased contributor to take pension benefit
8 Election by spouse of deceased contributor to take pension benefit
An election by the spouse of a deceased transferred contributor to take the benefit provided by clause 9 (2) of Schedule 6 to the Act or clause 11 (1) or 12 (1) of this Regulation shall be lodged at the office of the Board within the period of 3 months (or such further period as the Board may in special circumstances allow) that next succeeds the death of the transferred contributor.
9
Payment of pension benefit to spouse
9 Payment of pension benefit to spouse
9 Payment of pension benefit to spouse
The benefit provided by clause 9 (2) of Schedule 6 to the Act or clause 11 (1) or 12 (1) of this Regulation shall be calculated with effect from the date of death of the transferred contributor whose spouse elected to take the benefit and shall be payable in equal fortnightly instalments.
10
Spouse benefit as pension—death of contributor before age 60
10 Spouse benefit as pension—death of contributor before age 60
10 Spouse benefit as pension—death of contributor before age 60
Where an election is made by the spouse of a deceased transferred contributor to take the benefit provided by clause 9 (2) of Schedule 6 to the Act instead of the whole or a specified part of the employer-financed part of the benefit provided by section 27 of the Act (benefit on death before age 60), the pension which is the benefit provided by clause 9 (2) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
S is the final salary of the transferred contributor, and
Q is the number of benefit points to which the election relates.
11
Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
11 Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
11 Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
(1) Where the spouse of a deceased employee who was a transferred contributor within the meaning of Schedule 6 to the Act becomes entitled to be paid the benefit provided by section 26 of the Act (benefit at age 65 or on early retirement or on death at or after age 60) the spouse may elect, in a form approved by the Board for the purposes of this clause, to take, instead of the whole or a specified part of the employer-financed part of that benefit, a pension for life determined according to the following formula:
where:
P is the annual pension payable,
S is the final salary of the transferred contributor,
Q is the number of benefit points to which the election relates, and
T is the number of whole years (a fraction of a year which does not form part of a whole year counting as a whole year) by which the time of death precedes the date of the transferred contributor’s 65th birthday.
(2) Notwithstanding subclause (1), where, but for this subclause, a person would be entitled to more than one pension under subclause (1), the person is entitled to one only of those pensions being, where the pensions are not equal, the greater or greatest of them.
(3) Part 2 of Schedule 6 to the Act applies to and in respect of a pension under subclause (1) in the same way as it applies to and in respect of a pension referred to in clause 8 (2) or (9) of that Schedule.
12
Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
12 Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
12 Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
(1) Where the spouse of a deceased employee who was a transferred contributor within the meaning of Schedule 7 to the Act becomes entitled to be paid the benefit provided by section 26 of the Act (benefit at age of 65 or on early retirement or on death at or after age 60) the spouse may elect, in a form approved by the Board, to take, instead of the whole or a specified part of that benefit, a pension for life of the actuarial equivalent, determined by the Board, of the benefit or part of the benefit that would have been payable if an election under this clause had not been made.
(2) Part 2 of Schedule 6 to the Act applies to and in respect of a pension under subclause (1) in the same way as it applies to and in respect of a pension referred to in clause 8 (2) or (9) of that Schedule.
13
Allocation of certain employers’ contributions under Act No 70, 1972
13 Allocation of certain employers’ contributions under Act No 70, 1972
13 Allocation of certain employers’ contributions under Act No 70, 1972
(1) This clause applies to a transferred contributor referred to in clause 3 of Schedule 7 to the Act in respect of whom one or more secondary employers would have been liable to make a payment under section 32 of the earlier Act to a primary employer if a benefit had become payable to the transferred contributor from the New South Wales Retirement Benefits Fund immediately before 1 July 1985.
(2) If, within the period of 3 months after a benefit becomes payable in respect of a transferred contributor, the primary employer requests the Board to make a determination under this subclause, the Board shall determine in respect of that contributor:
(a) the amount of the employer-financed benefit, calculated in accordance with section 32 (5) (b) of the Act, that would have become payable had the benefit provided by that subsection become payable on 1 July 1985,
(b) the amount (if any) of interest that the Board, in its absolute discretion, thinks appropriate to allow in respect of the amount referred to in paragraph (a), and
(c) the amount, in relation to each secondary employer, that represents the proportion of the sum of the amounts referred to in paragraphs (a) and (b) for which each such employer should be liable, having regard to the length of service of the transferred contributor with that employer.
(3) When a determination has been made under this clause, the amount referred to in subclause (2) (c) in relation to a secondary employer:
(a) shall be debited from the reserve in which contributions of that secondary employer are held, and
(b) shall be credited to the reserve in which contributions of the primary employer are held.
(4) In this clause:
primary employer has the same meaning as it has in section 32 of the earlier Act.
secondary employer has the same meaning as it has in section 32 of the earlier Act.
Adjustment of benefits where broken service recognised under Act No 70, 1972
14 Adjustment of benefits where broken service recognised under Act No 70, 1972
14 Adjustment of benefits where broken service recognised under Act No 70, 1972
(1) This clause applies to a transferred contributor referred to in clause 3 of Schedule 7 to the Act in respect of whom an order has been in force under Part II of the 1983 Regulation at any time in relation to one or more periods of employment occurring before 1 July 1985.
(2) If a transferred contributor to whom this clause applies has received an allowance in relation to a period of employment in respect of which an order under Part II of the 1983 Regulation has been in force, the employer-financed benefit payable under the Act to or in respect of the transferred contributor shall be reduced by the following amount in respect of each such period:
where:
J represents the amount by which the employer-financed benefit is to be reduced,
S represents the amount of the contributor’s salary, as used in the calculation of the benefit payable to or in respect of the transferred contributor under the Act,
A represents the amount of the allowance received by the transferred contributor, and
W represents the annual wages of the transferred contributor, as determined by the Board, immediately before the allowance became payable to the transferred contributor.
(3) In this clause:
allowance, in relation to a transferred contributor, means such part of the amount of a benefit that has been paid to the transferred contributor from a superannuation scheme as, in the opinion of the Board, represents the employer-financed component of the benefit.
the 1983 Regulation means the New South Wales Retirement Benefits Regulation 1983.
(1) In relation to a transferred contributor as defined in clause 1 of Schedule 7 to the Act, the contributor’s entry date for the purposes of the Act shall be deemed to be the date on which the contributor’s previous service commenced.
(2) A transferred contributor’s previous service is the period before 1 July 1985 that would have been taken into account in calculating the benefit payable to the contributor under the New South Wales Retirement Benefits Act 1972 if such a benefit had become payable immediately before 1 July 1985.
(3) Nothing in this clause affects the operation of clause 6A of Schedule 7 to the Act.
(4) In relation to a transferred contributor (other than a transferred contributor referred to in clause 3 of Schedule 7 to the Act), the definition of accrued benefit points in section 24 of the Act is to be construed as if a reference in that definition to contributed points figures included a reference to the number of transferred benefit points of the contributor that the Board has determined for the contributor under clause 6 (3) of that Schedule.
cll 15: Ins 4.3.1988.
cl 15: Am 12.7.1991.
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
1 Name of Regulation
1 Name of Regulation
1 Name of Regulation
This Regulation may be cited as the Public Authorities Superannuation (Transitional Provisions) Regulation 1985.
2 Commencement
2 Commencement
2 Commencement
This Regulation shall take effect on and from 1 July 1985.
3 Definitions
3 Definitions
3 Definitions
(1) In this Regulation:
the Act means the Public Authorities Superannuation Act 1985.
transferred contributor means a transferred contributor as defined in clause 1 of Schedule 6, or clause 1 of Schedule 7, to the Act.
(2) Expressions used in this Regulation have the same respective meanings as they have in Part 5 of the Act.
4 Election by transferred contributor to take pension benefit
4 Election by transferred contributor to take pension benefit
4 Election by transferred contributor to take pension benefit
(1) An election by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6, or clause 8 (2) or (3) of Schedule 7, to the Act shall:
(a) be in a form approved by the Board, and
(b) specify such matters and be accompanied by such information provided by the employer of the transferred contributor at the time of retirement as the Board reasonably requires.
(2) The election shall be lodged at the office of the Board:
(a) in the case of an election to take a benefit referred to in subclause (1) instead of the whole or a specified part of the benefit provided by section 26 of the Act (benefit at age 65 or on early retirement or on death on or after age 60)—before or within the period of 2 months that next succeeds the date of the transferred contributor’s ceasing to be an employee or attaining the age of 65 years, whichever first occurs, or
(b) in the case of an election to take a benefit referred to in subclause (1) instead of the whole or a specified part of the benefit provided by section 28 of the Act (benefit on total and permanent disablement before age 60)—within the period of 3 months (or such further period as the Board may in special circumstances allow) that next succeeds the date of the transferred contributor’s ceasing to be an employee.
Prescribes a method for adjusting employer‑financed benefits where a transferred contributor previously received an allowance under orders made under the New South Wales Retirement Benefits Regulation 1983 (cl 14).
Treats previous service under the earlier Act as the effective entry date for certain transferred contributors and clarifies how transferred benefit points are to be treated for accrued points purposes (cl 15).
All substantive calculation mechanisms appear in the Regulation itself. Board discretion is present but confined to particular administrative choices: approving form content, accepting employer information, allowing further filing periods in special circumstances, allowing interest in respect of historic allocation sums, and determining actuarial equivalence in the Retirement Fund spouse case (cl 4, cl 6(2)(b), cl 13(2)(b), cl 12(1)). The Regulation does not create criminal offences or fine regimes; its effect is to define administrative rights and obligations and the Board’s duties in implementing transitional conversions and allocations.
Main concepts
The Regulation repeatedly turns on a small set of technical concepts that determine entitlements, timing, conversion and accounting. These concepts are defined either in the Regulation or by reference to the Act. Key concepts and their mechanical role follow.
Transferred contributor: defined by reference to clause 1 of Schedule 6 or Schedule 7 to the Act (cl 3(1)). The Regulation applies to persons who transferred into the new Act’s arrangements from earlier schemes and whose benefits are subject to transitional provisions in Schedules 6 and 7 of the Act.
Election: a Board‑approved procedural act by which a transferred contributor or the spouse of a deceased transferred contributor opts to take a pension instead of a lump sum or instead of another statutory benefit (cl 4, cl 8, cl 11, cl 12). The Regulation fixes the required form, supporting information, and time limits for lodging elections.
Employer‑financed and contributor‑financed components: the Regulation distinguishes the part of a benefit funded by employer contributions from that funded by the contributor’s own contributions. Employer‑financed components have bespoke pension conversion formulas in cl 6 and cl 10; contributor‑financed components are converted by dividing the lump sum by specified factors in cl 7 and its Table.
Benefit points and final (or final average) salary: pensions under the formulas are a function of the transferred contributor’s final (or final average) salary and the number of benefit points Q (see cl 6 and cl 10). The Regulation treats particular salary definitions differently for contributors in certain age bands when calculating pensions in respect of total and permanent disablement replacement benefits (cl 6(2)).
Timing and commencement rules: pensions for contributors who elect are calculated with effect from the exit date or the date of attainment of age 65, whichever first occurs (cl 5). Pensions for spouses are calculated from the date of death of the transferred contributor (cl 9). Payment frequency is fortnightly for both contributors and spouses (cl 5, cl 9).
Conversion formulas and division factors: the Regulation prescribes how to convert an employer‑financed entitlement into an annual pension using a formula set out in cl 6 and cl 10. For contributor‑financed lump sums, cl 7 imposes conversion by dividing the lump sum L by the appropriate factor C from the Table to cl 7. The Table is explicit and distinguishes sex and whether the pension includes a spouse’s benefit (cl 7 Table).
Board discretions and administrative allocations: the Board is authorised to approve forms, require employer information, allow time extensions in special circumstances, determine appropriate interest in allocations arising under the earlier Act, and to determine actuarial equivalence for Retirement Fund transferred contributors (cl 4, cl 6(2), cl 13(2)(b), cl 12(1)). The Board also effects transfers between employer reserves by debit and credit to employer reserves held under the Act (cl 13(3)).
Interaction with earlier instruments: the Regulation explicitly references the New South Wales Retirement Benefits Act 1972 (the earlier Act) and the 1983 Regulation for particular allocation and broken‑service adjustments (cl 13, cl 14). It also preserves the operation of clause 6A of Schedule 7 to the Act (cl 15(3)).
Several small drafting rules have material impact on calculations. For example, where T measures years by which an exit precedes the 65th birthday, the definition counts any fraction of a year that does not form part of a whole year as a whole year (cl 6(1) definition of T). That rule operates as a rounding up of partial years and therefore increases T relative to a truncation rule, which mechanically increases or decreases the pension depending on the formula sign; practitioners must apply that peculiar rounding rule when implementing cl 6 pensions.
Together these concepts implement a comprehensive conversion and allocation regime aimed at making the transferred benefit entitlements administrable under the new Act by prescribing the mechanics for converting lump sums into life pensions, allocating inter‑employer liabilities that would otherwise arise under the earlier Act, and adjusting for allowances previously paid under the 1983 Regulation.
Who it affects
The Regulation creates administrative duties and conversion opportunities that fall on four classes of actors: transferred contributors and their spouses, employers (primary and secondary), the Board established or functioning under the Act, and the fund administration and payroll mechanisms that implement fortnightly payments.
Transferred contributors and prospective claimants: The primary group affected is the class of persons defined as transferred contributors under Schedules 6 and 7 of the Act (cl 3(1)). These are employees whose service and accrued entitlements under earlier superannuation schemes are carried forward into the Act’s framework. The Regulation prescribes how such contributors may elect to convert their employer‑financed and contributor‑financed benefits into pensions (cl 4, cl 6, cl 7). The Regulation also limits the time windows for making these elections: contributors must lodge elections before or within two months after ceasing employment or attaining age 65 (whichever first) in the section 26 replacement case, and within three months (subject to Board discretion) after ceasing employment in the section 28 replacement case for total and permanent disablement (cl 4(2)).
Spouses of deceased transferred contributors: Surviving spouses are given the right to elect to take a pension instead of lump‑sum death benefits in several scenarios. Spousal elections must be lodged within three months after death subject to Board extension in special circumstances (cl 8). The Regulation prescribes the calculation base and timing for spouse pensions (cl 9, cl 10, cl 11, cl 12). The spouse of a transferred contributor from the Local Government Pension Fund or the Retirement Fund has specific election options and calculation regimes (cl 11, cl 12).
Employers: Employers are affected in two ways. First, employers must provide whatever information the Board reasonably requires as part of a transferred contributor’s election (cl 4(1)(b)). That typically requires employers to compile and supply final salary information or other employment data at retirement. Second, where contributors are covered by the earlier Act’s multiple‑employer liability rules, the Regulation gives the primary employer a tactical role: the primary employer must request a Board determination under cl 13(2) within three months after a benefit becomes payable if it wishes the Board to allocate amounts for which secondary employers should be liable (cl 13(2)). The Board then debits and credits each employer’s reserve as appropriate (cl 13(3)).
The Board and fund administrators: The Board is the central decision maker under this Regulation. It approves forms (cl 4(1)(a)), specifies the employer information it reasonably requires (cl 4(1)(b)), may extend filing times in special circumstances (cl 4(2)(b), cl 8), determines pension amounts under statutory formulas and the actuarial equivalents where authorised (cl 6, cl 7, cl 12(1)), decides whether to allow interest on allocated sums in its absolute discretion (cl 13(2)(b)), and records debits and credits to employer reserves (cl 13(3)). Administrators are required to implement fortnightly payment cycles and to calculate pensions from precise statutory commencement dates (cl 5, cl 9). In particular, the Board must treat allowance amounts as representing the employer‑financed component where, in the Board’s opinion, that is so, and reduce employer‑financed benefits using the formula in cl 14 where a transferred contributor had previously received an allowance under the 1983 Regulation (cl 14(2)-(3)).
Secondary parties and reserves: The Regulation affects employer reserves within the fund. Where the Board makes a determination under cl 13, it requires immediate accounting adjustments between reserves held for different employers: the secondary employer’s reserve is debited and the primary employer’s reserve credited (cl 13(3)). This produces direct cash allocation outcomes within the fund's internal accounting.
Who bears the administrative burdens: transferred contributors and spouses must act promptly to preserve election rights because the time windows are short (two or three months) and extensions are only permitted in special circumstances by the Board (cl 4(2), cl 8). Employers must be ready to supply prescribed information at the time of retirement and to respond to requests from primary employers for allocation determinations. The Board bears the operational burden of designing forms, exercising the discretions set out by the Regulation, applying the statutory formulas, and updating reserves.
The Regulation therefore shifts discrete administrative costs onto contributors, spouses and employers while concentrating decision authority and actuarial judgement in the Board for a defined set of determinations and for reserve adjustments (cl 4, cl 6, cl 12, cl 13).
Key duties and rights
This section lists the concrete duties, rights and options the Regulation creates, with direct references to the Regulation’s clauses.
Rights and election options
Transferred contributors may elect to take the pension benefits provided by clauses 8(2) and (3) of Schedule 6 or the equivalent clauses in Schedule 7 in lieu of the statutory lump sums or other benefits under sections 26 and 28 of the Act (cl 4(1)). The entitlement exists subject to timely election and compliance with procedural requirements.
Spouses of deceased transferred contributors may elect to take the benefit provided by clause 9(2) of Schedule 6 or the analogous provisions in this Regulation, where applicable (cl 8). For transferred contributors from particular funds (Local Government Pension Fund; Retirement Fund) special spouse election options are provided (cl 11, cl 12).
Filing, form and information duties
Elections must be made on a form approved by the Board (cl 4(1)(a), cl 11(1)) and must specify matters and be accompanied by the information provided by the employer of the transferred contributor at the time of retirement as the Board reasonably requires (cl 4(1)(b)). The Regulation therefore imposes a duty on employers to deliver required employment and salary information when requested in connection with an election.
Time limits for lodging elections are strict: for elections substituting the section 26 benefit, the election must be lodged before or within the 2 months following cessation of employment or attaining age 65, whichever occurs first (cl 4(2)(a)); for elections substituting the section 28 benefit (total and permanent disablement before age 60), the election must be lodged within 3 months after ceasing employment unless the Board allows a further period in special circumstances (cl 4(2)(b)). For spouse elections the filing window is 3 months after death, again subject to Board extension in special circumstances (cl 8).
Calculation and payment duties
Pensions for contributing electors are to be calculated effective from the exit date or the contributor’s 65th birthday, whichever first occurs, and paid in equal fortnightly instalments (cl 5).
Spouse pensions are calculated with effect from the date of death and are paid fortnightly (cl 9).
Employer‑financed pensions are to be determined using the formulas in cl 6 for the two replacement contexts (section 26 and section 28 replacements). The formulas identify P (annual pension) as a function of final or final average salary variables (F or S), benefit points Q, and T , the number of whole years by which exit precedes the 65th birthday (cl 6).
Contributor‑financed lump sums that are converted to pensions under clause 8(3) of Schedule 6 are to be converted per the formula in cl 7, which requires dividing the lump sum L by the appropriate division factor C selected from the Table in cl 7, taking into account age, sex and whether a spouse pension is to be provided (cl 7 and its Table).
Discretion and administrative powers of the Board
The Board may reasonably require employer information and must approve the form of elections (cl 4(1)(a)-(b)).
The Board may, in special circumstances, allow further filing periods beyond the statutory 2 or 3 months (cl 4(2)(b), cl 8).
When allocating employer liabilities under the earlier Act, the Board must determine, on request by the primary employer within 3 months of a benefit becoming payable, the employer‑financed benefit as it would have been on 1 July 1985, and may allow such interest as it thinks appropriate in its absolute discretion (cl 13(2)(a)-(b)). The Board also apportions liability among secondary employers having regard to length of service (cl 13(2)(c)).
For transferred contributors from the Retirement Fund, the Board determines the actuarial equivalent of the benefit where a spouse elects to take a pension instead of the lump sum (cl 12(1)).
Accounting duties and effects
A Board determination under cl 13 requires the Board to debit the reserve in which contributions of a secondary employer are held and credit the reserve in which contributions of the primary employer are held (cl 13(3)). This is a mandatory administrative accounting instruction following determination.
Adjustments where prior allowances were paid
Where a transferred contributor previously received an allowance under an order under Part II of the 1983 Regulation, and that allowance represents an employer‑financed component in the Board’s opinion, the employer‑financed benefit must be reduced by an amount calculated under cl 14(2). The reduction is a function of the contributor’s salary S, the allowance A, and annual wages W as determined by the Board (cl 14(2)).
Implied procedural consequence of non‑compliance
The Regulation does not explicitly state the legal consequence of failing to make an election on time other than enabling the Board to allow further time in special circumstances. The practical implication is loss of the election right unless the Board exercises its discretion to allow a further period; that procedural outcome is embedded in the time limits and the Board’s limited extension power (cl 4(2), cl 8).
These duties and rights are procedural and actuarial rather than penal. The Regulation concentrates the conversion mechanics and the exercise of specified discretions in the Board, while requiring contributors, spouses and employers to act within short windows and to provide specified information.
Penalties and enforcement
The Regulation does not establish criminal sanctions, pecuniary penalties, or a statutory enforcement machinery within its text. Its instruments of effect are administrative, statutory calculation rules and the Board’s administrative powers. The main enforcement and compliance mechanisms available under this Regulation are therefore administrative and contractual in character rather than punitive.
Administrative enforcement and practical consequences
Time limits and Board discretions: The Regulation enforces behaviour by setting short statutory windows for elections , two months for certain contributor elections and three months for other contributor and spouse elections , and by limiting any extension of those windows to the Board’s discretion in special circumstances (cl 4(2), cl 8). The primary practical consequence of non‑compliance with a time limit is the loss of the right to make the election unless the Board exercises discretion to accept a late election. The Regulation itself does not create a right to compensation where a late election is refused; it only creates the procedural mechanism to lodge an election and for the Board to accept late filings in special circumstances.
Board determinations and reserve adjustments: The Board’s determinations under cl 13 are binding administrative acts that must be implemented by debiting and crediting employers’ reserves (cl 13(2)-(3)). The regulatory enforcement, therefore, takes the form of mandatory internal fund accounting adjustments ordered by the Board. The Regulation does not specify appeal rights from a Board determination in cl 13; practitioners will need to consult the Act for any statutory review or appeal rights.
Discretionary interest and actuarial judgements: The Board’s absolute discretion to allow interest in particular allocations (cl 13(2)(b)) and its role in determining actuarial equivalence in cl 12(1) are administrative levers rather than penal measures. The practical effect is that the Board can make decisions with financial consequences but the Regulation does not prescribe penalty rates or enforcement sanctions for any party.
What the Regulation does not do
It does not create offences, fines, or express powers to compel third parties beyond normal administrative requisitions of information in order to process an election. The Board may require employer-provided information as the Board reasonably requires (cl 4(1)(b)), but the Regulation does not specify sanctions for an employer’s failure to supply that information.
The Regulation does not describe complaint, review or appeal procedures. Any rights of review against Board decisions or administrative errors will therefore depend on the general judicial review framework and remedies under the Act or other administrative law avenues, none of which are supplied in this Regulation’s text.
Practical enforcement risks and operational consequences
The concentration of discretion in the Board, together with the short filing periods, creates administrative risk for contributors and spouses: late lodging without a demonstrated special circumstance will almost certainly result in loss of the conversion option (cl 4(2), cl 8). Because the Regulation does not specify a complaint or compensation route for lost elections, the main remedy likely lies in administrative review under the Act or judicial review for error of law, but any such remedy is outside the explicit text of this Regulation.
Employers’ operational failures to provide required information at retirement could mechanically delay or prevent an election being properly lodged, with the same practical loss of election rights as above. The Regulation does not impose a direct penalty on employers for such failures; instead the effect is operational disadvantage to the member and possible fund administrative friction.
In summary, enforcement under this Regulation is administrative and procedural. It rests on time limits, the Board’s mandatory duties to calculate pensions according to formulae and to effect reserve reallocations, and on the Board’s limited discretions. The Regulation itself contains no explicit penal provisions.
How it interacts with other laws
The Regulation explicitly operates as a transitional instrument tied into the Public Authorities Superannuation Act 1985 (the Act) and to prior New South Wales superannuation law. Its provisions must be read in the context of the Act and the earlier legislative instruments that governed the contributors’ previous service. The Regulation repeatedly cross‑references the Act and earlier instruments, and it incorporates parts of schedules in the Act by operation.
Primary statutory connections
The Regulation defines "the Act" for its purposes as the Public Authorities Superannuation Act 1985 (cl 3(1)). Many substantive references in the Regulation are to sections (for example s 26, s 27, s 28 and s 24) and Schedules (Schedules 6 and 7) of the Act. The Regulation therefore acts as an adjunct to the Act, implementing transitional mechanics for benefits otherwise described in the Act (cl 3(1), cl 4, cl 5, cl 6, cl 7).
Schedules to the Act are central. The Regulation implements specific conversion rights for transferred contributors as those rights are defined in clause 8 of Schedule 6 and in Schedule 7 to the Act (cl 4(1)). It also applies Part 2 of Schedule 6 of the Act to certain pensions granted under cl 11 and cl 12 (cl 11(3), cl 12(2)).
Interaction with the earlier Act and its Regulation
The Regulation expressly references the New South Wales Retirement Benefits Act 1972 (the earlier Act) and the New South Wales Retirement Benefits Regulation 1983 (the 1983 Regulation) for two specific effects.
Allocation of employer liabilities: cl 13 applies to transferred contributors in respect of whom secondary employers would have been liable to make payments under section 32 of the earlier Act if a benefit had become payable immediately before 1 July 1985. The Board is required to determine the amounts that would have been payable under section 32(5)(b) of the earlier Act as at 1 July 1985, and then allocate proportions among secondary employers (cl 13(1)-(2)). The Regulation therefore imports the earlier Act’s liability concept into its own allocation mechanism.
Adjustment for broken service and allowances: cl 14 applies where an order under Part II of the 1983 Regulation has been in force in relation to periods of employment before 1 July 1985. If a transferred contributor received an allowance in relation to a period covered by such an order, the employer‑financed benefit under the Act must be reduced by an amount calculated under cl 14(2), using parameters that mirror the prior allowance and wages. The Regulation thus expressly corrects for prior allowances awarded under the 1983 Regulation.
Statutory construction and internal consistency
The Regulation adopts definitions and calculation inputs from the Act. For example, the term "transferred contributor" is defined by reference to Schedules 6 and 7 of the Act (cl 3(1)), and the Regulation instructs that expressions used have the same meanings as in Part 5 of the Act (cl 3(2)). Clause 15(4) goes further to instruct how the definition of accrued benefit points in section 24 of the Act is to be read in relation to transferred contributors, by including transferred benefit points as determined under clause 6(3) of Schedule 7 to the Act. These provisions ensure that the Regulation’s formulas and timing rules are integrated with the Act’s benefit definitions and points accounting.
Part 2 of Schedule 6 to the Act is applied by the Regulation to pensions granted under certain spouse election clauses (cl 11(3), cl 12(2)). The Regulation therefore relies on the Act’s own schedule‑based rules about survivor benefits and the consequences attached to them.
Administrative law implications
Because the Regulation delegates a set of financial decision‑making powers and discretions to the Board (for example, the discretion to allow an extended filing period, the absolute discretion to allow interest under cl 13(2)(b), and the determination of actuarial equivalence for Retirement Fund cases in cl 12(1)), administrative law principles will govern reviewability of those decisions to the extent not insulated by statute. The Regulation itself does not create privative clauses or bar challenges; any reviewability questions must be addressed with reference to the Act and applicable judicial review doctrine outside this Regulation.
Practical interplay
The Regulation effectively translates earlier accruals and contributions into pensionable entitlements under the Act, and it provides mechanics for allocating legacy employer liabilities in a way intended to replicate, as at 1 July 1985, the distribution of costs that would have arisen under the earlier Act (cl 13). It thereby limits transitional friction where contributors had multi‑employer service history or had been paid allowances under previous arrangements.
Overall, the Regulation operates integrally with the Act and with past New South Wales superannuation instruments. Any legal question about entitlement, the substantive policy behind pensions, or appeals from Board decisions must be answered primarily by reference to the Act, to the relevant Schedules and to the earlier Act where the Regulation expressly imports its concepts.
Amendment history
This Regulation commenced on 1 July 1985 (cl 2). The Regulation text supplied includes later insertion and amendment notes to certain clauses, enabling a basic chronology of material changes that the Regulation itself records. The Regulation does not include a consolidated list of all amendments or the text of amending instruments, but the in‑text marginal notes provide the following recorded changes:
Clauses inserted 4 March 1988:
The marginal notes identify that clauses 13, 14 and 15 were inserted on 4 March 1988. The text of cl 13 (Allocation of certain employers’ contributions under Act No 70, 1972) is followed by the annotation "cl 13: Ins 4.3.1988. Am 9.6.1989." indicating insertion on 4 March 1988 and a subsequent amendment on 9 June 1989.
Clause 14 (Adjustment of benefits where broken service recognised under Act No 70, 1972) bears the annotation "cll 14: Ins 4.3.1988.", showing insertion on 4 March 1988.
Clause 15 (Entry date for transferred contributors) is annotated "cll 15: Ins 4.3.1988." showing insertion on 4 March 1988. Clause 15 also bears a subsequent amendment note: "cl 15: Am 12.7.1991.", indicating an amendment on 12 July 1991.
Subsequent amendment recorded on 9 June 1989:
Clause 13 carries an amendment note in addition to its insertion note: "Am 9.6.1989." The text of the Regulation does not reproduce the amending instrument, but the annotation records that cl 13 was amended that date.
Subsequent amendment recorded on 12 July 1991:
Clause 15 records an amendment on 12 July 1991 ("Am 12.7.1991."). The text provided does not display the pre‑amendment version, but the annotation indicates that cl 15 was changed as of that date.
Other observations
The Regulation text as supplied includes embedded images for several of the numeric formulas (cl 6, cl 7, cl 10, cl 14). These images are part of the instrument’s original drafting and represent the precise algebraic formulas to be applied. The insertion and amendment notes do not indicate changes to those formulas in the marginal notes supplied.
The Regulation does not include a consolidated schedule of amendments beyond the inline marginal notes. Where a clause records "Ins" or "Am" and a date, that marks its insertion or amendment date. For a full legislative history, including the precise amending instruments and the text changed, practitioners must consult the official NSW legislation database or the Act’s consolidated version which will list all amending instruments, including precise variations made on 9 June 1989 and 12 July 1991.
The Regulation’s commencement date (cl 2) remains 1 July 1985. The later insertions and amendments indicate the legislature has adjusted the Regulation at least on 4 March 1988, 9 June 1989 and 12 July 1991 in ways recorded at the end of specific clauses. The annotations in the supplied text are the only in‑text indications of amendment history provided in the Regulation itself.
For a complete, authoritative chronology and the text of amendments, the legislative register and instrument numbers for the insertion and amendment instruments should be consulted. The Regulation itself records insertion and amendment dates in the margin where clauses were added or altered.
Litigation history
The Regulation as provided contains no references to judicial decisions, reported litigation, or case law. It cites only statutory sources (the Act and the earlier Act) and the 1983 Regulation. There are no cases named or cited within the Regulation text.
Practical implications of the absence of litigation references in the text
Because the Regulation contains no named litigation, any challenge to the Board’s exercise of discretion under the Regulation (for example, a refusal to allow a filing extension under cl 4(2)(b) or cl 8, a Board determination as to apportionment under cl 13, or the Board’s determination of actuarial equivalence under cl 12(1)) would have to be located in external case law. The Regulation itself does not supply judicial interpretation.
For practitioners seeking precedent on how courts have treated the Regulation’s discretions or formulas, it will be necessary to search decisions applying the Public Authorities Superannuation Act 1985 and related Board decisions. That search may uncover litigation on Board review rights, actuarial equivalence disputes, or reserve allocation controversies, but none of that material is contained in this Regulation.
What the Regulation does indicate about potential litigation points
Concentrated discretions: The Board is given absolute or wide discretions in particular contexts (for example cl 13(2)(b) authorises the Board in its absolute discretion to allow interest). Typical judicial review challenges in other statutory contexts target exercises of such discretion on the basis of procedural fairness, relevant considerations, irrationality or jurisdictional error. The Regulation does not itself set out review mechanisms, so the Act and general administrative law principles would govern any litigation.
Tight time windows and consequences of non‑compliance: The short election windows (two months and three months) are a procedural feature that often generate disputes in practice where claimants advance equitable or administrative law reasons for late filing. Again, no cases are referenced in the Regulation.
In short, the Regulation does not document litigation history. Practitioners requiring litigation references must search case reports and administrative decisions concerning the Act, the Board and the conversion and allocation issues covered by this Regulation.
Gotchas
This Regulation contains several drafting and operational features that produce potentially surprising mechanical outcomes for contributors, spouses, employers and fund administrators. These are not normative judgments but pointed practical cautions, each tied to a specific clause.
Short, non‑extensible filing periods except by Board discretion
Electors have short filing windows: generally two months for certain contributor elections and three months in other cases (cl 4(2), cl 8). The Board may allow further periods only in "special circumstances" (cl 4(2)(b), cl 8). Practically, a failure to lodge an election within the relevant statutory window is likely to result in forfeiture of the conversion right unless the Board exercises its discretion to accept a late filing. The Regulation does not define "special circumstances", leaving the scope of extension discretionary and fact specific.
Board‑approved forms and employer‑supplied information
Elections must be in a form approved by the Board and accompanied by such matters and employer‑provided information as the Board reasonably requires (cl 4(1)(a)-(b)). Employers should therefore expect data requests at the point of retirement. Failure by an employer to supply required information may prevent a valid election and risks loss of the election right. The clause implies but does not mandate a timeframe for employers to respond to Board requests.
Rounding rule that benefits or penalises depending on formula sign
The definition of T in cl 6(1) contains a non‑standard rounding rule: a fraction of a year which does not form part of a whole year counts as a whole year. In effect partial years are rounded up. That affects P because T is multiplied in the employer‑financed pension formula. The clause’s parenthetical wording changes the arithmetic relative to a truncation rule. Practitioners must apply this upward rounding consistently; otherwise pension calculations will be incorrect.
Gender and spouse option differentiators in conversion factors
The Table in cl 7 sets different division factors depending on sex and whether a spouse pension is to be provided. For the same lump sum L, the annual pension P equals L divided by C. A larger C produces a smaller annual P. Column 3 (male or female where pension to spouse is payable) generally lists higher factors than Column 2 (male, no pension to spouse), which mechanically reduces the annual pension when a spouse’s benefit is included. Column 4 (female, no pension to spouse) uses different factors to Column 2 and 3. These sex‑differentiated conversion factors can produce materially different pension outcomes for two persons of similar age and lump sum entitlements depending on their sex and spouse election. That mechanical outcome is explicit in the Table (cl 7 Table) and is not adjusted or harmonised elsewhere in the Regulation.
Board discretion over "interest" in allocation of legacy liabilities
Under cl 13(2)(b) the Board may allow such interest on the amount that would have been payable under the earlier Act "as the Board, in its absolute discretion, thinks appropriate". Practically, the Board could allow nil interest or a commercially significant interest sum; the Regulation gives no guidance on how that discretion must be exercised. Parties whose liability is under apportionment may therefore face financial uncertainty pending the Board’s exercise of this discretion.
Accounting debits and credits between employer reserves
When the Board makes a determination under cl 13, the financial effect is immediate within the fund: the amount allocated to a secondary employer is debited from that employer’s reserve and credited to the primary employer’s reserve (cl 13(3)). Employers should therefore expect internal reserve movements to follow determinations and be prepared to document and reconcile reserve balances.
Definition of "allowance" as a Board opinion
In cl 14(3) "allowance" includes such part of a benefit paid from a superannuation scheme as, in the opinion of the Board, represents the employer‑financed component. That phrasing subordinates the classification of previously paid amounts to the Board’s view. Employers and recipients may therefore face retrospective reclassification risk for allowances; the Board’s opinion is decisive for the purposes of calculating the reduction J in cl 14(2).
Primary employer’s obligation to request allocation
The allocation mechanism in cl 13 requires the primary employer to request a Board determination within three months after a benefit becomes payable if it wants the Board to calculate the apportionment. If the primary employer fails to request within that period, the Regulation is silent on the consequence. Practically, this timing constraint creates a risk that the primary employer loses its right to a Board allocation if it misses the request deadline, and secondary employers may not be debited/credited under cl 13 if no timely request is made.
No penalty scheme in the Regulation
The Regulation is silent on penalties. That means compliance incentives are operational and administrative rather than punitive. Parties relying on enforcement or remedy for administrative error must look outside the Regulation, typically to the Act or general administrative law remedies.
Imprecise cross‑references risk misapplication
The Regulation depends heavily on the Act’s Schedules and the earlier Act for definitions and substantive entitlement concepts (cl 3, cl 15). Practitioners must therefore ensure they apply the Regulation in the correct statutory context and use the correct Schedule definitions for transferred contributors. Errors in identifying whether a contributor falls under Schedule 6 or Schedule 7 will produce incorrect application of formulas and time periods.
Image‑based formula presentation
Several statutory formulas are embedded as images in the Regulation text (for example in cl 6, cl 7, cl 10 and cl 14). Administrative staff and actuarial teams must ensure they use the exact algebraic expressions represented by those images and not substitute simplified heuristics. Where images are used in electronic systems, conversion into computable formulas must be carefully validated against the original instrument.
In summary, the central gotchas are short filing windows, Board discretion concentrated in a few key areas, rounding idiosyncrasies in the formulas, sex and spouse distinctions in conversion factors, retrospective reclassification risk for allowances, and the consequences for employers of timing rules around requesting Board allocations.
How to comply
This section sets out a practical, clause‑by‑clause checklist for contributors, spouses, employers and the Board to meet the Regulation’s procedural requirements and to minimise risk of error. It avoids legal advocacy and sticks to mechanistic compliance steps grounded in the Regulation’s text.
For transferred contributors (or their authorised representatives)
Identify qualification as a transferred contributor under Schedule 6 or Schedule 7 to the Act (cl 3(1)). Confirm which Schedule applies because the available election options and formulas differ by Schedule reference (cl 4(1)).
Determine the relevant election window:
For substituting the section 26 benefit (benefit at age 65, early retirement or death on/after age 60): lodge the election before or within 2 months after ceasing employment or attaining age 65, whichever first occurs (cl 4(2)(a)).
For substituting the section 28 benefit (total and permanent disablement before age 60): lodge the election within 3 months after ceasing employment, subject to Board’s power to allow a further period in special circumstances (cl 4(2)(b)).
Obtain and complete the Board‑approved election form (cl 4(1)(a)). Do not send free‑format letters; use the Board’s required form.
Request and assemble the employer‑provided information that the Board reasonably requires and include it with the election (cl 4(1)(b)). Engage the employer promptly to ensure they can supply final salary, service dates and any other documentary evidence at the time of retirement.
If the election is late, apply to the Board promptly, explaining the "special circumstances" that warrant extension , but do not assume an extension will be granted (cl 4(2)(b)).
For spouses of deceased transferred contributors
Note the election window: spouse elections must be lodged within 3 months after the contributor’s death, subject to Board discretion in special circumstances (cl 8).
Use the Board‑approved form where required (cl 11(1) for Local Government Pension Fund transferred contributors and cl 12(1) for Retirement Fund transferred contributors).
Where a spouse elects a pension, expect calculation from the date of death and fortnightly payments (cl 9).
For employers (primary and secondary)
Be prepared to provide the employer information that the Board reasonably requires at the time a transferred contributor retires or in connection with a spouse election (cl 4(1)(b)). Establish an internal process to respond quickly to Board requests to avoid prejudicing the member’s election window.
Where a transferred contributor is one in relation to whom secondary employers might be liable under the earlier Act, the primary employer must request a Board determination under cl 13(2) within 3 months after a benefit becomes payable if it wants the Board to allocate the amounts among secondary employers (cl 13(2)). Mark this deadline and coordinate with fund administrators to present a consolidated claim.
Maintain accurate employer reserve accounting within the fund because a Board determination under cl 13 will result in mandatory debit(s) and credit(s) to reserves (cl 13(3)). Ensure systems can process reserve movements promptly upon receipt of a Board determination.
For the Board and fund administrators
Approve and publish the standard election forms and a list of the "matters" and employer information that will be treated as "reasonably required" for election completeness (cl 4(1)(a)-(b)). Clear guidance reduces dispute and delays.
Apply the statutory time windows strictly but have a documented policy on what constitutes "special circumstances" for allowing extensions under cl 4(2)(b) and cl 8. Ensure officers authorised to grant extensions are appropriately delegated and trained.
Implement the pension calculation formulas exactly as set out:
Employer‑financed pensions: apply the formulas in cl 6 (for both s 26 and s 28 replacement contexts). Pay attention to the definition of T and the rounding rule in cl 6(1).
Contributor‑financed pensions: convert lump sums L to annual pensions using L divided by the correct factor C from the Table in cl 7. Verify the age band, the relevant column (male no spouse, male or female with spouse pension, female no spouse) and note the resulting factor (cl 7 and Table).
Spouse pensions for death before 60: apply the cl 10 formula using final salary S and Q.
For transferred contributors from the Retirement Fund: determine actuarial equivalence for spouse elections per cl 12(1).
For legacy allocations under cl 13:
Respond to primary employer requests within a clear timeframe and make determinations that specify (a) the employer‑financed amount as at 1 July 1985 calculated in accordance with section 32(5)(b) of the earlier Act, (b) whether interest is allowed and at what rate in the Board’s absolute discretion, and (c) the apportioned amounts that each secondary employer should be liable for, having regard to length of service (cl 13(2)). Record the factual basis for any interest award to reduce future challenge risk.
Upon making a determination, debit and credit the relevant employer reserves as required by cl 13(3) and inform affected employers in writing.
Where previous allowances were paid under orders under Part II of the 1983 Regulation, apply the cl 14 reduction formula to employer‑financed benefits and document the Board’s opinion as to the employer‑financed component of any allowance (cl 14(2)-(3)). Ensure actuarial/valuation teams can compute J as required.
Ensure payroll and payment systems are configured to produce equal fortnightly instalments for pensions under cl 5 and cl 9 and to begin payments from the precise statutory commencement dates (exit date or age 65 for contributors; date of death for spouses).
Records, communication and dispute management
Keep careful contemporaneous records for all elections, Board forms, employer evidence and any decisions to extend filing times or allow interest. The Regulation places significant weight on the Board’s opinion and discretion in several areas; good record keeping reduces review risk.
Communicate deadlines to members and employers proactively. Because the Regulation’s time windows are short, late notice or administrative delay can produce irreversible consequences for members.
Establish an internal review and appeals triage consistent with the Act and administrative law principles, noting that the Regulation does not itself prescribe appeal routes.
Technical and actuarial validation
Where formulas are represented pictorially in the Regulation, convert those images into validated, auditable actuarial spreadsheets or code modules. Test those implementations with worked examples and peer review to avoid calculation errors that might lead to member hardship.
In short, compliance requires early administrative engagement by contributors and spouses, prompt supply of employer data, rigorous actuarial implementation by the Board and administrators, accurate reserve accounting for employers, and well‑documented discretionary exercises by the Board where the Regulation grants it power.
5 Payment of pension benefit to transferred contributor
5 Payment of pension benefit to transferred contributor
5 Payment of pension benefit to transferred contributor
The benefit provided by clause 8 (2) and (3) of Schedule 6, or clause 8 (2) or (3) of Schedule 7, to the Act shall be calculated with effect from the exit date of the transferred contributor who elected to take the benefit or the date on which that transferred contributor attains the age of 65 years, whichever first occurs, and shall be payable in equal fortnightly instalments.
6 Employer-financed benefit as pension
6 Employer-financed benefit as pension
6 Employer-financed benefit as pension
(1) Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or part of the benefit provided by section 26 of the Act, the pension which is the benefit provided by clause 8 (2) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
F is the final average salary of the transferred contributor,
Q is the number of benefit points to which the election relates, and
T is the number of whole years (a fraction of a year which does not form part of a whole year counting as a whole year) by which the exit date of the transferred contributor precedes the date of the transferred contributor’s 65th birthday.
(2) Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or part of the benefit provided by section 28 of the Act, the pension which is the benefit provided by clause 8 (2) of Schedule 6 to the Act shall be determined accordingly to the following formula:
where:
P is the annual pension payable,
S is:
(a) where the transferred contributor has not attained the age of 58 years on or before the exit date—the transferred contributor’s final salary,
(b) where the transferred contributor has attained the age of 58 years, but has not attained the age of 59 years, on or before the exit date—the average of the transferred contributor’s final salary and salary at 31st December last preceding the exit date, or
(c) where the transferred contributor has attained the age of 59 years on or before the exit date—the transferred contributor’s final average salary, and
Q is the number of benefit points to which the election relates.
7 Contributor-financed benefit as pension
7 Contributor-financed benefit as pension
7 Contributor-financed benefit as pension
Where an election is made by a transferred contributor to take the benefit provided by clause 8 (2) and (3) of Schedule 6 to the Act instead of the whole or a specified part of the benefit provided by section 26 of the Act, the pension which is the benefit provided by clause 8 (3) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
L is the amount of the benefit provided by section 26 of the Act or, as the case may be, the specified part of that benefit, and
C is the appropriate number in Column 2, 3 or 4 of the Table to this clause, having regard to the transferred contributor’s age as from when the pension is calculated, and to whether the transferred contributor is a man or a woman.
Table
Division factor for converting lump sum to annual pension
| Column 1 | Column 2 | Column 3 | Column 4 |
| | Male(No pensionto spouse) | Male or female (with pension to spouse) | Female (no pension to spouse) |
| Person who attained age of 60 but not 61 | 11.4 | 14.0 | 13.3 |
| Person who attained age of 61 but not 62 | 11.1 | 13.7 | 13.0 |
| Person who attained age of 62 but not 63 | 10.8 | 13.4 | 12.6 |
| Person who attained age of 63 but not 64 | 10.6 | 13.1 | 12.3 |
| Person who attained age of 64 but not 65 | 10.3 | 12.8 | 11.9 |
| Person who attained age of 65 | 10.0 | 12.5 | 11.5 |
8 Election by spouse of deceased contributor to take pension benefit
8 Election by spouse of deceased contributor to take pension benefit
8 Election by spouse of deceased contributor to take pension benefit
An election by the spouse of a deceased transferred contributor to take the benefit provided by clause 9 (2) of Schedule 6 to the Act or clause 11 (1) or 12 (1) of this Regulation shall be lodged at the office of the Board within the period of 3 months (or such further period as the Board may in special circumstances allow) that next succeeds the death of the transferred contributor.
9 Payment of pension benefit to spouse
9 Payment of pension benefit to spouse
9 Payment of pension benefit to spouse
The benefit provided by clause 9 (2) of Schedule 6 to the Act or clause 11 (1) or 12 (1) of this Regulation shall be calculated with effect from the date of death of the transferred contributor whose spouse elected to take the benefit and shall be payable in equal fortnightly instalments.
10 Spouse benefit as pension—death of contributor before age 60
10 Spouse benefit as pension—death of contributor before age 60
10 Spouse benefit as pension—death of contributor before age 60
Where an election is made by the spouse of a deceased transferred contributor to take the benefit provided by clause 9 (2) of Schedule 6 to the Act instead of the whole or a specified part of the employer-financed part of the benefit provided by section 27 of the Act (benefit on death before age 60), the pension which is the benefit provided by clause 9 (2) of Schedule 6 to the Act shall be determined according to the following formula:
where:
P is the annual pension payable,
S is the final salary of the transferred contributor, and
Q is the number of benefit points to which the election relates.
11 Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
11 Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
11 Choice of benefit for spouse—contributor transferred from Local Government Pension Fund dying after age 60
(1) Where the spouse of a deceased employee who was a transferred contributor within the meaning of Schedule 6 to the Act becomes entitled to be paid the benefit provided by section 26 of the Act (benefit at age 65 or on early retirement or on death at or after age 60) the spouse may elect, in a form approved by the Board for the purposes of this clause, to take, instead of the whole or a specified part of the employer-financed part of that benefit, a pension for life determined according to the following formula:
where:
P is the annual pension payable,
S is the final salary of the transferred contributor,
Q is the number of benefit points to which the election relates, and
T is the number of whole years (a fraction of a year which does not form part of a whole year counting as a whole year) by which the time of death precedes the date of the transferred contributor’s 65th birthday.
(2) Notwithstanding subclause (1), where, but for this subclause, a person would be entitled to more than one pension under subclause (1), the person is entitled to one only of those pensions being, where the pensions are not equal, the greater or greatest of them.
(3) Part 2 of Schedule 6 to the Act applies to and in respect of a pension under subclause (1) in the same way as it applies to and in respect of a pension referred to in clause 8 (2) or (9) of that Schedule.
12 Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
12 Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
12 Choice of benefit for spouse—contributor transferred from Retirement Fund dying after age 60
(1) Where the spouse of a deceased employee who was a transferred contributor within the meaning of Schedule 7 to the Act becomes entitled to be paid the benefit provided by section 26 of the Act (benefit at age of 65 or on early retirement or on death at or after age 60) the spouse may elect, in a form approved by the Board, to take, instead of the whole or a specified part of that benefit, a pension for life of the actuarial equivalent, determined by the Board, of the benefit or part of the benefit that would have been payable if an election under this clause had not been made.
(2) Part 2 of Schedule 6 to the Act applies to and in respect of a pension under subclause (1) in the same way as it applies to and in respect of a pension referred to in clause 8 (2) or (9) of that Schedule.
13 Allocation of certain employers’ contributions under Act No 70, 1972
13 Allocation of certain employers’ contributions under Act No 70, 1972
13 Allocation of certain employers’ contributions under Act No 70, 1972
(1) This clause applies to a transferred contributor referred to in clause 3 of Schedule 7 to the Act in respect of whom one or more secondary employers would have been liable to make a payment under section 32 of the earlier Act to a primary employer if a benefit had become payable to the transferred contributor from the New South Wales Retirement Benefits Fund immediately before 1 July 1985.
(2) If, within the period of 3 months after a benefit becomes payable in respect of a transferred contributor, the primary employer requests the Board to make a determination under this subclause, the Board shall determine in respect of that contributor:
(a) the amount of the employer-financed benefit, calculated in accordance with section 32 (5) (b) of the Act, that would have become payable had the benefit provided by that subsection become payable on 1 July 1985,
(b) the amount (if any) of interest that the Board, in its absolute discretion, thinks appropriate to allow in respect of the amount referred to in paragraph (a), and
(c) the amount, in relation to each secondary employer, that represents the proportion of the sum of the amounts referred to in paragraphs (a) and (b) for which each such employer should be liable, having regard to the length of service of the transferred contributor with that employer.
(3) When a determination has been made under this clause, the amount referred to in subclause (2) (c) in relation to a secondary employer:
(a) shall be debited from the reserve in which contributions of that secondary employer are held, and
(b) shall be credited to the reserve in which contributions of the primary employer are held.
(4) In this clause:
primary employer has the same meaning as it has in section 32 of the earlier Act.
secondary employer has the same meaning as it has in section 32 of the earlier Act.
the earlier Act means the New South Wales Retirement Benefits Act 1972.
cl 13: Ins 4.3.1988. Am 9.6.1989.
14 Adjustment of benefits where broken service recognised under Act No 70, 1972
14 Adjustment of benefits where broken service recognised under Act No 70, 1972
14 Adjustment of benefits where broken service recognised under Act No 70, 1972
(1) This clause applies to a transferred contributor referred to in clause 3 of Schedule 7 to the Act in respect of whom an order has been in force under Part II of the 1983 Regulation at any time in relation to one or more periods of employment occurring before 1 July 1985.
(2) If a transferred contributor to whom this clause applies has received an allowance in relation to a period of employment in respect of which an order under Part II of the 1983 Regulation has been in force, the employer-financed benefit payable under the Act to or in respect of the transferred contributor shall be reduced by the following amount in respect of each such period:
where:
J represents the amount by which the employer-financed benefit is to be reduced,
S represents the amount of the contributor’s salary, as used in the calculation of the benefit payable to or in respect of the transferred contributor under the Act,
A represents the amount of the allowance received by the transferred contributor, and
W represents the annual wages of the transferred contributor, as determined by the Board, immediately before the allowance became payable to the transferred contributor.
(3) In this clause:
allowance, in relation to a transferred contributor, means
This is an opening excerpt, not the complete document.
Public Authorities Superannuation (Transitional Provisions) Regulation 1985 (New South Wales) | Zoe
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