7Superannuation provision for certain persons by way of life assurance

#### 7 Superannuation provision for certain persons by way of life assurance (1) Where: (a) a person employed by the Commonwealth or by an approved authority was, immediately before the commencement of the employment, a contributor under: (i) a superannuation scheme conducted in accordance with the system established in the United Kingdom and known as the Federated Superannuation System for Universities; or (ii) a prescribed superannuation scheme, being a scheme under which benefits are provided for by means of life assurance policies; and (b) the Treasurer considers that, by reason of special circumstances, an arrangement should be made under this section; the Commonwealth or the approved authority may make an arrangement with that person for assurance of his life by means of a life assurance policy, and for the payment of contributions by the Commonwealth or the approved authority and that person for that purpose. (1A) An arrangement shall not be made under subsection (1) on or after 1 July 1976. (2) Where a person with whom an arrangement has been made under this section: (a) is or becomes an employee; and (b) has not, before he became or becomes an employee, or within such period after he became or becomes an employee or after the commencement of the Superannuation Act 1965, whichever is the later, as the Board allows, undergone a medical examination referred to in section 5; the Commonwealth or the approved authority, as the case may be, may, by notice in writing to the person, terminate the arrangement and, if the arrangement is so terminated: (c) the person shall, within two months after the termination or within such further period as the Minister allows, pay to the Commonwealth or to the approved authority, as the case may be, an amount equal to the sum of the contributions paid by the Commonwealth or the authority under the arrangement and compound interest on those contributions at the rate of three and three‑quarters per centum per annum, and: (i) if the amount is not paid within that period, it is recoverable by the Commonwealth or by the authority as a debt due to the Commonwealth or to the authority in any court of competent jurisdiction; and (ii) if the amount is not paid within that period and is not recovered in pursuance of subparagraph (i) (whether or not any action is taken so to recover the amount) and, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority—the Commonwealth or the authority, as the case may be, may, notwithstanding any obligation on the Commonwealth or the authority to assign the policy to the person, surrender the policy and apply the proceeds of the surrender in reduction of the amount and, if the proceeds exceed the amount, shall pay an amount equal to the excess to the person; and (d) where, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority and the policy has not been surrendered in accordance with paragraph (c), the Commonwealth or the authority, as the case may be, shall, upon payment or recovery of the amount referred to in that paragraph, assign the policy to the person. (2A) Where a person with whom an arrangement has been made under this section is or becomes a contributor to the Fund under Part III or to the Provident Account and the arrangement has not been terminated under subsection (2): (a) if the arrangement has not otherwise terminated, the arrangement is, by force of this subsection, terminated; (b) the person shall, within two months after the date of commencement of the Superannuation Act 1965 or the date on which he became or becomes a contributor, whichever is the later date, or within such further period as the Minister allows, pay to the Commonwealth or to the approved authority, as the case may be, an amount equal to the sum of the contributions paid by the Commonwealth or the authority under the arrangement and compound interest on those contributions at the rate of three and three‑quarters per centum per annum, and: (i) if the amount is not paid within that period, it is recoverable by the Commonwealth or the authority as a debt due to the Commonwealth or to the authority in any court of competent jurisdiction; and (ii) if the amount is not paid within that period and is not recovered in pursuance of subparagraph (i) (whether or not any action is taken so to recover the amount) and, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority—the Commonwealth or the authority, as the case may be, may, notwithstanding any obligation on the Commonwealth or the authority to assign the policy to the person, surrender the policy and apply the proceeds of the surrender in reduction of the amount and, if the proceeds exceed the amount, shall pay an amount equal to the excess to the person; and (c) if, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority and the policy has not been surrendered in accordance with paragraph (b), the Commonwealth or the authority, as the case may be, shall, upon payment or recovery of the amount referred to in that paragraph, assign the policy to the person. (3) An approved authority may apply for the purposes of an arrangement under this section any moneys under the control of the approved authority. (5) This section has effect subject to section 119ZD.