New South Wales act

State Authorities Superannuation Act 1987

In ForceNSW

Jurisdiction

New South Wales

Act Number

211 of 1987

Collection

act

Plain English Summary

8/10 complexity

This Act establishes and runs the State Authorities Superannuation Fund. It sets rules for employee elections to contribute, employer contributions and reserves, individual contributor accounts, salary bases for contribution calculations, additional benefit cover (with medical checks and a levy), transfers/portability and actuarial oversight. It affects employees of listed state authorities, their employers and the STC, and determines who pays, how benefits are calculated and how the Fund is managed and charged.

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Deep Dive

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What it does

The State Authorities Superannuation Act 1987 (NSW) established the State Authorities Superannuation Scheme (SASS), a defined-benefit accumulation superannuation scheme for NSW State government employees. The scheme commenced on 1 April 1988. It was closed to new entrants on 19 December 1992 (section 2A), meaning no new employees may join. Only those who made elections to contribute before the closure date (or who are eligible to resume under section 2B or 2C) remain members.

The Act continues as governing legislation for existing contributors and their benefit entitlements. It establishes the State Authorities Superannuation Fund, the contributor account structure, contribution obligations, benefit calculations and payment rules, and the family law superannuation splitting framework.

Main concepts

Contributor: An employee whose election to contribute to the Fund has taken effect (section 3(1)).

Contributor's account: A personal account established under section 12 for each contributor. The account is credited with employee contributions, salary sacrifice contributions and investment returns, and debited when benefits are paid.

Contributor-financed benefit: The balance at credit in the contributor's account at the time the benefit is paid (section 3(1)).

Current sections

Direct links to the current provisions in State Authorities Superannuation Act 1987.

135

Part 1

Preliminary

Part 1 Preliminary

Name of Act

1 Name of Act

This Act may be cited as the State Authorities Superannuation Act 1987.

Commencement

2 Commencement

This Act shall commence on 1 April 1988.

Closure of scheme to new entrants on and from 19 December 1992

2A Closure of scheme to new entrants on and from 19 December 1992

(1) Despite any other provision of this Act, an employee is not entitled to make an election to contribute to the Fund on or after 19 December 1992 (the closure date).

(2) However, a person who lodged an election to contribute to the Fund with the Board, or with the person’s employer, before the closure date is taken to have elected to contribute to the Fund before that date and this Act applies accordingly.

(3) An election that was sent to the Board or employer, by post or otherwise, before the closure date is taken to have been lodged with the Board before that date.

s 2A: Ins 1992 No 101, Sch 1 (1).

Employee may resume contributions after break in employment

2B Employee may resume contributions after break in employment

(1) Despite section 2A, an employee who resumes employment as an employee in the circumstances set out in section 30 may make an application under that section and may resume contributions.

(2) Section 2A does not prevent an employee from exercising a transfer option conferred under Part 6 or Part 7 of the Superannuation Administration Act 1996.

s 2B: Ins 1992 No 101, Sch 1 (1). Am 1998 No 144, Sch 2.4 [1]; 2022 No 63, Sch 3.3.

Employee over 55 years may contribute after election to preserve benefit after salary reduction

2C Employee over 55 years may contribute after election to preserve benefit after salary reduction

(1) Despite section 2A, an employee who has elected under Part 2 of Schedule 5 to make provision for a preserved benefit before the commencement of this section, or who so elects after the commencement of this section, is entitled to elect to contribute to the Fund.

(2) Despite section 2A, an employee who has elected under Division 3B of Part 4 of the Superannuation Act 1916 to defer or preserve a benefit before the commencement of this section, or who so elects after the commencement of this section, is entitled to elect to contribute to the Fund.

(3) The election to contribute to the Fund must be made when the employee elects to make provision for a preserved benefit or to defer or preserve a benefit.

(4) Despite subsection (3), an employee who elected to make provision for a preserved benefit or to defer or preserve a benefit before the commencement of that subsection may elect to contribute to the Fund at any time within 3 months after the commencement of that subsection.

s 2C: Ins 1992 No 101, Sch 1 (1). Am 1993 No 42, Sch 3; 1994 No 32, Sch 2; 2005 No 52, Sch 5 [1] (am 2005 No 98, Sch 2.58).

Definitions

3 Definitions

(1) In this Act—

additional benefit has the meaning given by section 36.

additional benefit levy means the levy that, in order to attract the additional benefit for a contributor, is paid to the Fund by transfer from the contributor’s account under section 22 (2) (b).

Administration Account means the STC Administration Account maintained under the Superannuation Administration Act 1996.

applicable contribution period has the meaning given by section 36.

appointed day means 1 April 1988.

attributed salary, in relation to a contributor at any time, means—

(a) where the contributor is a full-time employee at that time—the salary of the contributor at that time, or

(b) where the contributor is a part-time employee at that time—the salary that would be payable to the contributor at that time if employed as a full-time employee.

Aware Super Fund has the same meaning as Fund has in the Aware Super Act 1992.

benefit means a benefit payable under this Act.

Board means the State Authorities Superannuation Board referred to in section 4 of the Superannuation Administration Act 1991.

Commonwealth taxation law means a law of the Commonwealth that provides for the levying and collection of a tax.

complying approved deposit fund means a complying approved deposit fund for the purposes of section 47 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

complying superannuation fund means a complying superannuation fund for the purposes of section 45 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

contribution period means a named month or such other period as may be prescribed.

contributor means an employee whose election to contribute to the Fund has taken effect.

contributor-financed benefit, in relation to a benefit payable to, or in relation to, a contributor, means the balance at credit in the contributor’s account at the time the benefit is paid.

contributor’s account means the account established and maintained under section 12 in respect of the contributor.

deferred benefit, in relation to a contributor, means a benefit deferred under section 42AA, 43 or 43AA.

discharge, in relation to a contributor, means the cessation of the contributor’s employment expressed by the employer to be on the ground that the period, or successive periods, for which the contributor was employed has or have ended.

dismissal means the termination by an employer of the employment of a contributor with the employer, but does not include retrenchment or discharge or a retirement on the grounds of incapacity in circumstances which entitle the employee to a benefit.

early retirement age means the age of 59 years or, if some lower age (but not lower than the age of 55) is prescribed, that lower age.

employee means a person who is employed by an employer and who is the subject of a certificate by the employer to the effect that—

(a) if the regulations prescribe any class of persons as not being employees—the person is not within any such class, and

(b) if the regulations prescribe any requirement with which a person must comply in order to be an employee—the person complies with the requirement (specifying the requirement),

but does not include an excluded person referred to in Schedule 2.

employee contribution means a contribution made under Part 3, other than a salary sacrifice contribution.

employer means—

(a) the Crown, the Government or a Minister or other member of Parliament, or

(b) an authority specified in Schedule 1,

and a reference to employment with an employer includes a reference to employment with successive employers.

employer-financed benefit, in relation to a benefit payable to, or in relation to, a contributor, means so much of the benefit as is paid from the reserve for that employer.

employer reserve means a reserve established and maintained under section 14.

entry date, in relation to a contributor, means the date as at which the contributor’s election to contribute to the Fund took effect, that election being—

(a) the only such election made by the contributor, or

(b) where the contributor has made more than one such election—the later or latest of those elections.

executive officer means a contributor who is—

(a) a Public Service senior executive within the meaning of the Government Sector Employment Act 2013, or

(b) an employee (not being a Public Service senior executive) of an employer specified in Schedule 1 and who holds an office designated by the Secretary of the Treasury as the office of an executive officer, or

(c) a police executive officer, or

(d) an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975.

(e) (Repealed)

exit date, in relation to a contributor, means the date on which the contributor ceases employment with an employer, that cessation of employment being—

(a) the only such cessation of employment of the contributor, or

(b) where there has been more than one such cessation of employment of the contributor—the later or latest of those cessations of employment.

family law superannuation legislation has the same meaning as it has in Part 5AA.

family law superannuation payment has the same meaning as it has in Part 5AA.

FTC means the FSS Trustee Corporation established under the Superannuation Administration Act 1996.

full-time employee means an employee whose salary ratio is equal to 1.

Fund means the State Authorities Superannuation Fund established under this Act.

maximum benefit points has the meaning given by section 36.

non-contributor spouse has the same meaning as it has in Part 5AA.

part-time employee means an employee whose salary ratio is less than 1 but at least 0.1.

penalty, in relation to a Commonwealth taxation law, includes (but is not limited to)—

(a) a penalty rate of taxation under that law, and

(b) the loss of a concessional rate of taxation under that law.

police executive officer means an executive officer within the meaning of Part 5 of the Police Act 1990.

preserved benefit, in relation to a contributor, means a benefit preserved under section 43AAA.

prospective benefit points has the meaning given by section 36.

relevant Commonwealth superannuation standard means a standard that would be applicable under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth if the Fund was a regulated superannuation fund under that Act.

resign means cease to be employed by an employer, but does not include—

(a) retrenchment, discharge or dismissal, or

(b) ceasing to be employed because of death, or

(c) ceasing to be employed on the privatisation of an employer, or

(d) ceasing to be employed on the grounds of incapacity in circumstances which entitle the employee to a benefit.

retire means cease (otherwise than by reason of death) in any manner to be employed by an employer on or after reaching the early retirement age.

retirement savings account has the same meaning as in the Retirement Savings Accounts Act 1997 of the Commonwealth.

retrenchment, in relation to a contributor, means the termination of the employment of the contributor with an employer where the employment is expressed by the employer to be—

(a) compulsorily terminated by the employer on the ground that—

(i) the employer no longer requires the contributor’s services and, on termination of the contributor’s employment, does not propose to fill the contributor’s position,

(ii) the work that the contributor was engaged to perform has been completed, or

(iii) the amount of work that the employer requires to be performed has diminished and, due to that fact, it has become necessary to reduce the number of employees employed by the employer, or

(b) terminated as a result of the acceptance by the contributor of an offer by the employer of terms of retrenchment made on a ground specified in paragraph (a).

salary, in relation to a contributor, means salary of the contributor, determined in accordance with section 4 or 4A and expressed as an annual rate.

salary ratio, in relation to a contributor at any time during a contribution period, means the number ascertained by dividing the salary of the contributor at the commencement of the contribution period by the attributed salary of the contributor at that commencement.

salary sacrifice contribution means a contribution paid to the Fund for crediting in a contributor’s account by the contributor’s employer in accordance with an agreement referred to in section 19A (1) (b).

spouse of a deceased contributor or deceased former contributor means the surviving spouse of the contributor or former contributor.

STC means the SAS Trustee Corporation established under the Superannuation Administration Act 1996.

superannuation contributions surcharge means the superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act 1997 of the Commonwealth.

superannuation guarantee shortfall has the same meaning as in the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.

superannuation scheme means a scheme, fund or arrangement (whether or not established by an Act) under which any superannuation or retirement benefits are provided by an employer.

superannuation year means the year commencing on 1 April 1988 and each subsequent year commencing on 1 April.

this Act includes the regulations.

Note.

The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.

(2) In this Act—

(a) a reference to a function includes a reference to a power, authority and duty, and

(b) a reference to the exercise of a function includes, where the function is a duty, a reference to the performance of the duty.

(3) A reference in this Act to an authority where used in or in connection with the definition of employer is a reference to an authority, organisation, corporation, person or other entity.

(4) If the inclusion of an employer in Schedule 1 is expressed to be limited in any respect, this Act has effect in relation to the employer subject to the limitation.

(5) Notes included in this Act do not form part of this Act.

s 3: Am 1988 No 136, Sch 1 (1); 1989 No 107, Sch 1; 1989 No 229, Sch 1; 1990 No 48, Sch 2; 1991 No 95, Sch 9 (1); 1991 No 96, Sch 6; 1992 No 102, Sch 5 (1); 1993 No 42, Sch 2; 1993 No 111, Sch 5 (1); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [1] [2]; 1997 No 149, Sch 1.6 [1]; 1998 No 144, Sch 2.4 [2] [3]; 1999 No 86, Sch 1.7 [1]–[4]; 2000 No 100, Sch 5 [1]; 2000 No 114, Sch 1.5 [1] [2]; 2003 No 77, Sch 11 [1] [2]; 2005 No 91, Sch 3.12 [1]; 2006 No 53, Sch 1.4 [1]; 2007 No 28, Sch 2 [1]; 2010 No 19, Sch 3.100 [1]; 2011 No 62, Sch 3.32 [1]; 2013 No 41, Sch 3.8; 2015 No 58, Sch 3.81 [1] [2]; 2018 No 28, Sch 1.34; 2022 No 29, Sch 2.7[1] [2].

Salary

4 Salary

(1) For the purposes of this Act, salary, in relation to a contributor (other than an executive officer) means the sum of—

(a) the remuneration, salary or wages payable in money to the contributor in the contributor’s capacity as a contributor, as reported to STC from time to time by the contributor’s employer, including—

(i) a loading in respect of any shift allowance, as determined in accordance with the regulations, and

(ii) other allowances payable in money that are of a kind included within the value of leave paid on termination of employment, and

(iii) weekly workers compensation paid to the contributor as from a date determined by STC under subsection (1B),

but not including the excluded amounts or allowances referred to in subsection (2), and

(a1) if salary sacrifice contributions are made in respect of the contributor, the amounts payable for those contributions under section 19B, and

(b) if approved employment benefits are provided to the contributor, the cost of providing the approved employment benefits, as determined by the Minister, with the concurrence of the Treasurer.

(1A) The weekly workers compensation to be treated as salary for the purposes of this Act does not include any amount by which the aggregate of—

(a) the weekly workers compensation paid to an injured contributor, and

(b) the salary actually paid to the contributor while partially incapacitated,

exceeds the salary that the contributor would probably have been earning but for the injury (assuming the contributor had continued to be employed in the same or some comparable employment).

(1B) STC may determine a date as from which weekly workers compensation paid to a contributor is to be treated as salary for the purposes of this Act, being a date not earlier than—

(a) 1 April 1988 (the date of commencement of this Act), or

(b) if the liability to pay weekly workers compensation in respect of the contributor first arose on a date later than 1 April 1988—that later date.

(1C) Despite subsection (1), the regulations may provide that the salary of an employee or class of employees (other than an executive officer) for the purposes of this Act is to be determined in the manner prescribed by the regulations.

(1D) A regulation may be made under subsection (1C) only if the Minister and the Treasurer certify in writing that—

(a) there has been a change in the basis on which the remuneration of the employee or class of employees is determined, and

(b) the effect of that change is to change the basis of remuneration to an annualised one, and

(c) the effect of the regulation is not to reduce the benefits that would have accrued under this Act to the employee or class of employees, had there been no change in the basis of remuneration, and

(d) the making of the regulation and associated arrangements will not result in a greater financial cost to the Government than if the regulation and associated arrangements were not made.

(2) The excluded amounts or allowances are—

(a) an amount paid for overtime or as a bonus, or an allowance instead of overtime,

(b) except to the extent determined in accordance with the regulations, as referred to in subsection (1) (a)—an amount paid as shift allowance,

(c) except to the extent that this section otherwise provides—a relieving allowance,

(d) an expense allowance or an allowance for travelling, subsistence or other expenses,

(e) an equipment allowance,

(e1) in respect of any period during which the contributor takes extended leave (or leave in the nature of extended leave) otherwise than on full pay, such part of the remuneration received by the contributor as exceeds the salary (within the meaning of subsection (1)) that he or she would have received had he or she taken leave on full pay,

(f) an amount paid for rent or as a residence, housing or quarters allowance, and

(g) an amount of weekly workers compensation excluded by subsection (1A).

(3) If a contributor’s employer, or a person authorised to do so on behalf of the employer, certifies in writing to STC that a relieving allowance to be, or being, paid to the contributor in the contributor’s capacity as an employee is likely to be paid for a continuous period of 1 year (whether or not the period is partly before the date of the certificate), the allowance is, as from—

(a) the date on which the certificate is lodged with STC, or

(b) the date from which the allowance becomes payable,

whichever is the later, salary for the purposes of this Act.

(4) If a relieving allowance has been paid to a contributor in the contributor’s capacity as an employee for a continuous period of 1 year that ends after the appointed day and, during that period, the allowance has not been treated as part of the contributor’s salary in accordance with subsection (3), the allowance shall, as from the expiration of that period of 1 year, be treated as part of the contributor’s salary while its payment to the contributor continues.

(4A) For the purposes of subsection (4), a reference to a continuous period of 1 year in relation to a contributor who is employed in an educational institution is to be read as a reference to the academic year of the institution.

(5) If a contributor is on secondment to another employer, the salary of the contributor for the purposes of this Act is the salary paid or payable to the contributor by the other employer.

(6) The Governor may, by order in writing, declare unconditionally, or subject to conditions, that subsection (7) applies—

(a) to a contributor specified in the order who is on secondment but not to another employer, and

(b) generally during the period of that secondment, or during such period as is specified in the order, being, in either case, a period commencing before, on or after the date of the order.

(7) During the period in which this subsection is declared pursuant to subsection (6) to apply to a contributor on secondment, the contributor’s salary shall, for the purposes of this Act, be that paid or payable in respect of the employment to which he or she is seconded.

(8) In this section—

academic year, in relation to an educational institution, means a continuous period commencing on the first day of any academic term of the institution and ending on the day before the first day of the corresponding academic term in the following calendar year.

approved employment benefit means a benefit provided to a contributor at the cost of the contributor’s employer (being a benefit of a private nature) that is approved by the Minister, with the concurrence of the Treasurer, for the purposes of this section in relation to the contributor or a class of employees of which the contributor is a member.

shift allowance means an allowance paid to an employee in respect of shift work performed by the employee, and includes amounts paid as penalty rates.

weekly workers compensation, in relation to a contributor, means weekly payments of compensation under the Workers Compensation Act 1987 (or the provisions of the Workers Compensation Act 1926 as applied by that Act) payable to the contributor because the contributor is partially incapacitated for work through injury.

s 4: Am 1989 No 107, Sch 1; 1991 No 17, Sch 1; 1991 No 94, Sch 1; 1993 No 42, Sch 2; 1996 No 39, Sch 4; 2005 No 85, Sch 2.5 [1]; 2006 No 53, Sch 1.4 [2]; 2007 No 28, Sch 2 [2].

Salary of executive officers

4A Salary of executive officers

(1) Definition of salary For the purposes of this Act, the salary of an executive officer is the salary as last nominated or changed in accordance with this section.

(2) Nomination of salary on initial and subsequent appointments An amount of salary for the purposes of this Act must be nominated to an executive officer’s employer by the officer, on, or as soon as practicable after, being appointed as an executive officer. An amount may also be nominated to the officer’s employer by the officer on, or as soon as practicable after, being reappointed, or appointed to another position, as an executive officer.

(3) Amount of salary The amount nominated is to be not less than the monetary remuneration payable to the executive officer at the date of nomination and not more than the total value of the remuneration package paid to the officer (less the cost of providing employer’s contributions to superannuation, other than salary sacrifice contributions, under this Act and the State Authorities Non-contributory Superannuation Act 1987 and any performance-related incentive payment).

(4) Failure to nominate salary If an executive officer fails to nominate an amount of salary within 28 days of first being appointed as an executive officer or within such further period as STC may allow, the officer is taken to have nominated an amount of salary that is equal to the monetary remuneration payable to the officer at the end of the applicable period.

(5) Reduction in nominated salary An executive officer may, from time to time, by notice to the officer’s employer elect to reduce the amount of salary nominated under this section, but not so that the amount is less than the monetary remuneration payable to the officer at the date of the election.

(6) Increase in nominated salary An executive officer may, from time to time, by notice to the officer’s employer elect to increase the amount of salary nominated under this section, but not so as to increase the amount nominated by a percentage of that amount that is more than the percentage by which the remuneration package of the officer has increased since the amount of salary was last nominated or changed.

(7) Nominations and elections An employer must notify STC of a nomination or election under this section. Any such nomination or election takes effect on the date of notification to STC or on such other date as STC may determine with the consent of the executive officer concerned.

(8) Effect of changes in packages Nothing in this section requires the nominated amount of salary to be increased if, because of a variation in the remuneration package of an executive officer or in the proportions of the remuneration package comprising monetary remuneration and employment benefits of the officer, the amount of salary as last nominated or changed for the purposes of this section is less than the monetary remuneration of the officer.

(9) Transitional provision relating to nomination of salary by executive officers An executive officer may, within 3 months after the commencement of this subsection, nominate a new amount of salary in accordance with this section if, immediately before the commencement of this subsection, the officer was an executive officer.

(10) Monetary remuneration In this section, the monetary remuneration payable to an executive officer is—

(a) if the officer is a Public Service senior executive or a police executive officer, the monetary remuneration payable in accordance with the Government Sector Employment Act 2013 or the Police Act 1990, as the case requires, or

(b) if the officer is an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975, the remuneration payable to the officer as reduced under that section by the cost of employment benefits provided to the officer, or

(c) in the case of any other executive officer, the monetary remuneration payable to the officer.

s 4A: Ins 1989 No 107, Sch 1. Subst 1989 No 229, Sch 1. Am 1990 No 48, Sch 2. Subst 1993 No 42, Sch 2. Am 1993 No 111, Sch 5 (2); 1996 No 39, Sch 4; 1999 No 86, Sch 1.7 [5]; 2005 No 52, Sch 5 [2]; 2007 No 28, Sch 2 [3]; 2011 No 62, Sch 3.32 [1]; 2015 No 58, Sch 3.81 [3].

4B

4B (Repealed)

Secondment of employee otherwise than to employer

5 Secondment of employee otherwise than to employer

(1) The Governor may, by order in writing, declare unconditionally or subject to conditions that subsection (2) applies—

(a) to a contributor specified in the order who is on secondment but not to another employer, and

(b) generally during the period of that secondment, or during such period as is specified in the order being, in either case, a period commencing before, on or after the date of the order.

(2) During the period in which this subsection is declared under subsection (1) to apply to a contributor, the employer specified in the declaration shall be deemed to be the employer from whose employment the contributor is seconded.

Part-time employment with more than one employer

6 Part-time employment with more than one employer

(1) Where a contributor is in part-time employment with more than one employer at the same time, this Act applies to the contributor separately in relation to each such employment as if, in relation to each such employment, the contributor were a different person.

(2) (Repealed)

s 6: Am 1993 No 111, Sch 5 (3).

Employees of Crown etc

7 Employees of Crown etc

An employee of the Crown, the Government or a Minister or other member of Parliament shall, for the purposes of this Act, be deemed to be employed by such person or organisation as may be prescribed.

s 7: Am 2013 No 41, Sch 3.8.

Provisions respecting certain employees

8 Provisions respecting certain employees

(1) Members of the NSW Police Force are, for the purposes of this Act, to be taken to be employed in the NSW Police Force by the Crown.

(2) (Repealed)

s 8: Am 1990 No 48, Sch 2; 2001 No 107, Sch 7.8; 2011 No 62, Sch 3.32 [2].

Persons not subject to Act

9 Persons not subject to Act

Schedule 2 has effect.

Savings and transitional provisions

10 Savings and transitional provisions

Schedules 3 and 4 have effect.

Part 2

The State Authorities Superannuation Fund

Part 2 The State Authorities Superannuation Fund

Establishment of the Fund

11 Establishment of the Fund

(1) The Board shall establish, and shall maintain and administer, the State Authorities Superannuation Fund.

(2) The Public Authorities Superannuation Fund established under the Public Authorities Superannuation Act 1985 is amalgamated with, and forms part of, the Fund.

(3) STC shall cause to be paid to the Fund—

(a) contributions or payments made by employers and employees,

(b) income derived from investment of the Fund, and any profit made from realisation of any investment of the Fund,

(c) money borrowed for the purposes of the Fund, and

(c1) any fees paid to STC arising under the family law superannuation legislation or Part 5AA, and

(d) any other amounts payable to the Fund.

(4) STC shall cause to be paid from the Fund—

(a) by transfer from the Fund to the Administration Account—administration costs incurred by STC under the Superannuation Administration Act 1996 and administration costs arising under the family law superannuation legislation or Part 5AA,

(b) such amounts as are necessary to satisfy any liability of the Fund with respect to tax payable under any Commonwealth taxation law or an amount of superannuation contributions surcharge payable,

(c) the benefits payable under this Act and any other prescribed superannuation scheme, and

(c1) other amounts payable by STC and arising under the family law superannuation legislation or Part 5AA, and

(d) any other amounts payable from the Fund.

(5) If a loss is incurred in realising any investment forming part of the assets of the Fund, the Fund is accordingly reduced by the amount of that loss.

s 11: Am 1988 No 136, Sch 1 (2); 1991 No 96, Sch 6; 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [2] [3]; 2003 No 77, Sch 11 [3]–[5].

Contributors’ accounts

12 Contributors’ accounts

(1) STC shall establish and maintain within the Fund a separate account for each contributor.

(2) There is to be credited to a contributor’s account—

(a) the contributions made by the contributor to the Fund, and

(b) any salary sacrifice contributions made by the contributor’s employer under Part 3 in respect of the contributor.

(3) There shall be debited to a contributor’s account—

(a) where the contributor is covered for the additional benefit—the amount of the additional benefit levy,

(a1) an amount equal to the tax payable by STC under Commonwealth taxation law in respect of any salary sacrifice contribution credited to a contributor’s account,

(b) such part of the amount of any benefit paid to the contributor as comprises the contributor-financed benefit, and

(c) administration costs incurred by STC under the Superannuation Administration Act 1996 in relation to the contributor, and

(d) the whole or part (as determined by STC) of an amount that is payable by STC and arises under the family law superannuation legislation or Part 5AA and that is payable to, or in respect of, a spouse or former spouse of the contributor or a person whose superannuation interest (within the meaning of Part 5AA) is derived from the contributor.

s 12: Am 1991 No 96, Sch 6; 1996 No 39, Sch 4; 2003 No 77, Sch 11 [6]; 2006 No 53, Sch 1.4 [4] [5]; 2007 No 28, Sch 2 [5].

Additional Benefit Reserve Fund

13 Additional Benefit Reserve Fund

(1) STC shall establish and maintain an Additional Benefit Reserve Fund.

(2) There shall be credited to the Reserve Fund the amounts debited under section 12 (3) (a).

(3) There shall be debited to the Reserve Fund one-quarter of any payment of any additional benefits.

s 13: Am 1996 No 39, Sch 4.

Reserves for employers

14 Reserves for employers

(1) STC shall, in relation to each employer specified in Part 1 of Schedule 1, establish and maintain within the Fund a separate employer reserve.

(2) STC shall, in relation to each of Parts 2 and 3 of Schedule 1, establish and maintain within the Fund a separate employer reserve.

(3) There shall be credited to such an employer reserve the contributions made by the employer or employers to whom the reserve relates, other than salary sacrifice contributions made under Part 3.

(4) There shall be debited to such an employer reserve—

(a) the amount of the employer-financed benefit (including three-quarters of any payment of any additional benefits) included in the amount of any benefit paid to, or in relation to, a contributor who, immediately before the benefit became payable, was an employee of the employer or an employer to whom the reserve relates, and

(b) administration costs incurred by STC under the Superannuation Administration Act 1996 or under the family law superannuation legislation or Part 5AA in relation to the employer or an employer to whom the reserve relates, and

(c) the whole or part (as determined by STC) of an amount that is payable by STC and that arises under the family law superannuation legislation or Part 5AA and that is payable to, or in respect of—

(i) a spouse or former spouse of an employee or former employee who, immediately before the payment, was an employee or former employee of the employer or an employer to whom the reserve relates, or

(ii) a person whose superannuation interest (within the meaning of Part 5AA) is derived from any such employee or former employee.

(4A) Despite any other provision of this Act, there is to be debited to the Crown employer reserve such amount of the administration costs incurred by STC in respect of the transfer of an eligible deferred benefit under Part 5B as is approved by the Treasurer.

(5) If the amount standing to the credit of the employer reserve established for Part 3 of Schedule 1 is insufficient to meet the amounts payable from the reserve, the deficiency shall be recouped from the Consolidated Fund which is, to the necessary extent, appropriated accordingly.

(6) STC may, with the concurrence of the Treasurer and after obtaining actuarial advice, adjust the amount credited to an employer reserve by crediting or debiting an amount, if it appears to STC appropriate to do so because of a change in the constitution or nature of an employer.

(7) Subsection (6) does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative or other Government initiative.

s 14: Am 1991 No 96, Sch 6; 1993 No 111, Sch 5 (4); 1996 No 39, Sch 4; 2002 No 111, Sch 4 [1]; 2003 No 77, Sch 11 [7] [8]; 2005 No 52, Sch 5 [3]; 2006 No 53, Sch 1.4 [6].

14A

Additional payments by certain employers

14A Additional payments by certain employers

(1) If the amount credited to an employer’s reserve maintained for an employer specified in Part 1 of Schedule 1 is insufficient to meet the amounts payable from the reserve in respect of the employer, STC may require the employer to pay an amount into the Fund that is equal to the deficiency.

(2) Any amount that is not paid by an employer within 14 days of written notice of the requirement to pay the amount being given by STC to the employer is a debt owed to STC and may be recovered by STC accordingly.

(3) This section does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative.

s 14A: Ins 1993 No 111, Sch 5 (5). Am 1996 No 39, Sch 4.

14B

Source of administration costs payments

14B Source of administration costs payments

(1) The administration costs payable in respect of the superannuation scheme established under this Act are to be paid from employer reserves and contributors’ accounts established in accordance with this Act.

(2) The administration costs payable in respect of deferred benefits or preserved benefits are to be paid from contributors’ accounts established in accordance with this Act.

(3) The administration costs payable in respect of pensions provided under this Act are to be paid from employer reserves established in accordance with this Act.

s 14B: Ins 1996 No 39, Sch 4. Am 1996 No 121, Sch 1.19 (1)–(4); 1998 No 144, Sch 2.4 [4].

Other accounts and reserves and assets portfolios

15 Other accounts and reserves and assets portfolios

(1) STC may establish and maintain within the Fund such other accounts and reserves as, in the opinion of STC, are necessary or convenient for the administration of the Fund and this Act.

(2) Without limiting subsection (1), STC may establish separate asset portfolios, comprising assets of the Fund allocated by STC, for the purposes of the Fund.

(3) A contributor or former contributor may at any time lodge with STC an election to have the contributor or former contributor’s account, or part of the account, treated, for the purpose of allocating Fund earnings, as being invested as part of one or more particular asset portfolios nominated by STC to the contributor or former contributor. The contributor or former contributor may elect to revoke or vary any such election.

(4) STC may determine that a contributor’s or former contributor’s account, or part of an account, is to be treated, for the purpose only of allocating the income of the Fund, as being invested as part of one or more particular asset portfolios if the contributor or former contributor does not make an election or revokes an election without making another election.

(5) STC may treat an account (other than a contributor’s or former contributor’s account) or a reserve, or part of an account or reserve, for the purpose only of allocating Fund income, as being invested as part of one or more particular asset portfolios.

s 15: Am 1991 No 96, Sch 6; 1996 No 39, Sch 4; 2002 No 111, Sch 4 [2].

Adjustment of accounts and reserves for interest etc

16 Adjustment of accounts and reserves for interest etc

(1) STC shall, from time to time, adjust each of the accounts and reserves established under this Part at a rate fixed by STC, having regard to the income of the Fund and the earnings, as determined by STC, of any asset portfolio or portfolios in which the accounts or reserves or parts of them are treated as being invested and such other matters as STC considers relevant.

(2) STC may, for the purpose of adjusting a contributor’s or former contributor’s account before paying out the balance at credit in the account, fix a rate for that purpose only.

(3) In adjusting accounts or reserves under this section, STC may fix different rates for accounts or reserves, or parts of accounts or reserves, that are treated as being invested in different asset portfolios.

(4) For the purpose of adjusting accounts and reserves, STC may allocate any income of the Fund, or any losses, as being attributable to a particular asset portfolio or portfolios, as it thinks fit.

s 16: Am 1996 No 39, Sch 4; 2002 No 111, Sch 4 [3]–[5].

16A

Adjustment of employer reserves to take into account death and disability payments

16A Adjustment of employer reserves to take into account death and disability payments

(1) STC may obtain actuarial advice on or after 1 July in each year as to the appropriate adjustment to employer reserves in the Fund to achieve an equitable pooling of liability for payment of employer contributions to death and disability benefits among all employers in respect of the preceding financial year.

(2) STC may adjust the amount currently standing to the credit or debit of an employer’s reserve in the Fund in accordance with actuarial advice obtained under this section.

(3) STC may adjust an employer reserve under this section despite any other provision of this Act.

(4) In this section—

death benefit means a benefit payable under this Act on the death of a contributor or former contributor.

disability benefit means a benefit payable under this Act on the ground of permanent mental or physical incapacity or infirmity of body or mind of a contributor or former contributor.

s 16A: Ins 2005 No 52, Sch 5 [4].

Funds, accounts and reserves generally

17 Funds, accounts and reserves generally

(1) There may be credited to any fund, account or reserve established by or under this Act any amount that is required or permitted by or under this or any other Act to be credited to it.

(2) There may be debited to any fund, account or reserve established by or under this Act any amount that is required or permitted by or under this or any other Act to be debited to it.

Actuarial investigation

18 Actuarial investigation

(1) An investigation as to the state and sufficiency of the funds established under this Act shall—

(a) as at the appointed day, and

(b) as at 30 June 1994 and at the end of each succeeding period of 3 years,

be made by an actuary or actuaries appointed by STC.

(2) Actuaries appointed under this section shall complete their investigation, and shall report the result to STC, not later than 6 months after the date as at which the investigation is made.

(2A) The report referred to in subsection (2) must—

(a) include a statement of the value of the assets of the Fund, and

(b) include a statement of any liability for benefit payments that are not expected to be covered by—

(i) the assets of the Fund, or

(ii) any future contributions to, or earnings of, the Fund, or

(iii) any guarantee by the Government or by any of its agencies, or

(iv) an appropriation in respect of the Fund.

(3) STC shall, not later than 1 month after it receives a report under this section, forward the report to the Minister with such comments as it thinks fit.

(4) The Minister may, in relation to a particular investigation, extend or further extend the period referred to in subsection (2) if the Minister considers that special circumstances exist to justify an extension or further extension.

(5) The Minister may, in relation to a particular investigation, extend or further extend the period referred to in subsection (3) if the Minister considers that special circumstances exist to justify an extension or further extension.

s 18: Am 1991 No 95, Sch 9 (2); 1993 No 111, Sch 5 (6); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [3]; 1999 No 86, Sch 2.5 [1] [2].

Part 3

Employee contributions and salary sacrifice contributions

Part 3 Employee contributions and salary sacrifice contributions

pt 3, hdg: Subst 2006 No 53, Sch 1.4 [7].

Election to have employee or salary sacrifice contributions paid to the Fund

19 Election to have employee or salary sacrifice contributions paid to the Fund

(1) An employee may at any time lodge with STC an election to contribute to the Fund.

(2) An election under subsection (1) shall—

(a) be in a form approved by STC for the purposes of this section,

(b) specify the rate at which contributions are, subject to this Act, to be credited to the contributor’s account in respect of the employee (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), being the rate of 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent of the employee’s salary,

(c) be supported by the certificate by the employee’s employer referred to in the definition of employee in section 3 (1), and

(d) be supported by a further certificate by the employee’s employer that is in a form approved by STC.

(3) The further certificate must state—

(a) the date of birth of the employee,

(b) the salary (and, in the case of a part-time employee, the attributed salary) of the employee,

(c) that the employer has no reason to believe that the employee will not continue to be an employee within the meaning of this Act for at least 1 year from the date of the certificate, and

(d) such other matters as STC considers necessary or convenient for the purposes of this section.

(4) A failure to comply with subsection (2) (b) does not invalidate an election and, in the event of such a failure, the form of election shall be deemed to specify a rate of 1 per cent.

(5) An election made by an employee under subsection (1) is ineffective if, at the time the election would take effect, the employee would be of or above the age of 70 years.

(6) An election made by an employee under subsection (1) (other than an election referred to in subsection (5)) takes effect not later than the first day of the second contribution period after that in which the election is received in the office of STC, but, if an employee makes a subsequent election under section 27 (Variations of contribution rate), ceases to be in force immediately before the subsequent election takes effect.

(7) If STC approves, an employee may, before an election made under this section takes effect, vary the election.

(8) If a contributor to another superannuation scheme would become (but for being such a contributor) entitled to elect to contribute to the Fund by reason of a change of work category or for any other reason—

(a) the contributor shall be deemed not to be a contributor to the other superannuation scheme for the purposes of making the election,

(b) the contributor may make the election on condition that STC approves an application made by the person under section 20 to be covered for the additional benefit, and

(c) the election takes effect as at a date determined by STC.

s 19: Am 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [4]; 2006 No 53, Sch 1.4 [8].

19A

Contributions by or on behalf of employees

19A Contributions by or on behalf of employees

(1) Contributions may be made to the Fund for crediting to a contributor’s account—

(a) by the contributor (employee contributions), and

(b) by the contributor’s employer in accordance with an agreement between the contributor and the employer under which the contributor is to forgo remuneration yet to be earned and the remuneration foregone is to be applied by the employer to contributions on behalf of the contributor (salary sacrifice contributions).

(2) In this Act and the regulations, a reference (however expressed) to a contribution by an employee or a contributor or a contributor-financed portion of a benefit is taken to include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution.

(3) In this Act and the regulations, a reference (however expressed) to an employer contribution or an employer-financed portion of a benefit does not include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution.

s 19A: Ins 2006 No 53, Sch 1.4 [9]. Subst 2007 No 28, Sch 2 [6].

19B

Amount payable for salary sacrifice contributions to allow for the contributions tax payable

19B Amount payable for salary sacrifice contributions to allow for the contributions tax payable

The amount payable to the Fund in respect of a salary sacrifice contribution in respect of a contributor is the amount that is necessary for an amount at the rate specified in accordance with this Part to be retained in the contributor’s account out of the salary sacrifice contribution after the tax amount is deducted under section 12 (3) (a1).

s 19B: Ins 2006 No 53, Sch 1.4 [9]. Am 2007 No 28, Sch 2 [5].

Additional benefit

20 Additional benefit

(1) An employee under the early retirement age may lodge with STC an application to be covered for the additional benefit.

(2) Such an application may be made—

(a) by an employee who is not a contributor—at the time the employee makes an election under section 19 (Election to contribute to the Fund), or

(b) except to the extent that section 23 or 24 (5) otherwise provides—at any time by a contributor.

(3) Such an application shall—

(a) be in a form approved by STC for the purposes of this section, and

(b) be accompanied by such documents, evidence and information as STC may require for the purposes of this section.

s 20: Am 1996 No 39, Sch 4.

Medical examination

21 Medical examination

(1) This section applies to an application made under section 20 by a person to be covered for the additional benefit.

(2) STC may require the applicant—

(a) to submit to such medical examinations as may be required by STC, and

(b) to provide such medical reports, evidence and information as are specified by STC.

(3) Where the applicant—

(a) fails, in the opinion of STC, to pass a medical examination to which the applicant has submitted in accordance with a requirement under this section, or

(b) fails to comply with a requirement under this section,

STC shall refuse the application.

(4) For the purpose of deciding whether or not to approve the application, STC—

(a) may, under subsection (2), require the applicant to submit to further medical examinations or provide further medical reports, and

(b) may obtain such evaluations of medical examinations or medical reports as it thinks fit.

s 21: Am 1991 No 95, Sch 9 (6); 1996 No 39, Sch 4.

Approval of application

22 Approval of application

(1) If STC approves an application made under section 20—

(a) STC shall appoint the day on and from which the applicant’s cover for the additional benefit is to commence and shall notify the applicant accordingly, and

(b) the applicant becomes, and remains, liable for payment of the additional benefit levy in accordance with subsection (2).

(2) Payment by a contributor of the additional benefit levy—

(a) shall commence on a date appointed by STC and shall be made at a rate determined by STC and at times so determined,

(b) shall be effected by transfer from the contributor’s account, and

(c) shall cease when the contributor no longer has available to be taken into account any prospective benefit points.

s 22: Am 1996 No 39, Sch 4.

Refusal of application

23 Refusal of application

If an application made under section 20 is refused, the applicant may not again make such an application before the expiration of—

(a) the period of 3 years that next succeeds the refusal, or

(b) in a particular case—such shorter period as STC may decide.

s 23: Am 1996 No 39, Sch 4.

Revocation of approval

24 Revocation of approval

(1) If, after approving an application made under section 20, STC forms the opinion that, in relation to the application, or to a medical examination of the applicant, an untrue statement within the meaning of section 48 was made and that its approval would not have been given had the untrue statement not been made, STC shall, subject to this section, revoke the approval.

(2) For the purpose of deciding whether or not, in relation to an application or a medical examination of an applicant, it is of the opinion referred to in subsection (1), STC may, if it thinks fit, require the applicant, within a time specified by STC or within such further time as STC may allow, to provide information, or to undergo a medical examination, or to provide medical reports, as specified by STC.

(3) On the expiration of the time, or further time, referred to in subsection (2), STC may, whether or not the requirement so referred to is complied with, proceed to decide whether or not it is of the opinion referred to in subsection (1).

(4) If the applicant fails to comply with a requirement under subsection (2), STC may revoke the approval.

(4A) An approval may be revoked whether it relates to a contributor or a former contributor and the revocation has effect as if the contributor or former contributor had never been entitled to the cover.

(5) If, under subsection (1) or (4), STC revokes its approval of an application—

(a) the applicant (if a contributor) ceases to be covered for the additional benefit and ceases to be liable to pay the additional benefit levy,

(b) the applicant (if a contributor) is disqualified for 3 years from again applying to be covered for the additional benefit, and

(c) the amount of any additional benefit levy paid by the applicant (whether a contributor or a former contributor) before revocation of the approval is not recoverable.

s 24: Am 1992 No 35, Sch 2; 1993 No 42, Sch 4; 1996 No 39, Sch 4.

Liability to contribute

25 Liability to contribute

(1) Where an election under section 19 takes effect, the contributor who made the election becomes, and remains, liable to ensure that contributions are paid to the Fund in the amount necessary to result in an amount being credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), at the rate specified under section 19 (2) (b) and, except as provided by sections 27, 28, 29 and 35A, to ensure those contributions are paid in respect of successive contribution periods—

(a) commencing with the contribution period in which the contributor’s entry date occurs, and

(b) ending with the last complete contribution period ending on or before the contributor’s exit date.

(2) Contributions under this Part are to be calculated on the basis of the contribution periods applicable to the contributor and a contribution payable in respect of a contribution period shall be paid to STC within 7 days after the last day of that period.

(3) Contributions under this Part are payable to STC by the employer by which the contributor is employed and the employer is entitled to deduct those contributions from any amount or amounts that may become payable by the employer to the contributor, whether as salary or otherwise.

(4) STC may, in a particular case, charge interest calculated on a daily basis at a rate determined by STC on a contribution under this Part for any period during which the contribution remains unpaid after the time allowed for payment under subsection (2) and any such interest—

(a) shall be paid to STC by the employer in default, and

(b) is not chargeable against any employee.

(5) An employee is not entitled to contribute to the Fund, and STC is not to accept a contribution to the Fund offered by an employee, unless the employee is under 70 years of age.

(5A) An employer is not entitled to pay a salary sacrifice contribution to the Fund on behalf of an employee, and STC is not to accept a salary sacrifice contribution to the Fund on behalf of an employee, unless the employee is under 70 years of age.

(6) A contributor is not entitled to accrue benefit points after attaining the age of 70 years.

s 25: Am 1992 No 35, Sch 1; 1993 No 111, Sch 5 (7); 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [5]; 2006 No 53, Sch 1.4 [10]–[14].

Salary basis for contributions

26 Salary basis for contributions

Employee contributions and salary sacrifice contributions in respect of a contributor during a superannuation year shall be based on the salary paid to the contributor by his or her employer at the rate applicable as at—

(a) 31 December last preceding the commencement of the superannuation year, or

(b) the contributor’s entry date,

whichever is the later.

s 26: Am 2006 No 53, Sch 1.4 [15].

Variations of contribution rate

27 Variations of contribution rate

(1) A contributor may, during the period that commences at the beginning of a superannuation year and ends on the next succeeding 31 December or such later date as STC may approve, lodge with STC an election to vary the rate specified under section 19 (2) (b).

(2) An election under subsection (1)—

(a) shall be in a form approved by STC for the purposes of this section,

(b) is to specify the varied rate per cent (being 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent) of contributions to be credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), and

(c) takes effect on 1 April next succeeding receipt of the election in the office of STC.

(3) Where the nature of the employment of a contributor changes from full-time to part-time or from part-time to full-time, or the amount of time worked part-time by a contributor changes, the amount of contributions payable under this Part in respect of the contribution period during which the change operates, and each succeeding contribution period until varied in accordance with this Act, is the amount calculated by multiplying by the contributor’s salary ratio at the commencement of the period the amount of the contribution that would be payable on the basis of the contributor’s attributed salary last applicable for the purpose of calculating contributions payable under this Part.

(4) Except as provided by subsection (3) or to the extent that STC upon the application of a contributor otherwise directs, a reduction in the salary of the contributor below that upon which his or her contributions are based does not, until the beginning of the superannuation year that next succeeds the reduction, affect the amount of contributions payable under this Part.

(5) Except in the case of a contributor who applies for a direction of STC under subsection (4), where a contributor’s attributed salary is reduced as a consequence of the contributor’s ill-health or in circumstances considered by the contributor to be special, the contributor may apply to STC in a form that—

(a) is approved by STC for the purposes of this subsection, and

(b) is accompanied by such evidence of the cause of the reduction in salary as STC requires,

for the application of subsection (6) in respect of the contributor.

(6) Where STC approves an application by a contributor under subsection (5), the attributed salary of the contributor shall, for the purposes of this Act, be deemed to be the same as the contributor’s attributed salary immediately before the reduction until—

(a) the beginning of the superannuation year that next succeeds a 31 December as at which the contributor’s attributed salary is equal to or greater than his or her attributed salary immediately before the reduction, or

(b) STC’s approval is revoked on the application of the contributor,

whichever first occurs.

(7) Subject to section 28, an election that takes effect under this section remains in force until a further election made under this section takes effect.

s 27: Am 1996 No 39, Sch 4; 2006 No 53, Sch 1.4 [16]–[21].

Variations of contribution rate: hardship

28 Variations of contribution rate: hardship

(1) Despite section 27 (1), STC may, if it is satisfied that a continuation of contributions under this Part in respect of a contributor would result in financial hardship for the contributor, accept at any time an election under that subsection to reduce, as from a date determined by STC having regard to the circumstances of the contributor, the rate of contributions to be credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B) under this Part.

(2) Despite section 27 (1), an election referred to in subsection (1) may specify as the varied rate the rate of 0 per cent.

(3) During a period when a rate of 0 per cent is in force, no contributions are payable under this Part.

(4) After an election referred to in subsection (1) is accepted by STC, STC must refund any resulting excess of contributions paid to the Fund under this Part to the person who paid them, after the date determined by STC for commencement of the new rate.

(5) STC’s acceptance of an election for a rate of 0 per cent is to be given only for a limited period or periods.

s 28: Am 1996 No 39, Sch 4. Subst 2006 No 53, Sch 1.4 [22].

Contributions during leave without pay and other matters

29 Contributions during leave without pay and other matters

(1) In this section—

leave without pay means a period of leave from employment with an employer (otherwise than on secondment as referred to in section 4) during which the contributor is not entitled to receive payment of salary from the employer.

prescribed leave means leave without pay during which the contributor on leave is absent from employment with an employer—

(a) pursuant to a grant of sick leave,

(b) for a period during which the contributor receives periodic payments under an Act relating to workers’ compensation,

(c) pursuant to a grant of maternity leave,

(d) pursuant to an agreement with the employer for the secondment of the contributor to employment that is not employment with an employer,

(e) to enable the contributor to perform union duties unless, in a particular case, the employer certifies that this paragraph is not to apply,

(f) to enable the contributor to perform duties that the employer certifies to be in the interests of the employer or the State,

(g) on service with the naval, military or air forces of the Commonwealth, or

(h) in circumstances approved by STC for the purposes of this section.

(2) A contributor who takes leave without pay that is prescribed leave is liable to make contributions to the Fund under this Part in respect of the contribution periods occurring wholly or partly while on prescribed leave.

(2A) However, a contributor who takes a single period of prescribed leave that is sick leave or maternity leave is not liable to make contributions to the Fund under this Part in respect of any contribution periods during the period of leave occurring wholly or partly more than 2 years after the period of leave commences.

(3) A contributor who takes leave without pay that is not prescribed leave—

(a) is liable to make contributions to the Fund under this Part in respect of—

(i) a contribution period that begins before but finishes after the start of that leave, and

(ii) a contribution period that begins before but finishes after the end of that leave, and

(b) is not liable or entitled to make contributions to the Fund under this Part in respect of—

(i) a contribution period that begins on the first day of that leave and finishes before the end of that leave, or

(ii) a contribution period that, having begun after the start of that leave, finishes on the last day of that leave, or

(iii) a contribution period that falls between a contribution period referred to in paragraph (a) (i) or subparagraph (i) and a contribution period referred to in paragraph (a) (ii) or subparagraph (ii) (whichever is relevant).

(3A) For the purposes of this Act, a contributor who is employed by an employer for less than 10 hours a week for a single period of more than 2 years is not liable to make contributions to the Fund under this Part in respect of any contribution periods occurring wholly or partly more than 2 years after the period commences and while the contributor is so employed for less than 10 hours a week.

(4) A contributor liable to make contributions under subsection (2) or (3) is to pay to the Fund in accordance with directions given by STC such contributions as would have been, but for the contributor being on leave without pay, required to be paid under this Part if the contributor had continued to be paid salary by the employer during the contribution period or periods concerned at the rate at which the contributor would have been paid.

(5) A contribution period in respect of which a contributor is not liable to make contributions to the Fund under this section is not an applicable contribution period in relation to the contributor.

s 29: Am 1991 No 95, Sch 9 (7); 1993 No 111, Sch 5 (8); 1996 No 39, Sch 4; 2006 No 53, Sch 1.4 [23] [24].

29A

Other contributions by contributors

29A Other contributions by contributors

(1) A contributor, who is not required by this Act to contribute to the Fund under this Act merely because the contributor is on authorised leave without pay as an employee, is entitled to remain a contributor to the Fund even though the contributor is not contributing to the Fund.

(2) This section applies to a contributor only if—

(a) the leave is for the purposes of raising children of whom the contributor is a parent, or for whom he or she has assumed the responsibility of a parent, and

(b) he or she has been on that leave for less than 7 years consecutively, and

(c) he or she has a statutory or contractual right to resume employment at the end of the leave.

(3) A contribution period in respect of which a contributor is a contributor to whom this section applies is not an applicable contribution period in relation to the contributor.

(4) This section has effect despite section 29.

(5) In this section—

authorised leave means—

(a) leave approved by the contributor’s employer, or

(b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth.

s 29A: Ins 1997 No 149, Sch 1.6 [6].

Resumption of contributions after break in employment

30 Resumption of contributions after break in employment

(1) This section applies to a contributor where the employment of the contributor with an employer—

(a) ceases in circumstances entitling the contributor to be paid a benefit under section 40 (Benefit on partial and permanent invalidity before early retirement age),

(b) ceases in circumstances entitling the contributor to be paid a benefit under section 41 (Benefit on resignation, dismissal or discharge before early retirement age) but the contributor does not elect to make provision for a deferred benefit, or

(c) ceases in circumstances entitling the contributor to be paid a benefit under section 42 (Benefit on retrenchment before early retirement age),

and the contributor has not made an application for payment of the benefit.

(2) If the contributor resumes employment as an employee (with the same or any other employer) before the end of the period of 3 months after the contributor ceased employment in circumstances referred to in subsection (1), the contributor may apply to STC for the resumption of contributions under this Part.

(3) If STC approves the application—

(a) any intervening contribution period is taken to be an applicable contribution period in relation to the contributor as an employee of the employer with whom the contributor resumed employment, and

(b) the contributor is liable to make contributions to the Fund under this Part in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer with whom the contributor has resumed employment for the duration of the intervening contribution period or periods, and

(c) the employer with whom the contributor has resumed employment is liable to make contributions to the Fund under Part 4 in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer for the duration of the intervening contribution period or periods.

(4) A contribution in respect of any intervening contribution period is payable in accordance with such directions as may be given by STC.

(5) In this section, an intervening contribution period means any contribution period that—

(a) begins before a contributor ceases employment in the circumstances referred to in subsection (1) and has not finished when the contributor ceases that employment, or

(b) begins after a contributor ceases employment in the circumstances referred to in subsection (1) and finishes before the contributor’s application under subsection (2) takes effect.

s 30: Am 1996 No 39, Sch 4; 1998 No 72, Sch 1.3 [1]; 1998 No 144, Sch 2.4 [5]; 2006 No 53, Sch 1.4 [25] [26].

30A

Contributor who is executive officer

30A Contributor who is executive officer

(1) When a contributor becomes an executive officer, the contributor must—

(a) elect to continue to contribute to the Fund, or

(b) elect to make provision for a benefit provided by section 43 (6).

(2) If a contributor fails to make an election under subsection (1) within 2 months of being required to make that election, the contributor, for the purposes of this section, is to be taken to have elected to continue to contribute to the Fund.

(3) Nothing in this Act prevents a contributor who elects to continue to contribute to the Fund from also contributing to the Aware Super Fund or another superannuation scheme and such a contributor is entitled to benefits in accordance with this Act despite being a member of that Fund or another scheme.

(4) If a contributor elects to continue to contribute to the Fund, the contributor may, at any time thereafter while being an executive officer, elect to make provision for a benefit provided by section 43 (6).

(5) A contributor who elects, under this section, to make provision for a benefit provided by section 43 (6)—

(a) is entitled to make provision for the benefit even though he or she is not entitled to a benefit (including any interest paid by STC) of or exceeding the amount prescribed for the purposes of section 43 (1), and

(b) is not entitled to a benefit payable under any other provision of this Act, and

(c) is not entitled to elect to take the benefit provided by section 43 (7), and

(d) except as provided by subsection (6), is not entitled to be paid the benefit provided by section 43 (6) until on or after first ceasing to be an employee after making the election and unless there exist the circumstances set out in section 43 (3), and

(e) may elect at any time before the benefit is paid to have the benefit paid to the credit of the contributor in the Aware Super Fund or another complying superannuation fund, a complying approved deposit fund or a retirement savings account, if the contributor is a member or is eligible to become a member of that fund or account.

(6) If a contributor makes an election under subsection (5) (e), STC must, as soon as practicable after the election is made, pay to the trustee or provider of the nominated fund or account the amount of the benefit provided by section 43 (6) to which the contributor is entitled having regard to this section.

(7) If a contributor makes an election under subsection (1) (b) or (4) within 12 months after being—

(a) appointed as a chief executive officer or senior executive officer or a police executive officer, or

(b) nominated as an office holder for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975,

the salary of the contributor, for the purpose of determining the amount of the benefit to which the election relates, is to be taken to be his or her salary immediately before that appointment or nomination took effect.

s 30A: Ins 1989 No 107, Sch 1. Am 1989 No 229, Sch 1; 1990 No 48, Sch 2; 1991 No 95, Sch 9 (8); 1993 No 111, Sch 5 (9); 1996 No 39, Sch 4; 1996 No 92, Sch 1.8 (1)–(3); 1999 No 86, Sch 1.7 [6]–[12]; 2005 No 91, Sch 3.12 [2]–[6]; 2007 No 28, Sch 2 [7] [8]; 2022 No 29, Sch 2.7[3].

Part 4

Contributions by employers

Part 4 Contributions by employers

Contributions by employer under Part 1 of Schedule 1 (The Crown and other employers)

31 Contributions by employer under Part 1 of Schedule 1 (The Crown and other employers)

Where a contributor is employed by an employer specified in Part 1 of Schedule 1, the employer shall pay to the Fund an amount equal to a multiple of the contributions payable to the Fund by the contributor, being a multiple determined by STC, in relation to the employer, with the concurrence of the Treasurer.

s 31: Am 1996 No 39, Sch 4.

Contributions by employer under Part 2 of Schedule 1 (Local government and other authorities)

32 Contributions by employer under Part 2 of Schedule 1 (Local government and other authorities)

(1) If a contributor is employed by an employer specified in Part 2 of Schedule 1, the employer must pay to the Fund contributions at a rate determined by STC.

(2) The rate is to be determined by STC with the concurrence of the Treasurer and after obtaining actuarial advice.

(3) In determining the contributions payable by an employer specified in Part 2 of Schedule 1, STC is to have regard to the amount required to meet the full costs of the liabilities under this Act of all employers specified in Part 2 of Schedule 1.

(4) STC may, with the concurrence of the Treasurer, require any such employer to pay into the Fund additional contributions for a specified period if it appears to STC that there is insufficient money in the reserve for employers specified in Part 2 of Schedule 1 to meet the employers’ liabilities under this Act.

s 32: Subst 1993 No 111, Sch 5 (10). Am 1996 No 39, Sch 4.

Contributions by employer under Part 3 of Schedule 1 (Hospitals and other bodies)

33 Contributions by employer under Part 3 of Schedule 1 (Hospitals and other bodies)

Where a contributor is employed by an employer specified in Part 3 of Schedule 1, the employer shall pay to the Fund an amount equal to 1.0 (or such higher number as may be prescribed with the concurrence of the Treasurer) times the contributions payable to the Fund by the contributor while employed by the employer.

Basis and making of contributions

34 Basis and making of contributions

Contributions under this Part shall be calculated on the basis of contribution periods, and the contributions payable in respect of a contribution period shall be paid to STC within 7 days after the last day of the contribution period to which they relate.

s 34: Am 1996 No 39, Sch 4.

34A

Variation of employer contributions

34A Variation of employer contributions

(1) Despite any other provision of this Part, STC may determine that the contributions payable by an employer specified in Part 1 of Schedule 1 in respect of a contributor are to be determined, or are payable, on a basis other than that set out in this Part.

(2) STC may only make such a determination with the concurrence of the Treasurer.

s 34A: Ins 1993 No 111, Sch 5 (11). Am 1996 No 39, Sch 4.

Transfers of credits between employers of transferred contributors

35 Transfers of credits between employers of transferred contributors

(1) In this section—

transferred contributor means a contributor who ceases to be employed by an employer and becomes employed by another employer and who does not apply for payment of a benefit under this Act in respect of the former employment.

transfer value, in relation to a transferred contributor, means an amount equal to the benefit that would have been payable if the transferred contributor, on becoming employed by the new employer, had elected to make provision for a deferred benefit under section 43 (1) and the benefit provided by section 43 (6) (b) had thereupon become payable.

(2) STC shall debit the employer reserve of the former employer with the transfer value referable to a transferred contributor and shall credit the employer reserve of the new employer with that value.

(3) (Repealed)

s 35: Am 1993 No 111, Sch 5 (12); 1996 No 39, Sch 4; 1998 No 144, Sch 2.4 [6].

35A

Acceptance of contributions

35A Acceptance of contributions

(1) Despite any other provision of this Act, an employer is not required to make a contribution to the Fund in respect of an employee, and an employee may not contribute to the Fund, during any period specified by STC for which STC determines that it must not accept contributions in respect of the employee.

(2) STC may only make such a determination if it is of the opinion that it is necessary to do so in order to be consistent with a relevant Commonwealth superannuation standard.

(3) A contribution period in respect of which a contributor may not contribute to the Fund under this section is not an applicable contribution period in relation to the contributor.

s 35A: Ins 1993 No 111, Sch 5 (13). Am 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [4].

Part 5

Benefits

Part 5 Benefits

Definitions

36 Definitions

For the purposes of this Act—

accrued benefit points, in relation to a contributor at the contributor’s exit date, means—

(a) the maximum benefit points for the contributor, or

(b) if the number ascertained by adding together all the contributed points figures for the contributor is less than the maximum benefit points for the contributor—that lesser number.

additional benefit, in relation to a contributor, means the amount calculated in accordance with the formula—

where—

L represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

P represents the prospective benefit points for the contributor at the contributor’s exit date.

applicable contribution period, in relation to a contributor, means a contribution period that occurs during the period that commences on the contributor’s entry date and ends on the contributor’s final contribution date, except where the contributor was not liable to contribute to the Fund in respect of that contribution period because it occurred during leave without pay.

average contribution rate per cent, in relation to a contributor at the contributor’s exit date, means the lesser of—

(a) 6 per cent, and

(b) the rate per cent calculated in accordance with the formula—

where—

R represents the rate per cent to be ascertained,

S represents the sum of the rates per cent of salary at which the contributor was liable to pay a contribution for each applicable contribution period for the contributor, and

N represents the number of those applicable contribution periods.

contributed points figure, in relation to a contributor, means the figure that, in relation to each applicable contribution period for the contributor, is calculated in accordance with the formula—

where—

F represents the figure to be ascertained,

P represents the rate per cent of salary at which the contributor elected to pay the contribution to the Fund for that contribution period,

R represents the salary ratio applicable to the contributor on the first day of that contribution period, and

N represents the number of contribution periods in a year.

final average salary, in relation to a contributor, means the average of the attributed salaries paid or payable to the contributor at the rates applicable—

(a) on the contributor’s exit date,

(b) on 31 December last preceding the contributor’s exit date, and

(c) on 31 December last preceding the 31 December referred to in paragraph (b).

final contribution date, in relation to a contributor, means the last day in respect of which the contributor is liable to contribute to the Fund.

final salary, in relation to a contributor, means the rate of attributed salary paid or payable to the contributor on the contributor’s exit date.

maximum benefit points, in relation to a contributor at the contributor’s exit date, means—

(a) 180, or

(b) if the number ascertained by the formula—

where—

M represents the number to be ascertained,

S represents the sum of the salary ratios for the contributor in respect of each applicable contribution period for the contributor, and

N represents the number of contribution periods in a year,

is less than 180—the number so ascertained.

prospective benefit points, in relation to a contributor at the contributor’s exit date, means—

(a) the number calculated in accordance with the formula—

where—

P represents the number to be ascertained,

C represents the contributor’s average contribution rate per cent,

R represents the salary ratio applicable to the contributor’s exit date,

S represents the number of applicable contribution periods for the contributor that would occur during the period that commences immediately after the contributor’s final contribution date and ends immediately before the early retirement age, and

N represents the number of contribution periods in a year, or

(b) if it is a lesser number than that calculated under paragraph (a)—the number of benefit points that, when added to the number of the contributor’s accrued benefit points at the exit date, would produce a number equal to the maximum benefit points that would have been attributable to the contributor if contributions had continued at the average contribution rate per cent, the salary ratio had remained constant until the exit date and the exit date had immediately preceded the early retirement age.

s 36: Am 1997 No 147, Sch 1.23.

Benefit at or after early retirement or on death at or after early retirement age

37 Benefit at or after early retirement or on death at or after early retirement age

(1) The benefit provided by this section is payable by STC when a contributor retires from employment with an employer on or after reaching the early retirement age or dies during employment with an employer on or after reaching that age and is so payable—

(a) where the benefit becomes payable on the contributor retiring—to the contributor,

(b) where the benefit becomes payable on the death of the contributor and the contributor is survived by a spouse or de facto partner—to the contributor’s spouse or de facto partner, or

(c) where the benefit becomes payable on the death of the contributor and the contributor is not survived by a spouse or de facto partner—to the personal representatives of the contributor or, if appropriate, in accordance with section 51 (Payment without grant of probate etc).

Note.

“De facto partner” is defined in section 21C of the Interpretation Act 1987.

(2) The benefit provided by this section is an amount equal to the sum of—

(a) the amount of the contributor-financed benefit, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

F represents the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date.

(3) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

s 37: Am 1988 No 136, Sch 1 (3); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [5]; 2010 No 19, Sch 3.100 [2].

Benefit on death before early retirement age

38 Benefit on death before early retirement age

(1) The benefit provided by this section is payable by STC where a contributor dies before attaining the early retirement age during employment with an employer and is so payable—

(a) where the contributor is survived by a spouse or de facto partner—to the contributor’s spouse or de facto partner, or

(b) where the contributor is not survived by a spouse or de facto partner—to the personal representatives of the contributor or, if appropriate, in accordance with section 51 (Payment without grant of probate etc).

(2) The benefit provided by this section in relation to a contributor is an amount equal to the sum of—

(a) the amount of the contributor-financed benefit,

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date, and

(c) where an approval under section 20 (Additional benefit) is in force—the amount of the additional benefit.

(3) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

s 38: Am 1988 No 136, Sch 1 (4); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [6] [7].

Benefit on total and permanent invalidity before early retirement age

39 Benefit on total and permanent invalidity before early retirement age

(1) The benefit provided by this section is payable by STC to a contributor where, before attaining the early retirement age, the contributor ceases to be employed by an employer and STC is satisfied—

(a) that the contributor’s cessation of employment was due, directly or indirectly, to the permanent physical or mental incapacity of the contributor (not caused by any act or default of the contributor intended to produce that incapacity), and

(b) that the contributor is, when the contributor ceases to be employed by the employer, permanently unable, by reason of that incapacity, to be engaged, or to be employed, in any remunerative occupation in which, in the opinion of STC, it would otherwise be reasonable to expect the contributor to engage.

(2) The benefit provided by this section is an amount equal to the sum of—

(a) the amount of the contributor-financed benefit,

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date, and

(c) where an approval under section 20 (Additional benefit) is in force—the amount of the additional benefit.

(3) STC is entitled to rely on a certificate by an employer as to any matter mentioned in subsection (1) (a) if it thinks fit.

(4) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

s 39: Am 1988 No 136, Sch 1 (5); 1993 No 111, Sch 5 (14); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [8] [9].

Benefit on partial and permanent invalidity before early retirement age

40 Benefit on partial and permanent invalidity before early retirement age

(1) The benefit provided by this section is payable by STC to a contributor where, before attaining the early retirement age, the contributor ceases to be employed by an employer and STC is satisfied—

(a) that the contributor’s cessation of employment was due, directly or indirectly, to the permanent physical or mental incapacity of the contributor (not caused by any act or default of the contributor intended to produce that incapacity), and

(b) that the contributor is, when the contributor ceases to be employed by the employer, permanently unable, by reason of that incapacity, to perform the duties that the contributor was required to perform before the contributor suffered the incapacity.

(2) The benefit provided by this section for a contributor is an amount equal to the sum of—

(a) the amount of the contributor-financed benefit, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date.

(3) STC is entitled to rely on a certificate by an employer as to any matter mentioned in subsection (1) if it thinks fit.

(4) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

s 40: Am 1988 No 136, Sch 1 (6); 1993 No 111, Sch 5 (15); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [10] [11].

Benefit on resignation, dismissal or discharge before early retirement age

41 Benefit on resignation, dismissal or discharge before early retirement age

(1) The benefit provided by this section is payable by STC to a contributor—

(a) if, before attaining the early retirement age, the contributor, having resigned, or having been dismissed or discharged, from employment with an employer, elects under section 43 (1) to take that benefit and no other benefit is payable under this Act, or

(b) if the amount of that benefit is less than the prescribed amount referred to in section 43 (1).

(2) The benefit provided by this section for a contributor for whom the period commencing on entry date and ending on exit date is 10 years or more is an amount equal to the sum of—

(a) the amount of the contributor-financed benefit, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

W represents the amount to be ascertained,

V represents the period (expressed in years with any fractional part of a year being calculated on a basis of complete contribution periods) that commenced on the contributor’s entry date and ended on the contributor’s exit date,

R represents the amount of the contributor-financed benefit,

A represents the accrued benefit points for the contributor at the contributor’s exit date, and

Y represents the number ascertained by adding together all the contributor’s contributed points figures calculated in relation to the contributor for the applicable contribution periods for the contributor.

(2A) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

(3) The benefit provided by this section for a contributor for whom the period commencing on entry date and ending on exit date is less than 10 years is the amount of the contributor-financed benefit.

s 41: Am 1988 No 136, Sch 1 (7); 1991 No 95, Sch 9 (9); 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [12].

Benefit on retrenchment before early retirement age

42 Benefit on retrenchment before early retirement age

(1) The benefit provided by this section is payable by STC to a contributor if, before attaining the early retirement age—

(a) the contributor is retrenched, and

(b) no other benefit is payable under this Act, and

(c) STC is provided with a certificate from the contributor’s employer confirming that the contributor has been retrenched and specifying the ground for the retrenchment.

(2) The benefit provided by this section for a contributor is an amount equal to the sum of—

(a) the contributor-financed benefit, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

S represents the higher of the contributor’s final salary or the contributor’s final average salary, and

A represents the accrued benefit points for the contributor at the contributor’s exit date.

(2A) If STC makes a determination under section 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

(3) (Repealed)

s 42: Am 1988 No 136, Sch 1 (8); 1989 No 107, Sch 1; 1991 No 94, Sch 1; 1991 No 95, Sch 9 (10); 1992 No 35, Sch 2; 1996 No 39, Sch 4; 1997 No 42, Sch 1.7 [13] [14].

42A

Benefit on attaining 65 or 70

42A Benefit on attaining 65 or 70

(1) A contributor who attains 70 years of age must be paid any benefit to which the contributor would be entitled on retirement at that age but may elect to preserve the whole of the benefit.

(2) (Repealed)

(2A) An employee may elect, at any time on or after attaining 65 years and before attaining 70 years—

(a) to be paid any benefit to which the employee is entitled at the time of the election, or

(b) to preserve the whole of the benefit,

even though the employee is not retired.

(3) STC is to adjust the amount of a benefit payable under this section, having regard to any adjustment of a contributor’s account under section 16.

(4) If an amount is preserved under this section, it is payable in the same way as a benefit under section 43.

(5) A person paid a benefit under this section is not entitled—

(a) to any further benefit under this Act in respect of the same period of service, or

(b) to contribute to the Fund or to accrue any further benefits under this Act.

s 42A: Ins 1992 No 35, Sch 1. Am 1993 No 42, Sch 4; 1993 No 111, Sch 5 (16); 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [7]–[10].

42AA

Deferral of benefit on retrenchment before early retirement age

42AA Deferral of benefit on retrenchment before early retirement age

(1) A contributor who becomes entitled to be paid a benefit under section 42 may elect—

(a) to take the benefit as provided by that section, or

(b) to defer in the Fund a benefit calculated in the same way as the benefit provided by that section.

(2) The provisions of section 43 (except section 43 (6)) apply in relation to a benefit deferred under this section in the same way as they apply in relation to a benefit deferred under that section.

(3) (Repealed)

s 42AA: Ins 1992 No 35, Sch 2. Am 1993 No 111, Sch 5 (17); 1998 No 144, Sch 2.4 [7] [8].

42AB

Compulsory preservation of benefits after changeover day

42AB Compulsory preservation of benefits after changeover day

(1) STC must, when a benefit becomes payable under this Act (including a benefit provided by section 42AA, 43 or 43AA), preserve all or so much of the benefit as is required to be preserved so as to be consistent with a relevant Commonwealth superannuation standard.

(2) For the purpose of preserving a benefit under this section, STC may convert to a lump sum so much of a superannuation allowance as is required to be preserved. The remainder of the superannuation allowance is to be dealt with as otherwise required or permitted by or under this Act.

(3) The amount of the benefit to be preserved in respect of a former contributor for the purposes of subsection (1) is as determined by STC, after obtaining actuarial advice.

(4) The amount of a benefit that must be preserved for the purposes of subsection (1) is to be preserved in the Fund and is to be adjusted, having regard to any adjustment of the contributor’s account under section 16 or is to be preserved under section 42AD.

ss 42AB–42AD: Ins 1998 No 144, Sch 2.4 [9].

42AC

Payment of compulsorily preserved benefit

42AC Payment of compulsorily preserved benefit

(1) The whole or part of a benefit preserved under section 42AB is payable by STC in the circumstances in which the whole or part of a benefit may be paid under a relevant Commonwealth superannuation standard.

(2) The whole or part of a benefit preserved under section 42AB must be paid by STC, if it is required to be paid under a relevant Commonwealth superannuation standard.

(3) The benefit is payable—

(a) unless the former contributor has died—to the former contributor, or

(b) if the former contributor has died and is survived by a spouse or de facto partner—to the surviving spouse or de facto partner, or

(c) if the former contributor has died and is not survived by a spouse or de facto partner—to the personal representatives of the former contributor or, if appropriate, in accordance with section 51 (Payment without grant of probate etc).

ss 42AB–42AD: Ins 1998 No 144, Sch 2.4 [9].

42AD

Preserved benefits

42AD Preserved benefits

(1) Any amounts preserved by STC under section 42AB may be preserved in such funds, accounts or reserves as STC determines, whether established under this Act or the Superannuation Administration Act 1996 or for the purposes of any other superannuation scheme administered by STC.

(2) Any such preserved amounts payable by STC under section 42AB are to be paid from the appropriate fund, account or reserve referred to in this section.

ss 42AB–42AD: Ins 1998 No 144, Sch 2.4 [9].

Deferred benefit

43 Deferred benefit

(1) A contributor who resigns, or is dismissed or discharged, from employment with an employer before attaining the early retirement age may elect to take the benefit provided by section 41 or (if that benefit, including any interest paid by STC, is not less than the prescribed amount) to make provision for a benefit provided by this section.

(1A) A contributor who is under 65 years of age may, instead of taking the benefit payable under section 37, elect to make provision for a benefit provided by this section (but only if that benefit, including any interest paid by STC, is not less than the prescribed amount).

(2) Where an election to make provision for a benefit provided by this section made by a contributor under subsection (1) or (1A) takes effect, a benefit is not payable to, or in relation to, the contributor under any provision of this Act other than this section.

(2A) A contributor who, being entitled to make an election under subsection (1) or (1A), does not make such an election before the end of the prescribed period is taken to have elected to have made provision for a benefit provided by this section.

(3) The benefit provided by subsection (6) or section 42A must be paid by STC—

(a) if the former member—

(i) elected under subsection (1) or section 30A, or is taken under subsection (2A) to have elected, to defer the benefit, and

(ii) attains the early retirement age, and

(iii) applies to STC in writing for payment of the benefit, or

(b) if the former member—

(i) elected under subsection (1A) or section 42A to defer the benefit, and

(ii) applies to STC in writing for payment of the benefit, or

(c) if the former member dies without making an application for payment of the benefit, or

(d) except in the case of a benefit provided under subsection (1A) or section 42A—on STC being satisfied that the former member is incapable, from infirmity of body or mind, of being employed in any remunerative occupation in which, in the opinion of STC, it would otherwise be reasonable to expect the former member to engage, or

(e) on STC being satisfied that the former member has attained the age of 65 years and is employed for less than 10 hours a week, or

(f) on STC being satisfied that the former member has attained the age of 70 years even though the former member is employed for more than 10 but less than 30 hours a week,

(g) on STC being satisfied that the former member has retired from the work force.

(3A) The benefit provided by subsection (6) is not payable under subsection (3) to a person who elected to provide for the benefit under section 30A unless the additional requirements of section 30A (5) (d) are satisfied.

(4) Subject to subsection (3), the benefit provided by subsection (6) is payable—

(a) except where the contributor has died, to the contributor,

(b) if the contributor has died and is survived by a spouse or de facto partner, to the spouse or de facto partner, or

(c) if the contributor has died but is not survived by a spouse or de facto partner—

(i) to the contributor’s personal representatives, or

(ii) where section 51 (Payment without grant of probate etc) applies and STC has made a decision under subsection (1) of that section, in accordance with subsection (2) of that section.

(5) The benefit provided by subsection (7) is payable to a contributor by STC if—

(a) the contributor has elected to take that benefit, and

(b) the election takes effect before the benefit provided by subsection (6) becomes payable to or in respect of the contributor.

(6) Subject to subsection (6A), the benefit provided by this subsection is an amount equal to the sum of—

(a) the contributor-financed benefit at exit date, and

(b) an amount of employer-financed benefit calculated in accordance with the formula—

where—

E represents the amount to be ascertained,

F represents the contributor’s final average salary,

A represents the accrued benefit points for the contributor at the contributor’s exit date,

K represents a discount factor determined by STC after seeking actuarial advice, and

n represents the period (expressed in years with any fractional part of a year being calculated on the basis of complete contribution periods) between the contributor’s age at exit date and the early retirement age,

as adjusted under subsection (7B).

(6A) For the purposes of calculating the benefit provided under subsection (6) in the case of a contributor who has attained the early retirement age, K in the formula in subsection (6) is to equal 1.

(7) The benefit provided by this subsection is an amount equal to the amount of the benefit under section 41 or 42 that would have been payable to the contributor at the contributor’s exit date if the contributor had not made the election under subsection (1), as adjusted under subsection (7B).

(7A) If STC makes a determination under section 43D or 45A in relation to a benefit to be provided by this section, the amount of that benefit is reduced by the amount specified in STC’s determination.

(7B) STC is to adjust the amount of a benefit payable under this section, having regard to any adjustment of a contributor’s account under section 16.

(8) A contributor (other than a contributor who is an executive officer) who becomes a contributor to another superannuation scheme while employed by the same employer—

(a) is required to make provision for a benefit provided by this section despite anything to the contrary in subsection (1),

(b) shall be deemed to have elected under subsection (1) to make provision for that benefit on becoming a contributor to that other superannuation scheme, and

(c) is not entitled to elect to take the benefit provided by subsection (7) while employed by that same employer.

(9) (Repealed)

s 43: Am 1988 No 136, Sch 1 (9); 1989 No 107, Sch 1; 1991 No 95, Sch 9 (11); 1992 No 35, Schs 1, 2; 1993 No 42, Schs 1, 4; 1993 No 111, Sch 5 (18); 1994 No 32, Sch 2; 1996 No 39, Sch 4; 1996 No 92, Sch 1.8 (4) (5); 1997 No 42, Sch 1.7 [15]; 1997 No 149, Sch 1.6 [11] [12]; 1998 No 144, Sch 2.4 [10]; 1999 No 86, Sch 1.7 [13]; 2005 No 52, Sch 5 [5].

43AA

Deferral of benefit for contributors aged 55 years and over in certain circumstances

43AA Deferral of benefit for contributors aged 55 years and over in certain circumstances

Part 2 of Schedule 5 has effect with respect to the deferral of the benefit of a contributor of or above the age of 55 years in the circumstances specified in that Part.

s 43AA: Ins 1990 No 99, Sch 3. Am 1993 No 42, Sch 1; 1998 No 144, Sch 2.4 [11]; 2005 No 52, Sch 5 [1] (am 2005 No 98, Sch 2.58).

43AAA

43AAA (Repealed)

43A

Power of STC to purchase annuities etc out of benefit payable under this Act

43A Power of STC to purchase annuities etc out of benefit payable under this Act

Whenever a benefit becomes payable to or in respect of a contributor under this Act, STC must, if requested to do so—

(a) by the contributor, or

(b) where the contributor has died, by the spouse or de facto partner or personal representatives of the contributor, as the case requires,

apply the benefit, or such part of it as is specified by the contributor, spouse or de facto partner or personal representatives, in purchasing for the contributor or, as the case may be, for the spouse or de facto partner or the beneficiaries of the contributor’s estate, a right to an annuity or other form of pension from a person nominated by the contributor, spouse or de facto partner or personal representatives.

s 43A: Ins 1989 No 229, Sch 1. Am 1996 No 39, Sch 4.

43AB

Competing claims for spouses’ or de facto partners’ benefits

43AB Competing claims for spouses’ or de facto partners’ benefits

(1) This section applies to a benefit which is payable to the spouse or de facto partner of a deceased contributor or deceased former contributor.

(2) If a benefit would be payable to more than one person because a deceased contributor or deceased former contributor has left more than one spouse or de facto partner, then, despite any other provision of this Act—

(a) the benefit is payable in accordance with a determination made by STC, and not otherwise, and

(b) the total amount of benefit payable to those persons at any time is not to exceed the amount of benefit that would be payable if there were only one spouse or de facto partner.

(3) For the purposes of subsection (2) (a), STC may determine in relation to a benefit—

(a) that the benefit is not payable to such of the persons concerned as it specifies, or

(b) that the amount of the benefit is to be apportioned between the persons concerned in such manner as it specifies.

(4) STC may withhold the payment of any part of a benefit—

(a) until after 30 days after the death of the contributor or former contributor in respect of which the benefit is payable, or

(b) if an application has been made for the benefit by more than one person, until it is satisfied that only one of those persons is entitled to the benefit or until a determination is made in relation to the matter by STC under this section.

(5) If, after 30 days from the death of a contributor or former contributor, the whole or part of a benefit is paid to a spouse or de facto partner of the deceased contributor or deceased former contributor—

(a) a benefit is not payable to any other spouse or de facto partner of the deceased contributor or deceased former contributor if the whole of the benefit is paid, or

(b) so much of a benefit as is equal to the amount of the benefit so paid is not payable to any other spouse or de facto partner of the deceased contributor or deceased former contributor if part of the benefit is paid.

(6) For the purposes of subsection (5), an amount paid in good faith by STC to a person purporting to be the spouse or de facto partner of a deceased contributor or deceased former contributor is taken to have been paid to the spouse or de facto partner of the contributor or former contributor.

(7) If, after 30 days from the death of a contributor or former contributor, any amount is paid under this Act to the contributor’s personal representatives or to such other persons as STC may determine, any benefit which is payable to the spouse or de facto partner of the contributor or former contributor is to be reduced by the amount so paid.

s 43AB: Ins 1993 No 111, Sch 5 (20). Am 1996 No 39, Sch 4.

43B

Release of benefit on grounds of severe financial hardship

43B Release of benefit on grounds of severe financial hardship

(1) STC may, on the written election of a contributor, or former contributor who has provided for a deferred benefit, release to the contributor or former contributor a benefit on the grounds of the contributor’s or former contributor’s severe financial hardship.

(2) STC may release the benefit only if STC is satisfied that the circumstances are such that a benefit would be payable on the grounds of severe financial hardship if the contributor or former contributor were a member of a regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

(3) The amount paid—

(a) is to be the amount payable for the purpose of complying with the requirements of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and

(b) is not to exceed the amount of any accrued or deferred benefit under this Act that would be payable to the contributor or former contributor, if the contributor or former contributor were eligible to be paid such a benefit.

(4) A contributor or former contributor may, at any time before the release of a benefit under this section, vary or revoke an election under this section.

(5) An amount may not be paid under this section unless any applicable requirements of any regulations made under section 43D have been complied with.

s 43B: Ins 1997 No 149, Sch 1.6 [13]. Am 2000 No 100, Sch 5 [2]–[8].

43C

Release of benefit on compassionate grounds

43C Release of benefit on compassionate grounds

(1) STC may, on the written election of a contributor, or former contributor who has provided for a deferred benefit, release to the contributor or former contributor a benefit on compassionate grounds.

(2) STC may release the benefit only if STC is satisfied that the circumstances are such that the Regulator (within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth) would be entitled to determine that the amount could be released on compassionate grounds if the contributor or former contributor were a member of a regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

(3) The amount paid—

(a) is to be the amount payable for the purpose of complying with the requirements of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth for payment of such a benefit from a regulated superannuation fund, and

(b) is not to exceed the amount of any accrued or deferred benefit under this Act that would be payable to the contributor or former contributor, if the contributor or former contributor were eligible to be paid such a benefit.

(4) A contributor or former contributor may, at any time before the release of a benefit under this section, vary or revoke an election under this section.

(5) An amount may not be paid under this section unless any applicable requirements of any regulations made under section 43D have been complied with.

s 43C: Ins 1997 No 149, Sch 1.6 [13]. Am 2000 No 100, Sch 5 [9]–[16].

43D

Effect on benefits

43D Effect on benefits

(1) Regulations may be made for or with respect to the payment and calculation of future benefits where part of a benefit has been released to a person under section 43B or 43C.

(2) Without limiting subsection (1), regulations may be made for or with respect to the following matters—

(a) the adjustment by STC of a benefit that is paid to a person to whom an amount has been previously released under section 43B or 43C, including interest payable in respect of the amount released,

(b) the obtaining of consent to any such adjustment,

(c) the obtaining of actuarial advice by STC for the purpose of any such adjustment,

(d) enabling the payment to STC of amounts to set-off amounts released under section 43B or 43C against benefits that would otherwise accrue,

(e) any matter ancillary to or consequential on the matters set out in paragraphs (a)–(d).

s 43D: Ins 1997 No 149, Sch 1.6 [13]. Subst 2000 No 100, Sch 5 [17].

Application for payment of benefit

44 Application for payment of benefit

(1) An application for payment of a benefit to, or in relation to, a contributor shall be made in writing in a form approved by STC for the purpose, shall be signed by the applicant and shall be accompanied by—

(a) except in the case of a benefit payable under section 42AC, 43, 43B or 43C—a certificate by the contributor’s employer at the contributor’s exit date, specifying the exit date and the manner of cessation of the contributor’s employment and such other particulars as may be prescribed, and

(b) such other documents as STC reasonably requires in order to determine the application.

(2) A benefit shall not be paid by STC before subsection (1) has been complied with.

(3) STC is entitled to act on the information provided pursuant to subsection (1).

s 44: Am 1991 No 95, Sch 9 (12); 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [14]; 1998 No 144, Sch 2.4 [13].

Interest

45 Interest

(1) STC may, when paying a benefit under this Act, pay interest at such rates, for such periods and in such circumstances as in its absolute discretion it thinks appropriate.

(2) In paying interest under this section, STC may have regard to the treatment under section 16 of an account or reserve, or any part of an account or reserve, from which any part of the benefit is paid.

s 45: Am 1996 No 39, Sch 4; 2002 No 111, Sch 4 [6].

45A

Power of STC to reduce benefits to offset certain tax liabilities

45A Power of STC to reduce benefits to offset certain tax liabilities

(1) Whenever—

(a) a right to a benefit under this Act accrues to or in respect of a contributor or former contributor, and

(b) STC has paid or is liable to pay income tax under a Commonwealth taxation law in respect of employers’ contributions to the Fund, and

(c) a portion of that tax is referable to the employer-financed portion of that benefit,

STC must, subject to subsection (2)—

(d) calculate the amount necessary to offset STC’s liability to pay tax so far as it is referable to the employer-financed portion of that benefit, and

(e) accordingly make a determination reducing the employer-financed portion of that benefit by the amount so calculated.

(1AA) Subsection (1) does not apply to an income tax liability if an amount equal to the liability was deducted under section 12 (3) (a1) in respect of the liability.

(1A) Whenever—

(a) a right to a benefit under this Act accrues to or in respect of a contributor or former contributor, and

(b) STC has paid or is liable to pay an amount of superannuation contributions surcharge in respect of the employer contributions paid or payable to the Fund, or in respect of contributions made under the State Authorities Non-contributory Superannuation Act 1987, on behalf of the contributor or former contributor,

STC must determine in writing the surcharge deduction amount that, in the opinion of STC, it would be fair and reasonable to take into account in working out the amount of the benefit and must make a determination reducing the benefit accordingly.

(1B) In determining the surcharge deduction amount in respect of a benefit payable to a contributor or former contributor, STC may have regard to any or all of the following matters—

(a) the amount of superannuation contributions surcharge payable or paid by STC in respect of the contributor or former contributor,

(b) the amount by which the contributor’s or former contributor’s surcharge debt account is in debit when the benefit emerges or commences to be paid,

(c) the value of the employer-financed portion of the benefit,

(d) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth) the notional surchargeable contribution factors applicable to the contributor or former contributor, were assumed to be likely to be payable to the person on his or her ceasing to be an employee,

(e) whether the contributor or former contributor has qualified for a benefit that includes an employer-financed component,

(f) the amount of any payments under section 52A,

(g) any other matter STC considers relevant.

(1C) The surcharge deduction amount determined by STC must not exceed—

(a) an amount that is 15% of the employer-financed portion of that part of the benefit payable to the contributor or former contributor that accrued after 20 August 1996, or

(b) such other amount of the employer-financed portion of a benefit as is prescribed by the regulations in relation to the period when the benefit payable to the contributor or former contributor accrued.

(1D) For the purpose of determining the surcharge deduction amount, STC may obtain actuarial advice or advice from any other persons, as STC thinks fit.

(1E) The balance of any additional amount payable by STC for superannuation contributions surcharge in respect of a contributor or former contributor, after payment of the balance of the relevant surcharge debt account, is to be paid by STC from the Fund under section 11 (4) and debited to the appropriate employer reserve.

(2) Subsection (1) does not authorise the reduction of a benefit, unless—

(a) the benefit is of a kind prescribed by the regulations for the purpose of this section, and

(b) the method of calculating the reduction is so prescribed, and

(c) the reduction is calculated according to that method.

(3) Subsection (1A) does not authorise the reduction of a benefit as a result of a liability for superannuation contributions surcharge unless the benefit is of a kind prescribed by the regulations for the purposes of this subsection.

(3A) If STC determines a surcharge deduction amount in respect of a contributor or former contributor under this section, STC may, on the application of the contributor or former contributor, apply the benefit that accrues to or in respect of the contributor or former contributor under the State Authorities Non-contributory Superannuation Act 1987 toward payment of the surcharge deduction amount, and make a determination reducing the benefit payable under that Act accordingly. In such a case, STC may make a determination reducing the benefit payable under this Act to the extent necessary (if any) to pay the balance of the surcharge deduction amount.

(4) In this section—

surcharge debt account, in relation to a contributor or former contributor, means the surcharge debt account kept for the contributor or former contributor (while an employee) under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth.

(5) Despite subsection (1A), the benefit of a former contributor who has commenced to be paid that benefit may be adjusted by STC in accordance with the regulations if the former contributor receives (before, on or after the commencement of this subsection) notice of an assessment of superannuation contributions surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 of the Commonwealth in respect of the employer contributions paid to the Fund on behalf of the former contributor.

(6) The regulations may make provision for or with respect to the following—

(a) the circumstances in which STC may or may not pay superannuation contributions surcharge on behalf of a former contributor,

(b) adjusting the amounts of benefits or paying amounts in relation to a surcharge deduction amount or an assessment of superannuation contributions surcharge received by a former contributor before, on or after the commencement of this subsection.

(7) Without limiting subsection (6), the regulations may make provision for the payment by STC of an amount of additional surcharge payable by a former contributor above the amount determined under subsection (1C).

s 45A: Ins 1988 No 136, Sch 1 (10). Am 1996 No 39, Sch 4; 1997 No 149, Sch 1.6 [15] [16]; 2000 No 100, Sch 5 [18]; 2002 No 110, Sch 6 [1] [2]; 2006 No 53, Sch 1.4 [27].

45AA

Restoration of death benefit previously reduced to offset contribution tax liabilities

45AA Restoration of death benefit previously reduced to offset contribution tax liabilities

(1) STC may, for the purposes of obtaining a deduction from assessable income under section 295-485 of the Income Tax Assessment Act 1997 of the Commonwealth, increase an employer-financed portion of a benefit payable or paid under this Act on the death of a contributor or former contributor previously reduced under section 45A (1).

(2) The amount of the increase is to be the amount determined by STC, after obtaining actuarial advice, as the amount of increase required to obtain the deduction referred to in subsection (1).

(3) (Repealed)

s 45AA: Ins 2005 No 52, Sch 5 [6]. Am 2010 No 60, Sch 3 [1] [2].

45B

Power of STC to reduce benefits for no-TFN tax

45B Power of STC to reduce benefits for no-TFN tax

(1) This section applies to a benefit if—

(a) a right to the benefit accrues under this Act to or in respect of a contributor or former contributor, and

(b) STC has paid or is liable to pay no-TFN tax in respect of employer contributions to the Fund, and

(c) a portion of that tax is referable to the employer-financed portion of that benefit, and

(d) the benefit is of a kind prescribed by the regulations for the purposes of this section.

(2) The amount of the benefit is reduced by the amount necessary to offset STC’s liability to pay no-TFN tax so far as it is referable to the employer-financed portion of that benefit.

(3) The amount of the reduced benefit is to be determined by STC after obtaining actuarial advice.

(4) A contributor or former contributor may elect to have his or her SANCS benefit reduced instead of the benefit to which this section applies if the SANCS benefit is payable to the contributor or former contributor. On an election being made, the SANCS benefit is reduced accordingly and the benefit to which this section applies is reduced only if it is necessary to do so to meet any shortfall in the amount of offset.

(5) The regulations may provide for the establishment of debt accounts in respect of contributors or former contributors for the purposes of this section.

(6) In this section—

employer contribution includes a salary sacrifice contribution.

employer-financed portion of a benefit includes any part of the benefit financed by a salary sacrifice contribution.

no-TFN tax means an amount equal to the difference between the amount of—

(a) income tax payable by STC under the Income Tax Assessment Act 1997 of the Commonwealth on employer contributions to the Fund for a contributor if there is a failure by the contributor to provide information about his or her tax file number to STC, and

(b) income tax that would be so payable if the information about the tax file number was provided.

SANCS benefit means a benefit that accrues to or in respect of a contributor or former contributor who is an employee or former employee under the State Authorities Non-contributory Superannuation Act 1987.

s 45B: Ins 1988 No 136, Sch 1 (11). Am 1991 No 95, Sch 9 (3); 1996 No 39, Sch 4. Rep 1997 No 42, Sch 1.7 [18]. Ins 2010 No 60, Sch 3 [3].

45C

45C (Repealed)

45D

Compliance with superannuation guarantee legislation

45D Compliance with superannuation guarantee legislation

(1) Minimum benefits STC must, after obtaining actuarial advice, determine what the minimum employer-financed benefit would have to be to ensure that there is no superannuation guarantee shortfall.

(2) Increase in benefits An employer-financed benefit provided by an employer is, despite any other provision of this or any other Act, not to be less than the minimum benefit determined under subsection (1). The benefit that would otherwise be payable under this Act is increased to the extent necessary for the purposes of complying with this section.

(3) Increase in benefit to be paid from non-contributory scheme The amount of any increase in benefit is to be debited by STC from the employer reserve of the employer concerned established under the State Authorities Non-contributory Superannuation Act 1987.

(4) Definition In this section, employer-financed benefit means the sum of the employer-financed benefit under this Act, any basic benefit under the State Authorities Non-contributory Superannuation Act 1987 and any employer-financed benefit of a kind provided by the State Authorities Non-contributory Superannuation Act 1987.

s 45D: Ins 1992 No 102, Sch 5 (3). Am 1996 No 39, Sch 4.

45E

Application of section 45D to period from 1.7.1992

45E Application of section 45D to period from 1.7.1992

A benefit that is—

(a) preserved under this Act after 1 July 1992 and before the commencement of the First State Superannuation Act 1992, or that is paid after 1 July 1992 and before that commencement, or

(b) is preserved under section 2B,

is to be adjusted by STC in accordance with section 45D.

s 45E: Ins 1992 No 102, Sch 5 (3). Am 1996 No 39, Sch 4.

Part 5AA

Provisions relating to family law superannuation legislation

Part 5AA Provisions relating to family law superannuation legislation

pt 5AA: Ins 2003 No 77, Sch 11 [9].

45F

Definitions

45F Definitions

In this Part—

complying superannuation fund means—

(a) a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, or

(b) the Aware Super Fund.

contributor spouse, in relation to a superannuation interest under this Act, means the spouse who has the superannuation interest.

family law superannuation entitlement has the same meaning as it has in section 45I (2) (a).

family law superannuation legislation means Part VIIIB of the Family Law Act 1975 of the Commonwealth and the Family Law (Superannuation) Regulations 2001 of the Commonwealth.

family law superannuation payment means an amount payable under this Part to or in respect of a non-contributor spouse.

flag lifting agreement has the same meaning as it has in Part VIIIB of the Family Law Act 1975 of the Commonwealth.

FTC has the same meaning as it has in the Aware Super Act 1992.

non-contributor spouse, in relation to a superannuation interest under this Act, means the spouse who is not the contributor spouse in relation to that interest.

payment split has the same meaning as it has in Part VIIIB of the Family Law Act 1975 of the Commonwealth.

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

splitting order has the same meaning as it has in Part VIIIB of the Family Law Act 1975 of the Commonwealth.

spouse of a person means a person who is or was married to that person.

superannuation agreement has the same meaning as it has in Part VIIIB of the Family Law Act 1975 of the Commonwealth.

superannuation interest means an interest that a contributor, former contributor or other person has as a contributor to or beneficiary of the superannuation scheme under this Act.

s 45F: Ins 2003 No 77, Sch 11 [9]. Am 2005 No 91, Sch 3.12 [7]; 2022 No 29, Sch 2.7[3] [4].

45G

Application of Part to contributors to, and pensions under, former schemes

45G Application of Part to contributors to, and pensions under, former schemes

(1) In addition to contributors and former contributors under this Act, this Part applies to the following persons in the same way as it applies to contributors and former contributors under this Act—

(a) a transferred contributor or transferred pensioner within the meaning of the State Authorities Superannuation (Government Railways Superannuation Scheme Transfer) (Savings and Transitional) Regulation 1990, a former transferred contributor under that Regulation and any other person being paid a pension under that Regulation,

(b) a transferred contributor within the meaning of Part 1 of the State Authorities Superannuation (Transitional Provisions) Regulation 1988, a former transferred contributor under that Regulation and any other person being paid a pension under that Regulation,

(c) a person being paid a pension under the Local Government and Other Authorities (Superannuation) Act 1927, the New South Wales Retirement Benefits Act 1972, the Public Authorities Superannuation Act 1985, the Public Authorities Superannuation (Transport Retirement Fund Closure) (Savings and Transitional) Regulation 1986, the State Authorities Superannuation (Ex-Snowy Mountains Hydro-Electric Authority Superannuation Fund Transfer) Regulation 2003 or the Transport Employees Retirement Benefits Act 1967.

(2) A reference in this Part to a superannuation interest under this Act includes, in relation to a person referred to in subsection (1) (a), (b) or (c), a reference to a superannuation interest under an Act or regulation applicable to the person concerned.

(3) A reference in this Part to a condition for payment or release of a benefit includes, in relation to a person referred to in subsection (1) (a), (b) or (c), a reference to a condition for payment or release of a benefit under a provision of an Act or regulation applicable to the person concerned.

(4) A reference in this Part to a benefit includes a reference to a benefit under an Act or regulation referred to in subsection (1) (a), (b) or (c).

s 45G: Ins 2003 No 77, Sch 11 [9].

45H

Payment of benefits where superannuation interests affected by flagging order or payment split

45H Payment of benefits where superannuation interests affected by flagging order or payment split

Nothing in this or any other Act or regulation—

(a) requires STC to pay a benefit or to make any other payment under this or any other Act or regulation, to the extent that any such payment would contravene provisions of the family law superannuation legislation or any order or agreement made under that legislation, or

(b) prevents STC from paying or reducing a benefit or making any other payment, to the extent that the payment or reduction is required to be made, or results from a requirement, under the family law superannuation legislation or any order or agreement made under that legislation.

s 45H: Ins 2003 No 77, Sch 11 [9].

45I

Payment splits

45I Payment splits

(1) The object of this section is to facilitate arrangements for payment splits under the family law superannuation legislation and to provide for family law superannuation payments to or in respect of non-contributor spouses for the purposes of satisfying the requirements of Division 2.2 of Part 2 of the Family Law (Superannuation) Regulations 2001 of the Commonwealth.

Note.

The effect of satisfying those requirements is that payments to the contributor spouse of a benefit under this Act will no longer be liable to be split for the purposes of the family law superannuation legislation.

(2) A non-contributor spouse has a family law superannuation entitlement to which this section applies if—

(a) the non-contributor spouse has an entitlement, that is operative, to be paid an amount under a superannuation agreement, flag lifting agreement or splitting order in respect of the superannuation interest of a contributor spouse (a family law superannuation entitlement), and

(b) the family law superannuation entitlement has not been paid to the non-contributor spouse by the contributor spouse, or waived by the non-contributor spouse, in accordance with the family law superannuation legislation.

(3) On written notice by a contributor spouse or a non-contributor spouse, or by any other person or court, of a family law superannuation entitlement of a non-contributor spouse to which this section applies, STC must take one of the following actions—

(a) pay or release to the non-contributor spouse an amount of the value of the family law superannuation entitlement (less any costs chargeable by STC),

(b) transfer or rollover to a complying superannuation fund or an RSA nominated by the non-contributor spouse an amount, of the value of the family law superannuation entitlement (less any costs chargeable by STC), to be held for the benefit of the non-contributor spouse.

(4) STC may take the action set out in subsection (3) (a) only if the contributor spouse is in receipt of a pension or the non-contributor spouse has satisfied a condition for payment or release of a benefit of a kind that would entitle a contributor to payment of a benefit if the Fund were a complying superannuation fund.

(5) STC must transfer a family law superannuation payment to FTC for crediting to the Aware Super Fund if—

(a) the payment is payable under subsection (3) (a) and the non-employee spouse fails, within the period prescribed by the regulations, to provide details as to the required manner of payment of the family law superannuation payment, or

(b) the payment is not payable under subsection (3) (a) and the non-employee spouse fails, within the period prescribed by the regulations, to make a nomination for the purposes of subsection (3) (b) or a nominated fund or RSA does not accept the nomination.

(6) For the purposes of this section, the value of a family law superannuation entitlement or family law superannuation payment of a non-contributor spouse is to be determined by STC in accordance with any applicable provisions of the regulations and the family law superannuation legislation.

(7) STC must not pay a family law superannuation payment to or in respect of a non-contributor spouse under this section if the value of the payment that is or would be payable to or in respect of the non-contributor spouse at that time (taking into account any prior liability to pay a family law superannuation payment) is greater than the value of the contributor spouse’s superannuation interest (as calculated in accordance with the regulations) at that time.

s 45I: Ins 2003 No 77, Sch 11 [9]. Am 2008 No 114, Sch 1.22; 2022 No 29, Sch 2.7[3].

45J

Reduction of benefits of contributor spouses

45J Reduction of benefits of contributor spouses

(1) STC may reduce the amount of any benefit payable under this Act to or in respect of a contributor spouse (or a spouse or de facto partner of a contributor spouse) if a family law superannuation entitlement is paid or payable to or in respect of the non-contributor spouse under the family law superannuation legislation or this Part or the regulations.

(2) A preserved or deferred benefit may be reduced under this section.

(3) A pension may be reduced under this section even though payment of the pension first commenced before the payment of the amount to or in respect of the non-contributor spouse.

(4) The benefit is to be reduced in accordance with the regulations and any applicable provisions of the family law superannuation legislation.

s 45J: Ins 2003 No 77, Sch 11 [9].

45K

Regulations

45K Regulations

Regulations may be made for or with respect to the following matters—

(a) elections by non-contributor spouses for payment of family law superannuation entitlements,

(b) the persons or bodies to whom a family law superannuation payment may be paid,

(c) the composition of payments made for the purposes of the family law superannuation legislation or this Part, having regard to the composition of the contributor spouse’s superannuation interest under this Act before the payment is paid,

(d) the payment of fees for or with respect to family law superannuation payments,

(e) notice of family law superannuation entitlements and payment splits,

(f) the periods for payment of family law superannuation payments,

(g) the calculation of payments and entitlements for the purposes of the family law superannuation legislation or this Part,

(h) the calculation of the value of superannuation interests of contributor spouses for the purposes relating to the family law superannuation legislation or this Part,

(i) the accrued benefit multiple for contributor spouses, or a class of contributor spouses, for the purposes of the family law superannuation legislation,

(j) the reduction of benefits (including deferred or preserved benefits) payable to or in respect of contributor spouses, or spouses or de facto partners of contributor spouses, as a consequence of payments under the family law superannuation legislation or this Part,

(k) without limiting paragraph (j), the commutation of pensions or parts of pensions for the purposes of the reduction of benefits as a consequence of payments under the family law superannuation legislation or this Part.

s 45K: Ins 2003 No 77, Sch 11 [9].

Part 5A

Provisions relating to privatisation of employers and other Government initiatives

Part 5A Provisions relating to privatisation of employers and other Government initiatives

pt 5A, hdg: Ins 1993 No 42, Sch 1. Am 2005 No 52, Sch 5 [7].

pt 5A: Ins 1993 No 42, Sch 1.

46AA

Removal of employers from Act on privatisation

46AA Removal of employers from Act on privatisation

(1) The Governor may, by order published on the NSW legislation website, amend Schedule 1 by omitting the name of an employer if the Minister has certified that the removal is a consequence of a Government privatisation initiative affecting the employer.

(2) An order under this section, and any order revoking or varying such an order, may be made to take effect on and from a day specified in the order, whether or not the day specified is earlier than the day of publication of the order.

s 46AA: Ins 1993 No 42, Sch 1. Am 2009 No 56, Sch 4.65.

46AAA

Application of Part

46AAA Application of Part

(1) This Part applies to a contributor who transfers employment if—

(a) the contributor elects or is required to transfer employment otherwise than with an employer under this Act, and

(b) the Minister certifies that the transfer of employment is as a consequence of a Government privatisation initiative or other Government initiative.

(2) This Part applies to a contributor who transfers superannuation coverage if—

(a) the contributor, while remaining with his or her existing employer, elects or is required to become a contributor to another superannuation scheme, and

(b) the Minister certifies that the transfer of superannuation coverage is as a consequence of a Government privatisation initiative or other Government initiative.

(3) This Part applies to a contributor if the employer of the contributor ceases to be an employer under this Act because of an order under this Part.

s 46AAA: Ins 2005 No 52, Sch 5 [8].

46AB

Preservation of benefit for contributors

46AB Preservation of benefit for contributors

(1) Part 1 of Schedule 5 has effect with respect to contributors to whom this Part applies.

(2) A benefit is not required to be preserved under this section if a benefit is payable under another provision of this Act because the contributor has been retrenched.

(3) In this section and Schedule 5, contributor includes a participant in a superannuation scheme referred to in clause 1 (1) of Schedule 4 (which provides for the transfer of contributors to the scheme from closed schemes).

s 46AB: Ins 1993 No 42, Sch 1. Am 2005 No 52, Sch 5 [9].

46AC

Adjustment of employer liability on Government initiative taking effect

46AC Adjustment of employer liability on Government initiative taking effect

(1) STC must, on or before, or as soon as practicable after, this Part applies to contributors, determine the net liability of the contributors’ employer or former employer in respect of contributors who are affected by the Government initiative concerned.

(2) STC is to seek actuarial advice as to the net liability of the employer and is to consult with the Treasurer before determining the liability.

(3) The amount of the net liability of the employer, as certified by STC, is a debt due for payment to STC by the employer or the employer’s successor, on and from the date the initiative takes effect, as so certified.

(4) STC may whenever it thinks fit, with the concurrence of the Treasurer, adjust the amount that is currently standing to the credit or debit of an employer’s reserve in the Fund to reflect STC’s determination of the net liability of the employer.

(5) For the purposes of this section, the net liability of an employer is the total liability of the employer for present and future employer-financed benefits (accrued as at the date at which the liability is determined), contributions and administrative costs and any other liability under this Act in respect of the employees concerned, less the amount determined by STC as being credited to the employer in the Fund.

s 46AC: Ins 1993 No 42, Sch 1. Am 1996 No 39, Sch 4; 2005 No 52, Sch 5 [10].

More sections below

Source text: opening excerpt

Sourced from legislation.nsw.gov.au, CC BY 4.0.

Part 1 Preliminary

1 Name of Act

This Act may be cited as the State Authorities Superannuation Act 1987.

2 Commencement

This Act shall commence on 1 April 1988.

2A Closure of scheme to new entrants on and from 19 December 1992

(1) Despite any other provision of this Act, an employee is not entitled to make an election to contribute to the Fund on or after 19 December 1992 (the closure date).

(2) However, a person who lodged an election to contribute to the Fund with the Board, or with the person’s employer, before the closure date is taken to have elected to contribute to the Fund before that date and this Act applies accordingly.

(3) An election that was sent to the Board or employer, by post or otherwise, before the closure date is taken to have been lodged with the Board before that date.

s 2A: Ins 1992 No 101, Sch 1 (1).

2B Employee may resume contributions after break in employment

(1) Despite section 2A, an employee who resumes employment as an employee in the circumstances set out in section 30 may make an application under that section and may resume contributions.

(2) Section 2A does not prevent an employee from exercising a transfer option conferred under Part 6 or Part 7 of the Superannuation Administration Act 1996.

s 2B: Ins 1992 No 101, Sch 1 (1). Am 1998 No 144, Sch 2.4 [1]; 2022 No 63, Sch 3.3.