14Exemption from contributing

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.