Superannuation Act 1916

Legacy NSW public servants who were contributing to the Fund before 1 July 1985 and have not transferred out. These are the primary beneficiaries of the scheme.

STC and its successors (Aware Super): The Act places extensive governance, investment, and payment obligations on STC.

NSW Government employers: Employers listed in the Schedules must contribute to the Fund for their eligible employees and are subject to STC's employer contribution rules.

Spouses and de facto partners of contributors: Death benefits are payable to spouses and de facto partners under the Act's death benefit provisions.

Children of contributors: Death benefits include provisions for dependent children.

Legal practitioners and family law practitioners dealing with superannuation splits under family law legislation interact with Part 4A.

Section 4(3)-(4): STC must ensure contributions from employers and employees, Fund income, and borrowed money are paid into the Fund; and that benefits, administration costs, tax obligations, and repayments are paid from the Fund.

Section 5: STC must establish and maintain separate reserves within the Fund for contributors' contributions and for each employer or employer group specified in Schedule 3.

Section 1A(1): No new contributors may commence after 1 July 1985 except in limited prescribed circumstances (re-employment, transfer elections, and certain other cases).

Part 3 contributions: Active contributors must contribute to the Fund in accordance with the Act's contribution rates and schedules. Contributions are made in four-weekly contribution periods.

Part 4 pension obligations: STC is obliged to pay pensions and benefits in accordance with the entitlements established by the Act. Retirement at age 60 with 10 years service entitles the contributor to elect to retire on pension (section 21(1)).

STC's investment discretion: STC is responsible for managing the Fund's investments. The Act does not prescribe specific investment mandates but imposes broad fiduciary duties.

Invalidity determinations: STC determines whether a contributor is invalided out of the service on grounds of incapacity. The Act gives STC the power to require medical examinations and to make invalidity determinations.

Employer certificates: Employers certify service and contribution periods. STC may, where it is satisfied that a period of employment and a later period of service are continuous, treat them as continuous service for pension calculation purposes (section 21(4)).

Family law superannuation (Part 4A): STC must comply with superannuation splitting orders and payment splits under family law superannuation legislation. STC charges fees for administering family law entitlements (section 4(3)(c1)).

Privatisation transfers (Part 5): Provisions for contributors transferred to privatised employers to transfer their entitlements to alternative schemes. STC has discretion over the form and terms of transfer.

The Act does not primarily create criminal offences. Its enforcement mechanism is actuarial, administrative, and fiduciary: STC and employers are obliged to maintain the Fund and meet benefit payments. Failure to pay contributions would be a breach of the employer's obligations under the Act, recoverable by STC.

The Act's interaction with Commonwealth superannuation regulation means the Fund must also comply with the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) requirements, including trustee obligations and member protection standards.

Contribution periods: Four-weekly, as set out in Schedule 16. Contributions are made and recorded in these periods.

Annual review day: STC determines each contributor's annual review day and annual adjustment day under section 10L for periodic recalculation of entitlements.

Retirement: A contributor who has served 10 years and reached age 60 may elect to retire on pension. Women contributors at the rate prescribed for retirement at age 55 may retire from age 55 if they have continuously contributed for 10 years (section 21(1) and (1B)).

Death benefits: Payable to spouse or de facto partner and dependent children. Timing follows the death event.

Family law: When a superannuation agreement or splitting order is made, STC must implement the split in accordance with Part 4A and the family law legislation.

Aware Super Act 1992 (NSW): The Fund is linked to the Aware Super Fund. STC's governance and the Fund's investment framework interact with this Act.

Superannuation Administration Act 1996 (NSW): Provides for transfer options under Parts 6 and 7, allowing contributors to transfer between schemes.

Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act): Commonwealth superannuation regulation applies. References to "approved deposit fund" and "deferred annuity" in section 3 use the SIS Act definitions.

Interpretation Act 1987 (NSW): The definition of "de facto partner" in section 3 incorporates section 21C of the Interpretation Act 1987.

Status of Children Act 1996 (NSW): The definition of "child" in section 3 incorporates this Act's recognition of ex-nuptial and adopted children.

Family law superannuation legislation: Part 4A and the Act's references to family law provisions link to the Family Law Act 1975 (Cth) superannuation splitting regime.

The scheme is closed but not wound up. New entrants cannot join, but all obligations to existing contributors and their beneficiaries continue in full force. Advisers to NSW public servants who began service before 1 July 1985 need to understand this Act, not just modern accumulation super law.

Spousal and de facto partner definitions have changed multiple times. Same-sex partner recognition was added in 2000. Family law superannuation changes were added in 2003-2004. The current Act reflects all these amendments. An adviser relying on an older version of the Act may miss entitlements or obligations.

The contribution period and unit structure is archaic. The Act's pension calculation is based on units and four-weekly contribution periods, not salary-linked accumulation accounts. Practitioners used to modern super must approach this Act with care.

Privatisation transitions (Part 5): When a contributor's employer is privatised, the contributor's entitlements may need to be transferred or converted. Part 5 provisions are complex and fact-specific.

Family law superannuation splits (Part 4A): STC charges fees for administering family law splits. These fees are recoverable from the Fund and must be understood by family law practitioners.

Example 1: Retirement calculation. A NSW public servant who joined in 1980 and has been contributing in 10 units of pension since 1980 reaches age 60 in 2025 with 10 years of service. They are entitled under section 21(1) to elect to retire on pension. The pension amount is calculated by reference to their contributory units, period of contribution, and the relevant formula in Part 4.

Example 2: Death benefit. A contributor dies while still employed. Under the Act's death benefit provisions in Part 4, a fortnightly pension is payable to their spouse or de facto partner (as defined in section 3, referencing the Interpretation Act 1987 definition). Howard v Batistich [2019] FCA 525 (para 11) illustrates this: the NSW Fire Brigades Superannuation Pty Ltd's trust deed, which itself referenced the Superannuation Act 1916 definition of spouse, was central to determining whether the death benefit was payable as a pension or lump sum.

Example 3: Family law split. Separating parties who have a contributor's superannuation interest under the Act as an asset of the relationship can obtain a superannuation splitting order under the family law legislation. Part 4A of the Act governs how STC implements the split. STC charges fees for this administration.

Example 4: Re-employment after break. A contributor who left NSW public service and returned after 1 July 1985 may be able to rejoin the Fund under section 1A(3)(b) if they make an election under section 38C. This is an exception to the general closure of the scheme.