71Minimum benefit

71 Minimum benefit S. 71(1) amended by No. 94/2005 s. 48(1). (1) Subject to this section, if after all benefits payable under this Act in respect of a contributor or former contributor have been paid, the total amount of the benefits paid is less than the sum of the amount contributed by the contributor or former contributor to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 46(1) or 58(1) up to the date that the contributor or former contributor first became entitled to a benefit under this Act other than a temporary pension under section 83A, there is to be paid out of the Fund to the contributor or former contributor an amount determined by the Board in accordance with the formula— A = MCI – BP "**A**" means the amount to be paid; "**MCI**" means the sum of the amount contributed by the contributor or former contributor to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 46(1) or 58(1) up to the date that the contributor or former contributor first became entitled to a benefit under this Act other than a temporary pension under section 83A; "**BP**" means the total amount of all the benefits paid under this Act in respect of the contributor or former contributor. S. 71(2) amended by No. 94/2005 s. 48(2). (2) Subject to this section, if the total amount of all the benefits paid or payable under this Act in respect of a contributor or former contributor is less than the sum of the superannuation guarantee amount and the amount contributed by the contributor or former contributor to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 46(1) or 58(1) up to the date that the contributor or former contributor first became entitled to a benefit under this Act other than a temporary pension under section 83A, there is to be paid out of the Fund to the contributor or former contributor an amount determined by the Board in accordance with the formula— P = A + I **"P"** means the amount to be paid; **"I"** means interest as appropriate on "A" at the rate which is the prescribed rate under section 46(1) or 58(1) from the date "A" is calculated until the date that "A" is paid out of the Fund— and where "A" is an amount determined by the Board in accordance with the formula— SGC + MCI – B "**SGC**" means the superannuation guarantee amount; "**MCI**" has the same meaning as in subsection (1); "**B**" means the total amount of all the benefits paid or payable in respect of the contributor or former contributor. (3) Unless subsection (4), (5) or (6) applies, for the purposes of this section, the total amount of all the benefits paid or payable in respect of a contributor or former contributor is to be determined by the Board as at the date on which the contributor or former contributor first became entitled to a benefit under this Act, other than a temporary pension under section 83A, irrespective of when the benefit is payable. (4) If a contributor or former contributor becomes entitled to another benefit under this Act other than a temporary pension under section 83A after having returned to work following a period as a pensioner under this Act, the total amount of all the benefits paid or payable in respect of the contributor or former contributor is to be determined by the Board as at the date on which the contributor or former contributor first became entitled to that other benefit under this Act. (5) If a contributor or former contributor who had elected to receive all or a part of his or her entitlements under this Act as a deferred benefit— (a) dies before the deferred benefit becomes payable; and (b) does not leave a partner entitled to a pension under this Act or dependants or other persons entitled to a benefit under this Act— the Board must pay out of the Fund to the legal personal representative of the contributor or former contributor an amount equal to the superannuation guarantee amount determined by the Board. (6) If a contributor or former contributor who had elected to receive a pension under this Act other than a pension under section 83A dies without leaving any dependants, the Board must pay out of the Fund to the legal personal representative of the contributor or former contributor an amount calculated in accordance with subsection (1) determined by the Board as at the date of death. (7) If the amount of the benefit paid or payable under this Act consists of, or includes, a pension or deferred benefit, the amount of the benefit paid or payable under this Act for the purposes of this section is to be determined by the Board in accordance with a method determined by an actuary appointed by the Board. (8) The Board may determine that an amount determined as payable under this section is to be applied to increase a pension payable to or in respect of a contributor or former contributor in a manner determined by the Board after obtaining the advice of an actuary appointed by the Board. (9) Any part of the superannuation guarantee amount which is required to be preserved in accordance with the specified standards must be preserved. (10) For the purposes of this section, if a payment or transfer to a non-member spouse is made for the purposes of Part VIIIB of the Commonwealth Family Law Act 1975 whether under Part 7A or otherwise, the minimum benefit of the member spouse must be adjusted by the Board in accordance with a methodology approved by the Minister, on the advice of an actuary appointed by the Board. (11) In this section, ***superannuation guarantee amount*** means the amount determined by the Board after obtaining the advice of an actuary appointed by the Board to be the minimum amount necessary in respect of a contributor or former contributor to avoid a superannuation guarantee shortfall within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth. (12) The amount determined by the Board for the purpose of subsection (11) is to be determined as if no election had been made under section 27(3), 28(1A) or 50(4A). S. 71A inserted by No. 49/1992 s. 25, repealed by No. 4/1996 s. 108(5), new s. 71A inserted by No. 82/1996 s. 63.