Superannuation (Commonwealth Surcharge and Miscellaneous Amendments) Act 1999

Superannuation (Commonwealth Surcharge and Miscellaneous Amendments) Act 1999

An Act to amend various enactments relating to superannuation consequentially on Commonwealth Acts imposing surcharge liability and generally to revise the law relating to superannuation

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART 1 - Preliminary

1.   Short title

This Act may be cited as the Superannuation (Commonwealth Surcharge and Miscellaneous Amendments) Act 1999 .

2.   Commencement

(1)  Sections 60 and 75 commence on 1 July 1999.

(2)  Sections 70 , 73 , 92 and 93 commence on a day or days to be proclaimed.

(3)  The remaining provisions of this Act commence on the day on which this Act receives the Royal Assent.

PART 2 - Director of Public Prosecutions Act 1973 Amended

3.   Principal Act

In this Part, the Director of Public Prosecutions Act 1973 is referred to as the Principal Act.

4.    Section 2 amended (Interpretation)

Section 2 of the Principal Act is amended by omitting the definition of practitioner and substituting the following definitions:

practitioner means a legal practitioner within the meaning of the Legal Profession Act 1993 ;

widow of a deceased man includes a woman who, at the time of his death –

(a) was living with him; and

(b) was generally recognised as his de facto wife –

although not legally married to him at that time;

widower of a deceased woman includes a man who, at the time of her death –

(a) was living with her; and

(b) was generally recognised as her de facto husband –

although not legally married to her at that time.

5.    Section 8 amended (Payments by Minister into Fund)

Section 8 of the Principal Act is amended as follows:

(a) by omitting from subsection (1) "of a deceased Director as if he were, or had been, a judge to whom that Act applies and as if his" and substituting "or widower of a deceased Director as if he or she were, or had been, a judge to whom that Act applies and as if his or her";

(b) by inserting in subsection (2) "or widower" after "widow";

(c) by inserting in subsection (2)(b) "or her" after "his";

(d) by inserting in subsection (3)(a) "or she" after "he";

(e) by inserting in subsection (3)(a) "or her" after "his";

(f) by inserting in subsection (3)(b) "or she" after "when he";

(g) by inserting in subsection (3)(b)(i) "or she" after "he";

(h) by omitting subparagraph (ii) from subsection (3)(b) and substituting the following subparagraph:

(ii) he or she is not so in receipt of a pension under that Act, a pension does not become payable to him or her or his widow or her widower by virtue of the operation of that subsection.

PART 3 - Governor of Tasmania Act 1982 Amended

6.   Principal Act

In this Part, the Governor of Tasmania Act 1982 is referred to as the Principal Act.

7.    Section 3 amended (Interpretation)

Section 3 of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:

(1)  In this Act, unless the contrary intention appears –

Administrator means an officer who is provisionally administering the Government of Tasmania;

surcharge liability means liability for tax or interest imposed under the law of the Commonwealth arising from an entitlement to a pension under this Act;

widow of a deceased man includes a woman who, at the time of his death –

(a) was living with him; and

(b) was generally recognised as his de facto wife –

although not legally married to him at that time;

widower of a deceased woman includes a man who, at the time of her death –

(a) was living with her; and

(b) was generally recognised as her de facto husband –

although not legally married to her at that time.

8.    Section 6 amended (Governor's pension)

Section 6 of the Principal Act is amended as follows:

(a) by omitting subsections (2) and (3) and substituting the following subsections:

(2)  On the death of a person who, at the time of his or her death, held the office of Governor or was entitled to a pension under subsection (1) , his widow or her widower is, subject to this section, entitled until her or his death or re-marriage to a pension at the rate of three-sevenths of the rate at which the salary of the Governor is payable for the time being or, if the office of Governor is vacant, would be so payable if that office were not vacant.

(3)  Subsection (2) does not apply to the widow or widower of a former Governor unless she or he was –

(a) married to the former Governor; or

(b) generally recognised as his wife or her husband –

while the former Governor held the office of Governor.

(b) by inserting in subsection (4) "or her" after "his";

(c) by inserting in subsection (5) "or widower" after "the widow";

(d) by inserting in subsection (5) "or her" after "his";

(e) by inserting in subsection (5) "or widower" after "that widow";

(f) by inserting the following subsection after subsection (6) :

(7)  A pension payable under this Act is to be reduced to take into account any commutation of the pension under section 6A or 6B .

9.    Sections 6A , 6B and 6C inserted

After section 6 of the Principal Act , the following sections are inserted:

6A.   Commutation of pension to lump sum to pay surcharge liability

(1)  On a person ceasing to hold office as Governor, he or she, by notice in writing to the Minister, may elect to commute sufficient of his or her pension under this Act to a lump sum payment in order to discharge his or her surcharge liability.

(2)  On receipt of the notice, the Minister must commute sufficient of the person's pension to a lump sum payment and pay it to that person to enable that person to discharge his or her surcharge liability.

(3)  The Minister must determine the lump sum in accordance with the appropriate age, marital and gender factors specified for a pension in force under the Retirement Benefits Act 1993 .

6B.   Death of Governor with surcharge liability

If a person holding office as Governor dies with an outstanding surcharge liability, his widow or her widower may elect to commute her or his pension to a lump sum payment in order to discharge any surcharge liability, in which case section 6A applies to that election as if it were an election under that section.

6C.   Increases in annual pension

If part of a pension payable under this Act is commuted under section 6A or 6B , any future increase in the annual pension as a result of an increase in the current Governor's salary is to be calculated in accordance with the following formula:

where –

P is the new pension payable to a person in receipt of a pension under this Act;

RP is the pension payable to a person in receipt of a pension under this Act immediately before the increase;

A is the salary being paid to the current Governor;

B is the salary paid to the current Governor immediately before the increase.

PART 4 - Judges' Contributory Pensions Act 1968 Amended

10.   Principal Act

In this Part, the Judges' Contributory Pensions Act 1968 is referred to as the Principal Act.

11.    Section 2A inserted

After section 2 of the Principal Act , the following section is inserted:

2A.   Interpretation

In this Act –

appropriate judicial salary means –

(a) in the case of a pension payable in respect of contributions paid by a person who, immediately before he or she became entitled to a pension under this Act or at his or her death, was the Chief Justice, the salary for the time being required by law to be paid to the Chief Justice; and

(b) in the case of a pension payable in respect of contributions paid by a person who, immediately before he or she became entitled to a pension under this Act or at his or her death, was the Master, the salary for the time being required by law to be paid to the Master; and

(c) in any other case, the salary for the time being required by law to be paid to a puisne judge;

surcharge liability means liability for tax or interest imposed under the law of the Commonwealth arising from an entitlement to a pension under this Act;

widow of a deceased man includes a woman who, at the time of his death –

(a) was living with him; and

(b) was generally recognised as his de facto wife –

although not legally married to him at that time;

widower of a deceased woman includes a man who, at the time of her death –

(a) was living with her; and

(b) was generally recognised as her de facto husband –

although not legally married to her at that time.

12.    Section 5 amended (Entitlement to pension)

Section 5 of the Principal Act is amended by inserting after subsection (2) the following subsection:

(3)  A pension payable under this Act is to be reduced to take into account any commutation of the pension under section 11 or 12 .

13.    Section 6 amended (Pensions to spouses)

Section 6 of the Principal Act is amended as follows:

(a) by omitting from subsection (2) "if married to that person at the time at which that person became so entitled,";

(b) by inserting the following subsection after subsection (2) :

(2A)  Subsection (2) does not apply to a person's widow or widower if –

(a) the widow or widower married the deceased person after the date on which he or she became entitled to a pension under section 5 ; or

(b) in the case of a de facto husband or wife, the de facto relationship commenced after that date.

(c) by omitting from subsection (3) "The" and substituting "Subject to sections 11 and 12 , the".

14.    Section 7 amended (Calculation of rates of pensions)

Section 7 of the Principal Act is amended by omitting subsection (3) .

15.    Sections 11 , 12 and 13 inserted

After section 10 of the Principal Act , the following sections are inserted:

11.   Commutation of pension to lump sum to pay surcharge liability

(1)  On retirement, a person to whom this Act applies, by notice in writing to the Minister, may elect to commute sufficient of his or her pension under this Act to a lump sum payment in order to discharge his or her surcharge liability.

(2)  On receipt of the notice, the Minister must commute sufficient of the person's pension to a lump sum payment and pay it to that person to enable that person to discharge his or her surcharge liability.

(3)  The Minister must determine the lump sum in accordance with the appropriate age, marital and gender factors specified for a pension in force under the Retirement Benefits Act 1993 .

12.   Death of person with surcharge liability

If a person to whom this Act applies dies with an outstanding surcharge liability, his widow or her widower may elect to commute her or his pension to a lump sum payment in order to discharge any surcharge liability, in which case section 11 applies to that election as if it were an election under that section.

13.   Increases in annual pension

If part of the pension payable under this Act is commuted under section 11 or 12 , any future increase in the annual pension as a result of an increase in the appropriate judicial salary is to be calculated in accordance with the following formula:

where –

P is the new pension payable to a person in receipt of a pension under this Act;

RP is the pension payable to a person in receipt of a pension under this Act immediately before the increase;

A is the current appropriate judicial salary;

B is the appropriate judicial salary immediately before the increase.

16.   Amendments of Judges' Contributory Pensions Act 1968 relating to Treasurer

Each of the provisions of the Principal Act specified in Column 1 of Schedule 1 is amended by omitting "Treasurer" on the number of occurrences specified in Column 2 of that Schedule and substituting "Minister".

PART 5 - Parliamentary Retiring Benefits Act 1985 Amended

17.   Principal Act

In this Part, the Parliamentary Retiring Benefits Act 1985 is referred to as the Principal Act.

18.    Section 3 amended (Interpretation)

Section 3 of the Principal Act is amended as follows:

(a) by omitting the definition of Actuary from subsection (1) and substituting the following definition:

Actuary means a person who is a Fellow of the Institute of Actuaries (Australia), the Institute of Actuaries (London) or the Faculty of Actuaries (Edinburgh) appointed under subsection (2) or an organisation that is so appointed;

(b) by inserting the following definition after the definition of additional salary in subsection (1) :

assessment notice means a notice issued by the Taxation Commissioner requiring the payment of an amount of surcharge contributions tax including interest on that payment in respect of a member and includes an amendment to that notice issued by the Taxation Commissioner;

(c) by inserting the following definition after the definition of benefit in subsection (1) :

Commonwealth surcharge Act means an Act of the Commonwealth, as amended from time to time, which imposes a surcharge liability or relates to any such liability;

(d) by inserting the following definition after the definition of death or invalidity benefit in subsection (1) :

eligible termination payment has the same meaning as in the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(e) by inserting the following definitions after the definition of member in subsection (1) :

notional contributions surcharge amount means an amount calculated by the Trust under section 19AA ;

notional surchargeable contributions factor means a factor applying to a member as determined under section 6(6) ;

(f) by inserting the following definitions after the definition of retiring benefit in subsection (1) :

spouse of a person includes another person who although not legally married to the person –

(a) lives with the person; and

(b) is generally recognised as the de facto husband or wife of the person;

surcharge liability means liability for tax or interest under the law of the Commonwealth arising from an entitlement to a benefit under this Act;

surchargeable contributions debt account means an account established under section 19AD ;

Taxation Commissioner means the person who is holding office or acting in the office of the Commissioner of Taxation under the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(g) by omitting subsection (2) and substituting the following subsection:

(2)  The Governor may appoint a person or organisation as an Actuary for the purposes of this Act for such period and on such terms and conditions as are specified in the instrument of appointment.

19.    Section 6 amended (Actuarial investigations of Fund)

Section 6 of the Principal Act is amended by inserting after subsection (4) the following subsections:

(5)  The Actuary, when requested by the Trust or as required under the law of the Commonwealth, must provide the Trust with such actuarial information as is necessary for the Trust to satisfy its obligations under that law.

(6)  The Actuary, when requested by the Trust to do so, must –

(a) determine the notional surchargeable contributions factor for each member; and

(b) advise the Trust of that factor so as to enable the Trust to meet its obligations under a Commonwealth surcharge Act.

20.    Section 9A inserted

After section 9 of the Principal Act , the following section is inserted in Part III:

9A.   Member accounts for contributions

The Trust is to establish an account for every member and credit to that account the member's contributions together with any interest payable under section 10A .

21.    Section 10 amended (Deductions of contributions from salaries of members)

Section 10 of the Principal Act is amended as follows:

(a) by omitting from subsection (1A) "who was aged 60 years or over on 1 July 1990";

(b) by inserting in subsection (1A) "in accordance with section 9(2)" after "years";

(c) by inserting the following subsection after subsection (1B) :

(1BA)  A member who has made an election under subsection (1A) may, at any time, revoke that election by notice in writing to the Trust.

(d) by omitting paragraph (c) from subsection (1C) and substituting the following paragraph:

(c) when he or she revokes the election –

22.    Section 11A inserted

Before section 12 of the Principal Act , the following section is inserted in Division 1:

11A.   Application of Part

This Part is subject to Part IVA .

23.    Section 13 amended (Eligibility for retiring benefit)

Section 13(1)(b) of the Principal Act is amended as follows:

(a) by omitting " section 181B (3) of the Electoral Act 1907 " and substituting " section 225(2) of the Electoral Act 1985 ";

(b) by omitting " section 181B (3) (b) of that Act " and substituting " section 231 of the Electoral Act 1985 ".

24.    Part IVA inserted

After section 19 of the Principal Act , the following Part is inserted:

PART IVA - Taxation and payment of benefits

19AA.   Calculation of notional contributions surcharge amount

For the purposes of this Part, the Trust must calculate for each member a notional contributions surcharge amount having regard to his or her parliamentary salary and the notional surchargeable contributions factor advised by the Actuary as required by the law of the Commonwealth or this Act.

19AB.   Benefit subject to taxation

(1)  A benefit payable under this Act is to be treated by the Trust for the purposes of taxation under the law of the Commonwealth as an eligible termination payment emanating from a taxed source.

(2)  The Trust must deduct from a benefit entitlement any amount required to be paid as taxation under the law of the Commonwealth and must remit that amount to the Taxation Commissioner.

19AC.   Provision of certain information by Trust

(1)  The Trust must provide the Actuary with such information in respect of a member as may be necessary for the purposes of this Part.

(2)  The Trust must provide the Taxation Commissioner, as required by the law of the Commonwealth, with particulars of the notional contributions surcharge amount in respect of each member.

(3)  The Trust is to give to each member a copy of the particulars provided to the Taxation Commissioner under subsection (2) relating to that member together with details of how the amount was calculated.

(4)  If a member believes that the amount referred to in subsection (2) is incorrect owing to either a miscalculation of matters ascertained by the Actuary or a mistake of fact, the member may by notice in writing to the Trust –

(a) request that the calculation of the amount be reviewed; and

(b) request the Trust to consider any evidence which he or she may submit to it.

19AD.   Establishment of surchargeable contributions debt account

(1)  On receipt of the first assessment notice from the Taxation Commissioner in respect of a member, the Trust must establish a surchargeable contributions debt account in respect of that member.

(2)  The Trust must, within one month after the day on which the assessment notice from the Taxation Commissioner is received, pay to the Taxation Commissioner the amount of the surcharge liability specified in the notice in respect of that member.

(3)  The Trust must debit the surchargeable contributions debt account with the amount of any surcharge liability specified in the assessment notice relating to the member.

(4)  If the surchargeable contributions debt account is in debit at the end of a financial year, the Trust must debit the account with interest at the rate determined under section 10A .

(5)  The Trust, at least annually, must inform each member of the balance of his or her surchargeable contributions debt account and of any debits or credits, including interest, to that account.

19AE.   Right of members to pay into surchargeable contributions debt account

(1)  A member may make payments to his or her surchargeable contributions debt account to reduce in full or in part the balance of that account.

(2)  A payment made under subsection (1) by a member is taken not to be a contribution for the purposes of the law of the Commonwealth.

(3)  On receipt of a payment under this section, the Trust must –

(a) credit the surchargeable contributions debt account with that amount; and

(b) take any other action required under the law of the Commonwealth.

19AF.   Reduction of benefit

A benefit payable under this Act is to be reduced, at the time of payment by the Trust, to the extent of the balance of the surchargeable contributions debt account of the relevant member.

19AG.   Trust to act on assessment notice

For the purposes of adjusting a member’s surchargeable contributions debt account, the Trust must act on any assessment notice relating to that member’s surcharge liability received from the Taxation Commissioner and make a debit or credit to that account, as the case may require.

25.   Amendments of Parliamentary Retiring Benefits Act 1985 relating to Treasurer

Each of the provisions of the Principal Act specified in Column 1 of Schedule 2 is amended by omitting "Treasurer" on the number of occurrences specified in Column 2 of that Schedule and substituting "Minister".

PART 6 - Parliamentary Superannuation Act 1973 Amended

26.   Principal Act

In this Part, the Parliamentary Superannuation Act 1973 is referred to as the Principal Act.

27.    Long title amended

The long title of the Principal Act is amended by omitting "establish a contributory superannuation scheme for members of Parliament" and substituting "provide for superannuation benefits for members of the Legislative Council and the House of Assembly and their spouses, beneficiaries and representatives by way of a contributory scheme".

28.    Section 3 amended (Interpretation)

Section 3 of the Principal Act is amended as follows:

(a) by omitting the definition of Actuary from subsection (1) and substituting the following definition:

Actuary means a person who is a Fellow of the Institute of Actuaries (Australia), the Institute of Actuaries (London) or the Faculty of Actuaries (Edinburgh) appointed under subsection (4) or an organisation that is so appointed;

(b) by omitting "him under Part II or Part III of the second schedule to the Parliamentary Salaries and Allowances Act 1973 " from the definition of additional salary in subsection (1) and substituting "the member under Part II or III of Schedule 1 to the Parliamentary Salaries and Allowances Act 1973 ";

(c) by inserting the following definition after the definition of appointed day in subsection (1) :

assessment notice means a notice issued by the Taxation Commissioner requiring the payment of an amount of surcharge contributions tax including interest on that payment in respect of a member and includes an amendment to that notice issued by the Taxation Commissioner;

(d) by inserting the following definition after the definition of child in subsection (1) :

Commonwealth surcharge Act means an Act of the Commonwealth, as amended from time to time, which imposes a surcharge liability or relates to any such liability;

(e) by inserting the following definition after the definition of contributions in subsection (1) :

eligible termination payment has the same meaning as in the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(f) by inserting the following definitions after the definition of member in subsection (1) :

notional contributions surcharge amount means an amount calculated by the Trust under section 25A ;

notional surchargeable contributions factor means a factor applying to a member as determined under section 7(6) ;

(g) by inserting the following definition after the definition of pension in subsection (1) :

pensioner means a person who is receiving a pension under this Act;

(h) by inserting the following definitions after the definition of repealed Act in subsection (1) :

spouse of a person includes another person who although not legally married to the person –

(a) lives with the person; and

(b) is generally recognised as the de facto husband or wife of the person;

surcharge liability means liability for tax or interest under the law of the Commonwealth arising from an entitlement to a benefit under this Act;

surchargeable contributions debt account means an account established under section 25E ;

Taxation Commissioner means the person who is holding office or acting in the office of the Commissioner of Taxation under the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(i) by inserting the following subsection after subsection (3) :

(4)  The Governor may appoint a person or organisation as the Actuary for the purposes of this Act for such period and on such terms and conditions as are specified in the instrument of appointment.

29.    Section 7 amended (Actuarial investigations of the Fund)

Section 7 of the Principal Act is amended by inserting after subsection (4) the following subsections:

(5)  The Actuary, when requested by the Trust or as required under the law of the Commonwealth, must provide the Trust with such actuarial information as is necessary for the Trust to satisfy its obligations under that law.

(6)  The Actuary, when requested by the Trust to do so, must –

(a) determine the notional surchargeable contributions factor for each member; and

(b) advise the Trust of that factor so as to enable the Trust to meet its obligations under a Commonwealth surcharge Act.

30.    Section 11B amended (Powers and functions of Trust)

Section 11B(3) of the Principal Act is amended as follows:

(a) by omitting from paragraph (h) "Tasmania." and substituting "Tasmania; and";

(b) by inserting the following paragraph after paragraph (h) :

(i) provide for the payment of any taxation or surcharge liability imposed under the law of the Commonwealth on the Fund or in respect of any benefits payable by the Trust.

31.    Section 13A inserted

After section 13 of the Principal Act , the following section is inserted in Part III:

13A.   Member accounts for contributions

The Trust is to establish an account for every member and credit to that account the member's contributions together with any interest payable under section 14A .

32.    Section 14 amended (Deduction of contributions from salaries of members)

Section 14 of the Principal Act is amended as follows:

(a) by omitting from subsection (1A) "who was aged 60 years or over on 1 July 1990";

(b) by omitting from subsection (1A) "years." and substituting "years in accordance with section 13(2).";

(c) by inserting the following subsection after subsection (1B) :

(1BA)  A member who has made an election under subsection (1A) may, at any time, revoke that election by notice in writing to the Trust.

(d) by omitting paragraph (c) from subsection (1C) and substituting the following paragraph:

(c) when he or she revokes the election –

33.    Section 14D inserted

Before section 15 of the Principal Act , the following section is inserted in Division 1:

14D.   Application of Part

This Part is subject to Part IVA .

34.    Section 16 amended (Members' superannuation pensions)

Section 16(2)(b) of the Principal Act is amended as follows:

(a) by omitting " section 181B (3) of the Electoral Act 1907 " and substituting " section 225(2) of the Electoral Act 1985 ";

(b) by omitting " section 181B (3) (b) of that Act " and substituting " section 231 of the Electoral Act 1985 ".

35.    Section 23 amended (Rights of existing pensioners)

Section 23 of the Principal Act is amended by inserting after subsection (2A) the following subsection:

(2B)  A pension payable under subsection (2A) is not payable in respect of any period before 21 December 1989.

36.    Part IVA inserted

After section 25 of the Principal Act , the following Part is inserted:

PART IVA - Taxation and payment of pensions and other benefits

25A.   Calculation of notional contributions surcharge amount

For the purposes of this Part, the Trust must calculate for each member a notional contributions surcharge amount having regard to his or her parliamentary salary and the notional surchargeable contributions factor advised by the Actuary as required by the law of the Commonwealth or this Act.

25B.   When pension or other benefit is taken to be payable

For the purposes of this Part, a pension or other benefit payable under this Act is taken to be payable –

(a) in the case of a lump sum, at the time the member is paid the lump sum; and

(b) in the case of a pension, at the time the member is paid the first instalment of the pension.

25C.   Benefits subject to taxation

(1)  A pension or other benefit payable under this Act is to be treated by the Trust for the purposes of taxation under the law of the Commonwealth –

(a) in the case of a lump sum, as an eligible termination payment emanating from an untaxed source; and

(b) in the case of a pension, as a non-rebatable superannuation pension.

(2)  The Trust must deduct from a pension or other benefit any amount required to be paid as taxation under a law of the Commonwealth and must remit that amount to the Taxation Commissioner.

25D.   Provision of certain information by Trust

(1)  The Trust must provide the Actuary with such information in respect of a member as may be necessary for the purposes of this Part.

(2)  The Trust must provide the Taxation Commissioner, as required by the law of the Commonwealth, with particulars of the notional contributions surcharge amount in respect of each member.

(3)  The Trust is to give to each member a copy of the particulars provided to the Taxation Commissioner under subsection (2) relating to that member together with details of how the amount was calculated.

(4)  If a member believes that the amount referred to in subsection (2) is incorrect owing to either a miscalculation of matters ascertained by the Actuary or a mistake of fact, the member may, by notice in writing to the Trust –

(a) request that the calculation of the amount be reviewed; and

(b) request the Trust to consider any evidence which he or she may submit to it.

25E.   Establishment of surchargeable contributions debt account

(1)  On receipt of the first assessment notice from the Taxation Commissioner in respect of a member, the Trust must establish a surchargeable contributions debt account in respect of that member.

(2)  The Trust must debit the surchargeable contributions debt account with the amount of any surcharge liability specified in the assessment notice relating to the member.

(3)  If the surchargeable contributions debt account is in debit at the end of a financial year, the Trust must debit the account with interest, in accordance with the law of the Commonwealth.

(4)  Where a pension or other benefit becomes payable by the Trust to a member whose account is in debit, the Trust must pay to the Taxation Commissioner, within one month after the day on which the lump sum or the first instalment of pension becomes payable, the amount by which the account is in debit in respect of that pension or other benefit.

(5)  The Trust, at least annually, must inform each member of the balance of his or her surchargeable contributions debt account and of any debits or credits, including interest, to that account.

25F.   Right of members to pay into surchargeable contributions debt account

(1)  A member may make payments to his or her surchargeable contributions debt account to reduce in full or in part the balance of that account.

(2)  A payment made under subsection (1) by a member is taken not to be a contribution for the purposes of the law of the Commonwealth.

(3)  On receipt of a payment under this section, the Trust must –

(a) credit the surchargeable contributions debt account with that amount; and

(b) take any other action required under the law of the Commonwealth.

25G.   Reduction of pension or other benefit

(1)  A pension or other benefit payable under this Act is to be reduced, at the time of payment by the Trust, to the extent of the balance of the surchargeable contributions debt account of the relevant member but the pension or other benefit is not reduced for the purposes of section 8 .

(2)  For the purposes of subsection (1) , where a person elects to commute all or part of his or her pension entitlement to a lump sum under this Act, that entitlement is to be reduced in accordance with the following formula, before any commutation to a lump sum:

where –

PR is the amount by which the pension is to be reduced;

SCDA is the balance of the surchargeable contributions debt account attributable to the pension at the time the surcharge liability is payable;

CF is the appropriate age, marital and gender factor specified for a pension in force under the Retirement Benefits Act 1993 .

(3)  A person who receives an assessment notice in respect of a pension payable under this Act may elect in writing to the Trust to commute sufficient of his or her pension to a lump sum to discharge the balance of his or her surchargeable contributions debt account.

(4)  On receipt of an election under subsection (3) , the Trust must reduce the pension as provided by subsection (2) and must pay the lump sum to that person to enable that person to discharge the balance of his or her surchargeable contributions debt account.

25H.   Trust may act on assessment notice

For the purposes of adjusting a member’s surchargeable contributions debt account, the Trust may act on any assessment notice relating to that member’s surcharge liability received from the Taxation Commissioner and make a debit or credit to that account, as the case may require.

37.   Amendments of Parliamentary Superannuation Act 1973 relating to Treasurer

Each of the provisions of the Principal Act specified in Column 1 of Schedule 3 is amended by omitting "Treasurer" on the number of occurrences specified in Column 2 of that Schedule and substituting "Minister".

PART 7 - Retirement Benefits Act 1993 Amended

38.   Principal Act

In this Part, the Retirement Benefits Act 1993 is referred to as the Principal Act.

39.    Section 3 amended (Interpretation)

Section 3(1) of the Principal Act is amended as follows:

(a) by omitting the definition of Commonwealth Commissioner ;

(b) by omitting the definition of Fund and substituting the following definition:

Fund means the Retirement Benefits Fund continued in existence under section 11 and includes all money received by the Board and all subfunds, accounts, investments, policies of insurance and other assets in which that money is from time to time invested;

40.    Section 9 amended (Suspension and removal of members of Board)

Section 9 of the Principal Act is amended as follows:

(a) by omitting from subsection (1) "Commonwealth Commissioner" and substituting "Australian Prudential Regulation Authority";

(b) by omitting from subsection (5) "Commonwealth Commissioner" and substituting "Australian Prudential Regulation Authority".

41.    Section 25 inserted

Before section 26 of the Principal Act , the following section is inserted in Part 3:

25.   Investment management services for PSRB Trust

(1)  The Board –

(a) may, either alone or in conjunction with other persons, enter into an agreement with the PSRB Trust for the purposes of the investment of money standing to the credit of any fund maintained by the PSRB Trust for the purposes of the Parliamentary Superannuation Act 1973 or the Parliamentary Retiring Benefits Act 1985 ; and

(b) is entitled to be paid, out of such fund as may be appropriate, such management fees as are specified in that agreement.

(2)  The Board must maintain separate records from those maintained for the purposes of section 26 for any money standing to the credit of any fund referred to in subsection (1) .

(3)  The Board must, at intervals of not greater than 6 months and on demand being made by the PSRB Trust, provide the PSRB Trust with a report on its operations under an agreement under subsection (1) during the period of 6 months immediately preceding the date of the report or, where the report is provided earlier than 6 months after the date of another such report, the period since the date of that other report.

(4)  A report provided under subsection (3) is to include, in particular –

(a) the status of all investments and money that at the date of the report are subject to the control of the PSRB Trust under the agreement; and

(b) the income earned by the Board on those investments and that money during the period to which the report relates; and

(c) the total amount of any management fees deducted by the Board from that money and income during that period.

(5)  The Board must, within 14 days after the termination of an agreement under this section or within such further period as may be agreed, pay all money, including income, and transfer all investments held by it under the agreement, to the PSRB Trust.

42.    Section 29 amended (Regulations)

Section 29 of the Principal Act is amended as follows:

(a) by inserting the following subsection after subsection (4) :

(4A)  The regulations may confer power on the Supreme Court to review any determination of the Board that is adverse to the interests of a person claiming to be entitled to a benefit under this Act and to make any declaration as to that entitlement as the Court considers appropriate.

(b) by inserting the following subsection after subsection (5) :

(5A)  The regulations may contain provisions adjusting a person's entitlement to a lump sum or pension benefit in order to satisfy the requirements of the relevant law of the Commonwealth.

PART 8 - Solicitor-General Act 1983 Amended

43.   Principal Act

In this Part, the Solicitor-General Act 1983 is referred to as the Principal Act.

44.    Section 3 amended (Interpretation)

Section 3(1) of the Principal Act is amended by omitting the definition of the regulations and substituting the following definitions:

regulations means regulations made and in force under this Act;

surcharge liability means liability for tax or interest imposed under the law of the Commonwealth arising from an entitlement to a pension under Schedule 1 ;

widow of a deceased man includes a woman who, at the time of his death –

(a) was living with him; and

(b) was generally recognised as his de facto wife –

although not legally married to him at that time;

widower of a deceased woman includes a man who, at the time of her death –

(a) was living with her; and

(b) was generally recognised as her de facto husband –

although not legally married to her at that time.

45.    Schedule 1 amended (Pension Rights, &c.)

Schedule 1 to the Principal Act is amended as follows:

(a) by inserting in clause 3(1) "or her widower" after "widow";

(b) by omitting subclause (2) from clause 3 and substituting the following subclauses:

(2) Where a person who has become entitled to a pension under clause 2 dies –

(a) his widow, if he was married to her at the time when he became so entitled; or

(b) her widower, if she was married to him at the time when she became so entitled –

becomes entitled to the pension referred to in subclause (3) .

(2A) Subclause (2) does not apply to a person's widow or widower if –

(a) the widow or widower married the deceased person after the date on which she or he became entitled to a pension under clause 2 ; or

(b) in the case of a de facto husband or wife, the de facto relationship commenced after that date.

(c) by inserting in clause 3(3) "or widower" after "widow";

(d) by inserting the following subclause after subclause (2) in clause 4 :

(3) A pension payable under this Schedule is to be reduced to take account of any commutation of the pension under clause 8 or 9 .

(e) by inserting the following clauses after clause 7 :

8.   Commutation of pension to lump sum to pay surcharge liability

(1) Where a person ceases to hold office as Solicitor-General, he or she may, by notice in writing to the Minister, elect to commute sufficient of his or her pension to a lump sum payment in order to discharge his or her surcharge liability.

(2) On receipt of the notice, the Minister must commute sufficient of the person's pension entitlement to a lump sum payment and pay it to that person to enable him or her to discharge his or her surcharge liability.

(3) The Minister must determine the lump sum in accordance with the appropriate age, marital and gender factors specified for a pension determined in accordance with the Retirement Benefits Act 1993 .

9.   Death of Solicitor-General with surcharge liability

If a person holding office as Solicitor-General dies with an outstanding surcharge liability, his widow or her widower may elect to commute her or his pension entitlement to a lump sum payment in order to discharge any surcharge liability, in which case clause 8 applies to that election as if it were an election under that clause.

10.   Increases in annual pension

If a part of a pension payable under this Schedule is commuted under clause 8 or 9 , any future increase in the annual pension entitlement as the result of an increase in the current Solicitor-General's salary is to be calculated in accordance with the following formula:

where –

P is the new pension payable to a person in receipt of a pension payable under this Act;

RP is the pension payable to a person in receipt of a pension payable under this Act immediately before the increase;

A is the salary being paid to the current Solicitor-General;

B is the salary paid to the current Solicitor-General immediately before the increase.

PART 9 - Retirement Benefits Regulations 1994 Amended

46.   Principal Regulations

In this Part, the Retirement Benefits Regulations 1994 are referred to as the Principal Regulations.

47.   Section 29 of Retirement Benefits Act 1993 not to apply

The amendments made by this Part have effect notwithstanding section 29 of the Retirement Benefits Act 1993 .

48.   Regulation 3 amended (Interpretation)

(1)  Regulation 3(1) of the Principal Regulations is amended as follows:

(a) by omitting the definition of "Actuary" and substituting the following definitions:

Actuary means a person who is a Fellow of the Institute of Actuaries (Australia), the Institute of Actuaries (London) or the Faculty of Actuaries (Edinburgh) appointed under regulation 12 or an organisation that is so appointed;

additional employer contributions means employer contributions paid by an Agency on behalf of an eligible employee or contributor as mentioned in regulation 61A(1) ;

(b) by inserting after the definition of "Agency" the following definitions:

allocated pension means a pension payable from an allocated pension account;

allocated pension account means an account established under regulation 65 ;

(c) by inserting after the definition of "amalgamation basis" the following definition:

assessment notice means a notice issued by the Taxation Commissioner requiring the payment of an amount of surcharge contributions tax, including interest on that payment, in respect of any person and includes –

(a) a notice that has been issued in respect of superannuation contributions transferred to the Board under these regulations; and

(b) an amendment to that notice issued by the Taxation Commissioner;

(d) by omitting the definition of "Commonwealth Commissioner" and substituting the following definition:

Commonwealth surcharge Act means an Act of the Commonwealth, as amended, which imposes a surcharge liability or relates to any such liability;

(e) by inserting after the definition of "complying superannuation scheme" the following definition:

compulsory preservation account means an account established under regulation 63 ;

(f) by inserting after the definition of "contributor's account" the following definition:

contributory scheme means the scheme established under Part 4 ;

(g) by inserting after the definition of "eligible employee's account" the following definitions:

eligible rollover fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, as amended;

eligible termination payment has the same meaning as in the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(h) by omitting the definition of "Fund" and substituting the following definitions:

Fund means the Retirement Benefits Fund continued in existence under section 11 of the Act and includes all money received by the Board and all subfunds, accounts, investments, policies of insurance and other assets in which that money is from time to time invested;

Government Business Enterprise means a Government Business Enterprise within the meaning of the Government Business Enterprises Act 1995 ;

(i) by inserting after the definition of "Minister" the following definitions:

non-contributory scheme means the scheme established under Part 5 ;

notional contributions surcharge amount means an amount calculated by the Board under regulation 88A ;

notional surchargeable contributions factor means a factor applying to a contributor or eligible employee as determined under regulation 15(9) ;

(j) by omitting the definition of "pay day" and substituting the following definitions:

pay day means –

(a) in the case of an allocated pension, a day on which a fortnightly, monthly, quarterly or annual instalment of allocated pension is payable under regulation 65 ; or

(b) in the case of any other pension, a day on which a fortnightly instalment of pension is payable under regulation 83 ;

pensioner means a person who is receiving a pension under these regulations that is not an allocated pension;

(k) by inserting after subparagraph (vi) of paragraph (n) of the definition of "permanent employee" the following subparagraph:

(vii) who is employed on a contract under section 38(1)(a) of the State Service Act; or

(l) by inserting after the definition of "prescribed arrangement" the following definition:

prescribed authority means an authority, State-owned company, Agency or part of an Agency to which these regulations apply under subregulation (5) ;

(m) by omitting the definition of "preservation age" and substituting the following definition:

preservation age means the age of 55 years or, where the law of the Commonwealth relating to superannuation provides for another age as the preservation age, that other age;

(n) by inserting after the definition of "quarter" the following definition:

regulated superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, as amended;

(o) by inserting "taken as a lump sum payment on the termination of employment" after "leave", last occurring, in paragraph (e) of the definition of "salary";

(p) by inserting after the definition of "service" the following definition:

spouse contributions has the same meaning as in the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

(q) by omitting the definitions of "State Service Act", "vested benefits" and "voluntary contributions" and substituting the following definitions:

State-owned company means a company incorporated under the Corporations Law which is controlled by the Crown, a Government Business Enterprise or statutory authority or another company which is so controlled;

State Service Act means the Tasmanian State Service Act 1984 ;

subfund means a part of the Fund that is maintained by the Board as a subfund under regulation 13A ;

surcharge liability means liability for a tax or interest under the law of the Commonwealth arising from an entitlement to a benefit under these regulations;

surchargeable contributions debt account means an account established under regulation 88G ;

Taxation Commissioner means the person who is holding office as, or acting in the office of, the Commissioner of Taxation under the Income Tax Assessment Act 1936 of the Commonwealth, as amended;

vested benefits means the aggregate of the amounts standing to the credit of the accounts established under these regulations for a contributor or eligible employee;

voluntary contributions means the voluntary contributions paid or payable under these regulations by an eligible employee or a contributor or the spouse of an eligible employee or contributor;

widow of a deceased man includes a woman who, at the time of his death –

(a) was living with him; and

(b) was generally recognised as his de facto wife –

although not legally married to him at that time;

widower of a deceased woman includes a man who, at the time of her death –

(a) was living with her; and

(b) was generally recognised as her de facto husband –

although not legally married to her at that time.

(2)  Regulation 3 of the Principal Regulations is further amended by inserting after subregulation (4) the following subregulations:

(5)  The Minister may, by notice published in the Gazette, declare that these regulations apply to –

(a) a joint authority under section 38 of the Local Government Act 1993 or any other specified authority; and

(b) a State-owned company; and

(c) a specified Agency or part of an Agency which maintains its own superannuation provisions for all or any of its employees; and

(d) the employees or former employees of any such authority, company, Agency or part of an Agency or a class of such employees or such former employees.

(6)  For the purposes of the definition of "State-owned company" in subregulation (1) , the provisions of the Corporations Law relating to control are taken to apply as if the Crown, Government Business Enterprise or statutory authority, as the case may be, were a corporation under that Law.

49.   Regulation 4 amended (Non-application of regulations)

Regulation 4 of the Principal Regulations is amended as follows:

(a) by inserting "(1)" before "These";

(b) by inserting the following subregulations:

(2)  Where a person who is a contributor is excluded from the application of these regulations under subregulation (1) , he or she is entitled to an amount equal to a lump sum benefit calculated under regulation 41 , which amount is to be preserved in accordance with regulation 43(6) or (7) .

(3)  Where a person who is an eligible employee is excluded from the application of these regulations under subregulation (1) , he or she is entitled to an amount equal to the lump sum benefit as provided by regulation 55 , which amount is to be transferred to his or her compulsory preservation account.

50.   Regulation 8 amended (Functions and powers of Board)

Regulation 8 of the Principal Regulations is amended as follows:

(a) by omitting "entitlements." from subregulation (1)(h) and substituting "entitlements; and";

(b) by inserting after subregulation (1)(h) the following paragraph:

(i) provide for the payment of any taxation or surcharge liability imposed under the law of the Commonwealth on the Fund or in respect of any benefits payable by the Board.

(c) by inserting after subregulation (4) the following subregulation:

(5)  In performing its functions, the Board must have regard to any directions given under regulation 60AB .

51.    Regulation 10 amended (Protection for members and officers of Board)

Regulation 10 of the Principal Regulations is amended by inserting after subregulation (2) the following subregulation:

(3)  Neither the Board or any member or officer of the Board is liable for any loss suffered by a person by reason of an investment choice exercised under regulation 60AB .

52.    Regulation 11 substituted

Regulation 11 of the Principal Regulations is rescinded and the following regulation is substituted:

11.   Annual report of Board

(1)  The Board must, in respect of each financial year, prepare an annual report containing –

(a) a report of its operations during the financial year; and

(b) an audited statement of the financial position of the Fund; and

(c) a summary of the most recent report prepared by the Actuary showing the superannuation liabilities of the State and each prescribed authority.

(2)  The Board is to submit the annual report to the Minister to enable the Minister, on or before 30 November in each year, to cause copies of the report to be laid before each House of Parliament.

(3)  If the Minister is unable to comply with subregulation (2) because either House of Parliament is not sitting, the Minister must –

(a) on 30 November following the end of the financial year –

(i) forward copies of the annual report to the Clerk of that House; and

(ii) make the annual report available to the public; and

(b) within the next 7 sitting days of that House, cause copies of the annual report to be laid before that House.

(4)  If 30 November in any year is a Sunday or a day that is a bank holiday or a public holiday throughout Tasmania, it is sufficient compliance with this regulation if, on the next day that is not a bank holiday or a public holiday throughout Tasmania, copies of the annual report –

(a) are forwarded to the Clerk of the Legislative Council and the Clerk of the House of Assembly; and

(b) are made available to the public.

(5)  The Board must, each year, distribute to each person entitled to a benefit under this Act –

(a) a summary of its annual report; and

(b) a statement of any money or benefit entitlement held by the Board in respect of that person; and

(c) a statement of the estimated surcharge liability payable under Part 7A in respect of that person.

53.    Regulation 13 amended (Operation of Fund)

Regulation 13 of the Principal Regulations is amended as follows:

(a) by omitting paragraph (a) from subregulation (1) and substituting the following paragraph:

(a) contributions, voluntary contributions, spouse contributions, additional employer contributions, eligible termination payments or other money authorised to be paid into the Fund by persons entitled to benefits under these regulations; and

(b) by omitting "pensions" from subregulation (4)(a) and substituting "pensions, allocated pensions";

(c) by inserting "surcharge or other" after "taxation," in subregulation (4)(c).

54.   Regulation 13A inserted

After regulation 13 of the Principal Regulations, the following regulation is inserted:

13A.   Subfunds

(1)  The Board may establish and maintain within the Fund such subfunds as, in the opinion of the Board, are necessary or convenient for the administration of the Act but must ensure that, in respect of each subfund –

(a) there are separately identifiable assets and beneficiaries; and

(b) each beneficiary of that subfund has an interest only in the assets of that subfund and not in the other assets of the Fund; and

(c) there is no transfer of assets, benefits or money between that subfund and another subfund unless there is a transfer of a corresponding beneficial interest; and

(d) the insurance and administration costs levied on that subfund are attributable only to that subfund.

(2)  Without limiting subregulation (1) , the Board may establish separate asset portfolios, comprising assets of the Fund allocated by the Board, for the purposes of investment of the Fund.

(3)  For the purpose of investment and allocating the investment earnings of the Fund or for related purposes, the Board –

(a) may treat 2 or more subfunds as one subfund; and

(b) may treat one or more subfunds as being invested as part of one or more asset portfolios; and

(c) must, if so required, determine the parts of each subfund which are to be treated as being invested in one or more asset portfolios.

55.    Regulation 15 substituted

Regulation 15 of the Principal Regulations is rescinded and the following regulation is substituted:

15.   Actuarial investigations of Fund

(1)  An investigation as to the state and sufficiency of the Fund is to be made at the expiration of each period of 3 years commencing on 30 June 1998.

(2)  An investigation for the purposes of subregulation (1) is to be made by the Actuary who, not later than 12 months after the date on which the investigation is to be made, must prepare a report giving full particulars of the investigation and give a copy of the report to the Minister and the Board.

(3)  The Actuary must include in the report –

(a) a statement as to whether any change should be made in –

(i) the basis on which, or the extent to which, lump sum entitlements may be converted into pension payments under Part 7 ; and

(ii) the proportion in which the contributions required to be paid to the Fund under regulations 90 and 90A by the Minister and by a prescribed authority are to be paid; and

(b) a statement of the financial position with respect to the current and future liabilities for pension and lump sum benefit entitlements, including any liabilities payable by the Fund under the law of the Commonwealth; and

(c) a statement as to any liability for benefit payments not expected to be paid out of the assets of the Fund or any future contributions; and

(d) any other matters which the Actuary may consider appropriate.

(4)  In carrying out an investigation under subregulation (1) , the Actuary must prepare a report in respect of each prescribed authority and must give a copy of the report to –

(a) the Board; and

(b) the prescribed authority; and

(c) the Minister –

within 12 months after the date on which the investigation is to be made.

(5)  The cost of an investigation under subregulation (4) into each prescribed authority is to be met by the prescribed authority.

(6)  The Board must provide a copy or extract of the Actuary's report to an eligible employee or contributor on written request.

(7)  The Actuary, when requested by the Board or as required under the law of the Commonwealth, must provide the Board with such actuarial information as is necessary for the Board to satisfy its obligations under the law of the Commonwealth.

(8)  The Actuary may, from time to time, make comments and provide advice to the Minister or the Board on any matter or thing relating to, or arising out of, these regulations.

(9)  The Actuary, when requested by the Board to do so, must –

(a) determine a notional surchargeable contributions factor for each contributor or eligible employee or class of contributor or eligible employee; and

(b) advise the Board of that factor so as to enable the Board to satisfy its obligations under a Commonwealth surcharge Act.

56.    Regulation 26 amended (Obligation of certain employees to contribute)

Regulation 26 of the Principal Regulations is amended by omitting subregulation (11) and substituting the following subregulation:

(11)  If a contributor has revoked his or her election to pay additional contributions above the basic contribution rate, the Board may –

(a) refund to him or her the total of all excess contributions paid above that rate together with interest accrued as at 30 June 1999, if it is satisfied that the contributor would suffer financial hardship on failure to make the refund; and

(b) subject to the Commonwealth preservation standards, refund to him or her the total of all excess contributions paid above that rate after 30 June 1999 together with accrued interest.

57.   Regulation 27 amended (Commencement and cessation of contributions)

Regulation 27 of the Principal Regulations is amended as follows:

(a) by inserting "or (5)" after "subregulation (4)" in subregulation (3);

(b) by omitting "65" from subregulation (3) and substituting "70";

(c) by omitting "65" from subregulation (4)(b) and substituting "70";

(d) by inserting after subregulation (4) the following subregulation:

(5)  A person who has attained the age of 65 years and who remains an employee for at least 10 hours a week may, by notice in writing to the Board, elect not to continue to contribute to the Fund.

58.    Regulation 33 amended (Interpretation of Division 3)

Regulation 33 of the Principal Regulations is amended by inserting after subregulation (2) the following subregulation:

(3)  This Division is subject to Part 7A .

59.    Regulation 42 amended (Benefit payable on retirement or death after retirement age)

Regulation 42(1) of the Principal Regulations is amended as follows:

(a) by omitting "age of retirement" from the definition of ABMF and substituting "date when he or she ceased paying contributions under regulation 27(5)";

(b) by omitting "contributor's age of retirement" from the definition of PRS and substituting "date when he or she ceased paying contributions under regulation 27(5)".

60.    Regulation 43 substituted

Regulation 43 of the Principal Regulations is rescinded and the following regulation is substituted:

43.   Preservation of contributions

(1)  This regulation takes effect on 1 July 1999.

(2)  In this regulation –

benefit means a benefit calculated under regulation 37 , 37A or 41 ;

employee component means a benefit less the employer component of that benefit;

employer component means five-sevenths, or any other proportion that the Minister on the advice of the Actuary determines, of a benefit that would have been payable if the contributor had always contributed at the basic contribution rate.

(3)  A benefit in respect of a contributor who, at the age of retirement, resignation, dismissal or cessation of employment as a result of a prescribed arrangement, is aged less than the preservation age is to be preserved compulsorily as provided by this regulation until –

(a) the contributor retires from the work force after attaining the preservation age and elects, by notice in writing to the Board, to receive the benefit; or

(b) the benefit is released under regulation 69 .

(4)  A benefit calculated under regulation 37 is to be preserved as follows:

(a) the employee component is to be transferred to the contributor's investment account;

(b) the employer component is to be transferred to his or her compulsory preservation account –

or, if the contributor so elects –

(c) the total amount of the benefit; or

(d) an amount equal to 3.5 times the balance standing to the credit of his or her contributory account calculated as if he or she had always contributed at the basic contribution rate, together with any part of that account attributable to contributions in excess of that rate –

whichever amount is the lesser, is to be transferred to his or her investment account and the balance is to be transferred to his or her compulsory preservation account.

(5)  A benefit calculated under regulation 37A is to be preserved as follows:

(a) the total benefit is to be transferred to the contributor's investment account;

(b) if the contributor so elects, the employee component of the benefit payable is to be transferred to his or her investment account and the employer component of that benefit is to be transferred to his or her compulsory preservation account.

(6)  A benefit calculated under regulation 41(2) or (4) is to be preserved as follows:

(a) the employee component is to be transferred to the contributor's investment account;

(b) the employer component is to be transferred to his or her compulsory preservation account.

(7)  A benefit calculated under regulation 41(3) is to be preserved as follows:

(a) the amount standing to the credit of the contributor's account is to be transferred to his or her investment account;

(b) the balance of the total benefit is to be transferred to his or her compulsory preservation account.

(8)  On application in writing to the Board by a contributor to whom subregulation (3) applies and who was a contributor on 30 June 1999, the Board must pay to him or her an amount which is –

(a) if the benefit is calculated under regulation 37  –

(i) the total amount of the benefit; or

(ii) an amount equal to 3.5 times the balance standing to the credit of his or her contributory account calculated as at 30 June 1999 as if he or she had always contributed at the basic contribution rate, together with any part of that account attributable to contributions in excess of that rate calculated as at that date –

whichever amount is the lesser; or

(b) if the benefit is calculated under regulation 37A , an amount equal to 3.5 times the balance standing to the credit of the contributor's account calculated as at 30 June 1999 as if he or she had always contributed at the basic contribution rate, together with any part of that account attributable to contributions in excess of that rate calculated as at that date; or

(c) if the benefit is calculated under regulation 41  –

(i) the amount of the employee component calculated as at 30 June 1999; and

(ii) the amount of the employer component, if that component is not required to be preserved under the law of the Commonwealth.

(9)  Subregulation (8) does not apply to a contributor who has made an election under subregulation (5)(b) .

(10)  A contributor who is entitled to an amount under subregulation (8) may apply in writing to the Board –

(a) to be paid the whole or a part of the amount; or

(b) to transfer the whole or a part of the amount to his or her investment account; or

(c) to transfer the whole or a part of the amount to another regulated superannuation fund or eligible rollover fund.

(11)  If an amount is paid under subregulation (8)  –

(a) the Board must debit the compulsory preservation account of the relevant contributor with the amount payable under regulation 90 and the amount, if any, payable under regulation 90A ; and

(b) the balance of the amount paid under subregulation (8) is to be debited to his or her investment account.

(12)  If a former contributor becomes entitled to a lump sum benefit under this Part other than a benefit mentioned in subregulation (3) , he or she may –

(a) leave the benefit in his or her investment account; and

(b) on attaining the age of 70 years or an earlier age that is not less than the preservation age and is specified in writing to the Board, elect to receive the benefit as a lump sum, an allocated pension or a pension as provided by regulation 77 .

61.    Regulation 47 amended (Eligibility for membership of scheme)

Regulation 47 of the Principal Regulations is amended by inserting after subregulation (2) the following subregulations:

(3)  An employee who is excluded from the application of these regulations under regulation 4(1)(d) or (da) may elect, by notice in writing to the Board, to become, or again become, an eligible employee.

(4)  The notice is to be accompanied by a certificate from the Agency in which the employee is employed that the alternative superannuation arrangements previously in place for that employee will cease on a date specified by the Agency.

62.   Regulation 54AA inserted

Before regulation 54 of the Principal Regulations, the following regulation is inserted in Division 3 of Part 5:

54AA.   Application of Division

This Division is subject to Part 7A .

63.    Regulation 54 amended (Benefit on retirement of eligible employee due to age)

Regulation 54 of the Principal Regulations is amended as follows:

(a) by inserting in paragraph (a) of subregulation (1) "and surcharge" after "tax";

(b) by omitting subregulation (2) and substituting the following subregulation:

(2)  A former eligible employee who becomes entitled to a lump sum benefit under subregulation (1) may –

(a) elect to transfer the benefit to his or her investment account; and

(b) on attaining the age of 70 years or at any earlier age specified in writing to the Board, elect to receive the benefit as a lump sum, an allocated pension or a pension under regulation 77 .

64.    Regulation 55 amended (Benefit on voluntary separation of eligible employee before age 55 years)

Regulation 55 of the Principal Regulations is amended as follows:

(a) by inserting in paragraph (a) of subregulation (1) "and surcharge" after "tax";

(b) by omitting subregulations (2) and (3) .

65.    Regulation 56 amended (Benefit of eligible employees on death or retirement due to invalidity)

Regulation 56 of the Principal Regulations is amended as follows:

(a) by omitting from subregulation (1) "to be paid" and substituting "entitled to a benefit comprising";

(b) by omitting from subregulation (1)(b) "having regard to regulations 65 and 77 ";

(c) by omitting from subregulation (2) "payable" first occurring and substituting "entitlement";

(d) by omitting from the definition of "B" in subregulation (2) "benefit payable" and substituting "prospective benefit entitlement payable".

66.    Regulation 58 amended (Benefit payable on retirement of eligible employee on attainment of age 70 years)

Regulation 58(1) of the Principal Regulations is amended by omitting "to be paid" and substituting "entitled to a benefit comprising".

67.    Regulation 59 amended (Compulsory preservation of certain employer contributions)

Regulation 59 of the Principal Regulations is amended by omitting "payable to a former eligible employee under regulation 55 is $500 or more, or any other amount specified by Commonwealth legislation" and substituting "entitlement of a former eligible employee under regulation 55 is required to be preserved under the law of the Commonwealth".

68.   Part 6 heading amended

The heading to Part 6 of the Principal Regulations is amended by omitting "CONTRIBUTORS AND ELIGIBLE EMPLOYEES" and substituting "CONTRIBUTORS, ELIGIBLE EMPLOYEES AND THEIR SPOUSES".

69.    Regulation 60AA inserted

Before regulation 60 of the Principal Regulations , the following regulation is inserted in Part 6:

60AA.   Application of Part

This Part is subject to Part 7A .

70.   Regulation 60AB inserted

After regulation 60AA of the Principal Regulations, as inserted by section 69, the following regulation is inserted:

60AB.   Investment choice

(1)  The Board may from time to time provide investment choices for persons who have accounts established under regulation 60 or 65 and may –

(a) establish such accounts; and

(b) determine an administrative policy and such terms and conditions –

as are necessary for the efficient and effective administration of those investment choices.

(2)  Subject to subregulation (1) , a person may direct the Board as to the investment choice that he or she wishes to exercise in respect of –

(a) the whole or a part of the balance standing to the credit of an account referred to in subregulation (1) ; and

(b) any future amounts credited to that account.

(3)  The direction is to be in a form approved by the Board and the Board must give effect to that direction within 14 working days after receiving it.

(4)  The Board must charge a management fee to cover any taxation liability, brokerage fee, investment fee and the administrative costs of giving effect to the direction.

(5)  In the absence of a direction by a person under this regulation, the Board may invest any money standing to the credit of an account referred to in subregulation (1) as the Board may determine.

71.   Regulations 60 and 61 substituted, regulation 61A inserted and regulation 62 substituted

Regulations 60, 61 and 62 of the Principal Regulations are rescinded and the following regulations are substituted:

60.   Establishment of investment account for contributors and eligible employees and their spouses

(1)  In accordance with these regulations, the Board may establish accounts for the purpose of receiving voluntary contributions, spouse contributions or benefit entitlements paid by, or on behalf of, eligible employees or contributors or the spouses of eligible employees or contributors.

(2)  The Board must credit to investment accounts –

(a) all contributions paid by or on behalf of an eligible employee or contributor or spouse of an eligible employee or contributor under regulation 61 ; and

(b) all contributions paid by an Agency on behalf of an eligible employee or contributor under regulation 61A ; and

(c) any benefit transferred to the accounts by a decision of the Board under regulation 73 ; and

(d) any benefit paid into the Fund under regulation 62 ; and

(e) the balance of a former contributor's or former eligible employee's account transferred under regulation 63(5) ; and

(f) interest calculated under regulation 94 or 94A ; and

(g) any other amount considered appropriate by the Board.

(3)  The Board must debit to investment accounts –

(a) the cost of death and disability premiums payable under regulation 64 ; and

(b) tax or surcharge liability or any other amounts required by the law of the Commonwealth; and

(c) the cost of administration and investment management as provided by regulation 66 ; and

(d) any other amount considered appropriate by the Board.

(4)  An eligible employee or contributor or the spouse of an eligible employee or contributor may, unless prohibited from doing so by the law of the Commonwealth, elect in writing –

(a) to receive a refund of the whole, or a part, of the balance of his or her investment account; or

(b) to have the whole, or a part, of the balance of his or her investment account transferred to a regulated superannuation fund or eligible rollover fund.

(5)  If an eligible employee, contributor or the spouse of an eligible employee or contributor ceases to be an eligible employee, contributor or such a spouse, the Board, having regard to any election of that person and the law of the Commonwealth, must –

(a) pay to that person an amount that is the balance or a part of the balance standing to the credit of his or her investment account; or

(b) if that person has attained the preservation age, transfer the whole, or a part, of the balance of his or her investment account to an allocated pension account and provide for the payment of an allocated pension to the person; or

(c) if that person has attained the preservation age, convert the whole, or a part, of the balance of his or her investment account to a pension under regulation 77 and provide for the payment of a pension to the person; or

(d) retain the balance standing to the credit of that account until a later date that is not later than the date on which that person attains the age of 70 years; or

(e) transfer the whole, or a part, of the balance of that account to a regulated superannuation fund or eligible rollover fund nominated by that person.

(6)  If an eligible employee, contributor or the spouse of an eligible employee or contributor dies, the Board, having regard to the wishes of his or her personal representative and the law of the Commonwealth, must –

(a) pay to his or her personal representative an amount that is the balance or a part of the balance standing to the credit of the deceased person's investment account; or

(b) transfer the whole, or a part, of the balance of the investment account to an allocated pension account and provide for the payment of an allocated pension to the widow or widower of that person; or

(c) convert the whole, or a part, of the balance of the investment account to a pension under regulation 77 and provide for the payment of a pension to the widow or widower of that person.

(7)  Where no election is made by a person under subregulation (4) , the Board must retain the balance standing to the credit of his or her investment account until a later date that is not later than the date on which he or she attains the age of 70 years.

(8)  A person aggrieved by a refusal of the Board to make any payment of a benefit under this regulation may make a complaint against the Board under the Justices Act 1959 .

(9)  On the hearing of the complaint, the magistrate, on being satisfied that the complainant is entitled to some or all of the benefit under this regulation, may order that the benefit, or a proportion of that benefit, is to be paid to the complainant.

(10)  A contributor or eligible employee may elect in writing to transfer an amount standing to the credit of his or her investment account to the contributory scheme or non-contributory scheme as settlement in whole or part of any debt owed by the contributor or eligible employee to the Board.

(11)  If a contributor or eligible employee makes an election under subregulation (10) , the balance standing to the credit of his or her investment account is to be reduced by the amount transferred under that subregulation.

(12)  In this regulation, a reference to a contributor or eligible employee includes a reference to the estate of the contributor or eligible employee if he or she elects in writing to the Board that, in the event of his or her death, the death benefit is to be paid to his or her estate.

61.   Payment of voluntary contributions into investment account

(1)  An eligible employee or a contributor may elect at any time by notice in writing to the Board to pay voluntary contributions or spouse contributions to the Fund.

(2)  An eligible employee or a contributor who elects to make voluntary contributions or spouse contributions must specify in the election the amount of the voluntary contributions or spouse contributions to be made, which is to be –

(a) a single contribution payable by the eligible employee or contributor; or

(b) an amount calculated by reference to a factor that is a multiple of 0.5% of salary; or

(c) an amount expressed as a multiple of $5; or

(d) a combination of paragraphs (a) and (b) or a combination of paragraphs (a) and (c) .

(3)  The spouse of an eligible employee or contributor may elect, in a manner specified by the Board, to make a contribution to his or her investment account at any time.

(4)  An eligible employee or a contributor who has made an election to pay voluntary contributions or spouse contributions may, by notice in writing to the Board, elect to revoke or vary that election.

(5)  If the spouse of an eligible employee or contributor has made an election to pay voluntary contributions, the spouse may elect, by notice in writing to the Board, to revoke or vary that election.

(6)  The voluntary contributions or spouse contributions of an eligible employee or contributor may be deducted from his or her salary at any time and in any manner the Board determines but in any event is to be paid to the Board not later than 28 days after the deduction.

(7)  A responsible officer must prepare and forward to the Board a return for every pay period showing the total amount of voluntary contributions and spouse contributions deducted from the salaries of each contributor or eligible employee in respect of whom he or she is the responsible officer.

61A.   Payment of additional employer contributions to investment account

(1)  Where an eligible employee or contributor has made an election under his or her contract of employment with an Agency for payment of additional employer contributions –

(a) by way of salary sacrifice; or

(b) from the whole or a part of his or her non-salary benefits; or

(c) as a combination of paragraphs (a) and (b)  –

the Agency must pay those employer contributions on behalf of the eligible employee or contributor to the Board.

(2)  On making the election, the eligible employee or contributor must notify the Board in writing of that election and specify the frequency of such payments and the amount of additional employer contributions to be made by the Agency.

(3)  An eligible employee or contributor who has made such an election may, in accordance with his or her contract of employment, make a further election to vary or revoke the original election by notice in writing to the Board and the Agency.

(4)  All additional employer contributions paid by an Agency on behalf of an eligible employee or contributor –

(a) are to be preserved; and

(b) are subject to taxation –

in accordance with the law of the Commonwealth.

(5)  A responsible officer must prepare and forward to the Board a return for every pay period showing the total amount of additional employer contributions paid on behalf of the eligible employee or contributor in respect of whom he or she is the responsible officer.

62.   Inward portability

(1)  An eligible employee or contributor or the spouse of an eligible employee or contributor may pay or cause to be paid into the Fund all or part of the benefit that he or she is entitled to receive as a contributor to another superannuation scheme or fund or as an eligible termination payment under an employment redundancy programme.

(2)  An amount paid into the Fund under this regulation is to be credited to an investment account or an allocated pension account and vested in the name of the eligible employee or contributor or the spouse of the eligible employee or contributor.

72.   Regulation 63 amended (Establishment of compulsory preservation account)

Regulation 63 of the Principal Regulations is amended as follows:

(a) by omitting "benefits" wherever occurring and substituting "benefit entitlements";

(b) by omitting from subregulation (3) "Benefits" and substituting "Benefit entitlements";

(c) by inserting "entitlement" after "benefit" in subregulation (5).

73.    Regulation 65 substituted

Regulation 65 of the Principal Regulations is rescinded and the following regulation is substituted:

65.   Allocated pension accounts

(1)  A person who –

(a) has a benefit entitlement under the contributory scheme, the non-contributory scheme or this Part and who has ceased employment after attaining the preservation age; or

(b) is the widow or widower of a person having such an entitlement –

may elect to transfer the whole or a part of his or her benefits to an allocated pension account.

(2)  If a person makes an election under subregulation (1) , the Board is to credit to the allocated pension account –

(a) any investment earnings determined by the Board under regulation 94A ; and

(b) if the person so requests –

(i) any benefit transferred under subregulation (1) ; and

(ii) any benefit paid into the Fund under regulation 62 ; and

(iii) any other amount allowable under the law of the Commonwealth for the purpose of providing an allocated pension.

(3)  The Board is to debit to the allocated pension account –

(a) any allocated pension payment made under this regulation; and

(b) any capital withdrawal made from the allocated pension account which may be allowed under the law of the Commonwealth; and

(c) any tax or surcharge liability or other amounts required by law; and

(d) any administration fee and investment management fee sufficient to cover the cost of administering the allocated pension account as determined by the Board.

(4)  On the establishment of an allocated pension account for any person and at any other time as the Board may determine, that person must notify the Board in writing of –

(a) the amount of allocated pension to be paid to him or her during a financial year which is to be subject to the allocated pension valuation factors permitted by the law of the Commonwealth; and

(b) the frequency of allocated pension instalments, whether fortnightly, monthly, quarterly or annually, to be paid during that financial year.

(5)  Failing an election under subregulation (4) , the Board is to determine the amount and frequency of the allocated pension instalments to be paid to the person having regard to the allocated pension valuation factors permitted by the law of the Commonwealth.

(6)  Subject to subregulation (4) , the Board must pay to the person in respect of whom the account is established an allocated pension instalment calculated in accordance with the following formula:

where –

AP is the allocated pension instalment to be paid to a person in respect of a financial year;

APB is the balance standing to the credit of the allocated pension account –

(a) on 1 July in the financial year in which the allocated pension payments are to be made; or

(b) if the account was established on a later date, on that date; or

(c) if there are deposits or withdrawals made in accordance with subregulation (2)(b) or (3)(b) , on a date determined by the Board having regard to the law of the Commonwealth;

PVF is the pension valuation factor applicable to the person entitled to the allocated pension, if the factor is, having regard to that person's age, within the range of allocated pension valuation factors permitted by the law of the Commonwealth;

T is 365 or, if the allocated pension account was established after 1 July in the current financial year, the number of days remaining in that financial year;

N is the number of instalments of pension remaining in the current financial year payable to the person entitled to the allocated pension in accordance with his or her election under subregulation (4) or the Board's determination under subregulation (5) .

(7)  An allocated pension ceases to be payable on –

(a) the date of death of the person entitled to that pension; or

(b) the date on which the amount held in the allocated pension account is extinguished.

(8)  The Board must suspend an allocated pension for the remainder of a financial year if the total amount of instalments of the pension paid during that financial year equals the maximum allocated pension for that financial year allowed by the law of the Commonwealth.

(9)  If a person entitled to an allocated pension dies, the Board must –

(a) pay to that person's widow or widower, as he or she may elect –

(i) an amount equal to the balance of the allocated pension account at the date of death; or

(ii) an allocated pension recalculated as a separate entitlement under this regulation having regard to the age of the widow or widower and an election under subregulation (4) ; or

(b) where there is no widow or widower or the person entitled has requested in writing that the balance of the allocated pension account is to be payable to his or her estate, pay to the estate an amount equal to the balance of the allocated pension account at the date of death.

(10)  A person aggrieved by a refusal of the Board to make a payment of a benefit entitlement under this regulation may make a complaint against the Board under the Justices Act 1959 .

(11)  On hearing the complaint, the magistrate, if satisfied that the complainant is entitled to the whole or a part of the benefit entitlement under this regulation, may order that the whole or a part of that benefit entitlement is to be paid to the complainant.

74.    Regulation 66 substituted

Regulation 66 of the Principal Regulations is rescinded and the following regulation is substituted:

66.   Deductions allowed against investment account

(1)  The Board must impose an administration fee and an investment management fee sufficient to cover the cost of managing –

(a) all money invested in an investment account; and

(b) all voluntary contributions and all spouse contributions made under regulation 61 ; and

(c) all money paid into the Fund under regulation 62 ; and

(d) all additional employer contributions paid under regulation 61A ; and

(e) any other property in which any such money or contributions may be invested from time to time.

(2)  The administration fee and the investment management fee are to be recovered from the investment account as the Board may determine.

75.    Regulation 69 substituted

Regulation 69 of the Principal Regulations is rescinded and the following regulation is substituted:

69.   Release of preserved benefits

(1)  This regulation takes effect on 1 July 1999.

(2)  If a lump sum benefit entitlement is preserved under Part 4 or 5 , the benefit entitlement is not payable until the Board is satisfied that the person to whom the benefit entitlement relates has satisfied any relevant requirements of the law of the Commonwealth.

(3)  Notwithstanding subregulation (2) , if a lump sum benefit entitlement preserved under these regulations relates to a former eligible employee who was made redundant before attaining the preservation age, the Board may pay an amount which is not greater than a benefit calculated as at 30 June 1999 as follows:

(a) in the case of an eligible employee employed on a full-time basis throughout the period of employment ending on 30 June 1993, in accordance with the following formula:

where –

A is the amount of preserved lump sum benefit;

N is the total period of years of continuous service before 30 June 1993;

(b) in the case of an eligible employee employed on a part-time basis or employed partly on a full-time basis and partly on a part-time basis throughout the period of employment ending on 30 June 1993, in accordance with the following formula:

where –

A is the amount of preserved lump sum benefit;

N is the total number of equivalent full-time continuous years of service before 30 June 1993.

(4)  For the purpose of calculating the lump sum benefit payable under subregulation (3) , the salary of an eligible employee employed on a part-time basis is taken to be salary that he or she would have received if he or she had been employed on a full-time basis.

(5)  The Board must notify a person referred to in subregulation (2) or (3) or his or her spouse or personal representative of the entitlement to a preserved benefit payable under those subregulations by sending a written notice to that person’s last known address.

(6)  For the purposes of this regulation, an eligible employee is taken to be redundant if he or she is retired because –

(a) his or her service, office or position is unnecessary; or

(b) the work for which he or she was engaged is finished; or

(c) diminution of work necessitates a reduction in the number of employees –

or if he or she is retired under a voluntary redundancy programme.

76.    Regulation 73 substituted

Regulation 73 of the Principal Regulations is rescinded and the following regulation is substituted:

73.   Unclaimed benefits

The Board must pay any unclaimed benefits to an account in the Special Deposits and Trust Fund in accordance with the Unclaimed Moneys Act 1918 .

77.    Regulation 76AA inserted

Before regulation 76 of the Principal Regulations , the following regulation is inserted in Part 7:

76AA.   Application of Part

This Part is subject to Part 7A .

78.    Regulation 77 amended (Conversion of lump sum benefit to pension)

Regulation 77 of the Principal Regulations is amended as follows:

(a) by omitting subregulation (1) and substituting the following subregulations:

(1)  A person who is entitled to receive a lump sum benefit under Part 4 , 5 or 6 may elect to convert the whole or a part of the lump sum into –

(a) an allocated pension; or

(b) a pension as provided by this regulation; or

(c) a combination of paragraphs (a) and (b) .

(1A)  Where a contributor or eligible employee retires on the grounds of invalidity and the benefit entitlement under regulation 38 , 39 or 56 is greater than $40 000, the Board must convert his or her benefit entitlement to a pension as provided in this regulation.

(1B)  A person to whom subregulation (1A) applies may elect in writing to the Board to commute any part of his or her pension under subregulation (1A) to a lump sum benefit not exceeding $40 000.

(1C)  On an election under subregulation (1B) , a person to whom subregulation (1A) applies may, with the approval of the Board, further elect to commute an additional part of his or her pension to a lump sum benefit not exceeding $20 000.

(1D)  The Minister may, by notice published in the Gazette, substitute another amount for an amount specified in subregulation (1A) , (1B) or (1C) in respect of all contributors and eligible employees with effect from a date specified in the notice.

(1E)  Subregulations (1A) , (1B) and (1C) do not apply to –

(a) a person who makes an application for an invalidity benefit under regulation 38 , 39 or 56 ; or

(b) a person who is in receipt of an interim invalidity pension under regulation 40 or 57  –

before the date on which the Superannuation (Commonwealth Surcharge and Miscellaneous Amendments) Act 1999 receives the Royal Assent.

(b) by omitting subregulation (3) and substituting the following subregulation:

(3)  If a person to whom subregulation (1) applies elects to take an allocated pension, his or her entitlement to receive a pension and a lump sum under this Part is reduced by the amount of any lump sum transferred to his or her allocated pension account.

(c) by omitting from subregulation (4)(b) "spouse" and substituting "widow or widower".

79.    Regulation 78 substituted

Regulation 78 of the Principal Regulations is rescinded and the following regulation is substituted:

78.   Pension conversion factors

(1)  For the purposes of regulation 77 , the Board must –

(a) determine pension conversion factors from time to time, on the advice of the Actuary; and

(b) publish those factors by notice in the Gazette; and

(c) cause the factors to be reviewed by the Actuary at least once a year and at such other times as the Board determines.

(2)  Different factors may be determined depending on the age and gender of the person entitled to a benefit and whether there is a reversion to a surviving spouse.

(3)  Where –

(a) an existing contributor, a retired contributor within the meaning of the Retirement Benefits (Transitional) Regulations 1994 or an amalgamated contributor is entitled to a benefit under regulation 36 , 37 , 37A , 38 or 42 ; or

(b) an existing contributor to whom regulation 17 of the Retirement Benefits (Transitional) Regulations 1994 applies ceases employment after attaining the preservation age; or

(c) an existing contributor made redundant as mentioned in regulation 37 or 37A who preserved his or her benefit in the Fund under regulation 43(4)(a) and (b) or 43(5)(b) ceases employment after attaining the preservation age –

the conversion factor with respect to an election made by that person or the spouse of that person, in respect of the benefit under the contributory scheme, is 12 or the factor last determined by the Board, whichever factor provides the higher pension.

(4)  Subregulation (3) does not apply to –

(a) an amalgamated contributor or a provident fund contributor who, under the Retirement Benefits (Transitional) Regulations 1994 , elects to contribute to the Fund otherwise than as an amalgamated contributor or a provident fund contributor; or

(b) a former contributor who receives a benefit under regulation 43(8) ; or

(c) a former contributor whose benefit is preserved as mentioned in regulation 43(4)(a) and (b) or 43(5)(b) and who makes an application for an amount payable under regulation 60(3) .

(5)  If an existing contributor or former contributor or the widow or widower of a former contributor elects to commute a lump sum on 2 or more occasions under regulation 77 , the conversion factor –

(a) in respect of the first election, is to be 12; and

(b) in respect of each subsequent election, is to be the appropriate pension conversion factor determined under regulation 78(1)(a) .

80.    Regulation 79 amended (Pensions payable to widows and widowers)

Regulation 79 of the Principal Regulations is amended as follows:

(a) by omitting from subregulation (1)(b) "specified in regulation 78(1) or 78(3) " and substituting "determined under regulation 78 in respect of a reversionary pension";

(b) by omitting subregulations (3A) and (3B) and substituting the following subregulation:

(3A)  A widow or widower is not entitled to a pension under regulation 76 or this regulation if the pension payable to the deceased former contributor or deceased former eligible employee –

(a) was itself a widow's or widower's pension; or

(b) was calculated on the basis that there would be no reversion of that pension to a surviving spouse.

81.   Regulation 79A inserted

After regulation 79 of the Principal Regulations, the following regulation is inserted:

79A.   Restored widow pensions

Where –

(a) a woman was entitled, as the widow of a contributor or a pensioner, to a pension under the Superannuation Act 1938 , the Retirement Benefits Act 1970 or the Retirement Benefits Act 1982 ; and

(b) that entitlement ceased under section 36(9) of the Retirement Benefits Act 1982 , as in force immediately before 1 July 1991 –

that woman, if otherwise entitled under that section, is taken to have been entitled to the pension on and from 1 July 1990 as if that pension had not been suspended.

82.    Regulation 81 amended (Half-yearly adjustments to pensions)

Regulation 81(1) of the Principal Regulations is amended by inserting "other than an allocated pension" after "regulations".

83.    Regulation 82 amended (Duration of pensions)

Regulation 82 of the Principal Regulations is amended by omitting subregulation (1) and substituting the following subregulations:

(1)  A pension entitlement is payable during the life of the pensioner and is payable as from the date of death or retirement except as otherwise expressly provided by these regulations.

(1A)  Subregulation (1) does not apply to an allocated pension or a child's pension.

84.    Regulation 83 amended (Time and manner of payment of pensions)

Regulation 83 of the Principal Regulations is amended by omitting subregulation (1) and substituting the following subregulation:

(1)  Except as provided in regulation 65 , all pensions payable under these regulations are to be paid in fortnightly instalments.

85.    Regulation 84 amended (Recovery of pension overpayment)

Regulation 84 of the Principal Regulations is amended by inserting "or allocated pension" after "pension".

86.    Regulation 86 amended (Right of certain pensioners to commute pension to lump sum)

Regulation 86 of the Principal Regulations is amended as follows:

(a) by omitting subregulation (2) and substituting the following subregulations:

(2)  A person who, immediately before 1 July 1994, was in receipt of an invalidity pension under the repealed Act or after that date becomes entitled to an invalidity pension calculated under clause 7 of Schedule 3 may elect to commute the whole or a part of that pension into a lump sum payment.

(2A)  An election under subregulation (2) is to be made within 6 months after the person attains the age of 60 years, 63 years or 65 years and may be made on one occasion only.

(b) by omitting subregulation (4) and substituting the following subregulations:

(4)  A person who makes an election under this regulation is entitled to a lump sum benefit equal to the amount of the pension forgone by him or her multiplied by the conversion factor that is applicable to that person on the date on which his or her election becomes effective.

(4A)  The lump sum benefit entitlement under subregulation (4) may, subject to Part 7A , be paid out of the Fund to that person or transferred by that person to his or her investment account or allocated pension account.

(c) by inserting after subregulation (8) the following subregulation:

(9)  This regulation does not apply to a woman to whom regulation 79A applies.

87.    Regulation 87 amended (Amounts of pension to be rounded off)

Regulation 87 of the Principal Regulations is amended by inserting "or allocated pension" after "pension".

88.   Regulation 88 amended (Pensions not assignable)

Regulation 88 of the Principal Regulations is amended by inserting "or allocated pension" after "pension" wherever occurring.

89.    Part 7A inserted

After regulation 88 of the Principal Regulations , the following Part is inserted:

PART 7A - Taxation, Preservation and Payment of Lump Sum and Pension Benefit Entitlements

88A.   Calculation of notional contributions surcharge amount

For the purposes of this Part, the Board must calculate for each contributor or eligible employee a notional contributions surcharge amount having regard to his or her salary and the notional surchargeable contributions factor provided to the Board by the Actuary as required by the law of the Commonwealth and these regulations.

88B.   Provision of information

(1)  The Board must provide the Actuary with such information in respect of contributors, eligible employees or pensioners as may be necessary for the purposes of this Part.

(2)  The Board must provide the Taxation Commissioner with such information in respect of contributors, eligible employees or pensioners as may be required under the law of the Commonwealth.

88C.   When benefit entitlement becomes payable

(1)  For the purposes of this Part, a person's benefit under these regulations that –

(a) includes a contribution by the Minister or a prescribed authority; and

(b) is not an interim invalidity pension or an interim spouse pension –

is taken to be payable at the time the person is paid the benefit.

(2)  Where no contribution is payable by the Minister or a prescribed authority because the benefit is payable from an investment account or allocated pension account, the benefit becomes payable when the person entitled, or in the event of the person's death his widow, her widower or the personal representative, makes a claim for payment of the benefit.

88D.   Benefit entitlements subject to Commonwealth preservation and payment standards

(1)  All benefit entitlements calculated and payable under these regulations by the Board are subject to any preservation and benefit payment standards prescribed by the law of the Commonwealth.

(2)  On and from 1 July 1999, all contributions paid by or on behalf of persons referred to in these regulations are to be preserved in accordance with the Commonwealth preservation standards.

88E.   Benefit entitlement subject to taxation

(1)  A benefit entitlement calculated and paid under Part 4 , 5 or 7 , regulation 69 or 103 or Schedule 3 or transferred to an investment account under regulation 63(5) is to be treated by the Board for the purpose of taxation under the law of the Commonwealth –

(a) in the case of a lump sum, as an eligible termination payment emanating from an untaxed source; or

(b) in the case of a pension, as a non-rebatable superannuation pension.

(2)  A benefit entitlement calculated and paid under regulation 60 or 65 is to be treated by the Board for the purpose of taxation under the law of the Commonwealth –

(a) in the case of a lump sum, as an eligible termination payment emanating from a taxed source; or

(b) in the case of a pension or allocated pension, as a rebatable superannuation pension.

(3)  The Board must deduct from benefit entitlements any amount required to be paid as taxation under the law of the Commonwealth and must remit that amount to the Taxation Commissioner.

88F.   Provision of certain information by Board

(1)  The Board must provide the Taxation Commissioner, as required by the law of the Commonwealth, with particulars of the notional contributions surcharge amount in respect of each contributor, eligible employee or pensioner.

(2)  An amount under subregulation (1) is to take into account separately the amount payable to each contributor, eligible employee or pensioner with respect to benefit entitlements accruing under Parts 4 , 5 , 6 and 7 , regulation 103 and Schedule 3 .

(3)  The Board is to give to each contributor, eligible employee or pensioner a copy of the particulars given to the Taxation Commissioner under subregulation (1) relating to that person together with details of how the amount was calculated.

(4)  If a contributor, eligible employee or pensioner believes that the amount referred to in subregulation (1) is incorrect owing to either a miscalculation of matters ascertained by the Actuary or a mistake of fact, the contributor, eligible employee or pensioner may, by notice in writing to the Board –

(a) request that the calculation of the amount be reviewed; and

(b) request the Board to consider any evidence which he or she may submit to it.

88G.   Establishment of surchargeable contributions debt account

(1)  On receipt of the first assessment notice from the Taxation Commissioner in respect of a contributor, eligible employee or pensioner, the Board must establish a surchargeable contributions debt account in respect of him or her.

(2)  The Board must debit the surchargeable contributions debt account with the amount of any surcharge contributions tax liability specified in the assessment notice relating to the contributor, eligible employee or pensioner.

(3)  If the surchargeable contributions debt account is in debit at the end of a financial year, the Board must, in accordance with the law of the Commonwealth, debit the account with interest.

(4)  Where a lump sum or a pension benefit entitlement becomes payable by the Board to a contributor, eligible employee or pensioner whose account is in debit, the Board must pay to the Taxation Commissioner, within one month after the day on which the lump sum or the first instalment of pension becomes payable, the amount by which the account is in debit in respect of that benefit entitlement.

(5)  The Board, at least annually, must inform each contributor, eligible employee or pensioner of the balance of his or her surchargeable contributions debt account and of any debits or credits, including interest, to that account.

88H.   Right of members to pay into surchargeable contributions debt account

(1)  A contributor, eligible employee or pensioner may make payments to his or her surchargeable contributions debt account to reduce in full or in part the balance of that account.

(2)  A payment made under subregulation (1) by a contributor, eligible employee or pensioner is taken not to be a contribution for the purposes of the law of the Commonwealth.

(3)  A payment made under subregulation (1) by an Agency on behalf of a contributor, eligible employee or pensioner as part of his or her remuneration is taken to be a contribution by that Agency for the purposes of the law of the Commonwealth.

(4)  On receipt of a payment under this regulation, the Board must –

(a) credit the surchargeable contributions debt account with that amount; and

(b) take any other action required under the law of the Commonwealth.

88I.   Reduction of benefit entitlements

(1)  A benefit or benefit entitlement payable under these regulations is to be reduced at the time of payment by the Board to the extent of the balance of the surchargeable contributions debt account.

(2)  For the purposes of subregulation (1)  –

(a) where a benefit entitlement payable under the contributory scheme, the non-contributory scheme or Part 6 or substituted under regulation 103 is taken wholly as a lump sum, the lump sum benefit entitlement is to be reduced by an amount representing any part of the surchargeable contributions debt account attributable to that benefit entitlement; and

(b) where a person elects to commute part of his or her lump sum benefit entitlement payable under the contributory scheme, the non-contributory scheme or Part 6 to a pension –

(i) calculated under regulation 78 ; or

(ii) calculated in accordance with Schedule 3 ; or

(iii) substituted under regulation 103  –

the part of the benefit remaining as a lump sum must be sufficient to discharge the balance of the surchargeable contributions debt account and an amount representing any part of that account attributable to that benefit entitlement is to be deducted from the lump sum remaining; and

(c) where a person elects to commute all of his or her lump sum benefit entitlement payable under the contributory scheme, the non-contributory scheme or Part 6 to a pension calculated under regulation 78 , the part of the benefit taken as a lump sum must be sufficient to discharge the balance of the surchargeable contributions debt account and an amount representing any part of that account attributable to that benefit entitlement is to be deducted from the benefit entitlement before the commutation to a pension; and

(d) where a person elects to commute all of a benefit entitlement payable under the contributory scheme to a pension substituted under regulation 103 or a pension in accordance with Schedule 3 , the amount by which the annual pension is to be reduced is determined in accordance with the following formula:

where –

PR is the amount by which the annual pension payable to a contributor or pensioner is to be reduced;

SCDA is the balance of the surchargeable contributions debt account attributable to the benefit entitlement at the time the surcharge liability is payable;

CF is the appropriate age, marital and gender factor specified for a pension determined by the Board in accordance with regulation 78(1) or (2) .

(3)  A person who receives an assessment notice in respect of a pension payable under these regulations may elect in writing to the Board to commute sufficient of his or her pension to a lump sum to discharge the balance of his or her surchargeable contributions debt account.

(4)  On receipt of an election under subregulation (3) , the Board must reduce the pension as provided by subregulation (2) and must pay the lump sum to that person to enable that person to discharge the balance of his or her surchargeable contributions debt account.

90.   Regulation 90 amended (Contributions to Fund by the State and prescribed authorities)

Regulation 90(1) of the Principal Regulations is amended as follows:

(a) by omitting paragraph (a) and substituting the following paragraph:

(a) in respect of a person who receives –

(i) a lump sum benefit from the Fund under regulation 36 , 38 , 39 or 42 or, if such a benefit is converted to a pension under regulation 77 , that pension; or

(ii) an interim invalidity or spouse pension under regulation 40  –

a contribution in respect of each pension or lump sum payment equal to five-sevenths, or any other proportion that the Minister on the advice of the Actuary determines, of the pension or lump sum benefit that would have been payable if the employee had always contributed at the basic contribution rate; and

(b) by omitting from paragraph (b) "43(2)(a)(ii)" wherever occurring and substituting "43(4)(a)";

(c) by omitting from paragraph (b) "43(4)(c)" wherever occurring and substituting "43(8)(a)";

(d) by omitting from paragraph (b)(ib) "43(7)(a) or (b)" and substituting "43(10)";

(e) by omitting from paragraph (b)(ii) "43(4)(b)" and substituting "43(8)(c)".

91.   Regulation 90A inserted

After regulation 90 of the Principal Regulations, the following regulation is inserted:

90A.   Contributions to Fund in respect of benefits reduced under Part 7A

(1)  This regulation applies to a benefit which has been reduced under Part 7A .

(2)  Notwithstanding regulation 90 , the Minister or a prescribed authority is to pay to the Fund in respect of a benefit which has been reduced under regulation 88I(2) a contribution equal to five-sevenths, or any other proportion that the Minister on the advice of the Actuary determines, of the surchargeable contributions debt account attributable to that benefit at the time the benefit is payable.

92.    Regulation 94 amended (Fixing of interest rates)

Regulation 94(1) of the Principal Regulations is amended by omitting paragraph (b) .

93.    Regulation 94A inserted

After regulation 94 of the Principal Regulations , the following regulation is inserted in Part 8:

94A.   Allocated pension and investment choice income distributions

(1)  This regulation applies to subfunds established for the purpose of investment accounts and allocated pension accounts.

(2)  Interest in respect of a subfund to which this regulation applies is calculated and determined by the Board at least annually by reference to the earning rates of the subfund.

(3)  The earning rates for each financial year or part of a financial year in respect of each subfund to which this regulation applies –

(a) are to be determined by the Board, having regard to the advice of the Board's investment and actuarial consultants; and

(b) are to take account of the Board's investment policy; and

(c) are to take into account any allowances for unrealised capital gains and losses; and

(d) may take account of any cost of administration, investment management, taxation and other expenses the Board has paid or is likely to pay.

(4)  The Board must, at least annually, advise a person having an interest in a subfund to which this regulation applies of its income distribution policy and any changes to that policy.

(5)  The Board may determine interim interest rates to be applied to a subfund to which this regulation applies.

(6)  The Board must formulate and give effect to an income distribution policy for a subfund to which this regulation applies.

(7)  In formulating that policy, the Board must –

(a) having regard to the advice of actuarial and investment consultants, treat any unrealised capital gains and losses as income for the purposes of regulation 18(4) ; and

(b) take into account the administration, taxation and other expenses incurred by the Board in the administration and management of a subfund to which this regulation applies; and

(c) have regard to the reserves accumulated in a subfund to which this regulation applies, as advised by the Actuary.

94.   Regulation 96 amended (Power of Board to determine invalidity)

Regulation 96(1) of the Principal Regulations is amended by inserting "having regard to any medical or other evidence provided by, or on behalf of, the employee or person" after "Board" firstly occurring.

95.    Regulation 102 amended (Power of Board to reinstate lost rights)

Regulation 102(2)(a) of the Principal Regulations is amended by omitting "or a person referred to in regulation 21 ".

96.    Regulation 105 substituted

Regulation 105 of the Principal Regulations is rescinded and the following regulation is substituted:

105.   Statutory hearing

(1)  In respect of any application or question arising under regulation 85 or 88F or Part 9 , the Board must –

(a) make a preliminary decision on the matter; and

(b) notify the applicant in writing of the preliminary decision; and

(c) advise the applicant that, if he or she does not take any action under this regulation, the preliminary decision will become final.

(2)  An applicant may, within 14 days after receipt of a notification under subregulation (1) , elect by notice in writing to the Board –

(a) to appear and be heard before the Board; and

(b) to submit any additional medical report or other evidence.

(3)  Before making a final decision on the application or question, the Board may –

(a) require the applicant to undergo a further medical examination by a medical practitioner or practitioners as the Board considers appropriate; and

(b) seek further information from the applicant's Head of Agency or former Head of Agency as the Board considers appropriate; and

(c) seek further information concerning the applicant's capacity and prospects for employment; and

(d) require the applicant to submit further evidence as the Board may consider appropriate.

(4)  The Board, in the exercise of its powers under subregulation (3) , may impose any terms or conditions that the Board considers fair and equitable.

(5)  If an election under subregulation (2) is not made within the required time, the preliminary decision is taken to be the final decision of the Board.

(6)  The Board may extend the period referred to in subregulation (2) on the written application of the applicant within the period of 14 days referred to in that subregulation.

97.   Regulation 108 amended (Duties of responsible officers and Board to provide information)

Regulation 108 of the Principal Regulations is amended as follows:

(a) by inserting after subparagraph (viii) of subregulation (1)(a) the following subparagraph:

(ix) tax file number, if the employee has given permission for it to be provided to the Board; and

(b) by omitting "(iv) or (v)," from subregulation (1)(b) and substituting "(iv), (v) or (ix),";

(c) by omitting "refers," from subregulation (1)(d)(ii) and substituting "refers and the Board so requests,";

(d) by omitting subregulation (4) and substituting the following subregulation:

(4)  In any proceedings against the Board –

(a) where a document purporting to be a copy of a notification under this regulation is on the file of an employee, that document is evidence that the notification has been issued to and received by the employee; and

(b) where a document purporting to be a copy of any information given by the Board to a person relating to his or her benefit entitlement under these regulations is on the file of the relevant employee, that document is evidence that that information was given to that person.

98.    Regulation 109 amended (Employees seconded to the Commonwealth, another State or Territory or the private sector)

Regulation 109 of the Principal Regulations is amended by omitting subregulation (2) and substituting the following subregulations:

(2)  A contributor or eligible employee who is seconded –

(a) to the public service of the Commonwealth; or

(b) to the public service of another State or a Territory; or

(c) to employment in the private sector –

continues to be a contributor or eligible employee, as the case may be.

(3)  Where a person continues to be a contributor under subregulation (2) , the employer to which the contributor is seconded must pay to the Minister or a prescribed authority an amount of employer superannuation contributions at a rate equivalent to the rate applicable to a contributor who is employed in the Agency from which the contributor was seconded.

(4)  Notwithstanding any other provision of these regulations but subject to subregulation (5)  –

(a) the contributor must continue to pay contributions based on the current substantive salary of the position held immediately before the secondment; and

(b) during the period of the secondment his or her salary is taken, for the purposes of these regulations, to be the current substantive salary of the position held immediately before the secondment.

(5)  In the case of a secondment that is approved by the Minister for the purposes of this regulation –

(a) the contributor must pay contributions to the contributory scheme based on the salary received during the period of the secondment; and

(b) the employer to which the contributor is seconded must pay to the Minister or a prescribed authority an amount of employer superannuation contributions based on that salary and at a rate equivalent to the rate applicable to a contributor who is employed in the Agency from which the contributor was seconded; and

(c) any benefit under these regulations payable to the contributor is to be determined by reference to that salary.

(6)  Where a person continues to be an eligible employee under subregulation (2) , the employer to which the employee is seconded must pay to the Minister or prescribed authority an amount of employer superannuation contributions at the prescribed rate of contribution within the meaning of regulation 46(1) .

(7)  For the purposes of calculating the employer contribution, the salary of an eligible employee referred to in subregulation (6) is taken to be the actual salary that he or she receives while seconded.

(8)  For all other purposes of these regulations, the salary of an eligible employee referred to in subregulation (6) is taken to be the substantive salary of the position that he or she held immediately before the secondment.

99.    Regulation 111 substituted

Regulation 111 of the Principal Regulations is rescinded and the following regulation is substituted:

111.   Proof of service of notices and documents

A correctly addressed copy of a notice or document that is on the file of an employee is evidence that the notice or document has been served by the Board on the employee.

100.   Regulation 114 inserted

After regulation 113 of the Principal Regulations, the following regulation is inserted:

114.   Board may withhold payment of benefits in certain instances

The Board may withhold payment of benefits payable under these regulations if, after an investigation by the Board, the Board has a reasonable doubt as to whether or not the recipient is entitled to receive the benefit.

101.   Schedule 1 amended (Election of members of Board)

Schedule 1 to the Principal Regulations is amended by inserting in clause 4 after subclause(2) the following subclauses:

(3) Where a person nominates to be a member of the Board under regulation 7(1)(b)(i) and (ii) , he or she must notify the returning officer in writing, at the time of so nominating, which position he or she will accept in the event that he or she is successful in both elections.

(4) The returning officer must not disclose to any person a notification under subclause (3) until he or she has complied with clause 11 and it is necessary to do so.

Penalty:  For breach of this subclause, 5 penalty units.

102.   Schedule 3 amended (Calculation of certain pensions in respect of former contributors under repealed Act)

Schedule 3 to the Principal Regulations is amended by inserting in clause 1 after subclause (2) the following subclause:

(3) This Schedule is subject to Part 7A .

103.   Amendments relating to State authorities

Each of the provisions of the Principal Regulations specified in Column 1 of Schedule 4 is amended by omitting "State authority" on the number of occurrences specified in Column 2 of that Schedule and substituting "prescribed authority".

PART 10 - Retirement Benefits (Transitional) Regulations 1994 amended

104.   Section 29 of Retirement Benefits Act 1993 not to apply

The amendments made by this Part have effect notwithstanding section 29 of the Retirement Benefits Act 1993 .

105.   Regulation 3 amended (Interpretation)

Regulation 3(1) of the Retirement Benefits (Transitional) Regulations 1994 is amended as follows:

(a) by inserting after the definition of "Act of 1982" the following definition:

AWOTE means the original estimates series of average weekly ordinary time earnings of full-time adult employees in Australia published by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth, as amended;

(b) by inserting after the definition of "former TT-Line employee" the following definitions:

Index means the table described as the "Consumer Price Index Numbers – All Groups, All Capital Cities" published by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth, as amended;

prescribed authority means an authority, Agency or part of an Agency to which the Principal Regulations apply under regulation 3(5) of those regulations;

106.   Regulation 18C inserted

After regulation 18B of the Retirement Benefits (Transitional) Regulations 1994 , the following regulation is inserted:

18C.   SAF benefit payable in certain instances

(1)  Notwithstanding regulation 18A , an employee who received a benefit calculated under that regulation is entitled to a benefit equal to the balance, as at 30 June 1994, of his or her account under the SAF Agreement, as set out in the Act of 1982, indexed at a rate declared by the Board as being equal to the greater of –

(a) movements in the AWOTE; and

(b) movements in the Index as declared under regulation 81 of the Principal Regulations.

(2)  For the purpose of subregulation (1) , the indexation rate declared by the Board is to be reviewed as at 1 January and 1 July in each year in accordance with the most recently published AWOTE or Index available immediately before that review.

(3)  A benefit calculated under subregulation (1) is to be transferred to a compulsory preservation account established under regulation 63 of the Principal Regulations.

107.   Amendments relating to State authorities

Each of the provisions of the Retirement Benefits (Transitional) Regulations 1994 specified in Column 1 of Schedule 5 is amended by omitting "State authority" on the number of occurrences specified in Column 2 of that Schedule and substituting "prescribed authority".

PART 11 - Miscellaneous repeals

108.   Acts repealed

The Acts specified in Schedule 6 are repealed.

SCHEDULE 1 - Amendments of Judges' Contributory Pensions Act 1968 relating to Treasurer

Section 16

SCHEDULE 2 - Amendments of Parliamentary Retiring Benefits Act 1985 relating to Treasurer

Section 25

SCHEDULE 3 - Amendments of Parliamentary Superannuation Act 1973 relating to Treasurer

Section 37

SCHEDULE 4 - Amendments of Retirement Benefits Regulations 1994 relating to State Authorities

Section 103

SCHEDULE 5 - Amendments of Retirement Benefits (Transitional) Regulations 1994 relating to State Authorities

Section 107

SCHEDULE 6 - Acts repealed

Section 108

[Second reading presentation speech made in:

House of Assembly on 15 APRIL 1999

Legislative Council on 22 APRIL 1999]