Superannuation Laws Amendment Act 1994

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994
Making Information - Assented to 29 June 1994
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - TABLE OF PROVISIONS
TABLE OF PROVISIONS PART 1 - PRELIMINARY Section 1. Short title 2. Commencement PART 2 - AMENDMENT OF THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1948 Division 1 - Principal Act 3. Principal Act Division 2 - Amendments to bring the parliamentary contributory superannuation scheme into line with the superannuation industry supervision legislation 4. Object 5. Interpretation 6. Insertion of new section: 16A. Superannuation guarantee safety-net amount 7. Benefits to members 8. Benefits payable to personal representative 9. Re-election to the Parliament 10. Members who pay to Commonwealth transfer values received from previous employment 11. Insertion of new section: 26B. Preservation of benefits and disclosure of information to members Division 3 - Amendments relating to invalidity 12. Object 13. Interpretation 14. Insertion of new section: 4D. Incapacity 15. Insertion of new sections: 15A. Invalidity retirement 15B. Invalidity classification 15C. Review of invalidity classification 16. Meaning of voluntary retirement 17. Benefits to members 18. Repeal of section 18A 19. Commutation of retiring allowance 20. Insertion of new section: 24D. Trust may give advice to members who are contemplating invalidity retirement 21. Application Division 4 - Amendments relating to former members etc. who hold offices of profit 22. Objects 23. Effect of the holding of offices of profit - reduction of certain retiring allowances and annuities 24. Application Division 5 - Amendments relating to members who have previously served in State or Territory Parliaments 25. Object 26. Interpretation 27. Members who were in the Parliament on 1 July 1994 - recognition of prior service in a State or Territory Parliament Division 6 - Amendments relating to the rule requiring reduction of a retiring allowance or annuity payable to a person receiving a State or Territory parliamentary pension 28. Object 29. Reduction of benefits as a result of membership of a State Parliament, the Northern Territory Legislative Assembly or the A.C.T. Legislative Assembly Division 7 - Amendments relating to A.C.T. self-government 30. Object 31. Amendments Division 8 - Amendments to update the definition of "parliamentary allowance" 32. Object 33. Interpretation Division 9 - Amendment relating to spouse benefits 34. Object 35. Re-election to the Parliament PART 3 - AMENDMENT OF THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION AMENDMENT ACT 1981 36. Object 37. Principal Act 38. Commencement 39. Period of service as a member of State Parliament or Northern
Back to Top
Territory Legislative Assembly to be taken into account in certain circumstances 40. Reduction of benefits by reason of membership of State Parliament or Northern Territory Legislative Assembly 41. Repeal of section 12 PART 4 - AMENDMENT OF THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION AMENDMENT ACT 1983 42. Object 43. Principal Act 44. Commencement 45. Repeal of section 10 SCHEDULE AMENDMENT OF THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1948 CONSEQUENT UPON A.C.T. SELF-GOVERNMENT SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - LONG TITLE
An Act to amend the law relating to superannuation SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - PART 1 PART 1 - PRELIMINARY
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 1 Short title
1. This Act may be cited as the Superannuation Laws Amendment Act 1994. (Minister's second reading speech made in - House of Representatives on 9 June 1994 Senate on 9 June 1994) SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 2 Commencement
2.(1) Subject to subsection (2), this Act commences on 1 July 1994. (2) Division 8 of Part 2 is taken to have commenced on 1 July 1990. SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - PART 2 PART 2 - AMENDMENT OF THE PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1948
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - DIVISION 1 Division 1 - Principal Act
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 3 Principal Act
3. In this Part, "Principal Act" means the Parliamentary Contributory Superannuation Act 1948*1*. Parliamentary Contributory Superannuation Act 1948 *1* No. 89, 1948, as amended. For previous amendments, see No. 3, 1952; No. 30, 1955; No. 20, 1959; No. 72, 1964; No. 35, 1965; No. 71, 1966; No. 103, 1968; No. 47, 1973; No. 37, 1976; Nos. 36 and 41, 1978; Nos. 19 and 131, 1979; No. 37, 1981; No. 74, 1983; and Nos. 94 and 185, 1992. SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - DIVISION 2 Division 2 - Amendments to bring the parliamentary contributory superannuation scheme into line with the superannuation industry supervision legislation
SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 4 Object
4. The object of this Division is to bring the parliamentary contributory superannuation scheme into line with the vesting, preservation and disclosure requirements of the superannuation industry supervision legislation. SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 5 Interpretation
5. Section 4 of the Principal Act is amended by inserting in subsection (1) the following definition: " 'superannuation guarantee safety-net amount' has the meaning given by section 16A;". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 6 Insertion of new section
6. After section 16 of the Principal Act the following section is inserted: Superannuation guarantee safety-net amount "16A.(1) For the purposes of this Act, the superannuation guarantee safety-net amount in relation to a person is the sum of the following amounts: (a) the contributions made by the person during so much of the person's period of service as occurred after 30 June 1992; (b) the interest that would have accrued on the contributions covered by paragraph (a) if it were assumed that: (i) the contributions had been member contributions made under the superannuation scheme established by deed under the Superannuation Act 1990; and (ii) interest on those contributions had accrued in accordance with determinations by the Commonwealth Superannuation Board of Trustees No. 1 under that scheme as to rates of interest and the method of allocating interest; and (iii) no interest on those contributions had accrued during any period when the person was not entitled to a parliamentary allowance; (c) the total of the minimum amounts that the Commonwealth would have had to
Back to Top
contribute to a complying superannuation fund or scheme for the benefit of the person in order to avoid having any individual superannuation guarantee shortfalls in respect of the person if it were assumed that: (i) the only capacity in which the person was, or had ever been, an employee of the Commonwealth (within the meaning of the Superannuation Guarantee (Administration) Act 1992) were the person's capacity as a member (see subsection 12(4) of that Act); and (ii) the scheme constituted by the provisions of this Act did not exist; and (iii) those contributions were made on a monthly basis; (d) the interest that would have accrued on the contributions covered by paragraph (c) if it were assumed that: (i) the contributions had been member contributions made under the superannuation scheme established by deed under the Superannuation Act 1990; and (ii) interest on those contributions had accrued in accordance with determinations by the Commonwealth Superannuation Board of Trustees No. 1 under that scheme as to rates of interest and the method of allocating interest; and (iii) no interest on those contributions had accrued during any period when the person was not entitled to a parliamentary allowance; (e) if: (i) the person was entitled to a parliamentary allowance at all times since the end of 30 June 1992; and (ii) an amount (the 'lump sum amount') would have been payable to the person under subsection 18(4) if it were assumed that the person had retired voluntarily at the end of 30 June 1992; the sum of the following amounts: (iii) the lump sum amount; (iv) the interest that would have accrued on the lump sum amount if it were assumed that: (A) the lump sum amount had been a member contribution made on 1 July 1992 under the superannuation scheme established by deed under the Superannuation Act 1990; and (B) interest on the contribution had accrued in accordance with determinations by the Commonwealth Superannuation Board of Trustees No. 1 under that scheme as to rates of interest and the method of allocating interest. Refund of contributions "(2) For the purposes of this Act, if a superannuation guarantee safety-net amount is paid to a person, so much of that amount as is attributable to the person's contributions is taken to be a refund of the contributions. Definitions - superannuation guarantee charge "(3) In this section: 'complying superannuation fund or scheme' has the same meaning as in the Superannuation Guarantee (Administration) Act 1992; 'individual superannuation guarantee shortfall' has the same meaning as in the Superannuation Guarantee (Administration) Act 1992.". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 7 Benefits to members
7. Section 18 of the Principal Act is amended: (a) by omitting paragraph (2)(b) and substituting the following paragraph: "(b) in any other case - the greater of the following: (i) a refund of his or her contributions together with a payment of the Commonwealth supplement; (ii) the superannuation guarantee safety-net amount."; (b) by inserting after subsection (2) the following subsection: "(2AA) If the amount referred to in subparagraph (2)(b)(i) is equal to the amount referred to in subparagraph (2)(b)(ii), paragraph (2)(b) has effect as if the amount referred to in subparagraph (2)(b)(i) were greater than the amount referred to in subparagraph (2)(b)(ii)."; (c) by omitting from subsection (4) all the words after "shall be" and substituting the following words and paragraphs: "the greater of the following: (a) a refund of his or her contributions together with a payment of 50% of the Commonwealth supplement; (b) the superannuation guarantee safety-net amount."; (d) by inserting after subsection (4) the following subsection: "(5) If the amount referred to in paragraph (4)(a) is equal to the amount referred to in paragraph (4)(b), subsection (4) has effect as if the amount referred to in paragraph (4)(a) were greater than the amount referred to in paragraph (4)(b).". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 8 Benefits payable to personal representative
8. Section 19AB of the Principal Act is amended: (a) by omitting from subsection (1) all the words after "by which" and substituting the following words and paragraphs: "the greater of the following: (c) the sum of: (i) the contributions paid by the deceased person; and
Back to Top
(ii) the Commonwealth supplement in relation to the deceased person; (d) the superannuation guarantee safety-net amount in relation to the deceased person; exceeds the sum of any benefits under this Act paid to, or accrued due to, the deceased person before the death of that person."; (b) by inserting after subsection (1) the following subsection: "(1A) If the amount referred to in paragraph (1)(c) is equal to the amount referred to in paragraph (1)(d), subsection (1) has effect as if the amount referred to in paragraph (1)(c) were greater than the amount referred to in paragraph (1)(d)."; (c) by omitting paragraph (2)(b) and substituting the following paragraph: "(b) the greater of the following: (i) the sum of: (A) the contributions paid by the deceased person; and (B) the Commonwealth supplement in relation to the deceased person; (ii) the superannuation guarantee safety-net amount in relation to the deceased person; exceeds the sum of any benefits under this Act: (iii) paid to, or accrued due to, the deceased person before the death of that person; or (iv) paid or payable to: (A) a spouse of the deceased person; or (B) a child or children of the deceased person or of a spouse, or former spouse, of the deceased person;"; (d) by inserting after subsection (2) the following subsection: "(2A) If the amount referred to in subparagraph (2)(b)(i) is equal to the amount referred to in subparagraph (2)(b)(ii), paragraph (2)(b) has effect as if the amount referred to in subparagraph (2)(b)(i) were greater than the amount referred to in subparagraph (2)(b)(ii).". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 9 Re-election to the Parliament
9. Section 20 of the Principal Act is amended: (a) by inserting before subsection (1) the following subsection: "(1A) In this section: 'eligible lump sum amount' means: (a) a refund of contributions or a payment of the whole or a part of the Commonwealth supplement, or both; or (b) the superannuation guarantee safety-net amount."; (b) by omitting from subsection (1) "amount being a refund of contributions or a payment of the whole or a part of the Commonwealth supplement, or both," and substituting "eligible lump sum amount". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 10 Members who pay to Commonwealth transfer values received from previous employment
10. Section 22Q of the Principal Act is amended: (a) by omitting subsection (5) and substituting the following subsection: "(5) If: (a) a refund of the whole or any part of the contributions paid by the member to the Commonwealth, together with the whole or any part of the Commonwealth supplement, is payable to or in respect of the member; or (b) the superannuation guarantee safety-net amount is payable to or in respect of the member; the sum of the following amounts is payable to or in respect of the member by the Commonwealth: (c) so much of the amount paid to the Commonwealth under subsection (1) as is equal to the employer component of the transfer value or the sum of the employer components of the transfer values, as the case may be; (d) the interest that would have accrued on the amount worked out under paragraph (c) if it were assumed that: (i) the amount had been a member contribution made under the superannuation scheme established by deed under the Superannuation Act 1990; and (ii) interest on that contribution had accrued in accordance with determinations by the Commonwealth Superannuation Board of Trustees No. 1 under that scheme as to rates of interest and the method of allocating interest; and (iii) no interest on that contribution had accrued during any period when the member was not entitled to a parliamentary allowance; and (iv) if the amount paid to the Commonwealth under subsection (1) was so paid before 1 July 1992 - that contribution was made on 1 July 1992."; (b) by inserting in paragraph (6)(c) "or the superannuation guarantee safety-net amount" after "Commonwealth supplement". SUPERANNUATION LAWS AMENDMENT ACT 1994 No. 96, 1994 - SECT 11 Insertion of new section
11. After section 26A of the Principal Act the following section is inserted: Preservation of benefits and disclosure of information to members Regulations to which section applies
Back to Top
"26B.(1) This section applies to the Superannuation Industry (Supervision) Regulations in so far as they deal with: (a) the preservation of benefits; or (b) the disclosure of information to members of regulated superannuation funds. Regulations apply to the parliamentary contributory superannuation scheme "(2) Those regulations apply, with any necessary modifications, to: (a) the Trust; and (b) the scheme constituted by the provisions of this Act; as if that scheme were a regulated superannuation fund. Regulations to prevail over inconsistent provisions of this Act "(3) If those regulations are inconsistent with a provision of this Act, the regulations prevail and that provision, to the extent of the inconsistency, is of no effect. Preserved benefits to be paid into a regulated superannuation fund or an approved deposit fund or used to buy a deferred annuity "(4) If the whole or a part of a benefit payable under this Act in respect of a person is required by those regulations to be preserved, the whole or the part of the benefit, as the case requires, must be paid to: (a) if the person nominates a regulated superannuation fund within 90 days after the benefit became payable - the regulated superannuation fund; or (b) if the person nominates an approved deposit fund within 90 days after the benefit became payable - the approved deposit fund; or (c) if: (i) the person nominates a deferred annuity within 90 days after the benefit became payable; and (ii) the deferred annuity is issued by a life insurance company or a registered organisation for the benefit of the person or for the benefit of the dependants of the person in the event of the death of the person; and (iii) the annuity cannot be surrendered or assigned before the person turns 55; and (iv) the annuity does not provide for the payment of amounts except in the following circumstances: (A) the person retires from the workforce after reaching the age of 55 years; (B) the person retires from the workforce before reaching the

Related Laws