Section 12C - Superannuation Act 1916 - Deduction factors in relation to part-time employment

12CDeduction factors in relation to part-time employment

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12C Deduction factors in relation to part-time employment

(1) In this section—

part-time employee means—

(a) a person appointed to a part-time position and certified to STC by the person’s employer to have a salary ratio of less than one, or

(b) a person appointed to a full-time position and on part-time leave without pay, and certified to STC by the person’s employer to have a salary ratio of less than one, who has made an election, that is in force under this section, to be treated as a part-time employee.

salary ratio of a person means the ratio of the salary of the person while employed on a part-time basis to the salary certified by the employer of the person to be the salary which would be paid to the person if employed on a full-time basis.

(1A) A person who is appointed to a full-time position and who commences a period of part-time leave without pay may elect to be treated as a part-time employee for the purposes of this section.

(2) Where a contributor who is not a part-time employee becomes a part-time employee or a contributor who is a part-time employee becomes a part-time employee in a position in relation to which the salary ratio is different from that of the former position, STC shall, on and from the day on which the contributor becomes a part-time employee, or the salary ratio changes, apply under section 12A, in relation to the contributor, in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor, a deduction factor equal to the figure calculated in accordance with the following formula—

where—

D is the deduction factor.

PA is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day precedes the known or estimated date on which the period of part-time employment is to cease.

SR is the salary ratio (expressed as a fraction) in relation to the position.

(2A) For the purposes of item “PA” in subsection (2), the known or estimated date on which part-time employment is to cease is—

(a) in the case of a contributor on part-time leave without pay—the date on which the period of leave approved for the contributor is to cease, or