Superannuation (CSS) Former Eligible Employees Regulations 1986
In ForceCTH
Jurisdiction
Commonwealth
Act Number
266 of 1986
Collection
legislative instrument
Plain English Summary
9/10 complexity
This instrument replaces Division 3 of Part IX to let the Minister, with the consent of CSC, transfer specified Fund assets and related liabilities to two named approved schemes (Australia Post and Telecom), prescribes how the Commonwealth pays amounts to those schemes, and exempts such transfers from most taxes. It also creates a ‘delayed updated pension’ regime and multiple targeted modifications for groups affected by privatisations or transfers.
It affects former eligible employees who joined those schemes and several specified employee cohorts; it matters because it fixes who pays, how entitlements are calculated, and grants administrative discretion over valuation, timing and payment instalments.
This instrument substitutes and inserts multiple provisions across Part V, Part IX and several Schedules of the principal superannuation Act to deal with (a) transfers of fund assets and liabilities where employees move into specified external superannuation schemes, (b) preservation of benefit entitlements for persons affected by privatisation or transfers out of the Commonwealth workforce, and (c) a range of targeted modifications applicable to named employers or employee cohorts. Mechanically the text:
Replaces Division 3 of Part IX with a new Division titled "Transfers to approved superannuation schemes" (sections 131-135). The new Division defines "approved superannuation scheme" as the Australia Post Superannuation Scheme and the Telecom Superannuation Scheme (section 131), removes entitlement to benefits under the principal Act for persons to whom regulation 8 or 9 of the FEE Regulations applies unless they again become eligible employees (section 132), and sets out a process for transferring assets and related liabilities from the Fund to the administering body of an approved scheme (section 133). The Minister determines which Fund assets and liabilities are transferred, with CSC consent, and those determinations are disallowable instruments (section 133(1)-(4)). The Commonwealth must pay amounts to the administering body calculated by reference to a formula that principally uses 2.5 times accumulated basic contributions plus specified other amounts, subject to offsets and Ministerial scheduling informed by actuarial advice (section 134(1)-(4)). Transfers under section 133 are expressly exempt from Commonwealth, State and Territory taxes and charges other than tax under the Income Tax Assessment Act 1936 (section 135).
Inserts a new Division 3A in Part IX (Schedule 11), labelled "Preservation of rights as delayed updated pension" (sections 144A-144J). The Division establishes "delayed updated pension" entitlements that preserve, subject to specified adjustments, benefits that would have been payable under the Act had a former eligible employee not ceased employment and not elected or requested transfer under relevant FEE Regulations (section 144A). The Division sets different rules for age retirement, early retirement, and invalidity retirement entitlements (sections 144B-144F), provides for spouse and child entitlements (section 144G), and prescribes a CPI-based update mechanism for final salary for benefit calculation (section 144H). It also calibrates how provisions elsewhere in the Act operate for persons to whom earlier special regulations apply (section 144J).
Current sections
Direct links to the current provisions in Superannuation (CSS) Former Eligible Employees Regulations 1986.
40
Part IX, Division 3:
Part IX, Division 3:
Part IX, Division 3:
Substitute for Division 3 of Part IX the following Division:
“Division 3 Transfers to approved superannuation schemes
“131 Interpretation
“131 Interpretation
“131 Interpretation
“In this Division, unless the contrary intention appears:
approved superannuation scheme means:
(a) Australia Post Superannuation Scheme; and
(b) Telecom Superannuation Scheme.
assets has the same meaning as it has in Division 2 of Part XII.
investment assets of the Fund means the assets of the Fund or of CSC arising out of, or otherwise connected with, the exercise or proposed exercise by CSC of its power to invest moneys of the Fund.
investment liabilities of the Fund means liabilities of the Fund or of CSC arising out of, or otherwise connected with, the exercise or proposed exercise by CSC of its power to invest moneys of the Fund.
liabilities has the same meaning as it has in Division 2 of Part XII.
“132 Loss of entitlements to benefits —
“132 Loss of entitlements to benefits — eligible employees transferring to an approved superannuation scheme
“132 Loss of entitlements to benefits — eligible employees transferring to an approved superannuation scheme
A person in respect of whom regulation 8 or 9 of the FEE Regulations applies is not entitled to be paid any benefits under this Act, as a former eligible employee, otherwise than on again becoming an eligible employee.
“133 Transfer of assets from Fund to app
“133 Transfer of assets from Fund to approved superannuation schemes
“133 Transfer of assets from Fund to approved superannuation schemes
“(1) There is transferred in accordance with subsection (2) to the person or body administering an approved superannuation scheme:
(a) assets of the Fund (including investment assets of the Fund) determined by the Minister, with the consent of CSC, to be assets that fairly and equitably represent the accumulated contributions of persons referred to in section 132 to whom section 126A applies by reason of their becoming members of that superannuation scheme; and
(b) liabilities (if any) (including investment liabilities of the Fund) determined by the Minister, with the consent of CSC, to be liabilities relating to those assets.
“(2) For the purposes of subsection (1), the transfer of assets, and of liabilities (if any) relating to those assets, takes effect:
(a) at such times; and
(b) in respect of such assets;
as the Minister, with the consent of CSC, determines.
“(3) CSC must do all things necessary, as manager of the assets of the Fund, to give effect to a determination of the Minister under subsection (2).
“(4) A determination of the Minister for the purposes of paragraph (1) (a) or (b) or subsection (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
“134 Payments by Commonwealth to approve
“134 Payments by Commonwealth to approved superannuation schemes
“134 Payments by Commonwealth to approved superannuation schemes
“(1) After 28 February 1991, the Commonwealth must pay to the person or body administering an approved superannuation scheme an amount calculated by:
(a) aggregating the amounts determined in accordance with subsection (3) to be payable to that person or body in respect of persons referred to in section 132 to whom section 126A applies by reason of their becoming members of that superannuation scheme; and
(b) deducting from that aggregate all payments made in accordance with subsection (2).
“(2) The Commonwealth must pay to the person or body referred to in subsection (1), following a request in writing to the Commissioner by that person or body, the amount determined by that person or body to be payable in respect of a person referred to in paragraph (1) (a) who has ceased to be a member of that superannuation scheme before 1 March 1991.
“(3) The amount payable in respect of a person referred to in section 132 is an amount equal to the sum of:
(a) 2½ times the amount of the person’s accumulated basic contributions on the person’s last day of service; and
(b) the amounts (if any) that have been paid by the Commissioner to the Commonwealth under paragraph 128 (2) (b) in relation to the person; and
(c) the amounts (if any) that have been paid to the Commonwealth under subsection 119J (8) of the superseded Act in relation to the person; and
(d) the amount determined by the Commissioner having regard to:
(i) the number of non-contributory units (if any) that were, under the superseded Act, applicable in relation to the person on 30 June 1976 or immediately before the person became entitled to invalidity pension (as the case may be); and
(ii) the contributions that would have been paid by the person in respect of those units if they had been contributory units of pension in respect of which the person had contributed at rates based on a retiring age of 65; and
(e) the amount of any interest determined by the Minister to be payable in respect of the amounts referred to in paragraphs (a), (b), (c) and (d).
“(4) The amount to be paid under subsection (1) to the person or body administering an approved superannuation scheme is to be paid:
(a) in such instalments; and
(b) at such times;
as the Minister determines, having regard to:
(c) any relevant actuarial advice obtained by the Minister; and
(d) any other matters that the Minister considers relevant.
“(5) Payments under subsection (1) or (2) are payable out of moneys lawfully available for that purpose.
“(6) A determination of the Minister for the purposes of subsection (4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
“(7) For the purposes of paragraph (3) (a), regulation 5 of the Superannuation (Interest) Regulations applies in relation to the ascertaining of the accumulated basic contributions of a person referred to in section 132 as if the reference in that regulation to the termination day in relation to the person were a reference to the person’s last day of service.
“135 Exemption from tax etc
“135 Exemption from tax etc
“135 Exemption from tax etc
No tax or charge is payable under any law of the Commonwealth (other than the Income Tax Assessment Act 1936) or any law of a State or of a Territory in respect of a transfer of assets or liabilities under section 133.”.
Schedule 5A Modifications — employees of, and holders of statutory office in, Australian Postal Corporation
(regulation 8)
1
Section 237 (Interpretation)
1 Section 237 (Interpretation)
1.1 Subsection 237 (1) (definition of approved superannuation scheme):
Omit the definition.
2
Section 238 (Loss of entitlement to benefits — eligible employee transferring to an approved superannuation scheme)
2 Section 238 (Loss of entitlement to benefits — eligible employee transferring to an approved superannuation scheme)
2.1 Omit the section.
3
Section 239 (Approval of superannuation schemes)
3 Section 239 (Approval of superannuation schemes)
3.1 Omit the section.
4
Section 240 (Transfer of assets etc to approved superannuation schemes)
4 Section 240 (Transfer of assets etc to approved superannuation schemes)
4.1 Omit the section.
5
Section 241 (Payments from Consolidated Revenue Fund)
5 Section 241 (Payments from Consolidated Revenue Fund)
5.1 Subsection 241 (1):
Omit “an approved superannuation scheme”, substitute “the Australia Post Superannuation Scheme”.
5.2 Paragraph 241 (1) (a):
Omit the paragraph, substitute:
“(a) the amount of payments made under section 159 by the Australian Postal Corporation in respect of persons who:
(i) have become members of the Australia Post Superannuation Scheme; and
(ii) were, immediately before becoming members of the scheme, eligible employees who were employed by that Corporation or members of the staff of that Corporation; and”.
5.3 Paragraphs 241 (1) (b) and (c):
Omit the paragraphs.
Schedule 6 Modification — employees of Northern Territory University
(regulation 10)
Paragraph 138 (1) (b):
Paragraph 138 (1) (b):
Paragraph 138 (1) (b):
Substitute the following paragraph:
“(b) is, or within the period that is the prescribed period in relation to him or her becomes:
(i) employed in public employment; and
(ii) a member of an eligible superannuation scheme that is applicable in relation to persons employed in that employment;”.
Schedule 7 Modifications — employees of Australian Defence Industries Ltd
(regulation 11)
6
Subsection 136 (2):
6 Subsection 136 (2):
Omit “; and AEC is the amount of the person’s accumulated employer contributions”.
7
Paragraph 136 (2B) (b):
7 Paragraph 136 (2B) (b):
Omit “accumulated employer contributions (if any) and the person’s”.
8
Paragraph 136 (2B) (d):
8 Paragraph 136 (2B) (d):
Omit “and the person’s accumulated employer contributions (if any)”.
9
Subparagraph 136 (2B) (e) (ii):
9 Subparagraph 136 (2B) (e) (ii):
Omit the subparagraph.
10
Subparagraph 136 (2B) (g) (i):
10 Subparagraph 136 (2B) (g) (i):
Omit “or”.
11
Subparagraph 136 (2B) (g) (ii):
11 Subparagraph 136 (2B) (g) (ii):
Omit the subparagraph.
12
Paragraph 136 (2B) (g):
12 Paragraph 136 (2B) (g):
Omit “and AEC is the amount of the person’s accumulated employer contributions;”.
13
Paragraphs 136 (2B) (h) and (p):
13 Paragraphs 136 (2B) (h) and (p):
Omit the paragraphs.
14
Subparagraph 136 (2B) (r) (i):
14 Subparagraph 136 (2B) (r) (i):
Omit “accumulated employer contributions (if any) and the person’s”.
15
Subparagraph 136 (2B) (r) (ii):
15 Subparagraph 136 (2B) (r) (ii):
Omit “and the person’s accumulated employer contributions (if any)”.
16
Subparagraph 136 (2B) (s) (ii):
16 Subparagraph 136 (2B) (s) (ii):
Omit the subparagraph.
17
Subsection 136 (2C):
17 Subsection 136 (2C):
Omit the subsection.
18
Subsection 139 (1):
18 Subsection 139 (1):
Omit the subsection, substitute:
“(1) Subject to this Division, deferred benefits are applicable in respect of a person in respect of whom regulation 11 of the FEE Regulations applies as if the person had made an election under section 137.”.
19
Paragraph 139 (2) (b):
19 Paragraph 139 (2) (b):
Omit the paragraph, substitute:
“(b) the date of his or her death;”.
22
Subsections 139 (3), (4), (6) and (7):
22 Subsections 139 (3), (4), (6) and (7):
Omit the subsections.
23
Section 139A:
23 Section 139A:
Omit the section.
24
Section 141:
24 Section 141:
Omit the section.
Schedule 8 Modifications — Employees of Coselco Mimotopes Pty Ltd
(regulation 12)
“80AA Exclusion of this Part in respect
“80AA Exclusion of this Part in respect of certain employees of repatriation institutions
“80AA Exclusion of this Part in respect of certain employees of repatriation institutions
This Part does not apply in respect of a person specified in subregulation 13 (1) of the FEE Regulations.”.
“144A Delayed updated pension
“144A Delayed updated pension
“144A Delayed updated pension
“(1) The benefits applicable under this Division in respect of a former eligible employee are such benefits payable under this Act as the Commissioner considers to be benefits:
(a) of the same nature; and
(b) payable:
(i) in the same circumstances and on the same conditions; and
(ii) on the death of the person — to the same persons (if any);
as the benefits that would have been payable to or in respect of the former eligible employee under this Act if he or she had not ceased to be an eligible employee and had not made the request under subregulation 15 (3) of the FEE Regulations, or the election under paragraph 15A (3) (d) of those Regulations, or a request under paragraph 15B (4) (b) of those Regulations, by virtue of which this Division became applicable.
“(2) Delayed updated pension is payable:
(a) to a former eligible employee who has reached the age of 65; or
(b) on request — to a former eligible employee on retirement if he or she is aged 55 or more; or
(c) on request — to a former eligible employee on retirement on the grounds of invalidity; or
(d) on request — to a spouse or child of a deceased former eligible employee, in accordance with Part VI.
“(3) In paragraph (2) (c), grounds of invalidity means total and permanent incapacity within the meaning of Part IVA that, to the satisfaction of the Commissioner, is due to invalidity or mental or physical incapacity.
“144B Benefits — age 65 retirement
“144B Benefits — age 65 retirement
“144B Benefits — age 65 retirement
“(1) A former eligible employee entitled to delayed updated pension who retires at or after the age of 65 is entitled to age retirement benefits in accordance with Division 1 of Part V:
(a) that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
(b) subject to adjustment (if any) under section 144H — as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
“(2) For the purposes of subsection (1), the reference in paragraph 57 (1) (a) to ‘his last day of service’ is taken to be a reference to the former eligible employee’s last day of employment.
“144C Benefits — early retirement
“144C Benefits — early retirement
“144C Benefits — early retirement
“(1) A former eligible employee entitled to delayed updated pension who retires at or after the age of 55 but before the age of 65 is entitled to early retirement benefits in accordance with Division 2 of Part V (except sections 60 and 62):
(a) that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
(b) subject to adjustment (if any) under section 144H — as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
“(2) The annual rate of the early retirement pension that is payable to a former eligible employee entitled to delayed updated pension is the rate that would apply if the former eligible employee’s age on his or her last day of service had been 65 years, reduced by:
(a) for each year and partial year included in the period commencing on his or her 60th birthday or the day of retirement (whichever is the later) and ending on the day immediately preceding his or her 65th birthday — 2% of that rate; and
(b) if the person retires before his or her 60th birthday, then for each year and partial year included in the period commencing on the day immediately following the day of retirement and ending on the day immediately preceding his or her 60th birthday — 31/3% of the rate ascertained under paragraph (a).
“(3) For the purposes of this section, the reference in subsection 61 (3) to ‘his last day of service’ is taken to be a reference to the former eligible employee’s last day of employment.
“144D Benefits — invalidity retirement (
“144D Benefits — invalidity retirement (no BCC in force)
“144D Benefits — invalidity retirement (no BCC in force)
“(1) A former eligible employee entitled to delayed updated pension:
(a) who retires on the ground of invalidity; and
(b) in respect of whom at the time of retirement, a benefit classification certificate is not in force or, under subsection 16 (5), is taken not to be in force;
is entitled to:
(c) invalidity benefits in accordance with Division 4 of Part V and benefits referred to in section 61 or 64, as the case may be:
(i) that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
(ii) subject to adjustment (if any) under section 144H — as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
“(2) For the purpose of calculating the pension entitlement, the following modifications apply:
(a) to section 3:
(i) subsection 3 (1) (definition of period of prospective service — omit ‘an eligible employee’, substitute ‘employed’; and
(i) Column 3 — omit ‘section 68’, substitute ‘section 67 for the purposes of section 144E’; and
(e) to Schedule 4:
(i) Column 3 — omit ‘section 68’, substitute ‘section 67 for the purposes of section 144E’.
“144E Benefits — invalidity retirement (
“144E Benefits — invalidity retirement (BCC in force but irrelevant)
“144E Benefits — invalidity retirement (BCC in force but irrelevant)
“If:
(a) a former eligible employee who is entitled to delayed updated pension retires on the ground of invalidity; and
(b) at the time of retirement:
(i) a benefit classification certificate is in force in relation to him or her; and
(ii) paragraph 66 (2) (c) does not apply to him or her;
the former eligible employee is taken to be a former eligible employee to whom section 144D applies.
“144F Benefits — invalidity retirement (
“144F Benefits — invalidity retirement (BCC in force)
“144F Benefits — invalidity retirement (BCC in force)
“(1) A former eligible employee entitled to delayed updated pension who retires on the ground of invalidity is entitled to invalidity pension under this regulation if:
(a) at the time of retirement — a benefit classification certificate is in force in respect of him or her; and
(b) paragraph 66 (2) (c) applies to him or her.
“(2) The former eligible employee is entitled to invalidity pension in accordance with Division 4 of Part V and benefits referred to in section 61 or 64, as the case may be:
(a) in relation to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
(b) subject to adjustment (if any) under section 144H — as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
“(3) For the purpose of calculating the pension entitlement, the following modifications apply:
(a) to section 3:
(i) subsection 3 (1) (definition of period of prospective service — omit ‘an eligible employee’, substitute ‘employed’; and
(b) to section 71:
(i) subsection 71 (1) — omit the subsection;
(ii) subsections 71 (2), (3) and (4) — omit ‘a person makes an election under subsection (1) and’;
(iii) subsections 71 (5) and (6) — omit the subsections; and
“A spouse or child of a deceased former eligible employee who was entitled to delayed updated pension is entitled to pension in accordance with Part VI:
(a) in relation to the period of contributory service that ended on the day the former eligible employee ceased to be an eligible employee; and
(b) in respect of the appropriate rate of pension ascertained under section 144B, 144C, 144D, 144E or 144F, as the case may be; and
(c) subject to adjustment (if any) under section 144H — as if the former eligible employee’s final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on death or retirement, as the case may be.
144H
CPI update of final salary
144H CPI update of final salary
“(1) For paragraphs 144B (1) (b) and 144C (1) (b), subparagraph 144D (1) (c) (ii) and paragraphs 144F (2) (b) and 144G (c), the final annual rate of salary of a former eligible employee on ceasing to be an eligible employee is taken to be:
CPI1 is the CPI published for the last complete quarter that ends on or before the day when the person ceased to be an eligible employee.
CPI2 is the highest CPI in the published series that starts with CPI1 and ends with the last published CPI on or before the day when the person ceases employment.
S is the actual final annual rate of salary of the former eligible employee.
“(2) Subject to subsection (3), if at any time after a benefit becomes payable under this Division, the Australian Statistician has published or publishes in respect of a particular quarter a CPI in substitution for a CPI previously published in respect of that quarter, the publication of the later CPI is to be disregarded for the purposes of this section.
“(3) If, at any time, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took or takes place, regard is to be had only to index numbers published in terms of the new reference base.
“(4) In this section:
CPI means the all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician.
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.
“144J Employees under superseded Act
“144J Employees under superseded Act
“144J Employees under superseded Act
“(1) In relation to a former eligible employee to whom modifications of the Act effected by the Superannuation (Former Contributors for Units of Pension) Regulations apply, a reference in this Division to a provision in any other part of the Act is taken to be a reference to that provision:
(a) as modified by those Regulations in relation to that person; and
(b) if that provision is affected by another provision in the Schedule to those Regulations — as affected by the other provision in those Regulations in relation to that person.
“(2) In relation to a former eligible employee to whom modifications of the Act effected by the Superannuation (Former Provident Account Contributors) Regulations apply, a reference in this Division to a provision in any other part of the Act is taken to be a reference to that provision:
(a) as modified by those Regulations in relation to that person; and
(b) if that provision is affected by another provision in the Schedule to those Regulations — as affected by the other provision in those Regulations in relation to that person.”.
Schedule 11A Modifications — former employees of nominated facilities retrenched within 3 years of transfer day
(subregulation 15A (5))
61AA. CPI update of final salary
61AA. CPI update of final salary
61AA. CPI update of final salary
“(1) For subsections 56 (4) and 61 (4), the final annual rate of salary of a subregulation 15A (5) person is taken to be:
CPI1 is the CPI published for the last complete quarter that ends on or before the day when the person ceased to be an eligible employee.
CPI2 is the highest CPI in the published series that starts with CPI1 and ends with the last published CPI on or before the day when the person ceases employment.
S is the actual final annual rate of salary of the person as an eligible employee.
“(2) Subject to subsection (3), if at any time after a benefit becomes payable under this Division, the Australian Statistician has published or publishes in respect of a particular quarter a CPI in substitution for a CPI previously published in respect of that quarter, the publication of the later CPI is to be disregarded for the purposes of this section.
“(3) If, at any time, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took or takes place, regard is to be had only to index numbers published in terms of the new reference base.
“(4) In this section:
CPI means the all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician.
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.”.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part IX, Division 3: Part IX, Division 3:
Part IX, Division 3:
Substitute for Division 3 of Part IX the following Division:
“Division 3 Transfers to approved superannuation schemes
“131 Interpretation “131 Interpretation
“131 Interpretation
“In this Division, unless the contrary intention appears:
approved superannuation scheme means:
(a) Australia Post Superannuation Scheme; and
(b) Telecom Superannuation Scheme.
assets has the same meaning as it has in Division 2 of Part XII.
investment assets of the Fund means the assets of the Fund or of CSC arising out of, or otherwise connected with, the exercise or proposed exercise by CSC of its power to invest moneys of the Fund.
investment liabilities of the Fund means liabilities of the Fund or of CSC arising out of, or otherwise connected with, the exercise or proposed exercise by CSC of its power to invest moneys of the Fund.
liabilities has the same meaning as it has in Division 2 of Part XII.
“132 Loss of entitlements to benefits — “132 Loss of entitlements to benefits — eligible employees transferring to an approved superannuation scheme
“132 Loss of entitlements to benefits — eligible employees transferring to an approved superannuation scheme
A person in respect of whom regulation 8 or 9 of the FEE Regulations applies is not entitled to be paid any benefits under this Act, as a former eligible employee, otherwise than on again becoming an eligible employee.
“133 Transfer of assets from Fund to app “133 Transfer of assets from Fund to approved superannuation schemes
“133 Transfer of assets from Fund to approved superannuation schemes
“(1) There is transferred in accordance with subsection (2) to the person or body administering an approved superannuation scheme:
(a) assets of the Fund (including investment assets of the Fund) determined by the Minister, with the consent of CSC, to be assets that fairly and equitably represent the accumulated contributions of persons referred to in section 132 to whom section 126A applies by reason of their becoming members of that superannuation scheme; and
(b) liabilities (if any) (including investment liabilities of the Fund) determined by the Minister, with the consent of CSC, to be liabilities relating to those assets.
Makes numerous targeted modifications in Schedules 1-14 to adapt the principal Act for distinct cohorts and circumstances. These include deletion or replacement of specific sections, substitution of formulae, changes in timing, treatment of "last day of service" and "notional final annual rate of salary", shorter qualifying service requirements for deferred benefits where employees are affected by privatisation (Schedules 12 and 12A), and special rules for Qantas, Northern Territory employees, repatriation institution employees, employees of particular companies (AIDC, Aerospace Technologies, Coselco Mimotopes, Australian Defence Industries), and arrangements for nominated facilities retrenched within three years of transfer day (Schedules 3-10, 11A).
Operationally the instrument allocates decision-making power to the Minister with required consent from CSC for transfers of assets and liabilities (section 133), places an implementing duty on CSC as manager of Fund assets to give effect to the Minister's determination (section 133(3)), authorises the Commissioner to act on written requests for some payments (section 134(2)), and subjects several Ministerial determinations to parliamentary disallowance (section 133(4), section 134(6)). The text also relies on, and refers to, other instruments and regulations outside the excerpt, including the FEE Regulations, the Superannuation (Interest) Regulations, and provisions of a superseded Act, so legal effect in practice depends on those cross-references.
The legislative mechanics therefore create a pathway for (i) transferring assets and specified liabilities from the Fund to particular external schemes, funded by lump sum payments and instalment schedules from the Commonwealth calculated by formula; (ii) preserving or modifying pension entitlements in favour of former eligible employees subject to privatisation or transfer events through a suite of special rules, and (iii) tailoring the principal Act’s ordinary benefit rules for discrete employer or cohort situations via a large set of schedule modifications.
Main concepts
Definitions and scope, ministerial discretion, asset and liability transfers, funding for transfers, treated populations, CPI-based salary updates for benefit calculation, and instrument types are the core concepts. The statutory text foregrounds a small set of defined terms, and then builds administrative mechanisms around them.
Definitions and scope
"Approved superannuation scheme" is narrowly defined in the substituted Division 3 of Part IX to mean only the Australia Post Superannuation Scheme and the Telecom Superannuation Scheme (section 131). That confines the transfer mechanism in section 133 to those schemes unless later amended.
"Assets" and "liabilities" adopt the meanings used in Division 2 of Part XII, thereby linking transfers to the larger Act’s asset definitions (section 131). The text separately defines "investment assets of the Fund" and "investment liabilities of the Fund" to capture assets/liabilities arising out of CSC’s power to invest Fund monies (section 131).
Ministerial determinations and consent
Section 133 requires the Minister to determine which Fund assets and investment assets "fairly and equitably represent" accumulated contributions of the affected persons, but those determinations must be made with the consent of CSC (section 133(1)). The Minister also determines timings and which specific assets are transferred (section 133(2)). Those determinations are express disallowable instruments (section 133(4)), which places them within parliamentary oversight under section 46A of the Acts Interpretation Act 1901.
Fund manager duties
CSC, as manager of Fund assets, is obliged to "do all things necessary" to give effect to a Ministerial determination under section 133(3). That imposes operational duties on CSC to implement transfers once the Minister has made a determination with CSC’s consent.
Funding and payment calculation
Section 134 creates a Commonwealth funding obligation to pay administering bodies of approved schemes after 28 February 1991. The payable amount is calculated by aggregating per-person amounts described in section 134(3), then deducting payments previously made under section 134(2) (requests in writing to the Commissioner for members who ceased membership before 1 March 1991) (section 134(1)-(2)).
The per-person amount uses 2.5 times accumulated basic contributions on the last day of service, plus amounts paid by the Commissioner to the Commonwealth under paragraph 128(2)(b), amounts paid under subsection 119J(8) of the superseded Act, an amount the Commissioner determines having regard to historical non-contributory units, and any interest the Minister determines to be payable (section 134(3)(a)-(e)).
The Minister determines instalment schedules and timing, having regard to actuarial advice and "any other matters" he or she considers relevant (section 134(4)). Those determinations are also disallowable (section 134(6)). Payments are limited to moneys lawfully available for that purpose (section 134(5)).
Tax treatment
Section 135 provides an exemption from Commonwealth, State and Territory taxes and charges, except those under the Income Tax Assessment Act 1936, for transfers under section 133. Thus transfers are generally tax-exempt except as potentially impacted by the ITAA 1936.
Preservation of entitlements on privatisation or sale
The inserted Division 3A (Schedule 11) creates a legal construct of "delayed updated pension" to preserve the nature, conditions, and payees of benefits that would have applied had a former eligible employee remained in public employment and not made an election or request under the relevant FEE Regulations (section 144A). The Division sets out when these delayed pensions become payable (e.g., at age 65, on retirement where aged 55 or more, on invalidity retirement, or to spouse or child on death) (section 144A(2)), how calculations incorporate final annual salary updated by CPI (section 144H), and numerous modifications to how pre-existing sections apply to these preserved entitlements (sections 144B-144F, 144G, 144J).
Instrument types and oversight
Several Ministerial determinations are declared disallowable instruments (sections 133(4), 134(6)), meaning they are subject to parliamentary disallowance mechanisms under existing acts. Commissioner determinations and requests are also embedded in the payment mechanics (section 134(2)-(3)(d)).
Cross-references and external rules
The text repeatedly refers to external instruments and other regulatory material: the FEE Regulations, Superannuation (Interest) Regulations (section 134(7)), a superseded Act (section 134(3)(c)-(d)), and numerous schedule modifications that rely on the content of other Parts and Schedules. Legal effect therefore depends on consulting those instruments for a complete operational picture.
In short, the main concepts are an administratively-driven asset/liability transfer mechanism, a Commonwealth funding formula with ministerial scheduling discretion, a targeted tax exemption, and a preservation regime creating specially adjusted pension entitlements for employees affected by transfers, sales, and privatisations, together with a wide array of bespoke modifications across named cohorts.
Who it affects
This legislative package affects a mix of institutional actors, individual employees (current and former), and fund managers. The text identifies or implicates specific groups and decision-makers.
Primary affected groups
Members or former members of the Fund who, by virtue of regulation 8 or 9 of the FEE Regulations, become members of an "approved superannuation scheme" namely the Australia Post Superannuation Scheme or the Telecom Superannuation Scheme, are directly affected. Section 132 expressly states that a person in respect of whom regulation 8 or 9 applies is not entitled to benefits under this Act as a former eligible employee except on again becoming an eligible employee (section 132). For these persons, section 133 contemplates transferring Fund assets and liabilities to the approved scheme’s administering body to reflect their accumulated contributions (section 133(1)).
Administering bodies of the two approved schemes are affected as recipients of transferred assets and liabilities under section 133, and as the parties entitled to payment from the Commonwealth under section 134 once amounts are calculated and scheduled.
The Commonwealth (that is, the Finance side of government) is a payor under section 134 which requires the Commonwealth to pay amounts after 28 February 1991 to the administering bodies calculated under the formula in section 134(3), subject to offsets for prior payments (section 134(1)-(2)).
CSC (the Commonwealth Superannuation Corporation or comparable manager) is affected operationally. CSC must consent to Ministerial determinations about which assets and liabilities fairly and equitably represent accumulated contributions (section 133(1)), and must "do all things necessary" as manager of Fund assets to implement the Minister’s determination (section 133(3)). CSC’s consent is therefore central.
Other affected cohorts under schedule modifications
Employees, former employees and holders of statutory office in the Australian Postal Corporation, Australian Telecommunications Corporation, and Australian and Overseas Telecommunications Corporation are affected by Schedule 5 and Schedule 5A modifications. For example, Schedule 5 substitutes Division 3 of Part IX and Schedule 5A makes further employer-specific changes including omitting definitions and sections and narrowing payment wording to the Australia Post Superannuation Scheme (Schedule 5A items 1-5).
Named employer groups and cohorts. The schedules make targeted changes affecting employees or former employees of:
Northern Territory bodies and Northern Territory University (Schedules 1, 6, 10, 10A),
Australian Defence Industries Ltd and AIDC Ltd (Schedules 7, 4),
Aerospace Technologies of Australia Pty Ltd and related aerospace employees (Schedule 3),
Coselco Mimotopes Pty Ltd (Schedule 8),
repatriation institutions (Schedules 9, 9A),
Qantas Airways Limited employees in connection with Commonwealth divestment events (Schedule 13),
employees of services sold or privatised (Schedules 12, 12A),
nominated facilities retrenched within three years of transfer day (Schedule 11A),
employees affected by particular privatisations or transfers (Schedule 11 Division 3A concerning delayed updated pension).
Persons who have ceased membership of an approved scheme before 1 March 1991 may be the subject of written payment requests to the Commissioner by the administering body as a step that reduces the aggregate payment required of the Commonwealth (section 134(2)).
Decision-makers and other institutional actors
The Minister: responsible for determining which assets and liabilities transfer, the schedule and instalments of payments, and the amount of any interest payable under the per-person payment formula (sections 133(1)-(2), 134(3)(e), 134(4), 134(6)).
The Commissioner: asked to determine certain amounts referenced in the payment formula, to accept written requests under section 134(2), and to make determinations having regard to non-contributory units (section 134(2)-(3)(d)).
Parliament: exercises oversight through the disallowable instrument regime for Ministerial determinations (section 133(4), section 134(6)).
State and Territory revenue authorities are affected only to the extent the tax exemption in section 135 removes State/Territory taxes and charges for transfers under section 133, although Commonwealth income tax under the ITAA 1936 is expressly excluded from that exemption.
Practical effects on individuals
For employees who moved into the two approved schemes, the effect is dual: transfer of Fund assets and liabilities to the administering body (section 133), and replacement of their entitlement to benefits under the principal Act by membership of the approved scheme except where they again become eligible employees (section 132). The Commonwealth payment under section 134 is designed to represent the accumulated contributions and other amounts identified in section 134(3).
For persons affected by privatisation, sale or restructuring, the new Division 3A creates a preserved entitlement labelled "delayed updated pension" which comes into effect under specified conditions and on particular triggers (sections 144A-144H). Those rules adjust when pensions become payable, pension rates, invalidity criteria, CPI-updating of final salary, and how other Act provisions are to be read for these persons.
In sum, the instrument primarily affects: (i) those who transferred into certain external schemes, (ii) administering bodies of those schemes as recipients, (iii) CSC as asset manager and consenting party, (iv) the Minister and the Commissioner as decision-makers, and (v) a wide range of named employee cohorts for whom bespoke modifications change entitlement timing, calculation, and eligibility.
Key duties and rights
The text establishes a set of statutory duties for the Minister, CSC, the Commissioner and the Commonwealth, as well as rights for administering bodies and certain categories of beneficiaries.
Ministerial duties and discretions
Determine assets and liabilities to transfer, with CSC consent: The Minister must determine Fund assets (including investment assets) and associated liabilities that "fairly and equitably represent" accumulated contributions of affected persons, but only with the consent of CSC (section 133(1)). The Minister also determines the timing and which specific assets are to be transferred (section 133(2)). These determinations are instruments subject to parliamentary disallowance (section 133(4), section 134(6)). The Minister also determines instalment schedules for Commonwealth payments after 28 February 1991, having regard to actuarial advice and any other matters the Minister considers relevant (section 134(4)).
Determine interest payable: Under the per-person payment formula, the Minister may determine the amount of any interest payable in respect of component amounts (section 134(3)(e)).
CSC duties and consent role
Consent requirement: CSC must consent to Ministerial determinations under section 133(1), making it a gatekeeper for which assets and liabilities are identified for transfer (section 133(1)).
Implementation duty: Once the Minister has made the determination, CSC, as manager of Fund assets, "must do all things necessary" to give effect to the Minister's determination (section 133(3)). That is an operational duty to implement transfer mechanics, which may include valuation, segregation, legal transfer, and record adjustments.
Commissioner functions
Payment requests and determinations: Administering bodies may request in writing to the Commissioner amounts payable in respect of persons who ceased to be members before 1 March 1991 and the Commissioner must pay those amounts to the administering body (section 134(2)). The Commissioner also determines amounts having regard to the number of non-contributory units applicable under the superseded Act and the hypothetical contributions that would have been paid if they had been contributory and based on age 65, as required by section 134(3)(d). The Commissioner’s determinations feed into the calculation required for Commonwealth payments.
Commonwealth payment obligation
Pay amounts after 28 February 1991: The Commonwealth "must pay" to the administering body an amount calculated by aggregating per-person amounts in accordance with section 134(3), less prior payments (section 134(1)). Payments are to be made from moneys lawfully available for the purpose (section 134(5)).
Rights of administering bodies and beneficiaries
Right to receive transferred assets and liabilities: The person or body administering an approved scheme is the recipient for transfers of assets and liabilities determined under section 133(1). Those administering bodies also have the right to receive Commonwealth payments under section 134, subject to calculation rules, offsets and instalment scheduling.
Beneficiary rights and limitations: Persons to whom regulation 8 or 9 of the FEE Regulations applies lose entitlement to be paid any benefits under the principal Act as former eligible employees unless they again become eligible employees (section 132). For persons covered by the new Division 3A, there is a statutory entitlement to a "delayed updated pension" under the defined conditions (sections 144A-144C, 144D-144F). Those rights are subject to specified adjustments, including modified calculation rules and CPI-updating of final salary (section 144H).
Instrument and accountability rights
Parliamentary oversight: Determinations by the Minister under sections 133 and 134 are disallowable instruments, which gives Parliament (and by extension any committee with disallowance functions) the right to disallow those determinations under section 46A of the Acts Interpretation Act 1901 (sections 133(4), 134(6)).
Administrative limits and availability of funds
Payments limited by lawfully available moneys: Section 134(5) constrains payments to "moneys lawfully available for that purpose", which is an administrative/appropriations constraint affecting the right to immediate full payment in principle.
Operational and regulatory cross-references
Several rights and duties reference external regulations and the superseded Act such as the Superannuation (Interest) Regulations (section 134(7)) and regulations such as the FEE Regulations, creating layered compliance and rights that depend on determinations under those instruments.
In summary, key duties attach to the Minister (decision and scheduling), to CSC (consent and execution), and to the Commissioner (certain calculations and payments on request), while rights attach to administering bodies to receive assets and payments, to beneficiaries in narrowly defined circumstances (including preserved entitlements under Division 3A), and to Parliament via the disallowable instrument regime. The statute places significant operational duties on CSC and discretionary, but reviewable, authority with the Minister.
Penalties and enforcement
The excerpts supplied establish administrative mechanisms and obligations rather than criminal penalties. The text focuses on transfers, payments, determinations and preservation of entitlements, with enforcement primarily by administrative compulsion, fiduciary duty and parliamentary oversight.
Absence of express criminal sanctions or pecuniary penalties
The substituted Division 3 (sections 131-135) and the inserted Division 3A (sections 144A-144J) do not include express criminal penalties, fines, or specified pecuniary sanctions for non-compliance within the provided text. The operative obligations are expressed as duties (for example CSC "must do all things necessary", section 133(3)), payment obligations ("the Commonwealth must pay", section 134(1)), and entitlement rules. There are no clauses in the excerpt creating offences for breach of those duties.
Enforcement by administrative duties and fiscal constraints
CSC's duty to effect transfers (section 133(3)) can be enforced through administrative supervision, contractual and statutory governance within CSC, and its obligations as manager of Fund assets. Remedies for breach would be administrative and potentially civil, including mandamus or other judicial review mechanisms against the Crown or its officials where statutory duty is actionable. The text itself does not set out the remedies, so conventional public law remedies and civil actions would be the routes for enforcement.
Parliamentary oversight as control mechanism
The Minister’s determinations under sections 133 and 134 are disallowable instruments (sections 133(4), 134(6)). The disallowance process under section 46A of the Acts Interpretation Act 1901 provides a parliamentary check on the exercise of ministerial discretion, which functions as a form of political and procedural enforcement rather than a punitive sanction.
Fiscal limits and appropriation control
Section 134(5) states that payments are payable out of moneys "lawfully available for that purpose", which implicates the appropriation and public finance regime. Non-availability of appropriated funds would legally limit payment obligations, and failure to appropriate could produce political, administrative, and legal consequences tied to public finance law rather than statutory penalty provisions in the superannuation instrument itself.
Dispute resolution and quantification differences
The payment formula in section 134(3) requires the Commissioner and the Minister to determine certain amounts (including reckoning for non-contributory units and possible interest). Disputes about the quantum or procedural compliance would be litigable in the administrative and civil courts, but no specialist tribunal or arbitration mechanism is prescribed in the text. The instrument therefore relies on ordinary administrative law remedies, and the text does not indicate a privative clause that would oust judicial review in relation to these decisions.
Tax exemption and indirect enforcement
Section 135 provides a statutory tax exemption for transfers under section 133, removing exposure to certain taxes or charges except under the Income Tax Assessment Act 1936. The effect is to prevent tax authorities (Commonwealth, State or Territory) from asserting a charge on the transfer, which is a protective substantive rule rather than an enforcement mechanism. It reduces the risk of clawback or tax-based legal disputes relating to such transfers, except for matters under the ITAA 1936.
Practical enforcement notes
For practical enforcement and compliance, affected parties will rely on the Ministerial determinations, CSC to execute transfers, Commissioner for certain amounts, and the normal machinery of judicial review, civil suits, and public finance scrutiny. Because the text focuses on rights to transfers, payments and preserved benefits, enforcement will typically involve ensuring administrative acts (consent, determinations, payments) have been properly performed and are consistent with statutory criteria.
In short, the instrument makes administrative duties and creates financial obligations, but does not create new criminal offences or bespoke statutory penalties in the material provided. Compliance is enforced via administrative duty, judicial review, civil remedies, parliamentary disallowance of determinations, and public finance constraints.
How it interacts with other laws
The instrument interacts expressly with several external regulatory regimes and with other parts of the principal Act. Its operation assumes reading across instruments and statutes that are not included in the excerpt.
References to the FEE Regulations
Section 132 conditions entitlement upon whether "regulation 8 or 9 of the FEE Regulations applies" to a person. Multiple schedule amendments likewise refer to subregulations of the FEE Regulations (for example subregulation 13(1) and 13(2), subregulation 14(1) and 14(2), subregulation 15, 15A, 15B, 16 etc.). That means the detailed applicability of the new Division 3, the delayed updated pension in Division 3A (Schedule 11), and many Schedule modifications depends on how those FEE Regulations define the relevant eligible persons, transfer day, and other trigger events. Practitioners must consult the FEE Regulations to determine whether a person falls within these provisions.
Interaction with the Superannuation (Interest) Regulations
Section 134(7) applies regulation 5 of the Superannuation (Interest) Regulations in relation to ascertaining accumulated basic contributions, with an adjusted reference point (the person’s last day of service). That makes the interest and accumulation mechanics in the Superannuation (Interest) Regulations directly applicable to the calculation in section 134(3)(a). Consequently, the interest/accumulation regime in that separate regulation governs part of the payment quantum.
References to a superseded Act
Section 134(3)(c) and (d) reference amounts paid under subsection 119J(8) of the superseded Act and numbers of non-contributory units that were applicable under the superseded Act on 30 June 1976 or immediately before entitlement to invalidity pension. This points to a historical statutory framework that remains relevant for calculating entitlements. Practitioners need to consult that superseded Act and its historical application to individual records.
Disallowable instruments and Acts Interpretation Act 1901
The Minister’s determinations under section 133(4) and section 134(6) are declared disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901. That links these determinations into the disallowance procedures and parliamentary oversight mechanisms established under federal administrative law.
Income Tax Assessment Act 1936 carve-out
Section 135 exempts transfers under section 133 from Commonwealth taxes and charges, and State and Territory taxes and charges, except that the exemption does not apply to the Income Tax Assessment Act 1936. Therefore, income tax consequences under the ITAA 1936 may still apply to transfers or to amounts paid. For tax advice and compliance, consultation with the ITAA 1936 and ATO guidance is necessary.
Cross-references to other Parts and Schedules of the principal Act
The new Division 3A prescribes that benefits are "age retirement benefits in accordance with Division 1 of Part V" or other benefits "in accordance with Division 2 ... Division 4 of Part V", subject to adjustments (sections 144B-144F). It also prescribes specific modifications to provisions such as sections 3, 57, 61, 67, 71 and Schedules 3 and 4 for the purposes of calculating invalidity pensions (sections 144D-144F). Practitioners must reconcile how Division 3A interacts with ordinary Part V entitlements and the specific modifications it prescribes to avoid double counting or misapplication.
Interplay with appropriation and public finance laws
Payments under section 134 are payable "out of moneys lawfully available for that purpose" (section 134(5)). This ties the operative entitlements to the Commonwealth appropriation and public finance regime, meaning that even if the statutory calculation yields a number, its payment depends upon the existence of available appropriations and the normal public finance constraints.
Administrative, actuarial and record-keeping regimes
Section 134(4)(c) directs the Minister to have regard to "any relevant actuarial advice", so actuarial standards, valuations and professional practice will affect implementation. Records of contribution histories, non-contributory units, historical entitlements, and CPI indices are necessary to calculate payable amounts and apply CPI-based updates under section 144H and related provisions.
In summary, the instrument is not standalone. It is tightly coupled with the FEE Regulations, the Superannuation (Interest) Regulations, historical provisions in a superseded Act, the Acts Interpretation Act 1901 for disallowable instruments, and the Income Tax Assessment Act 1936 for tax consequences. Practitioners should therefore read the text alongside those instruments and public finance rules to understand full legal effect.
Amendment history
The supplied text itself is an amendment instrument, consisting of multiple schedules that substitute, omit, insert and modify provisions across the principal Act. The excerpt does not provide a legislative chronology beyond the immediate amendments, so the account below describes the mechanical amendments effected within this instrument rather than a historical legislative timeline external to the text.
Major structural amendments effected by this instrument
Substitution of Division 3 of Part IX: The instrument substitutes a new Division 3 "Transfers to approved superannuation schemes" (sections 131-135). This is a structural replacement within Part IX, with fresh definitions and rules for asset transfers, entitlement loss where FEE Regulations apply (section 132), payment obligations by the Commonwealth (section 134), and tax exemptions for those transfers (section 135).
Insertion of Division 3A into Part IX: Schedule 11 inserts a new Division 3A "Preservation of rights as delayed updated pension" (sections 144A-144J). Division 3A contains multiple new provisions detailing how benefits are preserved and calculated for former eligible employees affected by privatisation, sale or transfer events, and prescribes a CPI updating mechanism (section 144H).
Extensive Schedule modifications: The instrument includes Schedules 1-14 that make over 100 discrete changes to the principal Act: omitting subsections, substituting paragraphs and entire sections, inserting new sections (such as 80AA, 61AA, 144A-144J), and tailoring definitions and eligibility tests for specific employer groups and cohorts (Schedules 1-10, 11A, 12-14). Many changes are narrowly targeted, for named companies, statutory offices, or cohorts affected by specific regulation numbers of the FEE Regulations.
Deletions and clarifications for Australia Post-related provisions: Schedule 5 and Schedule 5A make several Australia Post-related modifications including omitting the definition of "approved superannuation scheme" in section 237(1) (Schedule 5A item 1), omitting sections 238-240 and replacing section 241(1) to refer to the Australia Post Superannuation Scheme specifically (Schedule 5A items 2-5). This indicates tailored treatment for Australia Post employees and statutory office holders.
CPI update formula inserted in multiple locations: The CPI update mechanism appears in section 144H for delayed updated pensions and in a new section 61AA for subregulation 15A(5) persons. The statutory text uses a formula image placeholder in the supplied text, and defines CPI1 and CPI2 variables and the meaning of "CPI" and "quarter".
Qualification reductions for deferred benefits in privatisation contexts: Schedule 12 reduces qualifying service from five years to one year in certain privatisation contexts (Schedule 12 item 1.1), together with other adjustments. Schedule 12A provides related adjustments for persons who cease to be eligible employees on or after 1 July 1995.
Qantas-specific amendments: Schedule 13 amends section 55 to exclude application of a subsection to persons who attain age 60 before the day the Commonwealth ceases controlling interest in Qantas or its subsidiaries, modifies retirement definition, and omits sections that would otherwise have imposed SIS Act interaction (section 55A and section 111A) , those are omitted (Schedule 13 items 1-4).
Nature of the amendments
The instrument operates by a mixture of direct substitution (replace section X with new text), omission (delete subsection/section), insertion (add new sections or definitions), and modification (substitute particular words or paragraphs). Many changes are narrow in scope and targeted by employer cohort, indicating a policy of tailoring the Act to transitional events like privatisation, transfers, or split-offs.
Limitations of the amendment history in the excerpt
The supplied text does not provide dates of prior amendments, commencement dates for each change beyond the reference to payments being payable after 28 February 1991 in section 134(1), or legislative history commentary such as explanatory memoranda or second reading speeches. Therefore, the "history" reported here is the mechanical effect of the current instrument rather than a comprehensive legislative chronology.
Implication for practitioners
Because the instrument both substitutes entire Divisions and makes numerous narrowly targeted schedule changes, lawyers and administrators must update consolidated versions of the principal Act and check commencement provisions and interrelated regulations (for example the FEE Regulations and the Superannuation (Interest) Regulations) to understand which cohorts and which dates apply. The presence of cross-references to the superseded Act and to earlier regulations means that records and historical documents may be needed to determine precise entitlements for individual members.
Litigation history
The legislative excerpt contains no decisions, case names, or litigation annotations. It does not refer to any court cases or bind any judicial determinations. Consequently, within this source there is no litigation history to report.
Practical implications and suggested next steps for researching litigation
Because legal operation of the substituted and inserted provisions depends on facts, administrative choices (Ministerial determinations, CSC consent), and external regulations (FEE Regulations, Superannuation (Interest) Regulations, superseded Act), disputes are likely to arise in practice concerning valuation, the fairness and equity of the assets chosen to transfer, the quantum of Commonwealth payments, the construction and application of the "delayed updated pension" rules, and tax consequences where the ITAA 1936 might be engaged.
To assess litigation risk and to find any reported disputes, practitioners should search federal and state court databases and tribunal records for cases mentioning: the principal Act’s Part V and Part IX amendments, section numbers such as 133 and 134, CSC implementation disputes, disputes over Ministerial determinations characterized as disallowable instruments, claims invoking section 134 payment calculations (including the 2.5 multiplier in section 134(3)(a)), and claims concerning the CPI update formula in section 144H and 61AA.
Administrative law challenges could include judicial review of Ministerial determinations under sections 133 or 134 on grounds such as lack of procedural fairness, failure to take into account relevant material (such as actuarial advice where required by section 134(4)(c)), or misuse of power. Contractual or property disputes could involve the mechanics of asset transfer by CSC under section 133(3).
Tax litigation could arise if the Commissioner of Taxation or tax tribunals take a different view on the scope of the section 135 exemption as it interfaces with the ITAA 1936.
Because the text contains no litigation record, a comprehensive litigation history requires external research in case law databases, AAT decisions, tribunal records, and possibly parliamentary records relating to disallowance processes for determinations under sections 133 and 134.
Gotchas
This instrument contains multiple features that present practical pitfalls for advisers, administrators and actuaries. The "gotchas" below identify mechanical and interpretive points that can give rise to unintended outcomes or operational difficulty, grounded in the statutory text.
Ministerial discretion balanced by CSC consent, but still broad
Section 133 requires the Minister to determine which assets "fairly and equitably represent" accumulated contributions, but only with CSC consent (section 133(1)). The text does not prescribe objective valuation methodology for "fairly and equitably represent", leaving scope for dispute about asset selection, valuation approach, and allocation of investment assets and investment liabilities. CSC’s consent is required but CSC is simultaneously obliged to give effect to the Minister’s determinations (section 133(3)). That dual role could create tension where CSC must consent ex ante yet then implement ministerial directions.
Disallowable instruments do not eliminate operational disruption
Ministerial determinations are disallowable instruments (section 133(4), section 134(6)), which provides parliamentary oversight but does not provide immediate legal certainty for implementers. A determination could be disallowed after implementation, creating retrospective uncertainty. Organisations implementing transfers or relying on instalment schedules should consider the disallowable nature and possible parliamentary action.
Payment formula uses historical units and can be complex
The Commonwealth payment formula aggregates per-person amounts that include 2.5 times accumulated basic contributions (section 134(3)(a)), amounts previously paid in particular statutory ways (section 134(3)(b)-(c)), an amount the Commissioner determines having regard to the number of non-contributory units applicable under a superseded Act and hypothetical contributions (section 134(3)(d)), and ministerially determined interest (section 134(3)(e)). The calculation requires historical data, including treatment of "non-contributory units" under a superseded Act, a possible need to reconstruct records dating back to 1976 (section 134(3)(d)(i)). That imposes heavy record and actuarial burdens and creates scope for disputes over historical entitlements.
Tax exemption is partial
Section 135 exempts transfers under section 133 from Commonwealth, State and Territory taxes and charges, but expressly excludes tax under the Income Tax Assessment Act 1936. Thus income tax outcomes remain uncertain and may still apply. Advisers should not assume blanket tax-free status for transfers; consult the ITAA 1936 and the ATO.
CPI update formula is embedded by image placeholders in the text
The CPI-based update of final salary is specified in section 144H and repeated as 61AA for certain cohorts, but the substantive formula is represented in the supplied text by an image placeholder (for example ""). While the variables CPI1, CPI2 and S are defined, the exact arithmetic relationship is not fully legible in the excerpt. Practitioners must consult the official published text or consolidated Act to see the precise formula logic. Misapplication of CPI1/CPI2 selection rules could materially affect pension amounts, since CPI2 is defined as the highest CPI in a specified published series, which produces a particular upward indexing effect and is not the usual approach of compounding successive quarter-to-quarter indices.
Dependence on external regulations and superseded Act
Multiple provisions hinge on external instruments: the FEE Regulations, Superannuation (Interest) Regulations, and a superseded Act. The practical effect, including who falls within section 132, entitlements under Division 3A, and interest accrual under section 134(7), depends on those other texts. Missing or misreading those instruments risks incorrect application.
Payments subject to funds being "lawfully available"
Section 134(5) conditions payments on moneys lawfully available. Practically, that means appropriation limits and budgetary constraints can affect timing and availability of payment instalments even if a statutory calculation produces an amount. The Minister’s discretion on instalments under section 134(4) gives flexibility, but funding limits mean the statutory entitlement may be administratively staged.
Different definitions of last day of service and notional salary across cohorts
Several schedule modifications alter the meaning of "last day of service" or define "notional final annual rate of salary" for specified cohorts (for instance Schedule 11A inserts a section 61AA and adjusts last day of service references for subregulation 15A(5) persons). Practitioners must carefully map which cohort’s definition applies to avoid miscalculating pensionable salary or timing of entitlements.
Broad "any other matters" test for instalment scheduling
Section 134(4) permits the Minister to determine instalments and times "having regard to ... any other matters that the Minister considers relevant". This open-endedness is administratively convenient but increases uncertainty as to the criteria that will inform scheduling decisions. Records of actuarial advice and decision rationales will be important for audit and potential review.
Multiple mutually modifying schedule amendments
The instrument contains many changes that operate in combination for particular cohorts. For example, Schedule 5A changes the definition of approved scheme and omits earlier sections. Public authorities must take care to apply the correct bundle of modifications that apply to each named cohort or employer, not a simplistic one-size-fits-all approach.
In practice, these "gotchas" mean advisers must compile a checklist for each affected person or cohort, including the applicable FEE Regulation subregulation, whether Division 3 or Division 3A applies, historical contribution records, whether non-contributory units exist under a superseded Act, the precise CPI formula in the official text, and the status of Ministerial determinations and any relevant Parliamentary disallowances.
How to comply
Compliance requires coordinated action by multiple actors: government decision-makers (the Minister and Treasury), CSC as fund manager, the Commissioner, administering bodies of the approved schemes, and employers keeping records. The steps below map statutory obligations into practical compliance actions.
Identify applicable persons and cohorts
Determine who falls within the scope of section 132 by checking whether regulation 8 or 9 of the FEE Regulations applies to each person. For other schedule-based cohorts, confirm applicability by checking the relevant schedule and the referenced subregulation numbers (for example subregulation 13(1), 13(2), 14(1), 15A(5), 16(1) or 16(2), 15B(6), and others). The instrument repeatedly cross-refers to FEE Regulations subregulations and cohort-specific tests, so compliance begins with establishing inclusion.
Data collection and record reconstruction
For persons identified as affected:
Compile accumulated basic contributions as at the person's last day of service, noting section 134(3)(a) and the modified application of regulation 5 of the Superannuation (Interest) Regulations per section 134(7).
Reconstruct records of amounts previously paid under paragraph 128(2)(b) and subsection 119J(8) of the superseded Act where those figures enter the calculation (section 134(3)(b)-(c)).
Identify non-contributory units that were applicable under the superseded Act on 30 June 1976 or immediately before entitlement to invalidity pension, and compute hypothetical contributions if those units had been contributory at rates based on age 65 (section 134(3)(d)).
Capture final annual rate of salary S and prepare CPI series data for CPI1 and the published CPI series through to cessation of employment, as required by section 144H and 61AA.
Engage actuaries and valuation experts
Obtain relevant actuarial advice as required by section 134(4)(c) for setting instalments and timing of Commonwealth payments. Actuaries should advise on appropriate valuation methodologies for selecting which Fund assets "fairly and equitably represent" accumulated contributions (section 133(1)(a)), on allocation of investment liabilities if any (section 133(1)(b)), and on the funding profile for instalments.
Ministerial determinations and parliamentary processes
Where the Minister is to make determinations under sections 133 and 134:
Document the decision-making process and material relied upon, including actuarial advice, CSC consent, and any other relevant matters, in light of the disallowable instrument status (sections 133(4), 134(6)) and the potential for parliamentary scrutiny.
Ensure determinations are prepared for registration as disallowable instruments in accordance with the Acts Interpretation Act 1901 and associated administrative requirements.
CSC operational implementation
CSC, obligated to "do all things necessary" (section 133(3)), should:
Establish transfer procedures for segregating, valuing, and transferring the specific assets and liabilities identified by the Minister, documenting legal and accounting steps.
Coordinate with the administering body of the approved scheme on the form of transfer (in specie transfer, cash transfer, assumption of liabilities), including legal documentation to effect transfer.
Maintain audit trails and valuation records supporting the "fair and equitable" representation of accumulated contributions.
Commissioner role and written requests
The administering body may make written requests to the Commissioner for amounts payable in respect of persons who ceased membership before 1 March 1991 (section 134(2)). The Commissioner should:
Provide clear administrative guidance on the form of requests, required supporting documentation, and timing.
Coordinate with the Minister on how these pre-1991 payments offset the aggregate amount payable by the Commonwealth (section 134(1)(b)).
Tax and accounting treatment
Seek tax advice on the interaction with the Income Tax Assessment Act 1936 because section 135 explicitly excludes that Act from the transfer tax exemption. Ensure transfers are recorded in a manner consistent with relevant accounting standards and tax reporting obligations.
Apply CPI update formula correctly
For persons subject to the CPI updation rules (section 144H and 61AA), obtain the official consolidated text to read the formula (the excerpt contains an image placeholder). Compile CPI series data and apply the definition of CPI1 and CPI2 precisely, noting CPI2 is the highest CPI in the published series starting with CPI1 and ending with the last published CPI on or before the cessation day. Ensure adjustments for any change in CPI reference base per section 144H(3).
Communication and notices to beneficiaries
Communicate the effect of the changes to affected members and beneficiaries, including:
Whether their entitlements transfer to an approved scheme and the practical implications (section 132).
The timeline for any Commonwealth instalment payments, and whether their benefits will be preserved as delayed updated pensions under Division 3A with modified calculation rules (sections 144A-144H).
Contact points for queries and procedural steps such as requests the administering body may need to submit to the Commissioner (section 134(2)).
Record-keeping and audit readiness
Maintain robust records of:
The Minister’s determinations, CSC consent, actuarial advice, valuation reports, asset transfer documents, and payment instalment schedules.
Calculation workpapers for per-person amounts under section 134(3), records of prior payments to be deducted under section 134(1)(b), and Commissioner determinations.
Evidence of compliance with CPI index application and any adjustments for changes in CPI reference base (section 144H(3)).
Monitor parliamentary and public finance processes
Because determinations are disallowable and payments are subject to lawful availability of moneys, monitor parliamentary processes and appropriation cycles. Plan for staggered instalments where the Minister determines them under section 134(4).
Legal review and potential dispute resolution
Obtain legal review of all determinations, transfer deeds, and payment computations to minimise litigation risk. For disputes, prepare to pursue administrative review and judicial review remedies, and preserve procedural fairness in decision-making to reduce grounds for challenge.
Following the above structured compliance steps will align operational practice with statutory duties and rights as set out in sections 131-135 and Division 3A, while recognising the need to coordinate with external regulations, actuarial advice, accounting and tax advice, and public finance constraints.
Schedule “134 Payments by Commonwealth to approve“134 Payments by Commonwealth to approved superannuation schemes
“(2) For the purposes of subsection (1), the transfer of assets, and of liabilities (if any) relating to those assets, takes effect:
(a) at such times; and
(b) in respect of such assets;
as the Minister, with the consent of CSC, determines.
“(3) CSC must do all things necessary, as manager of the assets of the Fund, to give effect to a determination of the Minister under subsection (2).
“(4) A determination of the Minister for the purposes of paragraph (1) (a) or (b) or subsection (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
“134 Payments by Commonwealth to approve “134 Payments by Commonwealth to approved superannuation schemes
“134 Payments by Commonwealth to approved superannuation schemes
“(1) After 28 February 1991, the Commonwealth must pay to the person or body administering an approved superannuation scheme an amount calculated by:
(a) aggregating the amounts determined in accordance with subsection (3) to be payable to that person or body in respect of persons referred to in section 132 to whom section 126A applies by reason of their becoming members of that superannuation scheme; and
(b) deducting from that aggregate all payments made in accordance with subsection (2).
“(2) The Commonwealth must pay to the person or body referred to in subsection (1), following a request in writing to the Commissioner by that person or body, the amount determined by that person or body to be payable in respect of a person referred to in paragraph (1) (a) who has ceased to be a member of that superannuation scheme before 1 March 1991.
“(3) The amount payable in respect of a person referred to in section 132 is an amount equal to the sum of:
(a) 2½ times the amount of the person’s accumulated basic contributions on the person’s last day of service; and
(b) the amounts (if any) that have been paid by the Commissioner to the Commonwealth under paragraph 128 (2) (b) in relation to the person; and
(c) the amounts (if any) that have been paid to the Commonwealth under subsection 119J (8) of the superseded Act in relation to the person; and
(d) the amount determined by the Commissioner having regard to:
(i) the number of non-contributory units (if any) that were, under the superseded Act, applicable in relation to the person on 30 June 1976 or immediately before the person became entitled to invalidity pension (as the case may be); and
(ii) the contributions that would have been paid by the person in respect of those units if they had been contributory units of pension in respect of which the person had contributed at rates based on a retiring age of 65; and
(e) the amount of any interest determined by the Minister to be payable in respect of the amounts referred to in paragraphs (a), (b), (c) and (d).
“(4) The amount to be paid under subsection (1) to the person or body administering an approved superannuation scheme is to be paid:
(a) in such instalments; and
(b) at such times;
as the Minister determines, having regard to:
(c) any relevant actuarial advice obtained by the Minister; and
(d) any other matters that the Minister considers relevant.
“(5) Payments under subsection (1) or (2) are payable out of moneys lawfully available for that purpose.
“(6) A determination of the Minister for the purposes of subsection (4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
“(7) For the purposes of paragraph (3) (a), regulation 5 of the Superannuation (Interest) Regulations applies in relation to the ascertaining of the accumulated basic contributions of a person referred to in section 132 as if the reference in that regulation to the termination day in relation to the person were a reference to the person’s last day of service.
“135 Exemption from tax etc “135 Exemption from tax etc
“135 Exemption from tax etc
No tax or charge is payable under any law of the Commonwealth (other than the Income Tax Assessment Act 1936) or any law of a State or of a Territory in respect of a transfer of assets or liabilities under section 133.”.
Schedule 5A Modifications — employees of, and holders of statutory office in, Australian Postal Corporation
(regulation 8)
1 Section 237 (Interpretation)
1 Section 237 (Interpretation)
1.1 Subsection 237 (1) (definition of approved superannuation scheme):
Omit the definition.
2 Section 238 (Loss of entitlement to benefits — eligible employee transferring to an approved superannuation scheme)
2 Section 238 (Loss of entitlement to benefits — eligible employee transferring to an approved superannuation scheme)
2.1 Omit the section.
3 Section 239 (Approval of superannuation schemes)
3 Section 239 (Approval of superannuation schemes)
3.1 Omit the section.
4 Section 240 (Transfer of assets etc to approved superannuation schemes)
4 Section 240 (Transfer of assets etc to approved superannuation schemes)
4.1 Omit the section.
5 Section 241 (Payments from Consolidated Revenue Fund)
5 Section 241 (Payments from Consolidated Revenue Fund)
5.1 Subsection 241 (1):
Omit “an approved superannuation scheme”, substitute “the Australia Post Superannuation Scheme”.
5.2 Paragraph 241 (1) (a):
Omit the paragraph, substitute:
“(a) the amount of payments made under section 159 by the Australian Postal Corporation in respect of persons who:
(i) have become members of the Australia Post Superannuation Scheme; and
(ii) were, immediately before becoming members of the scheme, eligible employees who were employed by that Corporation or members of the staff of that Corporation; and”.
5.3 Paragraphs 241 (1) (b) and (c):
Omit the paragraphs.
Schedule 6 Modification — employees of Northern Territory University
(regulation 10)
Paragraph 138 (1) (b): Paragraph 138 (1) (b):
Paragraph 138 (1) (b):
Substitute the following paragraph:
“(b) is, or within the period that is the prescribed period in relation to him or her becomes:
(i) employed in public employment; and
(ii) a member of an eligible superannuation scheme that is applicable in relation to persons employed in that employment;”.
Schedule 7 Modifications — employees of Australian Defence Industries Ltd
(regulation 11)
1 Paragraph 136 (2) (b):
1 Paragraph 136 (2) (b):
Omit “”, substitute “”.
2 Paragraph 136 (2) (c):
2 Paragraph 136 (2) (c):
Omit “and the person’s accumulated employer contributions (if any)”.
3 Paragraph 136 (2) (e):
3 Paragraph 136 (2) (e):
Omit “accumulated employer contributions (if any) and the person’s”.
4 Paragraph 136 (2) (g):
4 Paragraph 136 (2) (g):
Omit “and the person’s accumulated employer contributions (if any)”.
5 Subparagraph 136 (2) (h) (ii):
5 Subparagraph 136 (2) (h) (ii):
Omit the subparagraph.
6 Subsection 136 (2):
6 Subsection 136 (2):
Omit “; and AEC is the amount of the person’s accumulated employer contributions”.
7 Paragraph 136 (2B) (b):
7 Paragraph 136 (2B) (b):
Omit “accumulated employer contributions (if any) and the person’s”.
8 Paragraph 136 (2B) (d):
8 Paragraph 136 (2B) (d):
Omit “and the person’s accumulated employer contributions (if any)”.
9 Subparagraph 136 (2B) (e) (ii):
9 Subparagraph 136 (2B) (e) (ii):
Omit the subparagraph.
10 Subparagraph 136 (2B) (g) (i):
10 Subparagraph 136 (2B) (g) (i):
Omit “or”.
11 Subparagraph 136 (2B) (g) (ii):
11 Subparagraph 136 (2B) (g) (ii):
Omit the subparagraph.
12 Paragraph 136 (2B) (g):
12 Paragraph 136 (2B) (g):
Omit “and AEC is the amount of the person’s accumulated employer contributions;”.
13 Paragraphs 136 (2B) (h) and (p):
13 Paragraphs 136 (2B) (h) and (p):
Omit the paragraphs.
14 Subparagraph 136 (2B) (r) (i):
14 Subparagraph 136 (2B) (r) (i):
Omit “accumulated employer contributions (if any) and the person’s”.
15 Subparagraph 136 (2B) (r) (ii):
15 Subparagraph 136 (2B) (r) (ii):
Omit “and the person’s accumulated employer contributions (if any)”.
16 Subparagraph 136 (2B) (s) (ii):
16 Subparagraph 136 (2B) (s) (ii):
Omit the subparagraph.
17 Subsection 136 (2C):
17 Subsection 136 (2C):
Omit the subsection.
18 Subsection 139 (1):
18 Subsection 139 (1):
Omit the subsection, substitute:
“(1) Subject to this Division, deferred benefits are applicable in respect of a person in respect of whom regulation 11 of the FEE Regulations applies as if the person had made an election under section 137.”.
19 Paragraph 139 (2) (b):
19 Paragraph 139 (2) (b):
Omit the paragraph, substitute:
“(b) the date of his or her death;”.
22 Subsections 139 (3), (4), (6) and (7):
22 Subsections 139 (3), (4), (6) and (7):
Omit the subsections.
23 Section 139A:
23 Section 139A:
Omit the section.
24 Section 141:
24 Section 141:
Omit the section.
Schedule 8 Modifications — Employees of Coselco Mimotopes Pty Ltd
(regulation 12)
1 Subsection 139 (1):
1 Subsection 139 (1):
Omit the subsection, substitute:
“(1) Subject to this Division, deferred benefits are applicable in respect of a person in respect of whom regulation 12 of the FEE Regulations applies as if the person had made an election under section 137.”.
2 Paragraph 139 (2) (b):
2 Paragraph 139 (2) (b):
Omit the paragraph, substitute:
“(b) the date of his or her death;”.
5 Subsections 139 (3), (4), (6) and (7):
5 Subsections 139 (3), (4), (6) and (7):
Omit the subsections.
6 Section 139A:
6 Section 139A:
Omit the section.
7 Section 141:
7 Section 141:
Omit the section.
Schedule 9 Modifications — former employees of repatriation institutions who cease to be eligible employees before 1 July 1995
(subregulation 13 (1))
1 New section 80AA:
1 New section 80AA:
After section 80, insert in Division 5 of Part V:
“80AA Exclusion of this Part in respect “80AA Exclusion of this Part in respect of certain employees of repatriation institutions
“80AA Exclusion of this Part in respect of certain employees of repatriation institutions
This Part does not apply in respect of a person specified in subregulation 13 (1) of the FEE Regulations.”.
2 Section 137:
2 Section 137:
After subsection 137 (1), insert:
“(1A) A person specified in subregulation 13 (1) of the FEE Regulations is taken to have given a notice under subsection (1) on the relevant day within the meaning of that subregulation.”.
3 Section 137:
3 Section 137:
Omit subsections 137 (2), (3) and (4).
4 Subsection 138 (1):
4 Subsection 138 (1):
Omit the subsection, substitute:
“(1) Subject to this Division, if:
(a) a person makes, or is taken to have made, an election under section 137; and
(b) within the period that is the prescribed period in relation to the person, he or she becomes a member of an eligible superannuation scheme that is applicable in relation to persons employed in public employment;
a transfer value in respect of the person is payable to the person administering the eligible superannuation scheme.”.
5 Subsection 139 (1):
5 Subsection 139 (1):
Omit the subsection, substitute:
“(1) Subject to this Division, deferred benefits are applicable in relation to a person specified in subregulation 13 (1) of the FEE Regulations unless subsection 138 (1) applies.”.
7 Paragraph 139 (2) (b):
7 Paragraph 139 (2) (b):
Omit the paragraph, substitute:
“(b) the date of the person’s death;”.
9 Section 139:
9 Section 139:
Omit subsections 139 (3), (4), (6) and (7).
10 Section 141:
10 Section 141:
Omit the section.
Schedule 9A Modifications — former employees of repatriation institutions who cease to be eligible employees on or after 1 July 1995
(subregulation 13 (2))
“80AA Exclusion of this Part in respect “80AA Exclusion of this Part in respect of certain employees of repatriation institutions
“80AA Exclusion of this Part in respect of certain employees of repatriation institutions
This Part does not apply in respect of a person specified in subregulation 13 (2) of the FEE Regulations.”.
2 Subsection 137 (2):
2 Subsection 137 (2):
Omit the subsection, substitute:
“(2) A person specified in subregulation 13 (2) of the FEE Regulations is taken to have given a notice under subsection (1) on the relevant day within the meaning of that subregulation.”.
Schedule 10 Modifications — certain Northern Territory employees who cease to be eligible employees before 1 July 1995
(subregulation 14 (1))
1 Paragraph 58 (2) (b):
1 Paragraph 58 (2) (b):
Omit “ceases to be an eligible employee for any reason other than death or involuntary retirement;”, substitute “becomes a person to whom subregulation 14 (1) of the FEE Regulations applies;”.
2 Section 110T:
2 Section 110T:
Omit the section, substitute:
“110T A person who becomes entitled to benefits under section 55 or 59 is taken to have given the Commissioner a notice of election to have this Part apply to the person.”.
3 Subsection 110TA (1):
3 Subsection 110TA (1):
After paragraph (b), insert:
“; and
(c) the additional age retirement pension or the additional early retirement pension, as the case may be;”.
4 Subsection 110TA (2):
4 Subsection 110TA (2):
Omit the subsection.
6 Subsections 137 (2), (3) and (4):
6 Subsections 137 (2), (3) and (4):
Omit the subsections, substitute:
“(2) A person who is not entitled to benefits under section 55 or 59 is taken to have given the Commissioner a notice mentioned in subsection (1).”.
7 Subsection 139 (1):
7 Subsecti
This is an opening excerpt, not the complete document.
"). While the variables CPI1, CPI2 and S are defined, the exact arithmetic relationship is not fully legible in the excerpt. Practitioners must consult the official published text or consolidated Act to see the precise formula logic. Misapplication of CPI1/CPI2 selection rules could materially affect pension amounts, since CPI2 is defined as the highest CPI in a specified published series, which produces a particular upward indexing effect and is not the usual approach of compounding successive quarter-to-quarter indices.