Superannuation Administration (Local Government Superannuation Scheme Transitional Provisions) Regulation 1997
In ForceNSW
Jurisdiction
New South Wales
Act Number
295 of 1997
Collection
regulation
Plain English Summary
7/10 complexity
This Regulation moves specified employees, pensioners and related assets and liabilities from several state superannuation schemes into the Local Government Superannuation Scheme for employers listed in Schedule 1. The trustee (LGSS Pty Ltd) becomes responsible for managing those members and must receive transferred assets/liabilities and arrange administration and investment services. The rules set out who is transferred, how transferred amounts are calculated, time limits for elections, and how disputes and adjustments are handled.
This Regulation sets out transitional and operational rules for transferring specified employees, contributors, pensioners, assets and liabilities into the local government superannuation scheme (LGSS) and for limited mobility between LGSS and certain State trustee schemes. It prescribes who is transferred and when (Part 2), how assets and liabilities are to be handed to LGSS Pty Ltd as trustee (Part 3), mandatory initial arrangements for administration and investment services (Part 4), detailed procedures for exercising transfer options and the actuarial and payment mechanics when members elect to move between schemes (Part 5), and the allocation of responsibility for resolving pre-transfer disputes (Part 6). Schedule 1 lists the transferred employers.
Mechanically, the principal deliverables of the instrument are:
identification of transferred members and pensions that become payable under LGSS from specified transfer days (clauses 3, 5-12, 12A-12C);
mandatory transfers of assets and rights from FTC and STC to LGSS Pty Ltd for members and employers covered by the transfers (clauses 16, 16AA, 16A);
a requirement that LGSS Pty Ltd enter a short term contract with the SAA for administration services covering up to 31 December 1997, and a requirement to contract AFML for investment management of Divisions B, C and D for a ministerially capped period (clauses 17-18);
a framework enabling eligible employees to elect to transfer between LGSS and specified State trustee schemes, with detailed eligibility tests, time limits and calculation rules for the amounts to be transferred and for trustees to determine resulting rights (Part 5, Divisions 2 to 6, notably clauses 19-21, 29-37, 32-35);
treatment of dispute resolution for pre-transfer service disputes, transferring responsibility to the trustee of LGSS (clauses 41-42);
Current sections
Direct links to the current provisions in Superannuation Administration (Local Government Superannuation Scheme Transitional Provisions) Regulation 1997.
local government superannuation scheme means the superannuation scheme established under a trust deed entered into by the Treasurer and LGSS Pty Ltd, as trustee, in accordance with section 127 of the Act.
parking patrol officer means a person:
(a) who commenced employment as a parking patrol officer with the City of Sydney Council on 17 September 2001, and
(b) who immediately before that day was employed by the Crown as a parking patrol officer (however described) and who, in the course of that employment, was subject to the direction and control of the Commissioner of Police.
(a) except as provided by the following paragraphs, 1 July 1997, or
(b) in relation to an employee referred to in clause 11 (1), the day the employee transfers to the county council referred to in clause 11 (2), or
(c) in relation to an employee transferred under Division 2 of Part 2:
(i) 28 July 2000 for an employee of Job Support Inc., or
(ii) 22 July 2002 for an employee who is a parking patrol officer, or
(iii) 1 September 2002 for an employee of Murrumbidgee Irrigation Limited or Australian Red Cross Blood Service.
transferred employer means an employer listed in Schedule 1 who is bound by the terms of the trust deed establishing the local government superannuation scheme.
transferred member means a person transferred to the local government superannuation scheme under Part 2 or a person to whom a pension referred to in clause 12 (1) (a), (b) or (c) or 12C is payable.
cl 3: Am 1.7.1997; 28.3.2002; 19.7.2002; 30.8.2002; 13.12.2002; 2005 No 91, Sch 3.15 [1].
4
Notes
4 Notes
4 Notes
The explanatory note, table of contents and notes in the text of this Regulation do not form part of this Regulation.
Part 2
Transfer of employees and other beneficiaries
Part 2 Transfer of employees and other beneficiaries
Part 2 Transfer of employees and other beneficiaries
Division 1
Initial transfer of employees and other beneficiaries
Division 1 Initial transfer of employees and other beneficiaries
Division 1 Initial transfer of employees and other beneficiaries
pt 2, div 1, hdg: Ins 28.3.2002.
4A
Application of Division
4A Application of Division
4A Application of Division
This Division does not apply to an employee transferred under Division 2.
cl 4A: Ins 19.7.2002.
5
Transfer of employees
5 Transfer of employees
5 Transfer of employees
(1) On and from the transfer day, the persons described in clauses 6, 7, 8, 9 and 10 are transferred from the superannuation schemes referred to in those clauses to the local government superannuation scheme.
(2) The persons so transferred are to be members of the following Divisions of the local government superannuation scheme, to the extent that they are described in the clause concerned:
(a) a person described in clause 6 is to be a member of Division A,
(b) a person described in clause 7 is to be a member of Division B,
(c) a person described in clause 8 is to be a member of Division C,
(d) a person described in clause 9 is to be a member of Division D,
(e) a person described in clause 10 is to be a member of Division E.
(3) A person who is a person described in more than one of clauses 6, 7, 8, 9 or 10 may be a member of one or more Divisions of the local government superannuation scheme.
6
Members of First State Superannuation Scheme
6 Members of First State Superannuation Scheme
6 Members of First State Superannuation Scheme
(1) For the purposes of clause 5, this clause describes the following persons:
(a) a person who was, at any time within the period of 6 months immediately preceding the transfer day, a full member of the First State Superannuation Scheme who was employed solely by a transferred employer,
(b) a person who was, at any time within the period of 6 months immediately preceding the transfer day, a full member of the First State Superannuation Scheme who was employed by a transferred employer and who was also employed by one or more other employers under the First State Superannuation Act 1992,
(c) an optional member of the First State Superannuation Scheme who is also a person referred to in clause 7 or 9.
(2) Despite subclause (1), this clause does not describe members of the First State Superannuation Scheme whose accounts consist of amounts contributed in respect of employment with a transferred employer and other employers if, at the transfer day:
(a) the total amount in the member’s account relating to employment with transferred employers is less than $500 and the total amount relating to employment with other employers is $500 or more,
(b) the total amount in the member’s account relating to employment with transferred employers is less than the total amount relating to employment with other employers and each such total amount is less than $500.
(3) On and from the transfer day, the entitlement of a person referred to in subclause (1) (b) to preserved amounts related to previous employment by one or more other employers under the First State Superannuation Act 1992 is to be paid from the local government superannuation scheme if, at the transfer day:
(a) the total amount in the member’s account relating to employment with transferred employers is $500 or more and the total preserved amount relating to employment with other employers is less than $500, or
(b) the total amount in the member’s account relating to employment with transferred employers is more than the total preserved amount relating to employment with other employers and each such total amount is less than $500.
(4) Despite subclause (1), this clause does not describe a member of the First State Superannuation Scheme if the member has ceased to be employed by a transferred employer before the transfer day and notice has been received of the cessation by FTC before the transfer day.
(5) Except as provided by subclause (3) in respect of preserved amounts, this Regulation does not transfer a person from the First State Superannuation Scheme in respect of contributions that are or have been made by or on behalf of the person in respect of the person’s employment by an employer that is not a transferred employer.
(6) In this clause:
transferred employer includes a predecessor of a transferred employer.
7
Contributors to State Authorities Superannuation Scheme
7 Contributors to State Authorities Superannuation Scheme
7 Contributors to State Authorities Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributor to the State Authorities Superannuation Scheme who was employed by a transferred employer,
Employees under State Authorities Non-contributory Superannuation Scheme
8 Employees under State Authorities Non-contributory Superannuation Scheme
8 Employees under State Authorities Non-contributory Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributing employee, under the State Authorities Non-contributory Superannuation Scheme, within the meaning of section 26C of the State Authorities Non-contributory Superannuation Act 1987 and who is a person described in clause 7 or 9,
(b) a person who, immediately before the transfer day, had a preserved benefit in the State Authorities Non-contributory Superannuation Scheme and who is a person described in clause 7 or 9.
9
Contributors to State Superannuation Scheme
9 Contributors to State Superannuation Scheme
9 Contributors to State Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributor to the State Superannuation Scheme who was employed by a transferred employer,
(b) a person who, immediately before the transfer day, had a preserved or deferred benefit under Division 3A or 3B of Part 4 of the Superannuation Act 1916 and who, immediately before the benefit was preserved or deferred, was employed by a transferred employer or a predecessor of a transferred employer.
10
Members of Public Sector Executives Superannuation Scheme
10 Members of Public Sector Executives Superannuation Scheme
10 Members of Public Sector Executives Superannuation Scheme
For the purposes of clause 5, this clause describes a person who was, immediately before the transfer day:
(a) employed by a transferred employer, and
(b) a member of the Public Sector Executives Superannuation Scheme.
11
Employees of new county councils
11 Employees of new county councils
11 Employees of new county councils
(1) On and from the day an employee described in subclause (2) transfers from a body referred to in that subclause to a county council referred to in that subclause, the employee is transferred from the superannuation scheme referred to in subclause (2) to the local government superannuation scheme.
(2) For the purposes of this clause, the employees to be transferred are:
(a) employees of Great Southern Energy who transfer to the Riverina Water County Council and who, if Great Southern Energy were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(b) employees of North Power who transfer to the MidCoast County Council and who, if North Power were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(c) employees of the Department of Public Works and Services who transfer to the Goldenfields Water County Council and who, if the Department were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(d) employees of Great Southern Energy who transfer to the Goldenfields Water County Council and who, if Great Southern Energy were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses.
(3) An employee so transferred is to be a member of the Division of the local government superannuation scheme applicable if the assumptions set out in subclause (2) applied.
(4) An employee cannot transfer to a superannuation scheme under this clause after 1 October 1997.
cl 11: Am 19.9.1997.
12
Transfer of payment of certain pensions
12 Transfer of payment of certain pensions
12 Transfer of payment of certain pensions
(1) On and from the 1 July 1997, the following pensions are payable under the local government superannuation scheme:
(a) a pension payable to a person who, immediately before the 1 July 1997, received a pension under any of the following Acts or regulation:
and who was employed by a transferred employer, or a predecessor of the employer, immediately before becoming entitled to the pension, or a pension payable (before or after the 1 July 1997) to the spouse or a child of such a person,
(b) a pension payable to a person who, immediately before the 1 July 1997, received a pension under the Superannuation Act 1916 and who was employed by a transferred employer, or a predecessor of the employer, immediately before becoming entitled to the pension, or a pension payable (before or after the 1 July 1997) to the spouse or a child of such a person,
(2) For the purposes of the local government superannuation scheme:
(a) a person to whom a pension referred to in subclause (1) (a) or (c) is payable is taken to be a member of Division B of that scheme, and
(b) a person to whom a pension referred to in subclause (1) (b) is payable is taken to be a member of Division D of that scheme.
cl 12: Am 19.7.2002.
Division 2
Transfer of additional employees
Division 2 Transfer of additional employees
Division 2 Transfer of additional employees
pt 2, div 2: Ins 28.3.2002.
12A
Definition
12A Definition
12A Definition
In this Division:
employee means any of the following:
(a) a person who was an employee of Jobsupport Inc. (ARBN 054 350 793) immediately before 28 July 2000,
(b) a person who was an employee of Murrumbidgee Irrigation Limited immediately before 1 September 2002,
(c) a person who is a parking patrol officer,
(d) a person who was an employee of Australian Red Cross Blood Service immediately before 1 September 2002.
cl 12A: Ins 28.3.2002. Am 19.7.2002; 30.8.2002.
12B
Transfer of employees
12B Transfer of employees
12B Transfer of employees
(1) On and from the transfer day, the following employees are transferred from the superannuation schemes referred to in subclauses (3), (4), (5) and (6) to the following Divisions of the local government superannuation scheme:
(a) an employee described in subclause (3) is to be a member of Division A,
(b) an employee described in subclause (4) is to be a member of Division B,
(c) an employee described in subclause (5) is to be a member of Division C,
(d) an employee described in subclause (6) is to be a member of Division D.
(2) A employee who is described in more than one subclause may be a member of one or more Divisions of the local government superannuation scheme.
(3) This subclause describes the following employees:
(a) an employee who was, at any time within the period of 6 months immediately preceding the transfer day, a full member of the First State Superannuation Scheme,
(b) an optional member of the First State Superannuation Scheme who is also an employee referred to in subclause (4) or (6).
(4) This subclause describes an employee who, immediately before the transfer day, was a contributor to the State Authorities Superannuation Scheme.
(5) This subclause describes a employee who, immediately before the transfer day, was a contributing employee, under the State Authorities Non-contributory Superannuation Scheme, within the meaning of section 26C of the State Authorities Non-contributory Superannuation Act 1987 and who is an officer described in subclause (4) or (6).
(6) This subclause describes an employee who, immediately before the transfer day, was a contributor to the State Superannuation Scheme.
cl 12B: Ins 28.3.2002. Am 19.7.2002.
12C
Transfer of payment of pensions
12C Transfer of payment of pensions
12C Transfer of payment of pensions
(1) On and from 1 September 2002, the pensions described in subclause (2) are payable under the local government superannuation scheme.
(2) A pension payable to a person who, immediately before 1 September 2002, received a pension under any of the following Acts or regulations:
(c) any of the Acts or regulations listed in clause 12 (1) (a) or (c),
and who was employed by Murrumbidgee Irrigation Limited immediately before becoming entitled to the pension, or a pension payable (before or after 1 September 2002) to the spouse or child of any such person.
(3) A reference to Murrumbidgee Irrigation Limited in this clause does not include a reference to a predecessor of Murrumbidgee Irrigation Limited.
(4) For the purposes of the local government superannuation scheme, the person to whom a pension is payable, or to whose spouse or child a pension is payable, under the scheme because of this clause is taken to be a member of the following Division of the local government superannuation scheme:
(a) if the person received a pension under the State Authorities Superannuation Act 1987 or any of the Acts or regulations listed in clause 12 (1) (a) or (c), Division B,
(1) On transfer under this Part, a transferred member (except as provided by clause 14) ceases to have any entitlements, rights and obligations under the scheme from which the member was transferred to the extent to which the member is transferred.
(2) A right of appeal available to a transferred member before the transfer of the member under this Part in respect of a matter involving a dispute with the trustee of the member’s previous superannuation scheme, and not finally dealt with before the transfer day, is to be dealt with in accordance with procedures under the local government superannuation scheme as if the dispute were with LGSS Pty Ltd.
(3) A right of appeal available to a former member of or contributor to a FTC scheme or STC scheme in respect of a matter involving a dispute with the trustee of that scheme, and not finally dealt with before the transfer of assets and liabilities of the scheme in respect of the former member or contributor under clause 16 or 16A, is to be dealt with in accordance with procedures under the local government superannuation scheme as if the dispute were with LGSS Pty Ltd.
cl 13: Am 1.10.1999; 2004 No 10, Sch 2.2 [1].
14
Adjustment of transfers
14 Adjustment of transfers
14 Adjustment of transfers
(1) Despite any other provision of this Regulation, a person who has been mistakenly identified as a transferred member within the meaning of this regulation and transferred to or dealt with under the local government superannuation scheme may be transferred back to or dealt with under the scheme from which the person was originally transferred.
(2) Any person referred to in subclause (1) is taken to have always been a member of or to have been dealt with under the original superannuation scheme and FTC and STC must make any necessary adjustments to contributions, accounts and benefits accordingly.
(3) Despite any other provision of this Regulation, a person who has been mistakenly not identified as a transferred member within the meaning of this regulation and has not been transferred to or dealt with under the local government superannuation scheme may be transferred to or dealt with under the local government superannuation scheme.
(4) Any person referred to in subclause (3) is taken to have been a member of or to have been dealt with under the local government superannuation scheme on and from the transfer day for the person and LGSS Pty Ltd must make any necessary adjustments to contributions, accounts and benefits accordingly.
(5) Despite any other provision of this Regulation, a person described in clause 6 may, if so permitted by LGSS Pty Ltd, elect to transfer back to the First State Superannuation Fund and subclause (2) applies to any such person in the same way it applies to a person mistakenly transferred.
(6) For the purposes of clause 15 (1), a person who makes an election referred to in subclause (5) is not a transferred member.
cl 14: Am 2005 No 91, Sch 3.15 [2].
15
Status of employers
15 Status of employers
15 Status of employers
(1) A transferred employer is taken not to be an employer in respect of a transferred member for the purposes of an Act establishing an STC scheme or FTC scheme.
(2) This clause applies only to a transferred employer who is an “Employer” within the meaning of the trust deed establishing the local government superannuation scheme and who is bound by the terms of the trust deed.
Part 3
Transfer of assets and liabilities
Part 3 Transfer of assets and liabilities
Part 3 Transfer of assets and liabilities
pt 3, hdg: Subst 10.7.1998.
16
Transfer of assets to LGSS
16 Transfer of assets to LGSS
16 Transfer of assets to LGSS
(1) FTC and STC must transfer to LGSS Pty Ltd, as the trustee of the local government superannuation scheme, assets equivalent to an amount calculated in accordance with this clause in respect of the assets of the FTC or STC scheme or fund attributable in respect of the transferred members and the transferred employers covered by the local government superannuation scheme and transferred under Division 1 of Part 2.
(2) The assets are to be transferred and calculated in accordance with the transfer agreements entered into between FTC and STC with LGSS Pty Ltd, in connection with the transfer of transferred members under this Regulation.
(3) Every asset of FTC and STC in the nature of a right, entitlement, privilege, claim or chose in action against a person who is:
(a) a transferred member, or
(b) a former member of or contributor to a scheme referred to in Division 1 of Part 2, or
(c) a claimant against FTC or STC through any such member, former member or contributor,
that arises by virtue of the employment of the member, former member or contributor by a transferred employer is by this subclause transferred to LGSS Pty Ltd as the trustee of the local government superannuation scheme.
(4) Every asset of FTC and STC in the nature of a right, entitlement, privilege, claim or chose in action against a transferred employer is by this subclause transferred to LGSS Pty Ltd as the trustee of the local government superannuation scheme.
(5) In this clause, transferred employer includes a predecessor of a transferred employer.
(6) Nothing in this clause transfers a right, entitlement, privilege, claim or chose in action for the enforcement of which any proceedings were instituted before the commencement of this subclause.
cl 16: Am 10.7.1998; 1.10.1999; 28.3.2002.
16AA
Transfer of assets relating to additional employees
16AA Transfer of assets relating to additional employees
16AA Transfer of assets relating to additional employees
(1) FTC and STC must transfer to LGSS Pty Ltd, as the trustee of the local government superannuation scheme, assets equivalent to an amount calculated in accordance with this clause in respect of the assets of the FTC or STC scheme or fund attributable in respect of transferred members under Division 2 of Part 2 (additional employees).
(2) The assets are to be transferred and calculated in accordance with the transfer agreements entered into between FTC and STC with LGSS Pty Ltd, in connection with the transfer of additional employees under Division 2 of Part 2.
(3) Every asset of FTC and STC in the nature of a right, entitlement, privilege, claim or chose in action against a person who is:
(a) an additional employee, or
(b) a claimant against FTC or STC through any such employee,
that arises by virtue of the employment of the employee is by this subclause transferred to LGSS Pty Ltd as the trustee of the local government superannuation scheme.
(4) Every asset of FTC and STC in the nature of a right, entitlement, privilege, claim or chose in action against the employer (or the predecessor of the employer) of an additional employee is by this subclause transferred to LGSS Pty Ltd as the trustee of the local government superannuation scheme.
(5) Nothing in this clause transfers a right, entitlement, privilege, claim or chose in action for the enforcement of which any proceedings were instituted before the commencement of this subclause.
cl 16AA: Ins 28.3.2002.
16A
Transfer of liabilities
16A Transfer of liabilities
16A Transfer of liabilities
(1) A liability of a superannuation scheme referred to in Part 2 to pay any amount that is due and payable under the scheme to a former member of or contributor to the scheme by virtue of his or her employment by a transferred employer is by this subclause transferred to LGSS Pty Ltd.
(2) Assets transferred under clause 16 or 16AA, and assets derived from the investment of such assets, may be applied to meet any liability transferred by this clause.
(3) In this clause, transferred employer includes a predecessor of a transferred employer.
cl 16A: Ins 10.7.1998. Am 28.3.2002.
Part 4
Administration and investment services
Part 4 Administration and investment services
Part 4 Administration and investment services
17
Provision of superannuation scheme administration services
17 Provision of superannuation scheme administration services
17 Provision of superannuation scheme administration services
(1) LGSS Pty Ltd, as the trustee of the local government superannuation scheme, must enter into a contract or arrangement with the SAA for the provision by the SAA of superannuation scheme administration services for the local government superannuation scheme.
(2) The contract or arrangement is to cover a period commencing on or before the transfer day and ending on 31 December 1997.
(3) The superannuation scheme administration services that may be provided under the contract or arrangement include (but are not limited to) the following:
(a) collecting contributions to superannuation schemes,
(b) keeping and maintaining member records,
(c) providing information and advice to members,
(d) preparing financial statements on behalf of the trustee,
(e) processing of claims and payment of benefits.
(4) On or after the end of the contract or arrangement referred to in subclause (1), LGSS Pty Ltd is not required to enter into a further contract or arrangement with the SAA but may enter into a contract or arrangement with the SAA (or its successors) or any other person for the provision of superannuation scheme administration services.
18
Provision of superannuation investment management services
18 Provision of superannuation investment management services
18 Provision of superannuation investment management services
(1) The trustee of the local government superannuation scheme must enter into a contract or an arrangement with AFML (or its successors) for the provision by AFML of superannuation investment management services for Divisions B, C and D of the local government superannuation scheme.
(2) The contract or arrangement is to cover a period commencing on or before the transfer day and ending on a date determined by the Minister (not being a date later than 30 June 2002) for the purposes of this clause.
(3) Any such contract or arrangement may provide for the circumstances in which it may be ended before that period expires. Any such termination of the contract has no effect unless it is approved in writing by the Minister.
(4) On or after the end of the contract or arrangement referred to in subclause (1), LGSS Pty Ltd is not required to enter into a further contract or arrangement with AFML but may enter into a contract or arrangement with AFML (or its successors) or any other person for the provision of superannuation investment management services.
(5) For the purposes of this clause:
AFML means Axiom Funds Management Limited.
superannuation investment management services include (but are not limited to) the following:
(a) acting as investment manager for any superannuation fund or funds concerned or part of any such fund,
(b) advising on investments and investment strategies and other related strategies for any superannuation fund or funds concerned or part of any such fund.
Part 5
Mobility between schemes
Part 5 Mobility between schemes
Part 5 Mobility between schemes
pt 5: Ins 1.10.1999.
19
Definitions
19 Definitions
19 Definitions
In this Regulation:
appointed day means 1 October 1999.
election means an election under Division 4 to exercise a transfer option referred to in section 128A of the Act.
STC employer means an employer responsible for making contributions under a superannuation scheme of which STC is trustee.
transferee scheme means the superannuation scheme to which a person elects to transfer in accordance with this Part.
transferor scheme means the superannuation scheme from which a person elects to transfer in accordance with this Part.
cl 19: Ins 1.10.1999.
19A
Application of Part
19A Application of Part
19A Application of Part
This Part extends to apply in respect of an employee whose transfer of employment took place at any time after 1 July 1997.
(b) that is responsible for making contributions under an STC scheme of which the employee concerned was previously a member or to which the employee concerned previously contributed.
Note—
Subsections (2) and (3) of section 128A of the Act limit the transfer option available under that section to a class of employees who are employed by a “prescribed public sector employer”.
cl 20: Ins 1.10.1999.
21
Eligible employees and contributors
21 Eligible employees and contributors
21 Eligible employees and contributors
The following persons are eligible to exercise a transfer option:
(a) a Category 1 elector—that is, a person who, on the appointed day, was (or, after the appointed day, became) a contributor to the State Superannuation Scheme or to the State Authorities Superannuation Scheme and who, in accordance with clause 23, is taken to have transferred employment,
(b) a Category 2 elector—a person who, on the appointed day, was (or, after the appointed day, became) a contributor to Division B or D of the local government superannuation scheme and who, in accordance with clause 24, is taken to have transferred employment,
(c) a Category 3 elector—a person who, on or after the appointed day, held deferred benefits in both the State Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme in relation to the same period of employment and who, in accordance with clause 25, is taken to have transferred employment,
(d) a Category 4 elector—a person who, on or after the appointed day, held deferred benefits in both the State Authorities Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme in relation to the same period of employment and who, in accordance with clause 26, is taken to have transferred employment,
(e) a Category 5 elector—a person who, on or after the appointed day, held deferred benefits in each of Divisions B and C of the local government superannuation scheme in relation to the same period of employment and who, in accordance with clause 27, is taken to have transferred employment,
(f) a Category 6 elector—a person who, on or after the appointed day, held deferred benefits in each of Divisions C and D of the local government superannuation scheme in relation to the same period of employment and who, in accordance with clause 28, is taken to have transferred employment,
(g) a Category 7 elector—a person who, on or after 1 July 1997, was a contributor to the Police Superannuation Scheme and who, in accordance with clause 28A, is taken to have transferred employment.
Note—
This clause allows (subject to the employment continuity restrictions imposed by Division 3):
(a) transfers from STC schemes to the local government superannuation scheme by a member of an STC scheme who leaves a public sector employer prescribed for the purposes of the relevant STC scheme to take up employment with a local government employer, and
(b) transfers from the local government superannuation scheme to STC schemes by a member of the local government superannuation scheme who was previously a member of an STC scheme and who leaves a local government employer to take up employment with a public sector employer prescribed for the purposes of the relevant STC scheme.
cl 21: Ins 1.10.1999. Am 13.12.2002; 7.11.2003.
22
Application of Division
22 Application of Division
22 Application of Division
The provisions of this Division define, for the purposes of section 128A (2) (b) and (3) (b) of the Act, the circumstances in which a transfer of employment is taken to have occurred.
cll 22–28: Ins 1.10.1999.
23
Contributors to SSS or SASS
23 Contributors to SSS or SASS
23 Contributors to SSS or SASS
A person who is a Category 1 elector is taken to have transferred employment if:
(a) the person has ceased, on or after the appointed day, to be a contributor to the State Superannuation Scheme or to the State Authorities Superannuation Scheme, and
(b) within 3 months after ceasing to be a contributor to that scheme, the person has become an employee of an employer under the local government superannuation scheme.
cll 22–28: Ins 1.10.1999.
24
Contributors to the local government superannuation scheme
24 Contributors to the local government superannuation scheme
24 Contributors to the local government superannuation scheme
A person who is a Category 2 elector is taken to have transferred employment if:
(a) the person has ceased, on or after the appointed day, to be a contributor to Division B or D of the local government superannuation scheme, and
(b) within 3 months after ceasing to be such a contributor, the person has become an employee of an STC employer.
cll 22–28: Ins 1.10.1999.
25
Holders of deferred benefits in SSS and SANCSS
25 Holders of deferred benefits in SSS and SANCSS
25 Holders of deferred benefits in SSS and SANCSS
(1) A person who is a Category 3 elector is taken to have transferred employment if:
(a) within the prescribed time after the person’s benefits in the State Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme were deferred, the person has become an employee of an employer under the local government superannuation scheme, and
(b) the person has thereafter remained an employee of that employer, or been employed by a succession of employers under the local government superannuation scheme or STC employers (or any combination of both), with no break in service longer than the prescribed time.
(2) In this clause, the prescribed time means the time allowed for the purposes of section 38C (2) of the Superannuation Act 1916.
cll 22–28: Ins 1.10.1999.
26
Holders of deferred benefits in SASS and SANCSS
26 Holders of deferred benefits in SASS and SANCSS
26 Holders of deferred benefits in SASS and SANCSS
(1) A person who is a Category 4 elector is taken to have transferred employment if:
(a) within the prescribed time after the person’s benefits in the State Authorities Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme were deferred, the person has become an employee of an employer under the local government superannuation scheme, and
(b) the person has thereafter remained an employee of that employer, or been employed by a succession of employers under the local government superannuation scheme or STC employers (or any combination of both), with no break in service longer than the prescribed time.
Holders of deferred benefits in Divisions B and C of local government superannuation scheme
27 Holders of deferred benefits in Divisions B and C of local government superannuation scheme
27 Holders of deferred benefits in Divisions B and C of local government superannuation scheme
(1) A person who is a Category 5 elector is taken to have transferred employment if:
(a) within the prescribed time after the person’s benefits in Divisions B and C of the local government superannuation scheme were deferred, the person has become an employee of an STC employer, and
(b) the person has thereafter remained an employee of that employer, or been employed by a succession of STC employers or employers under the local government superannuation scheme (or any combination of both), with no break in service longer than the prescribed time.
Holders of deferred benefits in Divisions C and D of local government superannuation scheme
28 Holders of deferred benefits in Divisions C and D of local government superannuation scheme
28 Holders of deferred benefits in Divisions C and D of local government superannuation scheme
(1) A person who is a Category 6 elector is taken to have transferred employment if:
(a) within the prescribed time after the person’s benefits in Divisions C and D of the local government superannuation scheme were deferred, the person has become an employee of an STC employer, and
(b) the person has thereafter remained an employee of that employer, or been employed by a succession of STC employers or employers under the local government superannuation scheme (or any combination of both), with no break in service longer than the prescribed time.
(2) In this clause, the prescribed time means the time allowed for the purposes of section 38C (2) of the Superannuation Act 1916.
cll 22–28: Ins 1.10.1999.
28A
Contributors to Police Superannuation Scheme
28A Contributors to Police Superannuation Scheme
28A Contributors to Police Superannuation Scheme
A person who is a Category 7 elector is taken to have transferred employment if:
(a) the person ceased, on or after 1 July 1997, to be a contributor to the Police Superannuation Scheme, and
(b) within 3 months after ceasing to be a contributor to that scheme, the person became an employee of an employer under the local government superannuation scheme.
cl 28A: Ins 13.12.2002.
Division 4
Exercise of transfer option
Division 4 Exercise of transfer option
Division 4 Exercise of transfer option
pt 5, div 4: Ins 1.10.1999.
29
Manner and form of exercising option
29 Manner and form of exercising option
29 Manner and form of exercising option
An election to exercise a transfer option is to be given in writing to the trustee of the transferee scheme, using a form approved by that trustee.
cll 29: Ins 1.10.1999.
30
Provision of information
30 Provision of information
30 Provision of information
(1) An elector must provide such information as may be required to complete the election form, being information that the trustees of the transferor or transferee schemes may reasonably require to give effect to the election.
(2) Either trustee is entitled to require the other to provide information (including members’ files) reasonably necessary to give effect to the election.
(3) Either trustee is entitled to require an employer, under a scheme for which it is trustee, to provide such information as may be reasonably necessary to the trustee in order to give effect to the election.
cll 30: Ins 1.10.1999.
31
Time within which option may be exercised
31 Time within which option may be exercised
31 Time within which option may be exercised
(1) An election by a Category 1, 2 or 7 elector who, in accordance with clause 23, 24 or 28A, is taken to have transferred employment must be made within 3 months after the transfer of employment.
(2) An election by a Category 3, 4, 5 or 6 elector who, in accordance with clause 25, 26, 27 or 28, is taken to have transferred employment before the appointed day must be made within 12 months after that day.
(3) An election by a Category 3, 4, 5 or 6 elector who, in accordance with clause 25, 26, 27 or 28, is taken to have transferred employment on or after the appointed day must be made within 12 months after the transfer of employment.
(4) An election takes effect when the election form, duly completed, is received by the trustee of the transferee scheme.
(5) However, an election does not take effect if an elector has applied for a payment of a benefit (including a deferred benefit) under the transferor scheme before the election is received by the trustee of the transferee scheme.
(6) Despite any other provision of this clause, the trustee of the transferee scheme may allow an elector an additional period in which to make an election if the trustee thinks it appropriate in the circumstances.
(7) The additional period that may be allowed under subclause (6) must not exceed:
(a) if the elector is a Category 7 elector, such period as is determined by the trustee, or
(b) in any other case, 12 months after the expiration of the original period within which the election should have been made.
cl 31: Ins 1.10.1999. Am 13.12.2002.
Division 5
Transfer of assets on exercise of transfer option
Division 5 Transfer of assets on exercise of transfer option
Division 5 Transfer of assets on exercise of transfer option
pt 5, div 5: Ins 1.10.1999.
32
Amounts transferable on exercise of option
32 Amounts transferable on exercise of option
32 Amounts transferable on exercise of option
(1) On the exercise by a person of a transfer option, there is payable by the trustee of the transferor scheme to the trustee of the transferee scheme:
(a) an eligible termination payment calculated in accordance with clause 33, and
(b) the difference between:
(i) the sum of the primary and supplementary amounts calculated in accordance with clauses 34 and 35, and
(ii) the eligible termination payment referred to in paragraph (a).
(2) It is the duty of scheme trustees to ensure that the payments prescribed by this clause are duly made and credited to the appropriate accounts for the employee concerned in the transferee scheme.
cl 32: Ins 1.10.1999.
33
Eligible termination payment
33 Eligible termination payment
33 Eligible termination payment
(1) For a Category 1, 2 or 7 elector, the eligible termination payment is the amount that would have been immediately payable to the person, in accordance with the rules of the transferor scheme, on the person’s resignation from his or her employment.
(2) For a Category 3 elector, the eligible termination payment is the sum of:
(a) the amount that would have been payable if, on the date the election takes effect, the person had elected to take the benefit payable under section 52I of the Superannuation Act 1916, and
(3) For a Category 4 elector, the eligible termination payment is the sum of:
(a) the amount that would have been payable if, on the date the election takes effect, the person had elected to take the benefit payable under section 43 (7) of the State Authorities Superannuation Act 1987, and
(4) For a Category 5 elector, the eligible termination payment is the sum of:
(a) the amount of benefit to which the elector would have been entitled under subrule 5.10.10 of Schedule 2 to the trust deed governing the local government superannuation scheme if the elector had resigned from employment and had, on the date the election takes effect, made any necessary election under that Schedule, and
(b) the amount of benefit to which the person was entitled on that date under Schedule 3 to the trust deed governing the local government superannuation scheme.
(5) For a Category 6 elector, the eligible termination payment is the sum of:
(a) the amount of cash termination benefit to which the elector would have been entitled under subrule 16.11 of Schedule 4 to the trust deed governing the local government superannuation scheme if the elector had resigned from employment and had, on the date the election takes effect, made any necessary election under that Schedule, and
(b) the amount of benefit to which the person was entitled on that date under Schedule 3 to the trust deed governing the local government superannuation scheme.
cll 33–35: Ins 1.10.1999. Am 13.12.2002.
34
Primary amount
34 Primary amount
34 Primary amount
(1) For a Category 1, 3 or 4 elector, the primary amount is the amount determined by STC on actuarial advice to be the value of the person’s accrued benefit in the State Superannuation Scheme or the State Authorities Superannuation Scheme at the time of the election.
(2) For a Category 2, 5 or 6 elector, the primary amount is the amount determined by the trustee of the transferor scheme on actuarial advice to be the value of the person’s accrued benefit in Division B or D of the local government superannuation scheme, as the case may be, at the time of the election.
(3) For a Category 7 elector, the primary amount is the amount determined by STC on actuarial advice to be the value of the person’s accrued benefit in the Police Superannuation Scheme at the time of the election.
(2) For a Category 2, 5 or 6 elector, the supplementary amount is the amount of benefit to which the person was entitled under Schedule 3 to the trust deed governing the local government superannuation scheme on the date the election takes effect.
cll 33–35: Ins 1.10.1999. Am 13.12.2002.
Division 6
Rights of persons exercising transfer option
Division 6 Rights of persons exercising transfer option
Division 6 Rights of persons exercising transfer option
pt 5, div 6: Ins 1.10.1999.
36
Duty of trustees to electors
36 Duty of trustees to electors
36 Duty of trustees to electors
(1) It is the duty of the trustee of the transferee scheme under an election made by an eligible person to establish the person as a member of or contributor to the scheme.
(2) An elector transferring from Divisions B and C in the local government superannuation scheme is to be established in the State Authorities Superannuation Scheme and in the State Authorities Non-contributory Superannuation Scheme.
(3) An elector transferring from Divisions C and D in the local government superannuation scheme is to be established in the State Superannuation Scheme and in the State Authorities Non-contributory Superannuation Scheme.
(4) An elector transferring from the State Authorities Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme is to be established in Divisions B and C of the local government superannuation scheme.
(5) An elector transferring from the State Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme is to be established in Divisions C and D of the local government superannuation scheme.
(6) An elector transferring from the Police Superannuation Scheme and the State Authorities Non-contributory Superannuation Scheme is to be established in Divisions B and C of the local government superannuation scheme.
cl 36: Ins 1.10.1999. Am 13.12.2002.
37
Trustees to determine rights of electors
37 Trustees to determine rights of electors
37 Trustees to determine rights of electors
(1) The trustee of the transferee scheme is to determine, with actuarial advice, the rights of the elector in the scheme.
(2) Regard must also be had to any rights the elector had in the transferor scheme and the rights established in the transferee scheme must be as near as possible to them.
(3) In particular, the trustee is to take into account the following:
(a) the elector’s accrued benefits in the transferor scheme, as certified by the trustee of that scheme,
(b) the benefits that the elector could have accrued by normal retirement age in the transferor scheme,
(c) the elector’s employment status (including salary and whether full-time or part-time) in the transferee scheme, on commencement or recommencement of membership of the scheme,
(d) the amounts being transferred under Division 5.
(4) In the case of a Category 3, 4, 5 or 6 elector, the trustee must also take into account:
(a) the period of employment, with any employer responsible for making contributions under either the transferor or transferee scheme, in the period between the date the benefit was deferred and the date that the elector again becomes a member of the transferee scheme, and
(b) any employer contributions made by any such employer to any complying superannuation fund within the meaning of the Income Tax Assessment Act 1997 of the Commonwealth in respect of the elector during that period.
cl 37: Ins 1.10.1999.
38
Automatic accrual of certain rights
38 Automatic accrual of certain rights
38 Automatic accrual of certain rights
(1) A person who by election rejoins the State Superannuation Scheme is taken to have met the medical requirements of Part 2A of the Superannuation Act 1916.
(2) A person who by election joins or rejoins Division D of the local government superannuation scheme is taken to have met the medical requirements of clause 3 of Schedule 4 of the trust deed governing the local government superannuation scheme.
(3) A person who was covered for additional benefits in Division B of the local government superannuation scheme and who by election rejoins the State Authorities Superannuation Scheme is taken to have submitted an application for additional benefit cover under section 20 (1) of the State Authorities Superannuation Act 1987, and STC is taken to have approved that application.
(4) A person who was covered for additional benefits in the State Authorities Superannuation Scheme and who by election joins or rejoins Division B of the local government superannuation scheme is taken to have submitted an application for additional benefit cover under subrule 3.2.1 of Schedule 2 to the trust deed governing that scheme, and the trustee of that scheme is taken to have approved that application.
(4A) A person who was a contributor to the Police Superannuation Scheme on or after 1 July 1997 and who by election joins Division B of the local government superannuation scheme is taken to have submitted an application for additional benefit cover under subrule 3.2.1 of Schedule 2 to the trust deed governing that scheme, and the trustee of that scheme is taken to have approved that application.
(5) Additional benefit cover imputed by subclause (3), (4) or (4A) may be revoked in accordance with the rules of the relevant transferee scheme.
cl 38: Ins 1.10.1999. Am 13.12.2002.
39
Effect of transfers
39 Effect of transfers
39 Effect of transfers
On an election taking effect under this Part, and subject to any appeal rights referred to in this Part, the elector ceases to have any entitlements, rights and obligations under the scheme from which the person transferred to the extent to which the member is transferred.
cll 39: Ins 1.10.1999.
40
Appeal rights
40 Appeal rights
40 Appeal rights
(1) The rights of appeal available to an elector before a transfer option takes effect continue to apply in respect of:
(a) matters or disputes arising before that option takes effect, and
(b) any matters or disputes arising from determinations by the trustee of the transferor scheme under this Part or in relation to any payment from the transferor scheme.
(2) An elector who transfers to a transferee scheme has, in respect of any determination by the trustee of the transferee scheme as to the elector’s rights in that scheme on transfer to the scheme, the same rights of appeal as in respect of a determination by a trustee under the superannuation scheme concerned.
cll 40: Ins 1.10.1999.
Part 6
Determination of disputes
Part 6 Determination of disputes
Part 6 Determination of disputes
pt 6 (previously Part 5): Ins 5.3.1999. Renumbered 2001 No 112, Sch 2.35 [1].
41
Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under FTC schemes
41 Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under FTC schemes
41 Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under FTC schemes
A dispute concerning the entitlements or obligations of a transferred member, former member of a FTC scheme or beneficiary arising in respect of service by the transferred member or former member, before the transfer day, with a transferred employer who was responsible for the payment of benefits under an FTC scheme in respect of that service are to be determined, not by FTC, but by the trustee of the local government superannuation scheme.
cl 41 (previously cl 19): Ins 5.3.1999. Renumbered 2001 No 112, Sch 2.35 [2] (am 2002 No 53, Sch 2.25). Am 2004 No 10, Sch 2.2 [2] [3].
42
Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under STC schemes
42 Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under STC schemes
42 Disputes concerning entitlements or obligations of transferred or former members or associated beneficiaries under STC schemes
A dispute concerning the entitlements or obligations of a transferred member, former member of a STC scheme or beneficiary arising in respect of service by the transferred member or former member, before the transfer day, with a transferred employer who was responsible for the payment of benefits under an STC scheme in respect of that service are to be determined, not by STC, but by the trustee of the local government superannuation scheme.
cl 42 (previously cl 20): Ins 5.3.1999. Renumbered 2001 No 112, Sch 2.35 [2] (am 2002 No 53, Sch 2.25). Am 2004 No 10, Sch 2.2 [4] [5].
Schedule 1
Transferred employers
Schedule 1 Transferred employers
Schedule 1 Transferred employers
(Clause 3)
A body corporate constituted, or taken to be constituted, under the Local Government Act 1993 as a council or a county council
Local Government Association of New South Wales
Shires Association of New South Wales
Health and Building Surveyors Association of New South Wales
Institute of Municipal Management
Northern Area Regional Organisation of Councils
Waverley-Woollahra Destruction Committee
Richmond-Upper Clarence Regional Library
Richmond-Tweed Regional Library
The Hills Centre Limited
Federated Municipal and Shire Council Employees’ Union of Australia, New South Wales Division
Jobsupport Inc.
Murrumbidgee Irrigation Limited
Australian Red Cross Blood Service
sch 1: Am 1.7.1997; 28.3.2002; 19.7.2002; 30.8.2002.
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
Part 1 Preliminary
1 Name of Regulation
1 Name of Regulation
1 Name of Regulation
This Regulation is the Superannuation Administration (Local Government Superannuation Scheme Transitional Provisions) Regulation 1997.
2 Commencement
2 Commencement
2 Commencement
This Regulation commences on 1 July 1997.
3 Definitions
3 Definitions
3 Definitions
In this Regulation:
First State Superannuation Fund has the same meaning as Fund under the First State Superannuation Act 1992.
local government superannuation scheme means the superannuation scheme established under a trust deed entered into by the Treasurer and LGSS Pty Ltd, as trustee, in accordance with section 127 of the Act.
parking patrol officer means a person:
(a) who commenced employment as a parking patrol officer with the City of Sydney Council on 17 September 2001, and
(b) who immediately before that day was employed by the Crown as a parking patrol officer (however described) and who, in the course of that employment, was subject to the direction and control of the Commissioner of Police.
Police Superannuation Scheme means the superannuation scheme established under the Police Regulation (Superannuation) Act 1906.
Public Sector Executives Superannuation Scheme means the superannuation scheme established under the Public Sector Executives Superannuation Act 1989.
State Authorities Non-contributory Superannuation Scheme means the superannuation scheme established under the State Authorities Non-contributory Superannuation Act 1987.
State Authorities Superannuation Scheme means the superannuation scheme established under the State Authorities Superannuation Act 1987.
State Superannuation Scheme means the superannuation scheme established under the Superannuation Act 1916.
the Act means the Superannuation Administration Act 1996.
transfer day means:
(a) except as provided by the following paragraphs, 1 July 1997, or
Superannuation Administration (Local Government Superannuation Scheme Transitional Provisions) Regulation 1997 (New South Wales) | Zoe
administrative safety valves: correction of mistaken transfers (clause 14), adjustment of member status and employer status consequences (clause 15), and information‑sharing duties between trustees and employers (clause 30).
The Regulation does not create new substantive benefit entitlements beyond specifying which existing entitlements are to be administered and paid under LGSS after transfer days; it allocates rights, assets, liabilities and administrative responsibilities between trustees and prescribes procedural steps for member elections, actuarial valuation and payments. Where the Regulation prescribes an action by a trustee, it typically provides the standard to be used, for example actuarial advice in valuation (clauses 34, 37), or a form approved by the transferee trustee for elections (clause 29).
Main concepts
This Regulation employs a small set of recurring legal and operational concepts. Understanding them is essential to applying the instrument.
Transferred member / transferred employer: A transferred member is a person moved to LGSS under Part 2, or a person to whom certain pensions are payable under clauses 12, 12C. Transferred employer is an employer listed in Schedule 1 and bound by the LGSS trust deed (clause 3, definition of transferred employer; Schedule 1). The definition of transferred employer explicitly includes predecessors where noted (clause 6(6), 16(5), 16A(3)).
Transfer day and appointed day: Transfer day is generally 1 July 1997, but the Regulation provides specific alternative dates for particular cohorts and circumstances, for example 28 July 2000 for Jobsupport Inc. employees and 1 September 2002 for Murrumbidgee Irrigation Limited employees (clause 3 definition). The appointed day for mobility provisions is 1 October 1999 (clause 19).
Division membership in LGSS: The Regulation maps persons moving from particular source schemes or pension categories to specific Divisions (A, B, C, D, E) of LGSS, as set out in clause 5 and detailed by clauses 6-10 and 12, 12C.
Asset and liability transfer: FTC and STC are mandated to transfer assets and rights relating to transferred members and employers to LGSS Pty Ltd, and liabilities to pay amounts due under the source schemes are likewise transferred to LGSS Pty Ltd (clauses 16, 16AA, 16A). The transfers include choses in action against members, claimants and transferred employers, subject to a carve out for proceedings already instituted before the transfers (clauses 16(3)-(6), 16AA(3)-(5)).
Administration and investment service contracts: LGSS Pty Ltd must contract the SAA for administration services for an initial period ending 31 December 1997 (clause 17). The trustee must also enter a contract with Axiom Funds Management Limited (AFML) for investment management for Divisions B, C and D for a period running to a ministerially determined date no later than 30 June 2002; termination requires ministerial written approval (clause 18).
Mobility and election mechanics: Part 5 sets out eligibility classes (Category 1-7 electors), conditions constituting deemed transfers of employment (clauses 22-28A), how an eligible person exercises an election (written notice on a trustee approved form, clause 29), required information exchange (clause 30), time limits for elections (clause 31), calculation of amounts payable on exercise of an option (Divisions 5 and 6, clauses 32-37), and trustees’ duties to establish transferred electors in the transferee scheme (clause 36).
Appeal and dispute continuity: Pre-transfer appeal rights and disputes not finally dealt with remain available and are to be determined as if disputes were with LGSS trustee after transfer (clauses 13(2)-(3), 40). Clauses 41 and 42 move determination of certain disputes concerning pre-transfer service to LGSS trustee.
Adjustment mechanism: The Regulation provides for correcting mistaken inclusions and exclusions and for member elections to transfer back if permitted under clause 14; necessary adjustments to contributions, accounts and benefits must be made by FTC and STC or LGSS as applicable (clause 14).
These core concepts structure how members, employers, trustees and government bodies interact under the transitional and mobility arrangements the Regulation prescribes.
Who it affects
The Regulation identifies multiple affected parties and assigns roles and duties.
Transferred members: Persons who meet the various membership descriptions in clauses 6-10, 11 and 12, and additional employees defined in clause 12A, are moved into LGSS on specified transfer days. This includes contributors, optional members, preserved benefit holders, and certain pensioners whose pensions become payable under LGSS (clauses 5-12, 12A-12C).
Specific cohorts with special dates: Jobsupport Inc. employees, Murrumbidgee Irrigation Limited employees, parking patrol officers of City of Sydney Council (as narrowly defined in clause 3), and Australian Red Cross Blood Service employees are included under Division 2 with transfer dates listed in clause 3 and clauses 12A-12C.
Employers listed in Schedule 1: These are the “transferred employers” for the purposes of the instrument. Schedule 1 includes local councils and county councils constituted under the Local Government Act 1993, various regional and industry associations, Jobsupport Inc., Murrumbidgee Irrigation Limited and the Australian Red Cross Blood Service, among others. Where the trust deed treats an employer as an “Employer” and bound by the deed, clause 15(2) applies.
FTC and STC: These trustees (FTC and STC) are required to transfer assets and rights to LGSS Pty Ltd in respect of transferred members and transferred employers under Division 1 transfers, and to transfer assets relating to additional employees under Division 2 transfers (clauses 16, 16AA). They also have duties to adjust in cases of misidentification (clause 14(2)).
LGSS Pty Ltd: As trustee of LGSS, LGSS Pty Ltd receives assets and liabilities (clauses 16, 16AA, 16A), must contract with SAA and AFML for initial services (clauses 17-18), ensure members are established when electors exercise options (clause 36), and determine rights of electors with actuarial advice (clause 37).
SAA and AFML: The Regulation requires LGSS to enter a contract with the SAA for administration services until 31 December 1997 (clause 17), and to enter a contract with AFML for investment management for Divisions B, C and D until a Minister‑determined date not later than 30 June 2002 (clause 18). Those contracts may be extended but are not mandated to continue beyond those dates.
Trustees of transferor and transferee schemes: Where an elector exercises a transfer option, trustees must exchange information, calculate transferable amounts and arrange payments; the transferee trustee must use a trustee‑approved form to receive elections (clauses 29-33, 30, 32).
Beneficiaries and claimants: The Regulation transfers not only members but rights and choses in action against members and employers to LGSS, and transfers obligations to pay benefits. This affects beneficiaries, spouses and children to the extent pensions are transferred to LGSS (clauses 12, 12C, 16-16A).
Ministers and STC where relevant: The Minister has a defined role approving early termination of AFML contracts under clause 18(3); STC has roles in actuarial valuations for certain categories and responsibility where STC is trustee of a transferor scheme for determining primary amounts (clauses 34, 37).
Who pays: The Regulation prescribes transfers of assets to LGSS to meet liabilities (clause 16(1)-(2), 16A(2)). Trustees of transferor schemes are required to pay the amounts due on exercise of options to transferee trustees, including eligible termination payments and actuarially determined differences (clauses 32-35). Employers’ legal status under former schemes is adjusted for transferred members (clause 15).
Who decides: Trustees make actuarial determinations of accrued benefit values and establish members in transferee schemes (clauses 34, 36-37). The Minister holds limited approval power over AFML contract termination (clause 18(3)). Trustees also determine whether to allow extension periods for elections in specified circumstances (clause 31(6)).
Key duties and rights
The Regulation assigns specific duties to trustees, employers and other parties, and recognises rights of members, electors and beneficiaries. Below are the principal duties and rights, with the governing clauses referenced.
Duties of trustees:
LGSS Pty Ltd must enter a contract or arrangement with the SAA for superannuation administration services covering a period commencing on or before the transfer day and ending 31 December 1997 (clause 17(1)-(2)). The clause lists administrative tasks SAA may undertake, such as collecting contributions and processing claims (clause 17(3)).
The trustee of LGSS must enter a contract with AFML (or its successors) for investment management services for Divisions B, C and D covering a period to a ministerially determined date not later than 30 June 2002, and any earlier termination requires Minister written approval (clause 18(1)-(4)).
Trustees must ensure that payments required under Part 5 Division 5 are duly made and credited to the appropriate accounts for the elector concerned (clause 32(2)).
The transferee trustee has a duty, on an election, to establish the elector as a member or contributor to the transferee scheme (clause 36(1)). Clauses 36(2)-(6) specify the combinations of scheme establishments required where electors move between particular pairs of schemes.
Trustees must determine rights of electors on transfer with actuarial advice and having regard to specified matters including accrued benefits, benefits that could have accrued by normal retirement age, employment status and amounts being transferred (clause 37(1)-(3)). For certain categories, trustees must also account for post‑deferment service and any employer contributions to complying funds (clause 37(4)).
Duties of FTC and STC:
FTC and STC must transfer to LGSS assets equivalent to calculated amounts in respect of transferred members and employers under Division 1 and for additional employees under Division 2, consistent with transfer agreements entered into (clauses 16(1)-(2), 16AA(1)-(2)).
FTC and STC must transfer rights and choses in action against transferred members, former members, claimants and transferred employers to LGSS (clauses 16(3)-(4), 16AA(3)-(4)). Proceedings already instituted are excluded (clause 16(6), 16AA(5)).
FTC and STC must make necessary adjustments to contributions, accounts and benefits where a person was mistakenly transferred or mistakenly excluded (clause 14(2), (4)).
Duties of electors and applicants:
An elector must provide the information required to complete an election form, and either trustee may require the other trustee or an employer to provide necessary information, including member files (clause 30(1)-(3)).
An election must be given in writing to the trustee of the transferee scheme, using a trustee‑approved form (clause 29).
Rights of members and electors:
Members who are transferred cease to have entitlements, rights and obligations under the original scheme to the extent transferred, with exceptions for appeal rights and finalised disputes set out in clause 13 and clause 39 (clauses 13(1)-(3), 39).
Electors have time windows to make elections, and trustees may allow additional periods in specified circumstances (clause 31(1)-(7)).
When an election takes effect, the transferee trustee must establish the elector and determine rights to be as near as possible to rights in the transferor scheme, with actuarial advice (clauses 36-37).
Appeal rights that arose before a transfer continue to apply and disputes not finally dealt with are to be handled under LGSS procedures (clause 13(2)-(3), clause 40).
Special provisions and entitlements:
Medical requirements and additional benefit cover are automatically treated as satisfied or applied in certain transfers, subject to revocation under scheme rules (clause 38(1)-(5), including clause 38(4A) for police contributors).
A person mistakenly not identified as transferred may be treated as having been a member of LGSS from the transfer day and LGSS must make adjustments accordingly; conversely, a person mistakenly identified may be transferred back and the original trustee must adjust (clause 14(1)-(4)).
Status adjustments:
A transferred employer is taken not to be an employer for the purposes of FTC and STC schemes with respect to transferred members, where the transferred employer is an “Employer” under the LGSS trust deed and bound by it (clause 15(1)-(2)).
These duties and rights create a framework of operational responsibilities for trustees, a file and information exchange burden for employers and trustees, actuarial work for valuing accrued benefits and a defined set of member protections in the form of appeal rights and correction mechanisms.
Penalties and enforcement
The Regulation does not itself create express criminal penalties, fines or administrative sanction mechanisms within its text. It primarily prescribes mandatory actions and allocates responsibilities and rights. The enforcement mechanisms and consequences flow from the substantive duties and the allocation of assets and liabilities, rather than from separate penal provisions contained in the Regulation.
Key enforcement and compliance channels set out in the Regulation are:
Contractual obligations: LGSS Pty Ltd is required to enter specified contracts with the SAA and AFML for defined periods; those contractual obligations will be enforceable under contract law rather than by penal clauses in the Regulation. Clause 18(3) requires ministerial approval for terminations; compliance with that requirement will be a legal condition on termination as set out in the contract and statute, with breach consequences under contractual remedies rather than statutory penalty provisions.
Transfer of assets and liabilities: FTC and STC are required to effect transfers of assets and liabilities to LGSS Pty Ltd in accordance with the transfer agreements and the Regulation (clauses 16, 16AA, 16A). Failure to transfer assets and liabilities appropriately will leave unresolved obligations in the source trustees or raise contractual or restitution claims; the Regulation does not specify penalty amounts or administrative sanctions.
Trustee duties and fiduciary accountability: Trustees are required to act in specified ways, for example seeking actuarial advice when valuing accrued benefits (clauses 34, 37). Trustee failures would generally be addressed under the trust law and the governing trust deeds; the Regulation does not itself impose additional enforcement mechanisms beyond these existing legal frameworks.
Continuity of appeal and dispute processes: Disputes that existed before transfer or arise from the trustee determinations are to be handled under procedures of the LGSS trustee or by trustees as provided (clauses 13(2)-(3), 40-42). This assigns responsibility for adjudication rather than imposing statutory penalties.
Adjustment mechanism: Clause 14 establishes corrective procedures for mistaken transfers. It requires FTC, STC and LGSS to make necessary adjustments to accounts, contributions and benefits; the remedy is corrective rather than punitive, and the Regulation does not prescribe sanctions for failure to correct.
Practical enforcement therefore relies on:
contractual remedies for failure to comply with contractually required arrangements;
trust and fiduciary remedies against trustees who do not perform mandated duties;
the transfer agreements and actuarial valuations to set and secure transferred values and entitlements;
established appeal and dispute resolution procedures of the respective schemes, which remain operative for matters covered by the Regulation.
Readers should note the absence of express penalties in the text. Where the Regulation mandates conduct, a failure to perform will raise claims in contract, trust law or under the governing acts of the schemes, rather than attract a statutory fine or criminal sanction specified by this Regulation. Any enforcement action will therefore be framed by the legal remedies available under trust law, contract law and the underlying superannuation Acts, none of which are changed by adding new penalty clauses within this instrument as it stands.
How it interacts with other laws
The Regulation operates as a transitional and procedural instrument that interacts closely with several existing Commonwealth and State statutes and the trust deeds governing the schemes. The text explicitly references and relies on provisions and concepts from those instruments.
Primary statutory interactions:
Superannuation Administration Act 1996: The Regulation defines "the Act" to mean the Superannuation Administration Act 1996 (clause 3). Part 5 builds on section 128A of that Act by prescribing classes of employees who may exercise transfer options and detailing how elections operate (clauses 19-21, Divisions 2-6 reference section 128A).
First State Superannuation Act 1992: Clause 6 cross‑references the First State Act for defining who from the First State Superannuation Scheme is transferred. The Regulation specifies exceptions where preserved amounts related to non‑transferred employment remain outside the transfer (clause 6(5)).
Superannuation Act 1916 and State Authorities Acts: Clauses 6-10, 12, 12C and Part 5 repeatedly refer to entitlements under the Superannuation Act 1916, the State Authorities Superannuation Act 1987, the State Authorities Non‑contributory Superannuation Act 1987, the Public Sector Executives Superannuation Act 1989 and others. The Regulation makes transfers of members, preserved benefits and pensions contingent on the operation and definitions in those Acts (clauses 6-10, 12, 25-28).
Income Tax Assessment Act 1997: Clause 37(4)(b) requires trustees determining an elector’s rights to take into account any employer contributions made to a "complying superannuation fund" within the meaning of the Income Tax Assessment Act 1997. The Regulation therefore depends on that Commonwealth tax definition when reconciling post‑deferment contributions.
Local Government Act 1993: Schedule 1 lists employers constituted under the Local Government Act 1993; these bodies are designated as transferred employers for the purposes of the Regulation.
Interaction with trust deeds and scheme rules:
The Regulation repeatedly defers to trust deeds and scheme rules for substantive benefit definitions and procedural steps. For example, clause 5 maps transferred persons into LGSS Divisions but leaves benefit detail to the LGSS trust deed. Clause 33 refers to specific rules and schedules in trust deeds for computing eligible termination payments and cash termination benefits (for instance subrules of Schedule 2, Schedule 3, Schedule 4 as relevant).
Clause 37 requires actuarial advice to determine the value of accrued benefits "in accordance with" the relevant scheme rules and trust deeds, and clause 38 refers to medical requirements and application forms under scheme trust deeds and statutory Acts.
Allocation of disputes and continuity:
Clauses 13, 40-42 shift responsibility for disputes concerning pre‑transfer service to LGSS trustee. This is an explicit reallocation of adjudicative responsibility, designed to maintain continuity irrespective of where the service occurred, but it requires interpreters to understand the appeal rights and dispute procedures embedded in the source schemes and LGSS governance documents.
Ministerial oversight:
Clause 18 inserts a limited ministerial control in the investment contract by requiring ministerial approval in writing for any early termination; the clause also sets an outer date for the AFML contract via ministerial determination not later than 30 June 2002. These are statutory constraints overlaying contractual freedom.
Where the Regulation is silent:
The instrument does not, within its text, redefine the substantive benefits defined in the referenced Acts or trust deeds. It reallocates responsibility and prescribes valuation and transfer methods, but substantive benefit entitlements remain matters of the underlying Acts and trust deeds. Enforcement remedies and penalties are likewise handled under those instruments and general law rather than by this Regulation.
In summary, the Regulation is tightly interwoven with the governing Acts, trust deeds and Commonwealth tax definitions; it reallocates administration, assets and liabilities between trustees and delegates specific procedural and valuation tasks back to trustees and actuarial advisers while leaving substantive scheme law intact.
Amendment history
The Regulation contains in‑text marginal notes indicating multiple amendments. The instrument itself records the following amendment markers associated with specific clauses. These notes provide the internal history of drafting changes embedded in the current text.
Clause 3 (Definitions): annotated as amended on 1 July 1997; 28 March 2002; 19 July 2002; 30 August 2002; 13 December 2002; 2005 No 91, Sch 3.15 [1]. The clause therefore carries multiple historical insertions, principally to add new defined groups such as parking patrol officers and to adjust transfer days for particular cohorts.
Part 2 Division 1 heading: inserted 28 March 2002 (pt 2, div 1, hdg Ins 28.3.2002). Clause 4A (Application of Division) was inserted 19 July 2002 (cl 4A Ins 19.7.2002).
Clause 11 (Employees of new county councils): amended 19 September 1997 (cl 11 Am 19.9.1997).
Clause 12: amended 19 July 2002 (cl 12 Am 19.7.2002).
Division 2 (Transfer of additional employees) and related clauses 12A-12C were inserted 28 March 2002 (pt 2, div 2 Ins 28.3.2002; cl 12A Ins 28.3.2002; cl 12B, 12C Ins 28.3.2002), with subsequent amendments on 19 July 2002 and 30 August 2002 noted for clause 12A (cl 12A Am 19.7.2002; 30.8.2002).
Clause 13 (Effect of transfers): amendments recorded 1 October 1999 and 2004 No 10, Sch 2.2 [1] (cl 13 Am 1.10.1999; 2004 No 10, Sch 2.2 [1]).
Clause 14 (Adjustment of transfers): amended 2005 No 91, Sch 3.15 [2] (cl 14 Am 2005 No 91, Sch 3.15 [2]).
Clauses 16 and 16A: clause 16 amended 10 July 1998; 1 October 1999; 28 March 2002 (cl 16 Am 10.7.1998; 1.10.1999; 28.3.2002). Clause 16A was inserted 10 July 1998 and amended 28 March 2002 (cl 16A Ins 10.7.1998. Am 28.3.2002). Clause 16AA (assets relating to additional employees) was inserted 28 March 2002 (cl 16AA Ins 28.3.2002).
Part 4 clauses 17 and 18 are current but no specific amendment annotations appear in the provided text; they reflect insertion and substitution history in the body header (pt 3, hdg Subst 10.7.1998 for Part 3). Clause 18 definition of AFML is intact; any prior amendment history is not explicitly annotated here.
Part 5 (Mobility between schemes) was inserted 1 October 1999 (pt 5 Ins 1.10.1999) with later amendment to clause 21 noted on 13 December 2002 and 7 November 2003 (cl 21 Ins 1.10.1999. Am 13.12.2002; 7.11.2003). Clause 19A (Application of Part) was inserted 7 November 2003 (cl 19A Ins 7.11.2003).
Clauses within Part 5 carry various insertion and amendment markers: clauses 29-40 are shown as Ins 1.10.1999, and several clauses were amended on 13 December 2002 (for example clauses 31, 33-38).
Part 6 clauses 41-42 were inserted 5 March 1999 and renumbered in 2001 (cl 41 Ins 5.3.1999, renumbered 2001 No 112 Sch 2.35; cl 42 Ins 5.3.1999 renumbered 2001 No 112 Sch 2.35 and further amended 2004 No 10 Sch 2.2).
Schedule 1 has amendment annotations showing 1 July 1997, 28 March 2002, 19 July 2002 and 30 August 2002 (Sch 1 Am 1.7.1997; 28.3.2002; 19.7.2002; 30.8.2002).
These annotations are the instrument’s own record of textual changes. The Regulation repeatedly signals where clauses were inserted or amended and in several places sets explicit alternative transfer dates tied to insertion events, for example the 28 July 2000 and 1 September 2002 transfer days for specified cohorts (clause 3 transfer day definition). When applying the Regulation, practitioners should consult the consolidated version of the Regulation to ensure they are using the text reflecting these amendments, and crosscheck the cited amendment annotations above for provenance.
Litigation history
The text of the Regulation, as provided, does not record any litigation history. There are no cases named in the instrument, and no judgments, disputes or proceedings are cited in the text. The Regulation reallocates jurisdiction and dispute resolution responsibilities,clauses 13(2)-(3), 40-42 address appeal rights and the administrative home for pre‑transfer disputes,however the instrument itself does not reference judicial decisions interpreting its provisions.
Consequently, from the Regulation alone, there is no internal record of disputes or court determinations that have tested its provisions. Practitioners seeking judicial interpretation or precedent on points such as:
the meaning of “transferred member” or the operation of the $500 thresholds in clause 6(2),
valuation methods and actuarial assumptions in clauses 34-35 and clause 37,
the limits on ministerial approval for investment contract termination in clause 18(3),
or the scope and effect of clauses 16, 16AA and 16A on enforcement of pre-transfer proceedings,
must search external case law databases and decisions under the underlying Acts and trust deeds. The Regulation itself assigns responsibilities for dispute resolution but does not supply any cases to interpret how those responsibilities have been exercised.
For matters likely to generate litigation, readers should pay attention to the following potentially litigious interfaces set by the Regulation:
allocation of claims and choses in action to LGSS trustee and the carve‑out for already instituted proceedings (clauses 16(3)-(6), 16AA(3)-(5));
trustees’ actuarial determinations and the statutory direction to seek actuarial advice when determining primary amounts and rights of electors (clauses 34, 37);
the interplay between election time limits, the effect of elections and the bar on elections if an elector has applied for a payment from the transferor scheme before the transferee trustee receives the election form (clause 31(4)-(5));
disputes concerning whether an employee meets the specific cohort definitions in clauses 6-10 and 12A, which may hinge on factual construction.
Absent cited cases in the instrument, the Regulation leaves practitioners to determine whether decisions under relevant Acts and trust deeds have considered and applied these clauses; this requires an external legal research step.
Gotchas
The Regulation contains several technical traps and precise drafting features that can produce surprising outcomes if not read carefully. The following points highlight practical “gotchas” that practitioners and administrators should note, with clause citations.
Multiple transfer days and cohort‑specific dates:
The general transfer day is 1 July 1997, but clause 3 provides cohort exceptions: transfers for Jobsupport Inc. employees on 28 July 2000, parking patrol officers on 22 July 2002, and employees of Murrumbidgee Irrigation Limited and Australian Red Cross Blood Service on 1 September 2002. Misreading the single “transfer day” reference without checking clause 3 could misdate transfers for these cohorts.
Narrow cohort definitions, especially parking patrol officers:
The definition of “parking patrol officer” is narrowly drawn, requiring commencement with City of Sydney Council on 17 September 2001 and prior Crown employment under police direction and control immediately before that date (clause 3). Small factual differences in employment history can change whether an individual falls within Division 2 transfers or not.
$500 thresholds in First State transfers:
Clause 6(2) excludes certain First State members if the amounts in their accounts relating to transferred employers are less than $500 and the amounts relating to other employers meet certain thresholds. These small numerical thresholds can produce counterintuitive results where a person with mixed employment histories is included or excluded depending on account allocations and preserved amounts. Practitioners must trace the origin of preserved amounts and split accounts by employer source.
Preservation exceptions and partial transfers of preserved amounts:
Clause 6(3) allows preserved amounts related to previous employment with other employers to be paid from LGSS in defined circumstances; but clause 6(5) states the Regulation does not transfer contributions made for employment with non‑transferred employers. The net effect is a tailored, situation‑specific allocation of preserved amounts that requires itemised account analysis.
Employer status changes:
Clause 15 takes transferred employers not to be “employers” for the purposes of FTC or STC schemes for transferred members, but only where the transferred employer is an “Employer” within the LGSS trust deed and bound by it (clause 15(2)). Whether an employer meets that trust deed definition is a factual and contractual question; practitioners must check the LGSS trust deed to confirm consequences.
Transfer of choses in action but not proceedings already started:
Clauses 16(3)-(6) and 16AA(3)-(5) transfer rights and choses in action to LGSS, but explicitly exclude rights where proceedings were instituted before the commencement of the clause. The carve out means active litigation may remain in the hands of the original trustee; which party is responsible for enforcement depends on timing.
Time limits for election and bar on prior payments:
Elections have strict time frames (clause 31). An election will not take effect if the elector has applied for a payment under the transferor scheme before the transferee trustee receives the completed election form (clause 31(4)-(5)). Failure to time the election and applications properly can extinguish the transfer option.
Trustee‑approved form requirement and information duties:
Clause 29 mandates the use of a trustee‑approved form for elections, and clause 30 allows trustees to require information and member files from each other and from employers. Practical delay in obtaining member files or incomplete filings can delay or void elections.
Actuarial determinations and discretionary allowances:
Primary amounts, supplementary amounts and the calculation of eligible termination payments depend on actuarial advice and scheme rules (clauses 33-35, 37). Trustees must exercise judgment and may reach differing conclusions, potentially producing material differences between what the elector expects and what the transferee trustee establishes.
Imputed medical and additional benefit coverage with revocation risk:
Clause 38 imputes satisfaction of medical requirements and additional benefit applications in certain transfers; but clause 38(5) allows the imputed cover to be revoked in accordance with the transferee scheme’s rules. The imputation is therefore provisional and subject to scheme rules, not an immutable statutory grant.
Ministerial control over AFML contract termination:
Clause 18(3) requires ministerial written approval for early termination of the AFML contract. This bottleneck may restrict LGSS’s ability to change investment managers without ministerial involvement, influencing negotiation leverage and exit costs.
Mistaken transfers and their correction mechanics:
Clause 14 allows transfer back where a person has been mistakenly identified as transferred, and requires adjustments to accounts. Practical compliance requires keeping precise records and being prepared for retroactive corrections, with attendant operational and actuarial recalculations.
Each of these items is grounded in a specific clause; operational practice must be keyed to the textual tests and time frames set by the Regulation, not to general expectation.
How to comply
Compliance involves coordinated action by trustees (LGSS Pty Ltd, FTC, STC), employers listed in Schedule 1, actuarial advisers, administrators (SAA), investment managers (AFML) and members. The following pragmatic checklist and procedural points are drawn from the Regulation’s requirements.
Identify affected individuals and cohorts:
Map your membership and pensioner records against the definitions in clauses 3, 6-10, 11, 12, 12A-12C and Schedule 1. Pay particular attention to the $500 thresholds in clause 6(2) when tracing First State Superannuation Fund members’ accounts. Ensure you apply the correct transfer day applicable to each cohort per clause 3.
Prepare transfer agreements and execute asset transfers:
FTC and STC must transfer assets in accordance with the transfer agreements with LGSS Pty Ltd (clauses 16(1)-(2), 16AA(1)-(2)). Ensure the transfer agreements precisely describe which assets and choses in action transfer, including quantified amounts, security for transferred liabilities and timing of transfers. Exclude assets supporting proceedings instituted prior to the relevant transfer clause commencement per clauses 16(6) and 16AA(5).
Calculate transferred liabilities and ensure assets match liabilities:
Liability transfers include amounts due and payable to former members under the source schemes (clause 16A(1)-(2)). Use actuarial advice to validate that transferred assets and their investment returns are sufficient to meet forecast liabilities, and document the valuation methodology used.
Contract administration and investment services as required:
LGSS Pty Ltd must enter a contract with SAA covering administration services commencing on or before each transfer day and ending 31 December 1997 (clause 17(1)-(2)). That contract should document services listed in clause 17(3), data migration plans, security of member records and timetable for handover.
For Divisions B, C and D, LGSS must contract AFML (or successor) for investment management, with the end date determined by the Minister not later than 30 June 2002 (clause 18(1)-(2)). Contracts should permit ministerial approval processes for any early termination, per clause 18(3), and identify how investment returns and fee structures are reconciled to member accounts.
Establish election and information processes:
Trustees must adopt an approved written election form for transfer options (clause 29); ensure the form collects the information necessary under clause 30(1). Implement secure processes to exchange member files and ensure employers can supply required records on request (clause 30(2)-(3)).
Time the submission of elections and payments:
Track the election time limits in clause 31 closely. For Category 1, 2 and 7 electors, elections must be made within three months after transfer of employment. For deferred benefit categories, elections have 12 month windows from dates specified. Ensure elections are received and date‑stamped by transferee trustees, and check whether electors have applied for payments under the transferor scheme before receipt of the election (clause 31(4)-(5)).
Obtain and rely on actuarial advice:
Trustees of transferor and transferee schemes must determine primary and supplementary amounts with actuarial advice (clauses 34-35). Arrange independent actuarial reviews, document assumptions and methodologies, and produce statements for members explaining how values were derived.
Make the prescribed payments on transfer:
On exercise of a transfer option, the transferor trustee must pay the eligible termination payment and the difference between the sum of primary and supplementary amounts and the eligible termination payment, as set out in clause 32. Trustees should confirm payment mechanics, secure funds for transfers, and ensure amounts are properly credited to member accounts in the transferee scheme.
Preserve appeal and dispute records:
Preserve records of outstanding appeals and disputes; clause 13(2)-(3) requires such matters to be dealt with under LGSS procedures as if the dispute were with LGSS trustee. Ensure transfer documentation includes files on unresolved disputes and a plan for handling appeals according to clause 40.
Prepare for corrections and reversals:
Implement a protocol to detect and correct mistaken inclusions and exclusions so that FTC, STC and LGSS can make adjustments to contributions, accounts and benefits, per clause 14(1)-(4). Document all adjustments and obtain actuarial recalculations where necessary.
Confirm employer status and contractual obligations:
Verify whether each transferred employer is an “Employer” under the LGSS trust deed and therefore subject to clause 15. Ensure employer records, contribution remittances, and notifications reflect the change in status for transferred members.
Monitor ministerial interactions:
For AFML investment arrangements, ensure the Minister’s written approval processes are understood and incorporated into the contract clause so that any termination requires ministerial sign‑off as required by clause 18(3).
Communicate with members and beneficiaries:
Given the number of technical tests and time limits, provide clear targeted communications to affected members: the transfer day relevant to them, whether they are included, the effect on their entitlements, the time frame to lodge elections, and the consequences of applying for payments under the transferor scheme before an election is received.
Document governance and oversight:
Trustees should record board or trustee approvals of transfer agreements, actuarial assumptions and election form templates, and maintain an audit trail to show compliance with the Regulation’s procedural and timing requirements.
Failure to observe timing rules, to obtain actuarial advice or to preserve dispute records are the main operational compliance risks under this Regulation. The instrument imposes procedural duties and allocates assets and liabilities; compliance is demonstrated by timely execution of transfer agreements, accurate actuarial valuations, correct credits to member accounts, maintenance of dispute and appeal processes, and clear communications with members and employers.
(b) in relation to an employee referred to in clause 11 (1), the day the employee transfers to the county council referred to in clause 11 (2), or
(c) in relation to an employee transferred under Division 2 of Part 2:
(i) 28 July 2000 for an employee of Job Support Inc., or
(ii) 22 July 2002 for an employee who is a parking patrol officer, or
(iii) 1 September 2002 for an employee of Murrumbidgee Irrigation Limited or Australian Red Cross Blood Service.
transferred employer means an employer listed in Schedule 1 who is bound by the terms of the trust deed establishing the local government superannuation scheme.
transferred member means a person transferred to the local government superannuation scheme under Part 2 or a person to whom a pension referred to in clause 12 (1) (a), (b) or (c) or 12C is payable.
cl 3: Am 1.7.1997; 28.3.2002; 19.7.2002; 30.8.2002; 13.12.2002; 2005 No 91, Sch 3.15 [1].
4 Notes
4 Notes
4 Notes
The explanatory note, table of contents and notes in the text of this Regulation do not form part of this Regulation.
Part 2 Transfer of employees and other beneficiaries
Part 2 Transfer of employees and other beneficiaries
Part 2 Transfer of employees and other beneficiaries
Division 1 Initial transfer of employees and other beneficiaries
Division 1 Initial transfer of employees and other beneficiaries
Division 1 Initial transfer of employees and other beneficiaries
pt 2, div 1, hdg: Ins 28.3.2002.
4A Application of Division
4A Application of Division
4A Application of Division
This Division does not apply to an employee transferred under Division 2.
cl 4A: Ins 19.7.2002.
5 Transfer of employees
5 Transfer of employees
5 Transfer of employees
(1) On and from the transfer day, the persons described in clauses 6, 7, 8, 9 and 10 are transferred from the superannuation schemes referred to in those clauses to the local government superannuation scheme.
(2) The persons so transferred are to be members of the following Divisions of the local government superannuation scheme, to the extent that they are described in the clause concerned:
(a) a person described in clause 6 is to be a member of Division A,
(b) a person described in clause 7 is to be a member of Division B,
(c) a person described in clause 8 is to be a member of Division C,
(d) a person described in clause 9 is to be a member of Division D,
(e) a person described in clause 10 is to be a member of Division E.
(3) A person who is a person described in more than one of clauses 6, 7, 8, 9 or 10 may be a member of one or more Divisions of the local government superannuation scheme.
6 Members of First State Superannuation Scheme
6 Members of First State Superannuation Scheme
6 Members of First State Superannuation Scheme
(1) For the purposes of clause 5, this clause describes the following persons:
(a) a person who was, at any time within the period of 6 months immediately preceding the transfer day, a full member of the First State Superannuation Scheme who was employed solely by a transferred employer,
(b) a person who was, at any time within the period of 6 months immediately preceding the transfer day, a full member of the First State Superannuation Scheme who was employed by a transferred employer and who was also employed by one or more other employers under the First State Superannuation Act 1992,
(c) an optional member of the First State Superannuation Scheme who is also a person referred to in clause 7 or 9.
(2) Despite subclause (1), this clause does not describe members of the First State Superannuation Scheme whose accounts consist of amounts contributed in respect of employment with a transferred employer and other employers if, at the transfer day:
(a) the total amount in the member’s account relating to employment with transferred employers is less than $500 and the total amount relating to employment with other employers is $500 or more,
(b) the total amount in the member’s account relating to employment with transferred employers is less than the total amount relating to employment with other employers and each such total amount is less than $500.
(3) On and from the transfer day, the entitlement of a person referred to in subclause (1) (b) to preserved amounts related to previous employment by one or more other employers under the First State Superannuation Act 1992 is to be paid from the local government superannuation scheme if, at the transfer day:
(a) the total amount in the member’s account relating to employment with transferred employers is $500 or more and the total preserved amount relating to employment with other employers is less than $500, or
(b) the total amount in the member’s account relating to employment with transferred employers is more than the total preserved amount relating to employment with other employers and each such total amount is less than $500.
(4) Despite subclause (1), this clause does not describe a member of the First State Superannuation Scheme if the member has ceased to be employed by a transferred employer before the transfer day and notice has been received of the cessation by FTC before the transfer day.
(5) Except as provided by subclause (3) in respect of preserved amounts, this Regulation does not transfer a person from the First State Superannuation Scheme in respect of contributions that are or have been made by or on behalf of the person in respect of the person’s employment by an employer that is not a transferred employer.
(6) In this clause:
transferred employer includes a predecessor of a transferred employer.
7 Contributors to State Authorities Superannuation Scheme
7 Contributors to State Authorities Superannuation Scheme
7 Contributors to State Authorities Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributor to the State Authorities Superannuation Scheme who was employed by a transferred employer,
(b) a person who, immediately before the transfer day, had a preserved benefit under the State Authorities Superannuation Act 1987, the Public Authorities Superannuation Act 1985 or the State Public Service Superannuation Act 1985 and who, immediately before the benefit was preserved, was employed by a transferred employer or a predecessor of a transferred employer.
8 Employees under State Authorities Non-contributory Superannuation Scheme
8 Employees under State Authorities Non-contributory Superannuation Scheme
8 Employees under State Authorities Non-contributory Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributing employee, under the State Authorities Non-contributory Superannuation Scheme, within the meaning of section 26C of the State Authorities Non-contributory Superannuation Act 1987 and who is a person described in clause 7 or 9,
(b) a person who, immediately before the transfer day, had a preserved benefit in the State Authorities Non-contributory Superannuation Scheme and who is a person described in clause 7 or 9.
9 Contributors to State Superannuation Scheme
9 Contributors to State Superannuation Scheme
9 Contributors to State Superannuation Scheme
For the purposes of clause 5, this clause describes the following persons:
(a) a person who, immediately before the transfer day, was a contributor to the State Superannuation Scheme who was employed by a transferred employer,
(b) a person who, immediately before the transfer day, had a preserved or deferred benefit under Division 3A or 3B of Part 4 of the Superannuation Act 1916 and who, immediately before the benefit was preserved or deferred, was employed by a transferred employer or a predecessor of a transferred employer.
10 Members of Public Sector Executives Superannuation Scheme
10 Members of Public Sector Executives Superannuation Scheme
10 Members of Public Sector Executives Superannuation Scheme
For the purposes of clause 5, this clause describes a person who was, immediately before the transfer day:
(a) employed by a transferred employer, and
(b) a member of the Public Sector Executives Superannuation Scheme.
11 Employees of new county councils
11 Employees of new county councils
11 Employees of new county councils
(1) On and from the day an employee described in subclause (2) transfers from a body referred to in that subclause to a county council referred to in that subclause, the employee is transferred from the superannuation scheme referred to in subclause (2) to the local government superannuation scheme.
(2) For the purposes of this clause, the employees to be transferred are:
(a) employees of Great Southern Energy who transfer to the Riverina Water County Council and who, if Great Southern Energy were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(b) employees of North Power who transfer to the MidCoast County Council and who, if North Power were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(c) employees of the Department of Public Works and Services who transfer to the Goldenfields Water County Council and who, if the Department were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses,
(d) employees of Great Southern Energy who transfer to the Goldenfields Water County Council and who, if Great Southern Energy were treated as a transferred employer as at the date of transfer, would be persons described in clause 6, 7, 8, 9 or 10 in respect of a superannuation scheme referred to in any of those clauses.
(3) An employee so transferred is to be a member of the Division of the local government superannuation scheme applicable if the assumptions set out in subclause (2) applied.
(4) An employee cannot transfer to a superannuation scheme under this clause after 1 October 1997.
cl 11: Am 19.9.1997.
12 Transfer of payment of certain pensions
12 Transfer of payment of certain pensions
12 Transfer of payment of certain pensions
(1) On and from the 1 July 1997, the following pensions are payable under the local government superannuation scheme:
(a) a pension payable to a person who, immediately before the 1 July 1997, received a pension under any of the following Acts or regulation:
(i) New South Wales Retirement Benefits Act 1972,
(ii) Local Government and Other Authorities (Superannuation) Act 1927,
(iii) Public Authorities Superannuation Act 1985,
(iv) Transport Employees Retirement Benefits Act 1967,
(v) Part 2, 3 or 6 of the State Authorities Superannuation (Transitional Provisions) Regulation 1988,
and who was employed by a transferred employer, or a predecessor of the employer, immediately before becoming entitled to the pension, or a pension payable (before or after the 1 July 1997) to the spouse or a child of such a person,
(b) a pension payable to a person who, immediately before the 1 July 1997, received a pension under the Superannuation Act 1916 and who was employed by a transferred employer, or a predecessor of the employer, immediately before becoming entitled to the pension, or a pension payable (before or after the 1 July 1997) to the spouse or a child of such a person,
(c) a pension payable (before or after the 1 July 1997) under section 15BV (14) of the Local Government and Other Authorities (Superannuation) Act 1927.
(2) For the purposes of the local government superannuation scheme:
(a) a person to whom a pension referred to in subclause (1) (a) or (c) is payable is taken to be a member of Division B of that scheme, and
(b) a person to whom a pension referred to in subclause (1) (b) is payable is taken to be a member of Division D of that scheme.
cl 12: Am 19.7.2002.
Division 2 Transfer of additional employees
Division 2 Transfer of additional employees
Division 2 Transfer of additional employees
pt 2, div 2: Ins 28.3.2002.
12A Definition
12A Definition
1
This is an opening excerpt, not the complete document.