Part 1 Preliminary

1 Short title

These regulations may be cited as the Public Sector Superannuation Reform Regulations 2017 .

2 Commencement

These regulations take effect on the day on which Part 5 of the Public Sector Superannuation Reform Act 2016 commences.

3 Interpretation

(1)  In these regulations, unless the contrary intention appears –

accumulated leave scheme means a plan or arrangement that allows a participating employee, by accepting a reduction in salary for a certain period, to be granted leave during which he or she will be paid salary at the same reduced rate, and includes –

(a) the State Service accumulated leave scheme; and

(b) any other accumulated leave scheme approved by a Head of Agency;

Act means the Public Sector Superannuation Reform Act 2016 ;

assessable income has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

assessment notice means a notice issued by the Taxation Commissioner requiring the payment of an amount of surcharge contributions tax, including interest on that payment, in respect of any person, and includes –

(a) a notice that has been issued in respect of superannuation contributions transferred to the Commission under these regulations; and

(b) an amendment to that notice issued by the Taxation Commissioner;

AWOTE means the original estimates series of average weekly ordinary time earnings of full-time adult employees in Australia published by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth;

basic contribution rate means –

(a) in respect of a contributor to whom regulation 19(1)(b) or (d) refers, a rate of contribution equal to 5% of salary; or

(b) in respect of an existing contributor, a contribution rate equal to 5% of salary or, if he or she is making contributions at the rate of 2.5% of salary, that rate;

benefit multiple factor means the benefit multiple factor derived in accordance with regulation 30 ;

casual employee means a person who is paid only for the hours worked at a rate which compensates that person for not being eligible for paid leave, without regard to the term of his or her employment, but does not include a permanent part-time employee or a temporary part-time employee;

commencement day means the day on which these regulations take effect;

Commonwealth Surcharge Act means an Act of the Commonwealth which imposes a surcharge liability on a superannuation benefit or interest or which relates to any such liability;

complying superannuation scheme means a superannuation scheme that is a complying superannuation fund for the purposes of the SIS Act;

compulsory preservation account means an account established or maintained under regulation 48 ;

concessional contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

Consumer Price Index means the table described as the "Consumer Price Index Numbers – All Groups, All Capital Cities" published by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth;

contract employee means an employee who is appointed and employed on terms and conditions specified in a contract of service;

contributions means member contributions or salary sacrifice contributions but does not include spouse contributions or voluntary contributions;

contributions tax means an amount of tax that is required to be paid on superannuation contributions, or roll-over superannuation benefits, in accordance with the Income Tax Assessment Act 1997, and the Income Tax Rates Act 1986, of the Commonwealth;

contributor means –

(a) an employee who is contributing to the contributory scheme by way of member contributions or salary sacrifice contributions; or

(b) an employee who has ceased to contribute to the contributory scheme under regulation 21(4) or who had ceased, under regulation 34(5) of the Retirement Benefits Regulations 2005 , to contribute to the contributory scheme established under those regulations; or

(c) an employee who is not contributing to the contributory scheme while on approved leave without pay; or

(d) a person who elects under section 30 of the Act to contribute to the contributory scheme –

and includes an existing contributor;

contributor's account means an account established by the Commission under regulation 28 for a contributor;

contributory scheme means the superannuation arrangements provided for by these regulations;

directed termination payment has the same meaning as in section 82.10F of the Income Tax (Transitional Provisions) Act 1997 of the Commonwealth;

element taxed in the fund has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

element untaxed in the fund has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

eligible rollover fund has the same meaning as in the SIS Act;

employee means a person appointed or employed in any position or capacity under the State Service Act or in any industry or undertaking carried on by or on behalf of the State but does not include –

(a) a person who is employed as an agent only; or

(b) a person whose appointment is honorary; or

(c) a person engaged in an Agency who is not an employee within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth;

employment redundancy program means a program for the purpose of reducing the level of employment in the public sector declared by the Minister by notice published in the Gazette to be an employment redundancy program for the purposes of these regulations;

existing contributor means a contributor who, immediately before 1 July 1994, was a contributor to the contributory scheme established under the Retirement Benefits Act 1982 and who has continued at all times to be such a contributor;

[Regulation 3 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] fee unit means a fee unit within the meaning of the Fee Units Act 1997 ;

former regulations means the Retirement Benefits Regulations 1994 , the Retirement Benefits (Transitional) Regulations 1994 or the Retirement Benefits Regulations 2005 ;

former superannuation legislation means the Superannuation Act 1938 , the Retirement Benefits Act 1970 , the Retirement Benefits Act 1982 , the Retirement Benefits Act 1993 or the former regulations;

full benefits contributor means a contributor who is eligible to be treated as a full benefits contributor in accordance with regulation 98 ;

full-time equivalent service means the period of service that a person, who has been employed at any time otherwise than on a full-time basis, would have attained if that person had always been employed on a full-time basis;

Fund member means –

(a) a contributor; or

(b) a person holding a compulsory preservation account; or

(c) a pensioner who is not in receipt of a pension only payable under regulation 62 ; or

(d) a person holding an investment account;

gainful employment means employment for gain or reward in any business, trade, profession, vocation, calling, occupation or employment but does not include voluntary or unpaid employment;

Government Business Enterprise means a Government Business Enterprise within the meaning of the Government Business Enterprises Act 1995 ;

Government department means a Government department established under section 11 of the State Service Act;

half-year means a period of 6 months commencing on 1 January or 1 July in each year;

Head of Agency means the person responsible for the administration of an Agency;

interim invalidity means interim invalidity as determined by the Commission under regulation 96(3) ;

interim invalidity pension means a pension paid by the Commission on the grounds of interim invalidity;

interim invalidity pensioner means a person who is in receipt of an interim invalidity pension;

invalidity means total and permanent incapacity, partial and permanent incapacity or interim invalidity as determined by the Commission under regulation 96(3) ;

invalidity benefit means a benefit paid by the Commission on the ground of total and permanent incapacity, partial and permanent incapacity or interim invalidity;

invalidity pension means a pension paid by the Commission on the grounds of total and permanent incapacity, partial and permanent incapacity or interim invalidity;

invalidity pensioner means a person who is in receipt of an invalidity pension;

investment account means an account established under regulation 49 ;

legal personal representative means –

(a) the executor of the will or administrator of the estate of a deceased person; or

(b) the trustee of the estate of a person under a legal incapacity; or

(c) a person who holds a power of attorney granted by a person in respect of matters generally pertaining to these regulations;

limited benefits contributor means a contributor who is not eligible to be treated as a full benefits contributor as provided by regulation 98 ;

long leave of absence without pay means a period of leave without pay that exceeds 20 continuous working days;

member contributions means an amount paid or payable by a contributor to the contributory scheme as required under Part 4 but does not include salary sacrifice contributions;

non-concessional contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

non-concessional contributions cap has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

non-contributory scheme means the scheme established under Part 5 of the Retirement Benefits Regulations 1994 as in force immediately before 27 July 2005;

notional contributions surcharge amount means an amount calculated by the Commission under regulation 68 ;

notional surchargeable contributions factor means a factor applying to a contributor as determined under regulation 10(7) ;

notional taxed contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

parental leave means any period, not exceeding 12 months on any one occasion, of unpaid maternity leave, unpaid paternity leave or unpaid adoption leave;

partial and permanent incapacity means partial and permanent incapacity as determined by the Commission under regulation 96(3) ;

partial and permanent incapacity pension means a pension paid by the Commission on the grounds of partial and permanent incapacity;

pay-day means the day on which a fortnightly instalment of pension is payable under regulation 65 ;

pensioner means a person who is receiving a pension under these regulations;

permanent employee means a person aged 15 years or more –

(a) who was employed in a permanent capacity in an Agency on 14 May 1999 and has not received a benefit under these regulations or the former regulations on cessation of employment after that date; or

(b) who, under the Public Sector Superannuation Reform Act 1999 , these regulations or the former regulations, has become a contributor and has not received a benefit under these regulations or the former regulations on cessation of employment after 14 May 1999 –

and includes an employee who is –

(c) appointed as a permanent employee under section 37 of the State Service Act; or

(d) employed in a permanent capacity by the Hydro-Electric Corporation; or

(e) employed in a permanent capacity as a police officer; or

(f) employed as a student nurse or a trainee under section 37 of the State Service Act; or

(g) employed in a permanent capacity otherwise than as provided in paragraph (c) , (d) , (e) or (f) , and who was, immediately before 1 July 1994, a contributor within the meaning of the Retirement Benefits Act 1982 ; or

(h) an officer the term of whose appointment is fixed by an Act; or

(i) appointed under Part 5 of the State Service Act and who was, immediately before his or her appointment, a contributor to the contributory scheme; or

(j) a person employed in a permanent capacity who, under any Act, is taken to be an employee within the meaning of, or for the purposes of, these regulations; or

(k) an employee, or a member of a class of employees, of an Agency determined by the Minister, on the recommendation of the Commission, to be employed in a permanent capacity for the purposes of these regulations –

but does not include –

(l) a permanent part-time employee who before 1 July 1994 was not a contributor to the contributory scheme; or

(m) a married female employee who has been continuously employed since 1 July 1982 and who is not contributing to the contributory scheme; or

(n) a person –

(i) who is a casual employee or whose employment is casual in nature; or

(ii) who is a temporary part-time or temporary full-time employee or whose employment is of a temporary or fixed-term nature; or

(iii) who is appointed for a specified term or for the duration of a specified task under section 37 of the State Service Act; or

(iv) who is employed as an agent or who is remunerated by fees, allowances or commission only; or

(v) whose appointment is honorary; or

(vi) who is employed under a contract which is not a prescribed contract of employment; or

(vii) who is an employee by reason only of his or her appointment as a member of a board; or

(o) a person, referred to in paragraph (a) , (b) , (c) , (d) , (e) , (f) , (g) , (h) , (i) , (j) or (k) of this definition, who is employed or appointed after 14 May 1999;

prescribed arrangement means an enactment, arrangement or agreement under which services currently provided by an Agency or part of an Agency are transferred as a result of –

(a) a change to its constitution; or

(b) a sale or any other arrangement which may result in any change to the terms of employment of all or some of its employees –

to another person or organisation, if the enactment, arrangement or agreement is declared to be a prescribed arrangement under subregulation (3) ;

prescribed contract of employment means a contract in writing under which a person is employed in an Agency for a period that is, or for periods that together are, not less than 3 years, whether the periods are specified in, or determined by reference to, the contract;

preservation age means the preservation age determined in accordance with regulation 4 ;

quarter means a period of 3 months commencing on 1 July, 1 October, 1 January or 1 April in any year;

rate of contribution means the effective rate of contributions made by or on behalf of a contributor after any deduction is made for contributions tax in accordance with the law of the Commonwealth;

record means any record of information, and includes –

(a) anything on which there is writing; and

(b) anything on which there are marks, figures, symbols or perforations having a meaning for persons qualified to interpret them; and

(c) anything from which sounds, images or writings can be reproduced with or without the aid of anything else; and

(d) a map, plan, drawing or photograph –

and a reference in these regulations to a record includes a reference to –

(e) any part of any such record; and

(f) any copy, reproduction or duplicate of the record or of any part of the record; and

(g) any part of such a copy, reproduction or duplicate;

regulated superannuation fund means a regulated superannuation fund within the meaning of the SIS Act;

responsible officer, in respect of an Agency, means –

(a) the person employed in that Agency to whom is assigned the duty of conducting the business of the Agency relating to the Fund; or

(b) if that duty is not assigned, the Head of Agency;

reversionary pension to which a person is entitled means a pension in respect of which the entitlement is at any time conditional on the death of another person who is still living;

rolled over has the same meaning as in Part 5 of the SIS Regulations;

roll-over superannuation benefit has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

RSA means a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the Commonwealth;

SAF Agreement means the agreement referred to in section 71A(1) of the Retirement Benefits Act 1982 ;

salary, subject to subregulation (4) , includes wages, allowances and discretionary benefits paid or payable to a person as an employee and –

(a) any amount paid by an Agency to a complying superannuation scheme on behalf of an employee who has the option of receiving the amount as salary or in another form of benefit; and

(b) any amount paid for, or value assessed of non-salary benefits received by, an employee who has the option of receiving the amount as salary or in another form of benefit –

but does not include –

(c) any bonus or payment for special circumstances of an occasional nature; or

(d) any payment in respect of travelling or other work-related expenses; or

(e) any payment in respect of accrued recreation leave or long service leave that is not taken as leave but for which a lump sum payment is made; or

(f) any wages, allowances or discretionary benefits in respect of which contributions have not been paid by a person while an employee; or

(fa) [Regulation 3 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] an allowance paid in lieu of being provided with a motor vehicle; or

(g) any increase in salary ratified after cessation of employment;

salary sacrifice contributions means an amount paid or payable to the contributory scheme under an arrangement, between a contributor and his or her employing Agency, providing for non-salary benefits to be paid by that employing Agency instead of contributions that would otherwise be required to be paid by that contributor under Part 4 ;

service, in respect of a contributor, means a period or periods of any of the following kinds:

(a) a period in respect of which a contributor made contributions to the Fund under Part 4 ;

(b) any period recognised as service under regulation 17 or 18 ;

short leave of absence without pay means a period of leave without pay consisting of 20 or fewer continuous working days;

SIS Act means the Superannuation Industry (Supervision) Act 1993 of the Commonwealth;

SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994 of the Commonwealth;

spouse, except in Part 8 , includes the person with whom a Fund member is in a significant relationship, within the meaning of the Relationships Act 2003 ;

State-owned company means a company incorporated under the Corporations Act which is controlled by –

(a) the Crown; or

(b) a Government Business Enterprise; or

(c) a statutory authority; or

(d) another company which is itself controlled by an entity referred to in paragraph (a) , (b) or (c) ;

State Service Act means the State Service Act 2000 ;

statutory authority means a body or authority, whether incorporated or not, which is established or constituted by or under an Act or under the royal prerogative, if the body or authority, or the governing body of which, wholly or partly comprises a person or persons appointed by the Governor, a Minister or another statutory authority, and includes the governing body of any such statutory authority;

subfund means a part of the Fund that is maintained by the Commission as a subfund under the Act;

superannuation benefit has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

superannuation contributions means –

(a) employer superannuation contributions paid or payable under these regulations; and

(b) salary sacrifice contributions; and

(c) additional employer contributions; and

(d) voluntary contributions; and

(e) member contributions that have not been included in the assessable income of the Fund;

surchargeable contributions debt account means an account established under regulation 74 ;

surcharge liability means any liability for a tax or interest under a Commonwealth Surcharge Act arising from an entitlement to a benefit under these regulations;

surviving partner means a person who is determined by the Commission under regulation 109 to be the surviving partner of a Fund member;

Taxation Commissioner means the person who is holding office as, or acting in the office of, the Commissioner of Taxation under the Taxation Administration Act 1953 of the Commonwealth;

tax free component has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

[Regulation 3 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] terminal medical condition has the same meaning as in regulation 6.01A of the SIS Regulations;

total and permanent incapacity means total and permanent incapacity as determined by the Commission under regulation 96(3) ;

total and permanent incapacity pension means a pension paid by the Commission on the grounds of total and permanent incapacity.

(2)  In these regulations, a reference to the Retirement Benefits Act 1982 is to be read as a reference to that Act as amended by the Retirement Benefits Act 1993 .

(3)  The Minister may, by notice published in the Gazette, declare that an enactment, arrangement or agreement is to be a prescribed arrangement for the purposes of these regulations.

(4)  For the purposes of the definition of salary in subregulation (1)  –

(a) contributions made by an Agency to a complying superannuation scheme on behalf of a contributor are taken to be included in the contributor's salary; and

(b) a reference to salary in Division 2 of Part 4 is taken to be a reference to salary that is, or has been, paid and not the salary that would have been paid or payable if the contributor had not been participating in an accumulated leave scheme.

(5)  For the purposes of the definition of State-owned company in subregulation (1) , the provisions of the Corporations Act relating to control are taken to apply as if the Crown, Government Business Enterprise or statutory authority, as the case may be, were a corporation under that Act.

(6)  A reference in these regulations to a notification or notice of election in writing to the Commission includes a notification or notice of election made in any other manner approved by the Commission.

4 Determination of preservation age

If a person was born during a period mentioned in column 1 of the following table, his or her preservation age means the relevant age referred to in column 2 of that table or, if another age is prescribed by the SIS Act as the preservation age, that other age.

| Column 1 - Date of birth | Column 2 - Relevant age | | Before 1 July 1960 | 55 years | | 1 July 1960 – 30 June 1961 | 56 years | | 1 July 1961 – 30 June 1962 | 57 years | | 1 July 1962 – 30 June 1963 | 58 years | | 1 July 1963 – 30 June 1964 | 59 years | | After 30 June 1964 | 60 years |

5 Application of regulations

These regulations apply to –

(a) contributors; and

(b) persons holding a compulsory preservation account; and

(c) persons holding an investment account; and

(d) pensioners; and

(e) persons who may elect to contribute to the contributory scheme in accordance with section 30 of the Act; and

(f) in certain cases, the spouse, surviving partner and beneficiaries of any person mentioned in another paragraph of this regulation.

Part 2 Administration

6 Functions and powers of Commission

(1)  The Commission is to be the sole trustee of the Fund.

(2)  The functions of the Commission are to –

(a) manage the Fund so as to maximise the return earned on the Fund, having regard to –

(i) the need to provide for payments out of the Fund; and

(ii) the need to exercise reasonable care and prudence so as to maintain the integrity of the Fund; and

(b) administer the receipt of contributions and the payment of benefits having due regard to the need for equity among employees and beneficiaries; and

(c) collect contributions and to pay benefits; and

(d) establish policies in respect of the administration of these regulations and the investment of money standing to the credit of the Fund and to adopt strategies designed to achieve those policies; and

(e) determine, authorise and approve programs for the administration of these regulations and the investment of money standing to the credit of the Fund; and

(f) take, purchase, lease, hold, sell, exchange and dispose of real and personal property for the purposes of these regulations; and

(g) inform contributors about the management of the Fund, including making available to contributors, at least once a year, a summary of information relating to their entitlements; and

(h) provide for the payment of any taxation or surcharge liability imposed under the law of the Commonwealth on the Fund or in respect of any benefits payable by the Commission.

(3)  In performing its functions, the Commission must –

(a) act honestly in all matters concerning the Fund; and

(b) conduct its operations in an efficient, effective and economic manner; and

(c) exercise, in respect of all matters affecting the Fund, the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with property of another person for whom that person felt morally bound to provide; and

(d) ensure that the Commission's functions and powers are performed and exercised in the best interests of the beneficiaries and, in respect of Part 4 , having regard to the interests of the State; and

(e) keep the money and other assets of the Fund separate from any money and assets –

(i) that are held by the Commission in its own right; or

(ii) that are money or assets of the State or an Agency; and

(f) subject to these regulations, not enter into any contract, or do anything else, that would prevent the Commission from, or hinder the Commission in, properly performing or exercising its functions or powers; and

(g) formulate and give effect to an investment strategy that has regard to the whole of the circumstances of the Fund including –

(i) the risk involved in making, holding and realising, and the likely return from, the Fund's investments having regard to its objectives and its expected cash flow requirements; and

(ii) the composition of the Fund's investments as a whole, including the extent to which the investments are diverse or involve the Fund in being exposed to risks from inadequate diversification; and

(iii) the liquidity of the Fund's investments, having regard to its expected cash flow requirements; and

(iv) the ability of the Fund to discharge its existing and prospective liabilities; and

(h) if there are any reserves of the Fund, formulate and give effect to a strategy for the prudent management of those reserves; and

(i) allow a beneficiary access to any information or any documents to which he or she is entitled to access under an Act of the Commonwealth or of Tasmania.

7 Provision of information

(1)  In this regulation –

give includes deliver, distribute, forward and provide;

information includes any statement, report or other document containing information;

legislative imperative includes the requirements of section 33 of the Act and a requirement for personal service or delivery.

(2)  If the Commission is required to give a person any information under these regulations it is sufficient compliance, in the absence of a clear legislative imperative to the contrary, if the Commission makes the information available to the person.

(3)  For subregulation (2) , the information may be made available to the person electronically or in such other manner as the Commission considers appropriate in the circumstances.

(4)  Nothing in this regulation prevents the Commission from electing to give the person the information directly in addition to, or instead of, making it available to the person.

Part 3 Fund

8 Operation of Fund

(1)  There is to be paid into the Fund –

(a) all contributions, roll-over superannuation benefits, directed termination payments or other money authorised to be paid into the Fund by persons entitled to benefits under these regulations or as otherwise required by law; and

(b) all payments required by or under these regulations, or as otherwise required by law, to be made to the Fund by the Minister; and

(c) all income derived from the investments made under regulation 9 but without taking into account unrealised capital gains or losses; and

(d) all money required or authorised by these regulations, or as otherwise required by law, to be paid by any person to the Commission; and

(e) all money, investments and assets that are transferred to, and vested in, the Commission by the Act.

(2)  The management and control of the Fund are vested in the Commission.

(3)  All money that is payable into the Fund is to be paid to the Commission.

(4)  The Commission must pay out of the Fund –

(a) all benefits and other amounts payable under these regulations or as otherwise required by law; and

(b) any taxation, surcharge or other liability, duty or fee imposed on the Fund under a law of the Commonwealth or the State.

9 Investment of Fund

(1)  Subject to this regulation, money standing to the credit of the Fund may be invested by the Commission with any investment manager in any manner which the Commission thinks fit.

(2)  The Commission may authorise an investment manager to perform the powers and duties of the Commission in respect of all or part of the money of the Fund available for investment.

(3)  Whether or not the Commission appoints an investment manager, the Commission must, at least every 12 months, conduct a review of –

(a) the Commission's investment policy; and

(b) the management and performance of the Commission's investments.

(4)  Without limiting the generality of subregulation (1) , money standing to the credit of the Fund may be invested on first mortgage of real property in the State, including a completed unit, held in fee simple, to which a strata plan registered under the Strata Titles Act 1998 relates.

(5)  Subregulation (4) applies to a mortgage or further charge under which, or in respect of which, the investment manager has priority over all other persons.

10 Actuarial investigations of Fund

(1)  An investigation as to the state and sufficiency of the Fund is to be made by the Actuary on the expiration of each period of 3 years, the first period of which is to commence on a date to be determined by the Treasurer by notice in the Gazette.

(2)  The Actuary, not later than 12 months after the date on which an investigation for the purposes of subregulation (1) is to be made, must –

(a) prepare a report giving full particulars of the investigation; and

(b) give a copy of the report to the Minister and the Commission.

(3)  The Actuary must include in the report –

(a) a statement as to whether any change should be made to –

(i) the basis on which, or the extent to which, lump sum entitlements may be converted into pension payments under Part 6 ; and

(ii) the proportion in which the contributions required to be paid to the Fund under regulations 86 and 87 by the Minister are to be paid; and

(iii) the contributions to be paid to the Fund by the Minister in respect of a subfund established for persons who are, or have been, elected as members of Parliament; and

(b) a statement of the financial position in respect of the current and future liabilities for pension and lump sum benefit entitlements, including any liabilities payable by the Fund under the law of the Commonwealth; and

(c) a statement as to any liability for benefit payments not expected to be paid out of the assets of the Fund or any future contributions; and

(d) any other matters which the Actuary may consider appropriate.

(4)  The Commission must provide a copy or extract of the Actuary's report prepared in accordance with subregulation (2) to a contributor on written request.

(5)  The Actuary, when requested by the Commission or as required under the law of the Commonwealth, must provide the Commission with the actuarial information that is necessary for the Commission to satisfy the Commission's obligations under the law of the Commonwealth.

(6)  The Actuary may, from time to time, make comments and provide advice to the Minister or the Commission on any matter or thing relating to, or arising out of, these regulations.

(7)  The Actuary, when requested by the Commission to do so, must –

(a) determine a notional surchargeable contributions factor for each contributor or class of contributors; and

(b) advise the Commission of that factor so as to enable the Commission to satisfy the Commission's obligations under a Commonwealth Surcharge Act.

11 Minister's guarantee

(1)  The Minister, on behalf of the State, must guarantee the payment of contributions required to be made to the Fund by an Agency if that Agency fails to make those contributions within 28 days after a claim is made by the Commission.

(2)  Any payment guaranteed by the Minister is to be paid to the credit of the Fund within 7 days after a demand for it is made by the Commission.

12 Accounts and records

(1)  The Commission must ensure that there are kept proper accounts and records of the transactions and affairs of the Commission and any other records that will sufficiently explain the financial operations and position of the Commission.

(2)  The Commission is to do all things necessary to –

(a) ensure that all money payable to the Commission is properly collected; and

(b) ensure that all money expended by the Commission is properly authorised; and

(c) ensure that adequate control is maintained over assets owned by, or in the custody of, the Commission; and

(d) [Regulation 12 Subregulation (2) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] ensure that all liabilities incurred by the Commission are properly authorised.

(e) [Regulation 12 Subregulation (2) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] .  .  .  .  .  .  .  .  

(f) [Regulation 12 Subregulation (2) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] .  .  .  .  .  .  .  .

Part 4 Membership, Contributions and Benefits of Contributory Scheme

Division 1 Preliminary

13 Calculation of salary sacrifice contributions

For the purposes of this Part, if salary sacrifice contributions are made to the contributory scheme on behalf of a contributor, the amount to be remitted is to be determined by reference to a percentage of the relevant contributor’s salary calculated in accordance with the following formula:

where –

PS is the percentage of salary;

ROC is the rate of contribution at which the contributor has elected to contribute under regulation 19 ;

CT is the rate of contributions tax payable in accordance with the law of the Commonwealth.

Division 2 Membership

14 Exemption from contributing

(1)  A contributor who is employed under a prescribed contract of employment that makes provision for alternative superannuation arrangements in substitution for membership of the contributory scheme is not entitled to continue to contribute to the Fund and is entitled to an amount equal to the lump sum benefit as provided in regulation 38 , to be distributed as follows:

(a) five-sevenths, or any other proportion that the Minister, on the advice of the Actuary, determines, of the lump sum benefit that would have been payable if that contributor had always contributed at the basic contribution rate is to be transferred to an account established under regulation 48 in the name of that contributor;

(b) the balance is to be transferred –

(i) to an account, in the name of the contributor, in a complying superannuation scheme elected by that contributor; or

(ii) [Regulation 14 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under subparagraph (i) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

(2)  A person, employed in an Agency as at 1 July 1994, for whom alternative superannuation arrangements which, in the opinion of the Commission, satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth have been made by that Agency in substitution for membership of the contributory scheme is exempted from contributing to the Fund.

(3)  An employee working in a place outside Australia who, under the laws of that place, is required to make prescribed social security contributions in respect of his or her employment or his or her holding of an office or position by virtue of which he or she is, or but for this regulation would be, an employee within the meaning of these regulations is exempted from contributing to the Fund.

15 Commission may exempt persons from contributing to Fund

(1)  If a contributor has provided to the Commission a written release from any further liability to the person under these regulations –

(a) the Commission may exempt him or her from contributing to the Fund; and

(b) if the Commission grants to the contributor an exemption from contributing, the release takes effect on the Commission giving effect to the exemption.

(2)  If a married female permanent employee –

(a) commenced continuous employment in an Agency before 1 July 1982; and

(b) is a contributor to the Fund –

that employee may, by notice in writing to the Commission, elect not to continue to contribute to the Fund and, if the Commission grants to the contributor an exemption from contributing, the employee is exempted from contributing to the Fund accordingly.

(3)  A contributor who ceases to be a permanent employee but remains employed in a temporary capacity may, by notice in writing to the Commission, elect to exempt himself or herself from contributing to the Fund.

(4)  If a contributor to whom subregulation (1) , (2) or (3) applies is granted by the Commission an exemption from contributing, the contributor ceases to be a contributor on the day on which the exemption is granted and he or she is entitled to an amount equal to the lump sum benefit, as provided in regulation 38 , to be distributed as follows:

(a) five-sevenths, or any other proportion that the Minister, on the advice of the Actuary, determines, of the lump sum benefit that would have been payable if that contributor had always contributed at the basic contribution rate is to be transferred to an account established under regulation 48 in the name of that contributor;

(b) the balance is to be transferred –

(i) to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; or

(ii) [Regulation 15 Subregulation (4) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under subparagraph (i) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

16 Exemption from contributing for certain permanent employees

(1)  If a permanent employee –

(a) is exempt from contributing to the Fund under these regulations; or

(b) was previously exempt from contributing under the former superannuation legislation –

that employee is not obliged to contribute to the Fund unless, by notice in writing, the employee elects to contribute to the Fund on and from a date determined by the Commission having regard to the wishes of the employee.

(2)  A reference in subregulation (1) to a permanent employee is taken to include a reference to a married female employee who –

(a) has been continuously employed since 1 July 1982; and

(b) is not contributing to the Fund.

(3)  If the date which the Commission determines under subregulation (1) in relation to an employee is before the date of the employee's election under that subregulation, the Commission may require the employee or employing Agency, as is appropriate, to pay, within a period fixed by the Commission, the amount of any contributions that would have been payable from the date determined by the Commission, together with any interest that the Commission determines to be payable on that amount.

(4)  The amount referred to in subregulation (3) may not be paid as salary sacrifice contributions.

(5)  On and from the date determined by the Commission under subregulation (1) in relation to an employee, the employee is taken to be a permanent employee within the meaning of this Part.

17 Purchase of certain periods of service

(1)  A contributor who –

(a) immediately before becoming a contributor, was a student teacher, cadet, apprentice or a trainee of any other kind employed in an Agency; or

(b) immediately before becoming a contributor, was an employee within the meaning of these regulations or the former superannuation legislation; or

(c) elected not to make, while on parental leave, contributions under –

(i) regulation 25(1)(b) or regulation 25(4) ; or

(ii) the provision, of any of the former regulations, that corresponds most closely to regulation 25(1)(b) or regulation 25(4) ; or

(d) has not made contributions while on long leave of absence without pay in accordance with regulation 26 of these regulations, regulation 30 of the Retirement Benefits Regulations 1994 or regulation 39 of the Retirement Benefits Regulations 2005; or

(e) had been a member of the contributory scheme, or of the contributory scheme under the former superannuation legislation, but had ceased to be a member; or

(f) had, as a married female employee, elected not to pay contributions or had not been obliged to make contributions; or

(g) had previously been exempted from making contributions to the contributory scheme under the former superannuation legislation –

may, by notice in writing to the Commission, elect that the contributor's period or periods of non-contributory or prior service, or a specified part of that period or those periods, be recognised as service for the purposes of this Part.

(2)  An existing contributor whose service has been reduced in accordance with clause 2 or 3 of Part 3 of Schedule 3 may, by notice in writing to the Commission, elect that the contributor's period or periods of reduced service or any specified part of that service be recognised as service for the purposes of these regulations.

(3)  If a contributor has made an election under subregulation (1) or (2) , he or she may, subject to subregulation (4) , enter into one or more arrangements with the Commission, either immediately or at some future time or both, under which the whole or part of the period of service referred to in the election is recognised as service as a contributor to the Fund.

(4)  Before accepting an election by a contributor under this regulation, the Commission may direct that the contributor –

(a) undergo any reasonable medical examination by a medical practitioner; and

(b) provide the Commission with a report of that examination, to the satisfaction of the Commission, that the contributor is not affected by any physical or mental defect likely to render the contributor incapable of performing the contributor's duties before attaining the age of 60 years.

(5)  If a contributor enters into an arrangement under subregulation (3) , he or she is to pay to the Commission an amount calculated in accordance with the following formula:

where –

A is the amount to be paid to the Fund by the contributor;

B is the full-time equivalent average annual salary received by the contributor in respect of the year immediately preceding the date of the calculation;

PBMF is the purchased benefit multiple factor calculated by multiplying the period or periods of the contributor's past full-time equivalent service by the appropriate benefit multiple factor, as provided in regulation 30(1) , for each of those periods;

C is the percentage, as determined by the Actuary, applicable to the contributor, having regard to –

(a) his or her age when he or she enters into the arrangement; and

(b) his or her age for retirement; and

(c) all other relevant factors –

which percentage is to be the actuarial equivalent of the additional total benefit that will be derived under these regulations if the contributor purchases the service and pays the amount calculated in accordance with this subregulation.

(6)  A contributor may not enter into an arrangement under subregulation (3) if to do so would cause the contributor to exceed his or her non-concessional contributions cap for a financial year.

(7)  The amount calculated under subregulation (5) may not be paid as salary sacrifice contributions and the contributor may not purchase service at a rate exceeding 11% of salary.

(8)  An amount required to be paid under an arrangement referred to in subregulation (3) is to be paid –

(a) in a lump sum or in any manner the Commission determines; and

(b) not later than 12 months after the contributor enters into the arrangement.

(9)  On receipt of a lump sum under subregulation (8) , the Commission is to –

(a) credit, to the next claim payable to the Fund by the Minister under regulation 87 , the proportion of the amount determined under regulation 86 ; and

(b) credit, to the contributor's account established under regulation 28 , so much of that lump sum as represents the arrears of the contributions and interest that accrued on and after 1 April 1987 on those arrears; and

(c) retain the balance in the contributory scheme.

18 Recognition of service prior to commencement day

(1)  If a person –

(a) became, before the commencement day, a contributor to the contributory scheme within the meaning of any of the former regulations; and

(b) continues to be a contributor on or after that date –

any period of service to which that person was entitled to be credited under the former regulations is taken to be service for the purposes of this Part.

(2)  For the purposes of subregulation (1) , any period of service is to be expressed in years and, in the case of a contributor who was employed on a full-time basis before 1 July 1994 and continued to be so employed throughout the period of service, is to be calculated as a period or periods comprising service equivalent to –

(a) the 40 years' service scheme at the higher rate of contribution; or

(b) the 40 years' service scheme at the lower rate of contribution; or

(c) the 35 years' service scheme; or

(d) the 30 years' service scheme –

or, if he or she had at any time been employed otherwise than on a full-time basis, his or her length of service is to be calculated as a period or periods of full-time service equivalent to –

(e) the 40 years' service scheme at the higher rate of contribution; or

(f) the 40 years' service scheme at the lower rate of contribution; or

(g) the 35 years' service scheme; or

(h) the 30 years' service scheme.

Division 3 Contributions

19 Obligation of certain employees to contribute

(1)  Except as provided in regulation 14 , 15 , 16 or 21 , an employee under the age of 70 years who –

(a) is an existing contributor; or

(b) became a permanent employee on or after 1 July 1994 and before 15 May 1999; or

(c) has, before the day on which these regulations commence, elected, under the Public Sector Superannuation Reform Act 1999 or the former regulations, to contribute to a contributory scheme established or continued by or under the former regulations; or

(d) has elected to contribute to the contributory scheme under section 30 of the Act –

must, until he or she attains the age of 70 years, contribute to the contributory scheme established under these regulations.

(2)  A contributor who has entered into an agreement with his or her employing Agency to have salary sacrifice contributions paid to the Fund on his or her behalf –

(a) is, while the agreement is in force, taken to have satisfied any requirement under this Part to make contributions to the contributory scheme; and

(b) may not make member contributions during any period when the salary sacrifice contributions are being paid to the Fund.

(3)  A person who, immediately before the commencement day, was a contributor must continue to contribute at his or her commensurate rate of contribution unless he or she elects in writing to the Commission to contribute under this regulation at another rate of contribution.

(4)  A person who becomes a contributor under these regulations must contribute at the rate provided in regulation 23(2) unless he or she elects in writing to the Commission to contribute under this regulation at a higher rate of contribution.

(5)  A person who makes an election under subregulation (3) or (4) must specify in that election his or her rate of contribution, which is to be a rate consisting of multiples of 1% of salary, with the minimum rate of contribution being 5% of salary and the maximum rate of contribution being 15% of salary.

(6)  A contributor may not increase his or her rate of contribution under subregulation (3) or (4) if to do so would cause the contributor to exceed his or her non-concessional contributions cap for a financial year.

(7)  Before accepting an election by a contributor under this regulation, the Commission may direct that the contributor –

(a) undergo any reasonable medical examination by a medical practitioner; and

(b) provide the Commission with a report of that examination, to the satisfaction of the Commission, that the contributor is not affected by any physical or mental defect likely to render him or her incapable of performing his or her duties before attaining the age of 60 years.

(8)  A contributor who has made an election to pay contributions above the basic contribution rate may, by notice in writing to the Commission, elect to revoke or vary that election.

(9)  If a contributor has revoked his or her election to pay additional contributions above the basic contribution rate, the Commission may refund –

(a) the part, of the balance of the contributor's account under regulation 28 as at 30 June 1999, which relates to those additional contributions together with interest accrued as at that date, if the Commission is satisfied that the contributor would suffer financial hardship on failure to make that refund; and

(b) the total of all excess contributions paid above that rate after 30 June 1999 together with interest accrued after that date, but only if regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances.

(10)  On payment of a refund of additional contributions under subregulation (9) , the contributor is taken to have contributed at the basic contribution rate during the period of service to which the refund of those additional contributions relates.

20 Retrospective increase of rate of contributions

(1)  If, under regulation 19(3) or (4) , a contributor elects to increase the rate of contributions retrospectively, he or she must, subject to regulation 19(7) , enter into an arrangement with the Commission for the payment of an amount calculated in accordance with the following formula:

where –

A is the amount to be paid to the Fund by the contributor;

B is the full-time equivalent average annual salary received by the contributor in respect of the year immediately preceding the date of the upgrade calculation;

PBMF is the purchased benefit multiple factor calculated by multiplying the period or periods of the contributor's past full-time equivalent service by the appropriate benefit multiple factor, as provided in regulation 30(1) , for each of those periods;

C is the percentage, as determined by the Actuary, applicable to the contributor, having regard to –

(a) his or her age when he or she enters into the arrangement; and

(b) the period remaining until he or she attains the age of 65 years; and

(c) all other relevant factors –

which percentage is to be the actuarial equivalent of the additional total benefit that will be derived under these regulations if the contributor purchases the service and pays the amount calculated in accordance with this subregulation.

(2)  A contributor may not elect to pay contributions retrospectively if –

(a) to do so would require the contributor to enter into an arrangement under subregulation (1) for the payment of an amount to the Fund by the contributor; and

(b) the payment of that amount to the Fund by the contributor would cause the contributor to exceed his or her relevant non-concessional contributions cap.

(3)  The amount calculated under subregulation (1) may not be paid as salary sacrifice contributions.

(4)  A contributor may not elect to pay contributions retrospectively at a rate exceeding 11% of salary.

(5)  On receipt of the amount calculated under subregulation (1) , the Commission is to –

(a) credit to the contributor's account established under regulation 28 so much of that amount as represents the arrears of the contributions and interest that accrued on and after 1 April 1987 on those arrears; and

(b) retain the balance in the contributory scheme.

(6)  An amount required to be paid under an arrangement under subregulation (1) is to be paid in a lump sum or in any manner that the Commission determines but not later than 12 months after the contributor enters into the arrangement.

(7)  If a contributor pays to the Commission the amount required under an arrangement referred to in subregulation (1) , his or her benefit is to be calculated as if he or she had, in respect of the period for which the arrangement had been made, at all times during his or her service contributed at the higher rate of contribution.

(8)  If a contributor does not pay to the Commission the amount required under an arrangement referred to in subregulation (1) , he or she is taken to have commenced to contribute to the Fund at the higher rate of contribution on the day that the Commission determines.

21 Commencement and cessation of contributions

(1)  The contributions of a permanent employee are to commence on the day on which he or she is appointed to the office or position by virtue of which he or she is an employee.

(2)  The contributions of a person who has elected under section 30 of the Act to contribute to the contributory scheme commence on the commencement of the first full pay period occurring after the election under that regulation is received by the Commission.

(3)  Except as provided in subregulation (4) , contributions cease to be payable on the day on which –

(a) a contributor ceases to be an employee; or

(b) a contributor ceases permanent employment and immediately commences work as a casual employee or work that is casual in nature; or

(c) a contributor ceases temporary employment or employment which is temporary in nature and immediately commences work as a casual employee or work that is casual in nature; or

(d) a contributor attains the age of 70 years; or

(e) [Regulation 21 Subregulation (3) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] a contributor who, having regard to his or her age and level of employment, would not in similar circumstances be permitted under the SIS Act to contribute to a regulated superannuation fund.

(4)  A person who has attained the age of 65 years and who remains an employee may, by notice in writing to the Commission, elect not to continue to contribute to the contributory scheme.

(5)  For the purposes of subregulation (4) , contributions cease to be payable on the commencement of the first full pay period after the election is received by the Commission.

(6)  Subject to regulation 41 , if contributions cease to be payable by a contributor as mentioned in subregulation (3)(b) or (c)  –

(a) the contributor is entitled to an amount equal to a lump sum benefit calculated under regulation 33 , 38 or 39 , as may be applicable; and

(b) the lump sum benefit is to be transferred –

(i) to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; or

(ii) if an election is not made under subparagraph (i) within a reasonable period determined by the Commission – to an eligible rollover fund chosen by the Commission.

22 Time and manner of paying contributions

(1)  Except as otherwise provided in these regulations, the contributions of a contributor are to be paid at such periods and in such manner as are determined by the Commission.

(2)  A responsible officer is to –

(a) prepare a return for every pay period showing the total amount of salary and contributions payable in respect of each contributor in respect of whom he or she is the responsible officer; and

(b) forward that return to the Commission; and

(c) in the case of a contributor whose salary is paid out of the Public Account, forward, on request by the Minister, a copy of the return to the Minister.

(3)  The return is to be in a form approved by the Commission.

23 Rates of contributions and related matters

(1)  The contributions payable by, or on behalf of, a contributor who was making contributions, within the meaning of the Retirement Benefit Regulations 2005, immediately before the commencement day are to be at the rate of those contributions, unless he or she elects to contribute at another rate under regulation 19 .

(2)  The contributions payable by a person who becomes a contributor under these regulations are to comprise 5% of salary unless he or she elects to contribute at a higher rate under regulation 19 .

(3)  If an amount calculated in accordance with this regulation includes a fraction of a cent –

(a) if the fraction is 0.5 cents or more, that amount is to be increased to the next highest whole number of cents; or

(b) if the fraction is less than 0.5 cents, that amount is to be reduced to the next lowest whole number of cents.

24 Leave and compulsory superannuation contributions at contributor cost

(1)  Subject to subregulation (5) , the contributions payable to the Fund by or on behalf of a contributor are to continue to be paid while he or she is –

(a) on any leave with full pay; or

(b) on short leave of absence without pay; or

(c) on sick leave on less than full pay or without pay; or

(d) receiving an interim invalidity pension under regulation 44 ; or

(e) participating in an accumulated leave scheme.

(2)  The rate of contribution payable under subregulation (1) is the rate at which the contributor would have been required to contribute to the Fund if the contributor had continued to receive his or her salary in respect of that period.

(3)  A contributor who is in receipt of an interim invalidity pension under regulation 44 is, for the purposes of this regulation, taken to be on sick leave without pay.

(4)  If the contributor becomes entitled to an increase in salary while absent from duty on any leave referred to in this regulation, his or her obligation to contribute to the contributory scheme is to be calculated with reference to his or her salary as so increased.

(5)  The Commission, on the application of a contributor who is on sick leave on less than full pay, on sick leave without pay or on an interim invalidity pension under regulation 44 , may permit the contributor to defer contributions for any period not exceeding 2 years, subject to any conditions as to the future payment of contributions and interest that the Commission imposes.

25 Leave and optional superannuation contributions at contributor cost

(1)  A contributor who is on parental leave may –

(a) elect to pay contributions –

(i) at the rate at which the contributor would have been required to contribute to the Fund if he or she had continued to receive his or her salary in respect of that period; and

(ii) if the contributor becomes entitled to an increase in salary while absent from duty on that leave, at a rate calculated with reference to his or her salary as so increased; or

(b) elect not to pay contributions while absent from duty on that leave.

(2)  An election under subregulation (1) is to be made in writing to the Commission within one month, or any extended time that the Commission allows, after the contributor commences parental leave.

(3)  If a contributor on parental leave elects to pay contributions, the Commission, on the application of the contributor, may permit him or her to defer contributions for any period not exceeding 2 years, subject to any conditions as to the future payment of contributions and interest that the Commission imposes.

(4)  If a contributor on parental leave fails to make an election under subregulation (1) , the contributor is taken to have made an election under paragraph (b) of that subregulation.

26 Leave and optional superannuation contributions at full actuarial cost

(1)  Except as provided in regulation 25 or in this regulation, a contributor on long leave of absence without pay other than sick leave is not permitted to contribute to the contributory scheme.

(2)  A contributor who is on long leave of absence without pay may, while still an employee, purchase recognition of service for the period of that leave under regulation 17 .

(3)  A contributor who is on parental leave and, under regulation 25(1)(b) or regulation 25(4) , elects not to pay contributions while on that leave may, while still an employee, purchase recognition of service for the period of that leave under regulation 17 .

(4)  If a contributor does not purchase recognition of service under subregulation (2) or (3) , the period during which he or she was on long leave of absence without pay or parental leave –

(a) is not counted as part of the contributor’s service for the purpose of these regulations; and

(b) does not affect the contributor’s continuity of service.

27 Interest and contributions paid for taxation

If a contributor is required under regulation 24 , 25 or 26 to pay interest or contributions, as determined under regulation 17 , that interest or those contributions are taken to be contributions paid by that contributor for the purpose of any law of the Commonwealth relating to the taxation of superannuation.

28 Contributors' accounts

(1)  The Commission is to –

(a) maintain each account established under the former regulations for a contributor; and

(b) establish an account for each contributor who becomes a contributor after the commencement day.

(2)  There are to vest in a contributor –

(a) the contributions credited to an account for a contributor; and

(b) any interest that is credited under subregulation (3)  –

less any deductions made for contributions tax in accordance with the law of the Commonwealth and any deductions made under regulation 29 .

(3)  A contributor is entitled to interest on any contributions or other payments made by the contributor to the Commission which have been credited to his or her account.

(4)  For the purposes of this regulation –

(a) interest is to be calculated in accordance with regulation 92 (and, accordingly, may be either positive or negative interest); and

(b) the annual earning rate of the contributory scheme for each relevant financial year is to be determined by the Commission on the advice of the Actuary, with unrealised capital gains and losses being brought to account as income and adjusted having regard to the taxation liability of the contributory scheme.

29 Deductions against contributors' accounts for death and disability cover

(1)  The Commission is to maintain within the contributory scheme the death and disability account established under the former regulations.

(2)  The Commission, having regard to the advice of the Actuary in respect of both the experience of providing death and disability benefits under these regulations and the different commencement date of contributors, is to establish premium rates sufficient to meet fully the cost of death and disability benefits.

(3)  The premium rates established under subregulation (2) are –

(a) to be determined as soon as practicable after the report into the most recent actuarial investigation under regulation 10 is provided under that regulation; and

(b) to be determined having regard to the experience of providing death and disability benefits in the financial years to which that report relates; and

(c) to have effect for the period commencing on the next 1 October after the report is provided and ending when the next determination of premium rates takes effect under this paragraph.

(4)  In respect of each contributor under the age of 60 years, the Commission is to –

(a) debit the account of that contributor with a premium determined by reference to the salary received by that contributor and the appropriate premium rate established in respect of that contributor under subregulation (2) ; and

(b) credit the sum of the amounts debited under paragraph (a) to the death and disability account.

(5)  As soon as practicable after 30 June in each year, the Commission is to debit the death and disability account with an amount that, in the opinion of the Actuary, was required for the provision of the insured component of the death and disability benefits paid under these regulations during the preceding financial year.

(6)  For the purposes of subregulation (5) , in respect of a contributor for whom a pension or lump sum benefit is paid by reason of total and permanent incapacity, partial and permanent incapacity or death, the insured component of that benefit is taken to be an amount equal to the present value of the prospective service component of that pension or benefit, less the present value of the amount paid by the Minister to the prospective service component of that pension or benefit paid under regulation 87 .

(7)  For the purposes of subregulation (5) , in respect of a contributor for whom an interim invalidity pension is paid, the insured component of that pension is taken to be the amount of that pension less the amount paid in respect of that pension by the Minister under regulation 87 .

(8)  If, at the end of a financial year, the premiums credited to the death and disability account are more than sufficient to meet the cost of death and disability benefits provided under these regulations, the Commission is to determine whether to distribute the surplus in the death and disability account amongst the contributors' accounts or to carry it forward to the next financial year.

(9)  If, at the end of a financial year, the premiums credited to the death and disability account are insufficient to meet the cost of death and disability benefits provided under these regulations, the Commission is to –

(a) offset the deficiency against the surplus, if any, carried forward from a previous financial year as mentioned in subregulation (8) ; and

(b) if the surplus referred to in paragraph (a) is insufficient to offset the deficiency fully – further debit each contributor's account to the extent necessary to cover the deficiency.

Division 4 Lump sum benefits

30 Interpretation of Division 4

(1)  In this Division –

benefit multiple factor means the benefit multiple factor derived by reference to the rate of contribution of a contributor and –

(a) in respect of the service of an existing contributor before 1 July 1993, is as follows:

| Contribution rate (% of salary) | Benefit multiple factor | | 0 | 0.000 | | 2.75 | 0.100 | | 5.5 | 0.200 | | 6 | 0.206 | | 7 | 0.217 | | 8 | 0.229 | | 9 | 0.242 | | 10 | 0.254 | | 11 | 0.267 |

(b) in respect of the service of a contributor on or after 1 July 1993, is as follows:

| Contribution rate (% of salary) | Benefit multiple factor | | 0 | 0.0000 | | 2.5 | 0.1000 | | 5 | 0.2000 | | 6 | 0.2125 | | 7 | 0.2250 | | 8 | 0.2375 | | 9 | 0.2500 | | 10 | 0.2625 | | 11 | 0.2750 | | 12 | 0.2850 | | 13 | 0.2950 | | 14 | 0.3050 | | 15 | 0.3150 |

(2)  For the purposes of this Division, if a contributor has been absent on leave without pay, or on less than full pay –

(a) during the period of 3 years immediately preceding the time of his or her –

(i) resignation or dismissal; or

(ii) redundancy or compulsory retirement; or

(iii) retirement due to age, total and permanent incapacity or partial and permanent incapacity; or

(iv) death; or

(b) during the 12 months immediately preceding the commencement of his or her interim invalidity pension –

the contributor's average annual salary is to be calculated as if he or she had continued to be employed in the same capacity on his or her full pay during the whole period.

31 Calculation of prospective service for contributors employed otherwise than full-time

(1)  If –

(a) a contributor is employed otherwise than on a full-time basis on the day of the contributor's death or the day of cessation of his or her employment; and

(b) a benefit becomes payable to, or in respect of, that contributor under regulation 36 or 37  –

his or her prospective service is to be calculated in accordance with the following formula:

where –

PS is the contributor's prospective service expressed in years;

A is the period expressed in years commencing on the day immediately following the day of the contributor's death or the day of cessation of his or her employment and ending on the day on which –

(a) he or she would have attained the age of 60 years; or

(b) he or she would have achieved 25 calendar years of service –

whichever is the earlier;

B is the full-time equivalent of the contributor's length of service expressed in years as at the date of retirement or death;

C is the contributor's length of service expressed in years as at the date of retirement or death.

(2)  For the purposes of subregulation (1) , a reference to working otherwise than on a full-time basis is taken to include a reference to working on a part-time basis or participating in an accumulated leave scheme or any similar arrangement.

(3)  Despite subregulations (1) and (2) , if, after such inquiry as the Commission thinks fit, the Commission is satisfied that the hours of employment of a contributor were reduced by the contributor's Agency for medical reasons which subsequently led to his or her death or retirement on total and permanent incapacity or partial and permanent incapacity, the Commission may, for the purposes of regulations 36 and 37 , calculate the contributor's prospective service as if the reduction in hours had not occurred.

32 Adjustment of service and salary for contributors employed otherwise than full-time

(1)  For the purposes of calculating the lump sum benefit to be paid to a contributor who at any time was employed otherwise than on a full-time basis, his or her length of service as such a contributor is to be adjusted to full-time equivalent service.

(2)  For the purpose of calculating the lump sum or pension benefit to be paid to a contributor who, during the final 3 years of service was employed otherwise than on a full-time basis, his or her salary is taken to be the salary that the contributor would have received if he or she had been employed on a full-time basis during that period of service.

33 Benefit on early retirement of contributors

(1)  If a contributor retires otherwise than by reason of total and permanent incapacity, or partial and permanent incapacity, after attaining the preservation age but on or before attaining the age of 65 years, he or she is entitled to a lump sum benefit calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding retirement; or

(b) in the case of a contributor whose length of service at the time of his or her retirement is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PP is the percentage of the lump sum benefit that the contributor has elected, under regulation 59 , to be taken as a pension.

(2)  If a contributor to whom this regulation applies retires, the Commission is to pay the benefit calculated under subregulation (1) to that contributor in accordance with regulation 59 .

34 Benefit on redundancy or compulsory retirement

(1)  Subject to subregulation (2) and regulation 35 , if –

(a) a contributor is retired for the reason that –

(i) his or her service, office or position is unnecessary; or

(ii) the work for which he or she was engaged is finished; or

(iii) diminution of work necessitates a reduction in the number of employees; or

(b) a contributor, the term of whose appointment is fixed by an Act, is not at the end of a term reappointed to his or her office and does not, by reason of another appointment, continue to be a contributor; or

(c) a contributor, who is a contract employee, ceases to be a contract employee by reason of his or her contract not being renewed by the employer; or

(d) a contributor is retired by virtue of voluntary redundancy under an employment redundancy program or ceases to be a contributor as a result of a prescribed arrangement –

the contributor is entitled to a lump sum benefit calculated in accordance with this regulation.

(2)  If a person ceases to be a contributor under this regulation and his or her length of service is less than 3 years, he or she is taken to have resigned and is entitled to a benefit calculated under regulation 38 .

(3)  If a person to whom subregulation (1) refers is a contributor who is under the age of 60 years, his or her lump sum benefit is to be calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding the cessation of his or her service; or

(b) in the case of a contributor whose length of service at the time of the cessation of his or her service is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PP is –

(a) in the case of a contributor who has attained the preservation age, the percentage of the lump sum that the contributor has elected, under regulation 59 , to be taken as a pension; or

(b) in the case of a contributor who has not attained the preservation age, 0.

(4)  If a contributor to whom subregulation (1) refers is 60 years of age or more but less than 65 years of age, his or her lump sum benefit is to be calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding the cessation of his or her service; or

(b) in the case of a contributor whose length of service at the time of the cessation of his or her service is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PBMF is the contributor's prospective benefit multiple factor, calculated by taking the basic contribution rate applicable to the contributor and multiplying the benefit multiple factor prescribed for that rate of contribution under regulation 30 by the contributor's length of prospective service expressed in years, commencing on the day after the day of his or her cessation of employment and concluding on the day when he or she would have attained the age of 65 years;

PP is the percentage of the lump sum benefit that the contributor has elected, under regulation 59 , to be taken as a pension.

(5)  If a contributor to whom subregulation (4) applies is employed or has at any previous time been employed otherwise than on a full-time basis as a contributor, the contributor’s prospective service for the purpose of this regulation is to be calculated in accordance with the following formula:

where –

PS is the contributor’s prospective service expressed in years;

A is the period expressed in years commencing on the day after his or her cessation of employment and ending on the day on which he or she would have attained the age of 65 years;

B is the full-time equivalent of the contributor’s length of service expressed in years as at the date of cessation of his or her service;

C is the contributor’s length of service expressed in years as at the date of cessation of his or her service.

(6)  If a contributor who is entitled to a benefit calculated under this regulation has attained his or her preservation age, the Commission is to pay the benefit so calculated to that contributor in accordance with regulation 59 .

35 Savings for entitlements of certain contributors under Retirement Benefits Act 1982

(1)  An existing contributor who, under regulation 34(1)(d) , ceases to be a contributor as a result of a prescribed arrangement may, by notice in writing to the Commission, elect to receive a benefit under this regulation instead of a benefit under regulation 34 .

(2)  An existing contributor who has at all times contributed at the basic contribution rate is entitled to a lump sum benefit equal to 3.5 times the balance of the contributor's account under regulation 28 together with a sum calculated under regulation 43(5) .

(3)  An existing contributor who has at any time contributed at a rate greater than 5% of salary is entitled to a lump sum benefit equal to the total of –

(a) an amount equal to 3.5 times the part of the balance of the contributor's account under regulation 28 that the contributor would have received if he or she had, at all relevant times, been paying contributions at the basic contribution rate; and

(b) the balance, if any, of that account after deduction of the part referred to in paragraph (a) ; and

(c) an amount calculated under regulation 43(5) .

(4)  If a contributor who is entitled to a benefit calculated under this regulation has attained his or her preservation age, the Commission is to pay the benefit so calculated to that contributor in accordance with regulation 59 .

36 Benefit for full benefits contributors on death, terminal medical condition or retirement due to total and permanent incapacity

(1)  Subject to subregulation (2) , if, before attaining the age of 65 years, a full benefits contributor –

(a) dies; or

(ab) [Regulation 36 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] is determined by the Commission under regulation 96A to have a terminal medical condition and that contributor subsequently retires on the grounds of having a terminal medical condition within 6 months after the date of that determination; or

(b) [Regulation 36 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] is determined by the Commission to be suffering from total and permanent incapacity in accordance with regulation 96 , and that contributor subsequently retires on the grounds of ill health within 6 months after the date of the Commission's determination –

a lump sum benefit is to be calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) [Regulation 36 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding his or her death or retirement due to total and permanent incapacity or a terminal medical condition; or

(b) [Regulation 36 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] in the case of a contributor whose length of service at the time of his or her death or retirement due to total and permanent incapacity or a terminal medical condition is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PBMF is, subject to regulation 31 , the contributor's prospective benefit multiple factor, calculated by taking the basic contribution rate applicable to the contributor and multiplying the benefit multiple factor prescribed for that rate of contribution under regulation 30 by whichever is the lesser of the following:

(a) [Regulation 36 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] the contributor's length of prospective service expressed in years, commencing on the day immediately following the day of his or her death or retirement due to total and permanent incapacity or a terminal medical condition and ending on the day on which he or she would have attained the age of 60 years;

(b) 25 years;

PP is the percentage of the lump sum benefit that the contributor or the surviving partner of the contributor has elected, under regulation 59 , to be taken as a pension.

(2)  If a contributor to whom this regulation applies retires on the grounds of total and permanent incapacity, the Commission is to pay the benefit calculated under subregulation (1) to that contributor in accordance with regulation 59 .

(3)  If a contributor to whom this regulation applies dies, the Commission is to pay the benefit calculated under subregulation (1) in accordance with regulation 110 .

(4)  [Regulation 36 Subregulation (4) inserted by S.R. 2022, No. 11, Applied:31 Mar 2022] If a contributor to whom this regulation applies retires on the grounds of having a terminal medical condition, the Commission is to pay the benefit calculated under subregulation (1) in accordance with the conditions of release of benefits applicable to regulated superannuation funds under the SIS regulations.

37 Benefit for limited benefits contributors on death, terminal medical condition or retirement due to total and permanent incapacity

(1)  If, before attaining the age of 65 years, a limited benefits contributor –

(a) dies; or

(ab) [Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] is determined by the Commission under regulation 96A to have a terminal medical condition and that contributor subsequently retires on the grounds of having a terminal medical condition within 6 months after the date of that determination; or

(b) is determined by the Commission, in accordance with regulation 96 , to be suffering from total and permanent incapacity and that contributor subsequently retires on the grounds of ill health within 6 months after the date of the Commission's decision –

a lump sum benefit is to be calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) [Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding his or her death or retirement due to total and permanent incapacity or a terminal medical condition; or

(b) [Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] in the case of a contributor whose length of service at the time of his or her death or retirement due to total and permanent incapacity or a terminal medical condition is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

FAS(1) is –

(a) [Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] the salary paid or payable to the contributor in respect of the 12 months immediately preceding his or her death or retirement due to total and permanent incapacity or a terminal medical condition; or

(b) [Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] in the case of a contributor whose length of service at the time of his or her death or retirement due to total and permanent incapacity or a terminal medical condition is less than 12 months, the average annual salary paid or payable in respect of the actual period of service;

[Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] PS is, subject to regulation 31 , the contributor's prospective service expressed in years commencing on the day immediately following the day of his or her death or retirement due to total and permanent incapacity or a terminal medical condition and concluding on the day when he or she would have attained the age of 60 years;

[Regulation 37 Subregulation (1) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] PRC is the relevant rate of employer superannuation contributions calculated –

(a) by reference to the salary, within the meaning of the Act, of the employee; and

(b) in accordance with the "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, as amended from time to time –

as at the date of the contributor's death or retirement due to total and permanent incapacity or a terminal medical condition;

PP is the percentage of the lump sum benefit that the contributor or the surviving partner of the contributor has elected, under regulation 59 , to be taken as a pension.

(2)  If a limited benefits contributor retires, as mentioned in subregulation (1)(b) , on the ground of total and permanent incapacity, the Commission is to pay the benefit calculated under subregulation (1) to that contributor in accordance with regulation 59 .

(3)  If a limited benefits contributor dies, the Commission is to pay the benefit calculated under subregulation (1) in accordance with regulation 110 .

(4)  [Regulation 37 Subregulation (4) inserted by S.R. 2022, No. 11, Applied:31 Mar 2022] If a contributor to whom this regulation applies retires on the grounds of having a terminal medical condition, the Commission is to pay the benefit calculated under subregulation (1) in accordance with the conditions of release of benefits applicable to regulated superannuation funds under the SIS regulations.

38 Benefit payable on resignation or dismissal of contributors

(1)  If a contributor ceases, before attaining his or her preservation age, to be a contributor by reason of –

(a) resignation; or

(b) dismissal –

he or she is entitled to a benefit as provided in this regulation.

(2)  For the purposes of subregulation (1) , the benefit for a contributor who has completed 5 or more years' service as a contributor is to be a lump sum benefit calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding resignation or dismissal; or

(b) in the case of a contributor whose length of service at the time of his or her resignation or dismissal is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications.

(3)  For the purposes of subregulation (1) , the benefit for a contributor who has completed less than 5 years' service as a contributor is to be a lump sum benefit calculated in accordance with whichever of the following formulae provides the greater benefit:

where –

LS is the lump sum benefit payable;

RC is the balance of contributions and interest in the contributor's account established under regulation 28 ;

S is the number of days, expressed in years, for which contributions were received;

SBMF is the State's benefit multiple factor which is –

(a) in respect of a person contributing at the rate of 2.5% of salary, a factor of 0.075; or

(b) in all other cases, a factor of 0.15;

FAS(3) is –

(a) the average annual salary paid or payable to the contributor in respect of the period of 3 years immediately preceding resignation or dismissal; or

(b) in the case of a contributor whose length of service at the time of his or her resignation or dismissal is less than 3 years, the average annual salary paid or payable in respect of the actual period of service;

n is the number of days for which contributions were received;

NCSB is the employer component of the benefit determined in accordance with subregulation (4) .

(4)  For the purposes of the definition of NCSB in subregulation (3) , the employer component of the benefit is the amount that would have been payable if, for each period of the contributor's service that is within a period referred to in column 1 of the table to this regulation –

(a) the employer component had been determined at the rate specified opposite the period in column 2 of the table; and

(b) interest had been paid in relation to the employer component for the relevant period at the rate specified opposite the period in column 3 of the table.

| Column 1 | Column 2 | Column 3 | | Relevant period | Contribution rate | Interest rate | | 1 July 1994 – 30 June 1995 | 5% | The long term bond rate during the relevant period | | 1 July 1995 – 30 June 1998 | 6% | The long term bond rate during the relevant period | | 1 July 1998 – 24 April 2000 | 7% | The long term bond rate during the relevant period | | 25 April 2000 – 30 June 2000 | 7% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2000 – 30 June 2002 | 8% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2002 – 22 March 2014 | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | From 23 March 2014 | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had his or her entire account balance invested in the RBF Balanced Investment Option | | From transfer date onwards | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The interest rate determined under regulation 92 |

39 Benefit payable on death or retirement after retirement age

(1)  If a contributor continues to be a permanent employee after attaining the age of 65 years, the contributor is entitled on death or retirement or on attaining the age of 70 years, whichever is the earlier, to a lump sum benefit calculated in accordance with the following formula:

where –

LS is the lump sum benefit payable;

FAS(3) is –

(a) the average annual salary received by a contributor in respect of the period of 3 years immediately preceding his or her death or retirement or attaining the age of 70 years; or

(b) in the case of a contributor whose length of service at the time of his or her death or retirement is less than 3 years, the average annual salary received in respect of the actual period of service;

ABMF is the contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 30 by the contributor's length of service expressed in years to the day when he or she ceased paying contributions under regulation 21(3)(e) or regulation 21(4) at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

SBMF is the State's benefit multiple factor which is –

(a) in respect of a person contributing at the rate of 2.5% of salary, a factor of 0.075; or

(b) in all other cases, a factor of 0.15;

PRS is the contributor's length of service after attaining the age of retirement expressed in years commencing on the day when he or she ceased paying contributions under regulation 21(3)(e) or regulation 21(4) and ending on the day of his or her actual retirement or death or at the age of 70 years, whichever is the earlier;

PP is the percentage of the lump sum benefit that the contributor or the surviving partner of the contributor has elected under regulation 59 to be taken as a pension.

(2)  If a contributor referred to in subregulation (1) retires, the Commission is to pay the benefit calculated under subregulation (1) to that contributor in accordance with regulation 59 .

(3)  If a contributor referred to in subregulation (1) dies, the Commission is to pay the benefit payable under subregulation (1) in accordance with regulation 110 .

40 Preservation of contributions

(1)  In this regulation –

benefit means a benefit calculated under regulation 34 , 35 or 38 ;

employee component means a benefit less the employer component of that benefit;

employer component means the employer component determined under regulation 86 as if the relevant contributor had always contributed at the basic contribution rate.

(2)  A benefit in respect of a contributor who, at the time of his or her compulsory retirement or redundancy, resignation, dismissal or cessation of employment as a result of a prescribed arrangement, has not attained the preservation age is to be preserved compulsorily as provided by this regulation until –

(a) the contributor retires from the workforce after attaining the preservation age and elects, by notice in writing to the Commission, to receive the benefit; or

(b) the benefit is payable in accordance with regulation 51 .

(3)  A benefit calculated under regulation 34 in respect of an existing contributor is to be preserved as follows:

(a) the employee component is to be transferred to an investment account in the name of the contributor; and

(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor –

or in accordance with an election of the contributor under subregulation (5) .

(4)  A benefit calculated under regulation 34 in respect of a contributor, other than an existing contributor, is to be preserved as follows:

(a) the employee component is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; and

(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor –

or in accordance with an election of the contributor under subregulation (5) .

(5)  A contributor may elect for a benefit calculated under regulation 34 to be preserved as follows:

(a) the total amount of the benefit; or

(b) the total of –

(i) 3.5 times the part of the balance of the contributor's account under regulation 28 that the contributor would have received if he or she had, at all relevant times, been paying contributions at the basic contribution rate; and

(ii) the balance, if any, of that account after deduction of the part referred to in subparagraph (i)  –

whichever total amount is the lesser, is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor and the balance is to be transferred to a compulsory preservation account in the name of the contributor.

(6)  A benefit calculated under regulation 35 is to be preserved as follows:

(a) the total benefit is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;

(b) if the contributor so elects, the employee component of the benefit payable is to be transferred to an investment account in the name of the contributor and the employer component of that benefit is to be transferred to a compulsory preservation account in the name of the contributor.

(7)  A benefit calculated under regulation 38(2) is to be preserved as follows:

(a) the employee component is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;

(b) the employer component is to be transferred to a compulsory preservation account in the name of the contributor.

(8)  A benefit calculated under regulation 38(3) is to be preserved as follows:

(a) the amount standing to the credit of the contributor's account is to be transferred to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor;

(b) the balance of the total benefit is to be transferred to a compulsory preservation account in the name of the contributor.

(9)  [Regulation 40 Subregulation (9) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] If a contributor does not, within a reasonable period as determined by the Commission, elect a complying superannuation scheme to which a benefit, or a component of a benefit, is to be transferred under subregulation (3) , (4) , (5) , (6) , (7) or (8) , the benefit, or component of the benefit, in relation to a contributor, is to be transferred to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

41 Payment of preserved benefits

(1)  On application in writing to the Commission by a contributor who is entitled to a benefit under regulation 40(3) , (4) , (6) or (7) and who was a contributor on 30 June 1999, the Commission must pay to him or her an amount calculated in accordance with subregulation (3) , (4) or (5) .

(2)  Subregulation (1) does not apply to a contributor who has made an election under regulation 40(6)(b) .

(3)  If the benefit is calculated under regulation 34 , the amount payable is the lesser of the total amount of the benefit and the total of the following amounts:

(a) an amount equal to 3.5 times the part of the balance of the contributor's account under regulation 28 as at 30 June 1999 that the contributor would have received if he or she had, at all relevant times, been paying contributions at the basic contribution rate;

(b) the balance, if any, of that account as at 30 June 1999 after deduction of the part referred to in paragraph (a) .

(4)  If the benefit is calculated under regulation 35 , the amount payable is the total of the following amounts:

(a) an amount equal to 3.5 times the part of the balance of the contributor's account under regulation 28 as at 30 June 1999 that the contributor would have received if he or she had, at all relevant times, been paying contributions at the basic contribution rate;

(b) the balance, if any, of that account as at 30 June 1999 after deduction of the part referred to in paragraph (a) .

(5)  If the benefit is calculated under regulation 38(2) , the amount payable is the amount of the employee component calculated as at 30 June 1999.

(6)  A contributor who is entitled to be paid an amount in accordance with subregulation (1) may apply in writing to the Commission –

(a) to be paid the whole or a part of the amount; or

(b) to transfer the whole or a part of the amount –

(i) to a complying superannuation scheme elected by that contributor; or

(ii) [Regulation 41 Subregulation (6) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under subparagraph (i) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

(7)  If an amount is paid under subregulation (1) , the Commission must debit the compulsory preservation account in the name of the contributor with the amount payable under regulation 87 and the amount, if any, payable under regulation 88 .

(8)  If an existing contributor becomes entitled to a lump sum benefit under this Part other than a benefit mentioned in regulation 40(2) , the benefit is to be transferred –

(a) to a complying superannuation scheme elected by that contributor; or

(b) if an election is not made under paragraph (a) within a reasonable period determined by the Commission – to an eligible rollover fund chosen by the Commission.

42 Minimum benefit for 2.5% contributors

(1)  The minimum benefit payable by the Commission to, or on behalf of, a contributor making contributions at the rate of 2.5% of salary is the greater of the benefit calculated under regulation 33 , 34 , 35 , 36 , 37 , 38 or 39 , whichever is appropriate, and the benefit determined in accordance with the following formula:

where –

LS is the benefit payable to the contributor;

RC is the balance of contributions and interest of the contributor’s account established under regulation 28 ;

NCSB is the employer component of the benefit determined in accordance with subregulation (2) ;

SAFB is the balance as at 30 June 1994 of the contributor's account as an eligible employee under the SAF Agreement indexed at a rate declared by the Commission as being equal to whichever is the greater of –

(a) variations in the AWOTE; or

(b) variations in the Consumer Price Index.

(2)  For the purposes of the definition of NCSB in subregulation (1) , the employer component of the benefit is the amount that would have been payable if, for each period of the contributor's service that is within a period referred to in column 1 of the table to this regulation –

(a) the employer component had been determined at the rate specified opposite the period in column 2 of the table; and

(b) interest had been paid in relation to the employer component for the relevant period at the rate specified opposite the period in column 3 of the table.

| Column 1 - Relevant period | Column 2 - Contribution rate | Column 3 - Interest rate | | 1 July 1994 – 30 June 1995 | 5% | The long term bond rate during the relevant period | | 1 July 1995 – 30 June 1998 | 6% | The long term bond rate during the relevant period | | 1 July 1998 – 24 April 2000 | 7% | The long term bond rate during the relevant period | | 25 April 2000 – 30 June 2000 | 7% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2000 – 30 June 2002 | 8% | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 1 July 2002 – 22 March 2014 | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had not made an election for investment choice under the Trust Deed during the relevant period | | 23 March 2014 until transfer date | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The rate payable to a member of the Tasmanian Accumulation Scheme who had his or her entire account balance invested in the RBF Balanced Investment Option | | From transfer date onwards | The "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth | The interest rate determined under regulation 92 |

43 Supplemental lump sum benefit payable in certain cases

(1)  If an existing contributor, to whom regulation 33 , 34 , 35 or 39 or clause 7 of Schedule 1 applies, retires and makes an election under regulation 59(6) to receive a pension calculated under Schedule 1 , the Commission may pay to the contributor a supplemental lump sum benefit in accordance with this regulation.

(2)  In relation to an existing contributor to whom subregulation (1) applies, eligibility for a supplemental lump sum benefit is to be calculated in accordance with the following formula:

where –

E is the amount required to determine eligibility for the supplemental lump sum benefit;

A is the amount of the lump sum benefit payable under regulation 33 , 34 or 39 before taking into account any election made under regulation 59 ;

PP is the proportion of the lump sum benefit which the contributor has elected, under regulation 59 , to convert to a pension;

B is the annual amount of pension that would be payable to the contributor under clause 5 , 6 or 8 of Schedule 1 before taking into account any election made under regulation 59 ;

C is the conversion factor derived having regard to the age of the contributor at the date of retirement as follows:

| Age | Pension conversion factor | | 55 | 11 | | 56 | 10.8 | | 57 | 10.6 | | 58 | 10.4 | | 59 | 10.2 | | 60 | 10.0 | | 61 | 9.8 | | 62 | 9.6 | | 63 | 9.4 | | 64 | 9.2 | | 65 | 9.0 | | 66 | 8.8 | | 67 | 8.6 | | 68 | 8.4 | | 69 | 8.2 | | 70 | 8.0 |

D is the sum referred to in subregulation (5) , calculated as at the date of the retirement of the contributor.

(3)  Subregulation (2) does not apply to an existing contributor to whom clause 7 of Schedule 1 applies.

(4)  If, under subregulation (2) , the product of the formula is negative, a supplemental lump sum benefit is payable and is to be calculated as provided in subregulation (5) .

(5)  For the purposes of this regulation, the supplemental lump sum benefit comprises a sum equal to the balance, as at 30 June 1994, of the contributor's account under the SAF Agreement, indexed at a rate declared by the Commission as being equal to whichever is the greater of –

(a) movements in the AWOTE; or

(b) movements in the Consumer Price Index.

(6)  For the purposes of subregulation (5) , the indexation rate declared by the Commission is to be reviewed as at 1 March and 1 September in each year in accordance with the AWOTE or Consumer Price Index figure most recently published before that review.

Division 5 Interim pensions

44 Interim invalidity pensions

(1)  If the Commission determines, under regulation 96 , that a contributor meets the criteria for interim invalidity and that contributor has been absent from duty on sick leave without pay for a continuous period of 30 days –

(a) that contributor is entitled to a pension equal to 75% of the salary that he or she would have received in respect of the previous period of 12 months if he or she had continued to be employed in his or her usual capacity; and

(b) that pension is payable from the later of the following days:

(i) the day on which the Commission receives the application for an invalidity benefit under regulation 96 ;

(ii) the day after the last day of the period of 30 days' sick leave without pay; and

(c) that pension is payable for a period determined by the Commission not exceeding 2 years.

(2)  If, after such inquiry as he or she thinks fit, the Commission is satisfied that a contributor has reduced his or her hours of work for medical reasons, the Commission may, for the purpose of subregulation (1) , determine that the contributor's salary is to be an amount that it considers to be fair and equitable.

(3)  An interim invalidity pension is subject to indexation as provided by regulation 63 .

(4)  If the period for which an interim invalidity pension payable to a contributor under this regulation has expired, the pension ceases and unless –

(a) the Commission grants a total and permanent incapacity benefit to the contributor; or

(b) the Commission grants a partial and permanent incapacity benefit to the contributor; or

(c) the contributor returns to duty –

the contributor is taken to have ceased to be a member of the contributory scheme as from the cessation of the interim invalidity pension.

(5)  On the cessation of a contributor's membership under subregulation (4)  –

(a) he or she is entitled to a benefit calculated in accordance with regulation 38 ; and

(b) the Commission is to transfer the amount referred to in regulation 41(5)  –

(i) to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; or

(ii) [Regulation 44 Subregulation (5) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under subparagraph (i) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

(6)  If –

(a) the membership of a contributor ceases under subregulation (4) ; and

(b) the contributor subsequently recommences duty in his or her position or any other position within an Agency for which he or she is qualified by education, training or experience –

the Commission must, subject to subregulations (7) , (8) and (9) , reinstate the contributor’s membership in the contributory scheme as if the transfer had not occurred and adjust the contributor’s entitlements accordingly.

(7)  On the reinstatement of a contributor's membership under subregulation (6)  –

(a) the contributor must, as from the day when he or she recommences duty, contribute to the contributory scheme at the rate at which he or she was contributing before the commencement of his or her interim invalidity pension; and

(b) the period between the cessation of payment of the interim invalidity pension and the recommencement of duty is to be treated, for the purposes of these regulations, as leave without pay.

(8)  The Commission is not to reinstate a person as a member of the contributory scheme unless –

(a) the amount transferred under subregulation (5)(b) may be transferred to the contributory scheme from the superannuation fund elected by the person, or the eligible rollover fund selected by the Commission, whichever is applicable; and

(b) the person arranges for the transfer of the benefit to the contributory scheme; and

(c) the Commission is satisfied that the amount transferred to the contributory scheme fairly corresponds with the benefit referred to in subregulation (5)(a) .

(9)  The Commission is not to reinstate a person as a member of the contributory scheme unless the Commission is satisfied that any gainful employment that the person has undertaken after the cessation of the person's interim invalidity pension and before the person's recommencement of duty was undertaken in order to facilitate that return to duty.

(10)  An interim invalidity pension ceases to be payable if the interim invalidity pensioner ceases to be an employee.

45 Interim pensions for surviving partners

(1)  If a contributor dies, the surviving partner of that contributor is entitled to an interim pension equal to 75% of the salary paid or payable to the contributor in respect of the previous period of 12 months of employment.

(2)  If, after such inquiry as the Commission thinks fit, the Commission is satisfied that a contributor's hours of employment had been reduced for medical reasons, the Commission may, for the purposes of subregulation (1) , determine that the contributor's salary is to be an amount that the Commission considers to be fair and equitable.

(3)  A pension under subregulation (1) is payable until the surviving partner makes an election under regulation 59 or a period of 3 months elapses, whichever is the earlier.

(4)  An interim pension payable under this regulation is not subject to indexation.

Division 6 Prescribed arrangements

46 Declaration of prescribed arrangement

(1)  A declaration of a prescribed arrangement under regulation 3(3) may provide that, on and from a day specified in the declaration, regulation 47 is to have effect in respect of the rights and entitlements of all contributors whose terms of employment are affected by the prescribed arrangement.

(2)  If the declaration provides that regulation 47 is to have effect, the declaration is to specify a commencement day for the purposes of that regulation and, on publication of the declaration, the application of that regulation extends to the contributors accordingly.

47 Application of prescribed arrangements to contributors

(1)  This regulation applies to contributors to whom a declaration of a prescribed arrangement is expressed to apply.

(2)  Within 60 days after the commencement day specified in the declaration under regulation 46(2) , the Commission must, in writing, notify the contributors to whom this regulation applies of –

(a) their entitlements under regulation 34 or, if applicable, regulation 35 , and the value of the employer component of those entitlements under regulation 87 ; and

(b) the difference in the level of employer superannuation support provided under regulation 87 for entitlements calculated under this Part and the "charge percentage" specified in section 19(2) of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, as amended from time to time.

(3)  After receipt of the notification and within 6 months after the commencement day specified in the declaration under regulation 46(2) or a longer period determined by the Commission, a contributor may, in writing, notify the Commission and the person or organisation to which the relevant services have been transferred that he or she elects not to continue as a contributor.

(4)  A notice of election under subregulation (3) is to include –

(a) a copy of the notification referred to in subregulation (2) ; and

(b) a statement to the effect that the contributor making the election has taken into account the matters referred to in that notification.

(5)  On making an election under subregulation (3) , a contributor –

(a) is taken to have ceased to be a contributor, with effect from a day determined by the Commission, as a result of the relevant prescribed arrangement; and

(b) is entitled to a lump sum benefit calculated in accordance with regulation 34 or, if applicable, regulation 35 .

(6)  A contributor who does not make an election as mentioned in subregulation (3) is taken to remain as a contributor.

Part 5 Powers and Duties of Commission

48 Establishment of compulsory preservation accounts

(1)  The Commission –

(a) is to establish a compulsory preservation account in the name of the relevant contributor for each benefit entitlement which is to be compulsorily preserved under regulation 40 ; and

(b) is to credit to that account any benefit entitlement which under that regulation is to be transferred to that account.

(2)  The benefit entitlements preserved under this regulation include all benefit entitlements, or proportions of benefit entitlements, which are to be preserved in accordance with regulation 40 .

(3)  The benefit entitlements compulsorily preserved in an account established under this regulation are to be indexed at a rate declared by the Commission as being equal to whichever is the greater of –

(a) movements in the AWOTE; or

(b) movements in the Consumer Price Index.

(4)  For the purpose of subregulation (3) , the indexation rate declared by the Commission is to be reviewed as at 1 March and 1 September in each year in accordance with the AWOTE or Consumer Price Index figure most recently published before that review.

(5)  Except as provided by subregulation (6) , regulation 52 or 96 , if a contributor in whose name a compulsory preservation account has been established reaches his or her preservation age, the balance of that account is to be transferred, after deduction of any tax liability –

(a) to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; or

(b) [Regulation 48 Subregulation (5) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under paragraph (a) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

(6)  Except as provided by regulation 52 or 96 , if a contributor in whose name a compulsory preservation account has been preserved in accordance with regulation 40(3)(b) or regulation 40(6)(b) reaches his or her preservation age, the balance of that account is to be transferred, after deduction of any tax liability, to an investment account in the name of the contributor.

(7)  An amount standing to the credit of a compulsory preservation account may be paid by the Commission only where regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances.

(8)  If a person holding a compulsory preservation account dies, the Commission is to pay the balance of that person's account in accordance with regulation 110 .

(9)  [Regulation 48 Subregulation (9) inserted by S.R. 2022, No. 11, Applied:31 Mar 2022] If the balance of a person’s compulsory preservation account is an amount in relation to which regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances, the Commission may pay all of the amount in the compulsory preservation account to –

(a) an account, in the name of the person, elected by the person; or

(b) if an election is not made under paragraph (a) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.

49 Establishment of investment accounts

(1)  The Commission is to establish an investment account in the name of the relevant existing contributor –

(a) for a benefit entitlement, arising under regulation 34 or 35 , to which regulation 40(3) or regulation 40(6)(b) applies; or

(b) in respect of an Investment 12 Account member –

and is to credit to the account any benefit entitlement which under regulation 40 is to be transferred into that account.

(2)  The Commission must credit to an investment account established under subregulation (1) interest at a rate determined in accordance with regulation 92 (which, accordingly, may be either positive or negative interest) in respect of the amounts from time to time standing to the credit of the account.

(3)  There are to vest in a contributor –

(a) the benefit entitlements credited to an investment account for the contributor established under subregulation (1) ; and

(b) any interest, in relation to the benefit entitlements, that is credited under subregulation (2)  –

less any deductions made for contributions tax in accordance with the law of the Commonwealth.

(4)  An amount standing to the credit of an investment account may be paid by the Commission only where regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances.

(5)  If a person who holds an investment account dies, the Commission is to pay the balance of the account under regulation 110 .

50 Time and manner of benefit payments

(1)  The Commission is to use its best endeavours to ensure that a person who is entitled to a benefit under these regulations is paid that benefit as soon as practicable after the entitlement arises.

(2)  If the Commission is satisfied that there has been an unreasonable delay in paying a person a benefit to which the person is entitled under these regulations, the Commission may pay such interest on the benefit (or any part of the benefit) as the Commission considers fair having regard to all the circumstances including, without limiting this, whether any act or omission of the person caused or contributed to the delay.

51 Release of preserved benefits

(1)  If the Commission is required to preserve a lump sum benefit entitlement under Part 4 or 5 , that benefit entitlement may be paid by the Commission only if regulated superannuation funds are permitted under the SIS Act to make such a payment in similar circumstances.

(2)  The Commission must notify –

(a) a Fund member; or

(b) a person entitled to the preserved benefit in accordance with regulation 110  –

whichever is appropriate, of the entitlement to a preserved benefit that has become payable, by sending a written notice to that person's last known address.

(3)  If a person with an entitlement to a preserved benefit dies, the Commission is to pay that benefit in accordance with regulation 110 .

(4)  [Regulation 51 Subregulation (4) substituted by S.R. 2022, No. 11, Applied:31 Mar 2022] If the Commission has –

(a) determined under regulation 96(8) that a person with an entitlement to a preserved benefit is suffering from total and permanent incapacity; or

(b) determined under regulation 96A that a person with an entitlement to a preserved benefit has a terminal medical condition –

the Commission is to pay that benefit to that person.