119STransfer value

#### 119S Transfer value (1) A reference in this Division to a transfer value payable in accordance with this Division in respect of a person who has ceased to be a contributor to the Fund or to the Provident Account is a reference: (a) in the case of a person in respect of whom that transfer value has become payable by virtue of the operation of section 119V: (i) unless subparagraph (ii) applies—to such amount as is determined by the Commissioner to be the value of the rights of the person under this Act as at the time immediately before the person ceased to be such a contributor; or (ii) if the declaration under subsection (1) of section 119R of the eligible superannuation scheme referred to in subparagraph 119V(1)(b)(ii) of which the person became a member: (A) was made by instrument published in the Gazette after the commencement of this subsection; and (B) by virtue of the operation of subsection (2) of section 119R, came into operation on a day earlier than the day on which the instrument of declaration was published in the Gazette; to an amount equal to the sum of the amount that, but for this subparagraph, would be the amount of the transfer value and an amount of compound interest calculated thereon: (C) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and (D) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of accumulated basic contributions in subsection (1) of section 3 of the Superannuation Act 1976; or (b) in the case of a person in respect of whom that transfer value has become payable because of an election under section 119WC—to an amount equal to the sum of the amount that would be the amount of the transfer value payable in respect of that person if that transfer value had become payable in respect of the person because of the operation of section 119V and had been determined under subparagraph (1)(a)(i) of this section and an amount of compound interest calculated thereon: (i) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and (ii) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of accumulated basic contributions in subsection (1) of section 3 of the Superannuation Act 1976. (1A) If a payment was made under the Superannuation (Distribution of Surplus) Act 1974, or was or is made under section 176 of the Superannuation Act 1976, to a person referred to in subparagraph (1)(a)(ii) or paragraph (1)(b), the amount of compound interest referred to in that subparagraph or that paragraph, as the case requires, shall be reduced by such amount as the Commissioner determines to be appropriate having regard to the amount of that payment and the time at which that payment was or is made. (2) In furnishing advice to the Board in relation to the determination of the value of the rights of a person under this Act as at the time immediately before he ceased to be a contributor to the Fund or to the Provident Account, an actuary shall have regard to actuarial principles and practice and shall take into account all relevant matters, including: (a) the contributions to the Fund or to the Provident Account made by the person; (b) in the case of a person who was a contributor to the Fund, the payments to the Fund that would have been made by the Commonwealth if: (i) on each occasion on which the person was required to pay an amount of contributions to the Fund in respect of units of pension (other than reserve units of pension), the Commonwealth had paid to the Fund an amount equal to two and one‑half times the amount that the person was so required to pay; and (ii) on each occasion on which the person would have been required to pay an amount of contributions to the Fund in respect of units of pension (if any) that were applicable in relation to him as non‑contributory units of pension if he had been making contributions for those units of pension based upon a retiring age of sixty‑five years, the Commonwealth had paid to the Fund an amount equal to two and one‑half times the amount that the person would have been so required to pay; (c) in the case of a person who was a contributor to the Provident Account, the payments to the Provident Account that would have been made by the Commonwealth if, on each occasion on which the person was required to pay an amount of contributions to the Provident Account, the Commonwealth had paid to the Provident Account an amount equal to twice the amount that the person was so required to pay; (ca) in the case of a person, being a prescribed employee within the meaning of Division 3 of Part VIA, who is a contributor to the Provident Account, the payment to the Provident Account that would have been made by the Commonwealth if, upon the payment by the employee to the Board under subsection (1) of section 100L, the Commonwealth had paid to the Provident Account an amount ascertained by multiplying the amount so paid by a factor 1 less than the factor applicable in relation to the employee in accordance with subsection (5) of that section; (cb) in the case of a person, being a prescribed employee within the meaning of Division 3 of Part VIIA, who is a contributor to the Provident Account, the payment to the Provident Account that would have been made by the Commonwealth if, upon the Board paying to the Provident Account an amount in respect of the employee under paragraph (a) of subsection (4) of section 107M, the Commonwealth had paid to the Provident Account: (i) if subsection (6) of that section applies in relation to the employee—an amount ascertained by multiplying the amount so paid by a factor 1 less than the factor applicable in accordance with subsection (6) of that section in relation to the employee; or (ii) if subsection (7) of that section applies in relation to the employee—in respect of each part of the amount so paid being a part in relation to which paragraph (c) of that subsection applies, an amount ascertained by multiplying the amount of that part by a factor 1 less than the factor applicable, for the purposes of subsection (5) of that section, in relation to that part; (d) any amount paid to the Board in accordance with subsection (1) of section 119J in respect of the person; (e) in the case of a person who was a contributor to the Fund, the amount of the liability of the Fund in respect of the person from time to time during the period throughout which he was a contributor to the Fund, having regard, in addition to any other relevant matters, to: (i) the age of the person at the date on which he became such a contributor; (ii) whether the person made an election under section 24; and (iii) the respective rates of mortality, invalidity and withdrawal from the Fund that are assumed, for the purposes of the advice, to apply in relation to the class of contributors to the Fund in which the person was included; (f) the rates of interest that it is assumed, for the purposes of the advice, have been earned by the assets of the Fund; (g) the state and sufficiency of the Fund at the date on which the person ceased to be a contributor to the Fund or to the Provident Account; and (h) the value of any benefit that, but for this Division, would be payable to or in respect of the person under this Act by reason of his having ceased to be a contributor to the Fund or to the Provident Account. (3) A transfer value payable in accordance with this Division to or in respect of a person is payable: (a) in the case of a person who was a contributor to the Fund—out of the Fund; and (b) in the case of a person who was a contributor to the Provident Account—out of the Provident Account. (4) Where a transfer value becomes payable in accordance with this Division to or in respect of a person who has ceased to be a contributor to the Fund and to whom section 35A of this Act applied, and: (a) at the time when he ceased to be a contributor to the Fund, he had not ceased to be a member as defined by subsection (1) of section 4 of the Defence Forces Retirement Benefits Act 1948‑1971 or had not ceased to be an eligible member of the Defence Force as defined by section 3 of the Defence Force Retirement and Death Benefits Act 1973; or (b) at the time when the transfer value becomes payable, a transfer value also becomes payable in respect of him under Division 3 of Part VIC of that Act or under Division 3 of Part IX of the Defence Force Retirement and Death Benefits Act 1973; then, any period during which his liability to make contributions to the Fund was deferred under section 35A of this Act shall be disregarded in determining the first‑mentioned transfer value and he is not required or permitted to pay the amount of the deferred contributions to the Fund.