Part 4Superannuation benefits—new scheme contributors

Part 4—Superannuation benefits—new scheme contributors 26—Application of this Part This Part applies only to new scheme contributors. 26A—Transition to retirement (1) A contributor may apply to the Board for the benefit of this section if— (a) the contributor has reached— (i) the age of 55 years; and (ii) his or her preservation age; and (b) the contributor has entered into an arrangement with his or her employer— (i) to reduce his or her hours of work; or (ii) to alter his or her duties, or both, with the effect that there is a reduction in the contributor's salary; and (c) the purpose for establishing the arrangement referred to in paragraph (b) relates to the proposed retirement of the contributor in due course (including by allowing the contributor to scale down his or her work in the lead‑up to retirement). (2) The Board may require that an application under subsection (1)— (a) be made in such manner as the Board thinks fit; and (b) be accompanied by such information or other material specified by the Board to assist the Board to be satisfied as to the matters set out in paragraphs (b) and (c) of that subsection. (3) If the Board is satisfied that a valid application has been made under subsection (1), an entitlement will arise as follows: (a) the Board will determine a benefit (a draw down benefit) on the basis of the contributor's application and on the basis that the maximum draw down benefit to which the contributor is entitled will be determined as follows: B is the maximum draw down benefit SP is the amount that would be payable under section 27 and 47B if the contributor had retired from employment immediately before the date of the determination FS is the contributor's actual salary immediately before the commencement of the arrangement envisaged by subsection (1)(b) NS is the contributor's actual salary on the commencement of the arrangement envisaged by subsection (1)(b); (b) the Board will then, according to an election made by the contributor as part of his or her application to the Board for the benefit of this section, invest (on behalf of and in the name of the contributor) the draw down benefit— (i) with the Superannuation Funds Management Corporation of South Australia; or (ii) with another entity that will provide a non‑commutable income stream for the contributor while the contributor continues to be employed in the workforce, so that the contributor receives (and only receives) a payment in the form of a pension or an annuity (a draw down payment) on account of the benefit. (4) The investment of a draw down benefit under subsection (3)(b)(i) will be on terms and conditions determined by the Board. (5) An entitlement to a draw down payment is not commutable. (6) However— (a) a contributor may, after commencing to receive a draw down payment and before retiring from employment under this Act, take steps to bring the investment to an end and pay the balance of the investment into a rollover account (which may need to be established) in the name of the contributor as if the balance were being carried over from another superannuation scheme into the scheme pursuant to section 47B; and (b) the value of an investment under subsection (3)(b)(i) may be redeemed in due course under subsection (11). (7) When the Board has determined a draw down benefit— (a) the account maintained by the Board in the name of the contributor under section 20A, and any account maintained for the purposes of section 47B, will be immediately adjusted by a percentage equal to the percentage that the draw down benefit bears to the total benefit that would have been payable had the contributor retired from employment to take into account the payment of the draw down benefit; and (b) the contributions payable by the contributor under section 23 will (despite any provision made by section 23 to the contrary)— (i) be fixed on the basis of the contributor's salary under the arrangement established with his or her employer (for so long as the arrangement continues); and (ii) as so fixed, be payable in respect of this salary from the first full pay period after the Board's determination of the draw down benefit; and (iii) be at the contributor's standard contribution rate under that section; and (c) the contributor's contribution points will accrue, from the date of the determination until the cessation of the relevant arrangement (unless the contributor ceases to make the contributions envisaged by paragraph (b)), at a rate for each contribution month determined as follows: CP is a proportion of 1 contribution point AS is the contributor's actual salary under the relevant arrangement (as adjusted from time to time) FSA is the contributor's actual salary immediately before the commencement of the relevant arrangement, adjusted from time to time to take into account any changes to the salary that would have occurred had the contributor not entered into the relevant arrangement but rather continued to be entitled to that salary. (8) If the employment arrangements of a contributor who is receiving a draw down payment under this section alter so that there is an alteration in his or her salary— (a) in the case of a reduction in salary—the contributor may apply to the Board for a further benefit in accordance with the provisions of this section and this section will then apply to the application and with respect to the relevant arrangement— (i) as if FS under subsection (3)(a) is the contributor's actual salary immediately before the relevant reduction in salary; and (ii) as if NS is the contributor's actual salary immediately after the relevant reduction in salary; and (iii) by applying such other modifications as may be necessary for the purpose or as may be prescribed; and (b) in the case of an increase in salary—the draw down payment will continue as if the increase had not occurred and where the contributor makes contributions to the scheme under this Act in respect of the increase in salary the contributions payable by the contributor and the accrual of contribution points must be adjusted to take into account the increase. (9) When a contributor retires from employment (and is thus entitled to a benefit under section 27), the contributor's entitlement under section 27 will be adjusted in the manner prescribed by the regulations to take into account the draw down benefit provided under this section (and that section will then have effect accordingly). (10) If a contributor's employment is terminated by the contributor's death, any entitlement under section 32 will be adjusted in the manner prescribed by the regulations to take into account the draw down benefit provided under this section (and that section will then have effect accordingly). (11) When a contributor retires or dies (whichever first occurs), an investment being held under subsection (3)(b)(i) may be redeemed (subject to any rules or requirements applicable to the exercise of a power of redemption). (12) A contributor may, in conjunction with an application under subsection (1), apply for any benefit that would be payable under section 32A as if the contributor had resigned from employment and, in such a case— (a) the application will be taken to be an election under that section; and (b) the amount of entitlement payable under that section will be added to the draw down benefit under subsection (3)(a) (and then invested under subsection (3)(b)). (13) Despite a preceding subsection, if the maximum draw down benefit under subsection (3)(a) is not sufficient to be invested under subsection (3)(b) to obtain a draw down payment— (a) unless paragraph (b) applies—the draw down benefit must be an amount equal to the minimum required to obtain a draw down payment (and subsection (3)(a) will apply accordingly); (b) if the minimum amount required to obtain a draw down payment is greater than SP under subsection (3)(a), the Board must reject the application under this section (and no entitlement will arise under subsection (3)). (14) The determination of a benefit under this section must take into account the operation of any provision under Part 5A. (15) The Governor may, by regulation, declare that any provision of this section is modified in prescribed circumstances (and the regulation will have effect according to its terms). 27—Retirement (1) A contributor who retires from employment is entitled to a superannuation payment made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an employer component calculated in accordance with the following provisions of this section. (2) The employer component is the lesser of the following: (a) (b) FS is the contributor's actual or attributed salary immediately before retirement (expressed as an annual amount) (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period M is the number of months of the contributor's contribution period occurring after 30 June 1992 (a) in relation to a contributor who is at retirement under the age of 60 years—the number of months by which the contributor's age falls short of 60 years; (b) in any other case—zero. (3) For the purposes of this section, a contributor retires from employment if— (a) the contributor has attained the age of 55 years; and (b) the contributor's employment terminates or is terminated for any reason (except the contributor's death). (4) This section does not apply to an outplaced employee who had reached the age of 55 years when he or she retired from employment unless he or she has made an election in accordance with section 28B to take the retirement benefit provided by this section. 28—Resignation and preservation of benefits (1) A contributor who resigns from employment before reaching the age of 55 years may elect— (a) to take immediately an amount (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; or (b) to preserve his or her accrued superannuation benefits; or (c) to carry over his or her accrued superannuation benefits to some other superannuation fund or scheme approved by the Board. (1a) A contributor who fails to inform the Board in writing of his or her election under subsection (1) within 3 months after resignation will be taken to have elected to preserve his or her accrued superannuation benefits. (1b) If the Board is of the opinion that the limitation period referred to in subsection (1a) would unfairly prejudice a contributor, the Board may extend the period as it applies to the contributor. (1c) If a contributor resigns and elects to take the amount referred to in subsection (1)(a) the contributor is also entitled to a superannuation payment in accordance with the following provisions: (a) the contributor may at any time require the Board to make the payment to some other superannuation fund or scheme approved by the Board; (ab) the Board must— (i) not less than 6 months before the contributor's 60th birthday—notify the contributor in writing of the contributor's entitlement to require the Board to make the payment under paragraph (b); and (ii) not less than 6 months before the contributor's 55th birthday—notify the contributor in writing of the contributor's entitlement to require the Board to make the payment under paragraph (c); (b) the contributor may at any time after reaching the age of retirement require the Board to make the payment and, if no such requirement has been made on or before the date on which the contributor reaches 65 years of age, the Board will make the payment; (c) if the contributor has reached the age of 55 years and is not employed by an employer within the meaning of the Commonwealth Act, the contributor may require the Board to make the payment to the contributor; (d) if the contributor has become incapacitated and satisfies the Board that his or her incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent, the Board will make the payment to the contributor; (e) if the contributor dies, the payment will be made to the spouse of the deceased contributor or, if he or she left no surviving spouse, to the contributor's estate, (and a payment under any of the above paragraphs excludes further rights so that a claim cannot be subsequently made under some other paragraph). (1d) The amount of the superannuation payment referred to in subsection (1c) is the amount of the minimum contribution required to avoid payment of the superannuation guarantee charge in respect of the contributor under the Commonwealth Act together with interest from the date of resignation. (1e) The amount of interest will be calculated and credited to the contributor at the end of each financial year and will be calculated on the amount referred to in subsection (1d) at the end of the first financial year and on the aggregate of that amount and the interest previously credited at the end of each subsequent financial year. (1f) The rate of interest will be determined by the Board in respect of each financial year in accordance with section 20A. (2) If the contributor elects to preserve his or her accrued superannuation benefits, the following provisions apply— (aa) the Board must, not less than 6 months before the contributor's 55th birthday, notify the contributor in writing of the contributor's entitlement to require the Board to make a superannuation payment under paragraph (a); (a) the contributor may at any time after reaching 55 years of age require the Board to make a superannuation payment and, if no such requirement has been made on or before the date on which the contributor reaches 65 years of age, the Board will make such a payment; (b) if the contributor has become incapacitated and satisfies the Board that his or her incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent, the Board will make the payment to the contributor; (c) if the contributor dies, a payment will be made to the spouse of the deceased contributor or, if he or she left no surviving spouse, to the contributor's estate, (and a payment under any of the above paragraphs excludes further rights so that a claim cannot be subsequently made under some other paragraph). (3) A payment under subsection (2) will be made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an employer component calculated in accordance with subsection (4). (4) The employer component will be the lesser of the following: (a) (b) AFS is the contributor's actual or attributed salary as at the date of resignation (expressed as an annual amount)adjusted to reflect changes in the Consumer Price Index since the date of resignation (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period M is the number of months of the contributor's contribution period occurring after 30 June 1992 (a) if the contributor is under the age of 60 years when the payment is made or where the contributor dies under the age of 60 years—the lesser of 60 and the number of months by which the contributor's age falls short of 60 years; (b) in any other case—zero. (5) If the contributor elects to carry over his or her accrued superannuation benefits to an approved superannuation fund or scheme, the following provisions apply— (a) the contributor must satisfy the Board by such evidence as it may require that he or she has been admitted to membership of the fund or scheme; and (b) on being so satisfied the Board will make a payment on behalf of the contributor to the fund or scheme made up of 2 components— (i) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (ii) an employer component which will be the aggregate of the following amounts: (A) an amount equal to the lesser of twice the amount of the employee component or twice the amount that would have constituted the employee component if the contributor had contributed to the Scheme at the standard contribution rate throughout the contributor's contribution period; and (B) an amount calculated as follows: (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period FS is the contributor's actual or attributed salary immediately before resignation (expressed as an annual amount) (7) For the purposes of this section, a contributor will be taken to resign if the contributor's employment terminates or is terminated for any reason except invalidity (in circumstances entitling the contributor to benefits under this Act), retrenchment or death. (8) This section does not apply to, or in relation to, an outplaced employee who resigned from employment before reaching the age of 55 years unless he or she has made an election in accordance with section 28C to preserve his or her accrued superannuation benefits under this section or is taken under section 28C to have made such an election. 28A—Resignation pursuant to a voluntary separation package (1) This section applies to a contributor if the contributor makes an election under subsection (1a) on the basis that the contributor is a contributor who resigns from his or her employment before reaching the age of 55 years pursuant to a voluntary separation package— (a) that includes a term that this section is to apply to the contributor; and (b) that has been approved by the Treasurer. (1a) An election under subsection (1) must be made within 3 months after resignation. (2) Section 28 does not apply to a contributor to whom this section applies (but if an election is not made under subsection (1a) then section 28 will be taken to apply to the contributor). (3) A contributor to whom this section applies is entitled to a lump sum made up of— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of that account; and (b) an employer component that is equal to the lesser of twice the amount of the employee component or twice the amount that would have constituted the employee component if the contributor had contributed to the Scheme at the standard contribution rate throughout the contributor's contribution period. (3a) A part of the lump sum referred to in subsection (3) being an amount equivalent to the minimum contribution required to avoid payment of the superannuation guarantee charge in respect of the contributor under the Commonwealth Act is preserved. (3b) The contributor is entitled to the balance of the lump sum at the time of resignation. (3c) The amount preserved under subsection (3a) together with interest is payable in accordance with the following provisions: (aa) the Board must, not less than 6 months before the contributor's 55th birthday, notify the contributor in writing of the contributor's entitlement to require the Board to pay the amount under paragraph (a); (a) the contributor may at any time after reaching 55 years of age require the Board to pay the amount and, if no such requirement has been made on or before the date on which the contributor reaches 65 years of age, the Board will pay the amount to the contributor; (b) if the contributor has become incapacitated and satisfies the Board that his or her incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent, the Board will pay the amount to the contributor; (c) if the contributor dies, the amount will be paid to the spouse of the deceased contributor or, if he or she left no surviving spouse, to the contributor's estate, (and a payment under any of the above paragraphs excludes further rights so that a claim cannot be subsequently made under some other paragraph). (3d) The amount of interest will be calculated and credited to the contributor at the end of each financial year and will be calculated on the amount referred to in subsection (3a) at the end of the first financial year and on the aggregate of that amount and the interest previously credited at the end of each subsequent financial year. (3e) The rate of interest will be determined by the Board in respect of each financial year in accordance with section 20A. (4) In this section— voluntary separation package means an agreement between a contributor and his or her employer pursuant to which the contributor resigns from employment. 28B—Outplaced employees—55 and over (1) A contributor who had reached the age of 55 years when he or she retired from employment to take up employment in the private sector pursuant to an offer of employment in a contracting out agreement may elect— (a) to take the retirement benefit provided by section 27; or (b) to preserve his or her accrued superannuation benefits under section 28 as though he or she had resigned from employment before reaching the age of 55 years. (2) A contributor who fails to inform the Board in writing of his or her election under subsection (1) within 1 month after retiring will be taken to have made an election under subsection (1)(b). (3) If the Board is of the opinion that the limitation period referred to in subsection (2) would unfairly prejudice a contributor, the Board may extend the period as it applies to the contributor. (4) If a contributor has made, or is taken to have made, an election under subsection (1)(b), section 28 applies to, and in relation to, the contributor except that he or she is not entitled to require the Board to make a superannuation payment under section 28(2)(a), and the Board must not make such a payment under that provision, until the contributor has ceased employment with the private sector employer. 28C—Outplaced employees under 55 (1) A contributor who had not reached the age of 55 years when he or she resigned from employment to take up employment in the private sector pursuant to an offer of employment in a contracting out agreement may elect— (a) to preserve his or her accrued superannuation benefits under section 28; or (b) to take the benefits provided by section 28A. (2) A contributor who fails to inform the Board in writing of his or her election under subsection (1) within 1 month after resigning will be taken to have made an election under subsection (1)(a). (3) If the Board is of the opinion that the limitation period referred to in subsection (2) would unfairly prejudice a contributor, the Board may extend the period as it applies to the contributor. (4) If a contributor has made, or is taken to have made, an election under subsection (1)(a), section 28 applies to, and in relation to, the contributor except that he or she is not entitled to require the Board to make a superannuation payment under section 28(2)(a), and the Board must not make such a payment under that provision, until the contributor has reached the age of 55 years and has ceased employment with the private sector employer. (5) If a contributor has made an election under subsection (1)(b), section 28A applies to the contributor as though the requirements of section 28A(1) had been met. 29—Retrenchment (1) If the employment of a contributor who has not reached the age of 55 years is terminated by retrenchment, the contributor may elect— (a) to take a lump sum payment; or (b) to preserve his or her superannuation benefits. (1a) A contributor who fails to inform the Board in writing of his or her election under subsection (1) within 3 months after retrenchment will be taken to have elected to preserve his or her superannuation benefits. (1b) If the Board is of the opinion that the limitation period referred to in subsection (1a) would unfairly prejudice a contributor, the Board may extend the period as it applies to the contributor. (2) A lump sum payment under this section will be made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an employer component which will be the aggregate of the following amounts: (i) an amount equal to the lesser of twice the amount of the employee component or twice the amount that would have constituted the employee component if the contributor had contributed to the Scheme at the standard contribution rate throughout the contributor's contribution period; and (ii) an amount calculated as follows: (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period FS is the contributor's actual or attributed salary immediately before retrenchment (expressed as an annual amount) (4) If a contributor elects to preserve his or her superannuation benefits, this Act applies in the same way as if the contributor had made that election on resignation. (5) If a contributor's employment is to be terminated by retrenchment, the employing authority must give the Board notice of that fact in accordance with the regulations at least 1 month before the termination takes effect. 30—Disability pension (1) Subject to this section, a contributor who is temporarily or permanently incapacitated for work, and has not reached the age of 55 years, is entitled to a disability pension. (2) A contributor who becomes incapacitated for work in a particular position will not be regarded as incapacitated for work for the purposes of this section if some other position, carrying a salary of at least 80 per cent of the salary applicable to the former position, is available to the contributor and the contributor could reasonably be expected to take that other position. (3) A disability pension is not payable in respect of— (a) a period in respect of which the contributor is entitled to sick leave; or (b) a period in respect of which the contributor is entitled to weekly payments of workers compensation; or (c) a period for which the contributor is on recreation leave or long service leave. (4) The Board will not pay a disability pension in respect of a period of incapacity of less than 1 week and may decline to pay a disability pension if it appears that the duration of the incapacity is likely to be less than 6 months. (5) The amount of a disability pension will be two-thirds of the contributor's notional salary. (6) A disability pension cannot be paid for a continuous period of more than 12 months unless the Board thinks that there are special reasons for extending that limit, in which case it may extend the pension period by not more than a further 6 months. (7) A disability pension cannot be paid, in respect of the same incapacity, for an aggregate period of more than 18 months in any 1 period of 36 months. (8) A contributor is not required to make any contribution over a period for which the contributor receives a disability pension but if the contributor was an active contributor immediately before the commencement of the pension period, the employer component of any superannuation payment that is subsequently made to, or in relation to, the contributor will be calculated as if the contributor had continued as an active contributor over the pension period and had continued to contribute at the rate applicable immediately before the commencement of that period. 30A—Rehabilitation etc of disability pensioner (1) If, in the opinion of the Board, an attempt should be made to rehabilitate a disability pensioner or to find alternative employment for such a pensioner, the Board may serve notice on the pensioner's employer requiring the employer to do 1 or both of the following— (a) take measures specified in the notice to rehabilitate the pensioner; (b) take measures specified in the notice to find alternative employment for the pensioner. (2) A notice under subsection (1) may require the employer to periodically report in writing to the Board on the progress it is making in complying with the requirements of the notice. (3) If an employer does not comply with a notice under subsection (1) to the satisfaction of the Board, the Board may, by further notice served on the employer, require the employer to reimburse the Treasurer for the amount of the disability pension paid to the pensioner from the date of service of that notice until the Board informs the employer in writing that it is satisfied with the employer's compliance with the original notice. (4) The amount of the pension referred to in subsection (3) is a debt due by the employer to the Treasurer. 31—Termination of employment on invalidity (a) a contributor's employment terminates on account of invalidity before the contributor reaches the age of 55 years; and (b) the Board is satisfied that the contributor's incapacity for all kinds of work is 60 per cent or more of total incapacity and is likely to be permanent, the contributor is entitled to a superannuation payment made up of 2 components— (c) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (d) an employer component calculated in accordance with subsection (2). (2) The employer component is calculated as follows: (b) whichever of the following is applicable in the circumstances of the case: (i) if the contributor is not receiving, and is not entitled to receive, weekly workers compensation payments in relation to the invalidity and was an active contributor immediately before termination of the employment—the numerical value obtained by dividing the number of the contributor's extrapolated contribution points by 360; (ii) if the contributor is receiving, or is entitled to receive, weekly workers compensation payments in relation to the invalidity based on partial incapacity for work and was an active contributor immediately before termination of employment, the numerical value obtained from the following formula: n is the numerical value acp is the number of the contributor's accrued contribution points ecp is the number of the contributor's extrapolated contribution points x is the extent of the contributor's incapacity for work expressed as a proportion of total incapacity; (iii) in any other case—the numerical value obtained by dividing the number of the contributor's accrued contribution points by 360 FS is the contributor's actual or attributed salary immediately before termination of employment (expressed as an annual amount) (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period (a) if the contributor was an active contributor immediately before the commencement of the invalidity—the amount (if any) by which the employee component falls short of twice the contributor's adjusted final salary; (b) if the contributor was not then an active contributor—zero (a) if the contributor was an active contributor immediately before termination of employment—the aggregate of the number of months of the contributor's contribution period occurring after 30 June 1992 and the number of months difference between the contributor's age as at the entitlement day and the age of retirement; (2a) When determining the number of a contributor's extrapolated superannuation points for the purposes of calculating the employer component under subsection (2), the number of months' difference between the contributor's age as at the entitlement day and the age of 55 years will be used (and for that purpose an incomplete month will be counted as a whole month). (2b) If the Board is not satisfied as to 1 or both of the matters referred to in subsection (1)(b) the contributor is entitled to a superannuation payment that is the greater of the following: (a) twice the contributor's adjusted salary immediately before termination of employment (expressed as an annual amount); or (b) an amount made up of 2 components— (i) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (ii) an employer component calculated as follows: FS is the contributor's actual or attributed salary immediately before termination of employment (expressed as an annual amount) (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period (2c) A superannuation payment under subsection (2b)(a) will be made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an employer component being the difference between the employee component and twice the contributor's actual or attributed salary immediately before termination of employment (expressed as an annual amount). (3) A contributor's employment will be taken to have terminated on account of invalidity if and only if— (a) the employer (acting with the written approval of the Board) terminates the employment on the ground of the contributor's invalidity; or (i) the employer or the contributor satisfies the Board (before termination of employment) that the contributor is incapacitated for work in the contributor's present position and that there is no other position, carrying a salary of at least 80 per cent of the salary applicable to the contributor's present position, which the contributor could reasonably be expected to take, available to the contributor; and (ii) the contributor has been on sick leave, weekly payments of workers compensation, or disability pension for at least 12 months or periods aggregating at least 12 months on account of the invalidity; and (iii) after notice has been given to the Board as required by the regulations, the employer terminates the employment or the contributor resigns from employment. (4) Despite any other Act or law to the contrary an employer cannot terminate the employment of a contributor on the ground of invalidity unless the requirements of subsection (3)(a) or (b) have been satisfied. 32—Death of contributor (1) The following payments will be made if a contributor's employment is terminated by the contributor's death: (a) if the contributor is survived by a spouse—a lump sum payment will be made to the spouse; (b) if the contributor is survived by a spouse and an eligible child or eligible children—a pension will be paid to each eligible child throughout any period of dependency; (ba) if the contributor is not survived by a spouse but is survived by an eligible child or eligible children—a lump sum will be paid to the contributor's estate and a pension will be paid to each eligible child throughout any period of dependency; (c) if the contributor is not survived by a spouse or an eligible child—a lump sum payment will be made to the contributor's estate. (2) The lump sum to be paid to a surviving spouse, will be made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an employer component calculated as follows: (i) if the contributor reached the age of 55 years on or before the date of death and is not survived by an eligible child—the employer component is calculated in the same way as the employer component of the lump sum that would have been payable to the contributor if he or she had retired on the date of death; (ii) in any other case the employer component is calculated in accordance with the following formula: (b) whichever of the following is applicable in the circumstances of the case: (i) if the spouse is not receiving, and is not entitled to receive, weekly workers compensation payments in relation to the contributor's death and the contributor was an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's extrapolated contribution points by 420; (ii) if the spouse is receiving, or is entitled to receive, weekly workers compensation payments in relation to the contributor's death based on partial dependency and the contributor was an active contributor immediately before his or her death—the numerical value obtained from the following formula: n is the numerical value acp is the number of the contributor's accrued contribution points ecp is the number of the contributor's extrapolated contribution points x is the extent of the spouse's dependency expressed as a proportion of full dependency; (iii) in any other case—the numerical value obtained by dividing the number of the contributor's accrued contribution points by 420 FS is the contributor's actual or attributed salary immediately before the contributor's death (expressed as an annual amount); (a) if the contributor was an active contributor immediately before the date of death—the amount (if any) by which the employee component falls short of twice the contributor's adjusted final salary immediately before the contributor's death (expressed as an annual amount); (b) if the contributor was not then an active contributor—zero. (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period (a) if the contributor was an active contributor immediately before termination of employment—the aggregate of the number of months of the contributor's contribution period occurring after 30 June 1992 and the number of months difference between the contributor's age as at the entitlement day and the age of retirement; (2a) However, a surviving spouse will not be entitled to a benefit under this section if section 43AG applies to the spouse. (3) The pension for an eligible child is calculated as follows: (a) if the contributor is survived by a spouse, then— (i) if there are no more than 3 eligible children: (ii) if there are more than 3 eligible children: (b) if the contributor is not survived by a spouse, then— (i) if there are no more than 3 eligible children: (ii) if there are more than 3 eligible children: (a) unity (i) if the contributor was an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's extrapolated contribution points by 420; (ii) if the contributor was not an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's accrued contribution points by 420 FS is the contributor's actual or attributed salary immediately before the contributor's death (expressed as an amount per fortnight) n is the number of eligible children. (3a) The lump sum to be paid to the estate of a contributor who is not survived by a spouse but is survived by an eligible child or eligible children will be charged against the contributor's contribution account to the extent of the amount standing to the credit of the account and will be the aggregate of the following amounts: (i) if the contributor was an active contributor immediately before his or her death—the greater of the following amounts: (A) an amount equivalent to the amount standing to the credit of the contributor's contribution account; (B) an amount equivalent to twice the amount of the contributor's adjusted salary immediately before the contributor's death (expressed as an annual amount); (ii) if the contributor was not an active contributor immediately before his or her death—an amount equivalent to the amount standing to the credit of the contributor's contribution account; and (b) an amount calculated as follows: (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period FS is the contributor's actual or attributed salary immediately before the contributor's death (expressed as an annual amount) (a) if the contributor was an active contributor immediately before termination of employment—the aggregate of the number of months of the contributor's contribution period occurring after 30 June 1992 and the number of months difference between the contributor's age as at the entitlement day and the age of retirement; (4) The pension for an eligible child will be indexed. (5) The lump sum to be paid to the estate of a contributor who is not survived by a spouse or an eligible child will be made up of 2 components— (a) an employee component (to be charged against the contributor's contribution account) equivalent to the amount standing to the credit of the contributor's contribution account; and (i) (ii) FS is the contributor's actual or attributed salary immediately before death (expressed as an annual amount) (a) in the case of a contributor who was in full-time employment during that part of the contribution period occurring after 30 June 1992—1; (b) in any other case—the numerical value arrived at by expressing the contributor's employment while an active contributor during that part of the contribution period as a proportion of full-time employment during that part of the contribution period (a) in relation to a contributor who was at the date of death under the age of 60 years—the lesser of 60 and the number of months by which the contributor's age fell short of 60 years; 32A—PSESS benefit (1) Subject to this section, a person who is entitled to a benefit under this Part is entitled also to payment of the amount standing to the credit of the contributor's account under subsection (6) being an amount equivalent to the amount accrued under the Public Sector Employees Superannuation Scheme in respect of the contributor. (2) If a contributor who has resigned from employment elects to take the amount standing to the credit of his or her contribution account, the amount referred to in subsection (1) will— (a) be paid to or in relation to the contributor at the time at which, and in the circumstances under which, payment of benefits would be made to or in relation to the contributor if he or she had preserved his or her accrued superannuation benefits; or (b) be carried over to some other superannuation fund or scheme approved by the Board. (3) If a contributor who has resigned from employment elects to carry over his or her accrued superannuation benefits to an approved superannuation fund or scheme and the Board is satisfied that the contributor has been admitted to membership of the fund or scheme, the amount referred to in subsection (1) will be paid on behalf of the contributor to the fund or scheme. (4) If at the time payment is to be made under subsection (1) the contributor has died, the payment will be made to the contributor's spouse or if the contributor is not survived by a spouse, to the contributor's estate. (5) If the amount referred to in subsection (1) has not been determined when it would otherwise be payable under this section, the amount is not payable until the expiration of 7 days after it has been determined. (6) The Board will maintain an account in the name of each contributor and the Board must— (a) credit to each account (when the amount has been determined) an amount equivalent to the amount accrued under the Public Sector Employees Superannuation Scheme as at 30 June 1992 in respect of the contributor; and (b) credit to each account at the end of the 1992/1993 financial year and at the end of each succeeding financial year—an amount that reflects the rate of return determined by the Board in relation to the contribution accounts of new scheme contributors for the relevant financial year. (7) If there is a delay in crediting the amount referred to in subsection (6)(a), the amount referred to in subsection (6)(b) will be determined on the assumption that the amount referred to in subsection (6)(a) had been credited on 1 July 1992. (8) If it is necessary to determine the balance of an account referred to in subsection (6) at some time other than the end of a financial year, the balance will be extrapolated by applying a percentage rate of return estimated by the Board. 32B—Commutation to pay deferred superannuation contributions surcharge—contributor (1) A contributor who is liable for a deferred superannuation contributions surcharge as a result of a benefit becoming payable to the contributor may apply to the Board, in accordance with this section— (a) to receive part of the benefit in the form of a commutable pension; and (b) to fully commute the pension. (2) A contributor who has become entitled to a benefit, or will shortly become entitled to a benefit, may— (a) estimate the amount of the surcharge the contributor will become liable to pay (the estimated surcharge amount); and (i) withhold from the contributor's benefit an amount equal to the estimated surcharge amount (the withheld amount); and (ii) pay the balance of the benefit to the contributor (being, in the case of a benefit to which the contributor is yet to become entitled, a payment after the entitlement arises), and the Board must, subject to subsection (4), comply with the contributor's request. (3) If a contributor has made a request under subsection (2)(b), the contributor must, before the expiration of 2 months following the issue of a surcharge notice in respect of the contributor, advise the Board in the approved form that the notice has been issued and the Board must, within 7 days of receiving that advice— (i) if the amount of the surcharge payable by the contributor is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the contributor— (4) The Board may reject an application under subsection (1) if— (a) it is not satisfied that, if the application were accepted, the resulting lump sum will be applied in payment of the surcharge; or (b) the contributor fails to satisfy the Board that the contributor has, or will have, a surcharge liability to the Commissioner of Taxation. (5) The factors to be applied in— (a) the conversion of a withheld amount (or part of a withheld amount) into a pension; and (b) the commutation of a pension, will be determined by the Treasurer on the recommendation of an actuary. 32C—Commutation to pay deferred superannuation contributions surcharge following death of contributor (1) If a contributor who is liable for a deferred superannuation contributions surcharge dies— (a) having made a request of the Board under section 32B for part of his or her benefit to be withheld but before receiving a surcharge notice; or (b) having received a surcharge notice but before requesting commutation of his or her pension under section 32B, the contributor's spouse or, if the contributor is not survived by a spouse, the contributor's legal representative, may, before the expiration of the period of 2 months immediately following the contributor's death or the issue of the surcharge notice (whichever is the later), apply to the Board— (c) to receive the amount withheld by the Board on behalf of the deceased contributor under section 32B in the form of a commutable pension; and (d) to fully commute the pension. (2) The Board must, on receipt of an application under subsection (1)— (i) if the amount of the surcharge payable by the spouse or estate is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the spouse or estate— (3) If a contributor dies without having made a request under section 32B, the contributor's spouse or, if the contributor is not survived by a spouse, the contributor's legal representative, may— (a) estimate the amount of the surcharge the spouse or estate will become liable to pay (the estimated surcharge amount); and (i) withhold from the spouse's benefit or the benefit payable to the estate an amount equal to the estimated surcharge amount (the withheld amount); and (ii) pay the balance of the benefit to the spouse or estate, and the Board must, subject to subsection (6), comply with the request. (4) An application under subsection (3) must be made in writing to the Board before payment of the benefit to the spouse or legal representative. (5) The spouse or legal representative must, before the expiration of 2 months following the issue of a surcharge notice in respect of the contributor, advise the Board in the approved form that the notice has been issued and the Board must, within 7 days of receiving that advice— (i) if the amount of the surcharge payable by the spouse or estate is less than the withheld amount—a portion of the withheld amount equal to the amount payable; or (b) immediately after converting the withheld amount, or a portion of the withheld amount, into a pension under paragraph (a)—commute the pension; and (c) pay to the spouse or estate— (6) The Board may reject an application under subsection (1) or (3) if it is not satisfied that, if the application were accepted, the resulting lump sum will be applied in payment of the surcharge or be used to reimburse the deceased contributor's estate, or the spouse or other person who has paid the surcharge on behalf of the estate. (7) The factors to be applied in— (a) the conversion of a withheld amount (or part of a withheld amount) into a pension; and (b) the commutation of a pension, will be determined by the Treasurer on the recommendation of an actuary. (8) In this section— legal representative, in relation to a deceased contributor, means a person— (a) holding office as executor of the will of the deceased contributor where probate of the will has been granted or resealed in South Australia or any other State or a Territory; or (b) holding office in South Australia or any other State or a Territory as administrator of the estate of the deceased contributor. 32D—Withheld amount An amount withheld under section 32B or 32C— (a) must be paid by the Treasurer into the Consolidated Account or a special deposit account established by the Treasurer for that purpose; and (b) will be charged against the relevant contributor's contribution account (to the extent possible) as if the amount had been paid to the contributor; and (c) will be credited with interest at a rate determined by the Treasurer; and (d) may be paid to the contributor (or the contributor's spouse or legal representative)— (i) in accordance with section 32B or 32C; or (ii) at the direction of the Board if the Board— (A) has not, within 2 years of withholding the amount, received advice that a surcharge notice has been issued in respect of the contributor; or (B) considers, at any time, there is other good reason for doing so. 32E—Payment of Division 293 tax (1) The purpose of this section is to facilitate the payment of amounts by the Board to the Commissioner of Taxation as required under Schedule 1 Subdivision 135‑C of the Taxation Administration Act in connection with Division 293 tax payable by contributors. (2) If a Division 293 release authority for a contributor who is entitled to a benefit is given to the Board in accordance with Schedule 1 Subdivision 135‑B of the Taxation Administration Act, the Board must pay to the Commissioner of Taxation from the contributor's benefit an amount equal to the release amount required to be paid by the Board in respect of the contributor under Schedule 1 section 135‑75 of the Taxation Administration Act. (3) If a Division 293 release authority has not been issued in relation to a contributor who has, or will have, a liability to pay Division 293 tax and has become, or will shortly become, entitled to a benefit, the contributor may— (a) estimate the amount of Division 293 tax he or she is, or will be, liable to pay (the estimated amount); and (i) withhold from the contributor's benefit an amount equal to the estimated amount (the withheld amount); and (ii) pay the balance of the benefit to the contributor (being, in the case of a benefit to which the contributor is yet to become entitled, a payment after the entitlement arises), and the Board must comply with the contributor's request unless it is not satisfied that the contributor has, or will have, a liability to pay Division 293 tax. (4) If a contributor has made a request under subsection (3)(b), the Board must, on receipt of a Division 293 release authority in respect of the contributor— (a) pay to the Commissioner of Taxation from the withheld amount an amount equal to the release amount required to be paid by the Board in respect of the contributor under Schedule 1 section 135‑75 of the Taxation Administration Act; and (b) pay to the contributor the balance (if any) of the withheld amount. (5) An amount withheld under this section— (a) must be paid by the Treasurer into the Consolidated Account or a special deposit account established by the Treasurer for that purpose; and (b) will be charged against the relevant contributor's contribution account (to the extent possible) as if the amount had been paid to the contributor; and (c) will be credited with interest at a rate determined by the Treasurer; and (d) must be paid— (i) to the Commissioner of Taxation or the contributor in accordance with subsection (4); or (ii) to the contributor at the direction of the Board if— (A) a Division 293 release authority in respect of the contributor has not been given to the Board within 2 years of the amount being withheld; or (B) the Board considers, at any time, there is other good reason for doing so.