Commonwealth: Superannuation Act 1959 (Cth)

SUPERANNUATION. No. 102 of 1959. An Act relating to Superannuation. [Assented to 4th December, 1959.] BE it enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:— Part I.—Preliminary. Short title and citation. 1.—(1.) This Act may be cited as the Superannuation Act 1959. (2.) The Superannuation Act 1922-1958 is in this Act referred to as the Principal Act. (3.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922-1959. Commencement. 2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on the fourteenth day of December, One thousand nine hundred and fifty-nine. (2.) The Part inserted in the Principal Act by section sixty-one of this Act shall be deemed to have come into operation on the thirtieth day of January, One thousand nine hundred and fifty-eight. Parts. 3. This Act is divided into Parts, as follows:— Part I.—Preliminary. Part II.—Amendments of the Superannuation Act 1922— 1958. Part III.—Miscellaneous. Part II.—Amendments of the Superannuation Act 1922-1958. Medical examination of employees. 4. Section four b of the Principal Act is amended by omitting from sub-section (1.) the words "Notwithstanding anything contained in any Act" and inserting in their stead the words "Except as provided by this Act, and notwithstanding anything contained in any other Act". Certain married women not to be contributors. 5. Section four c of the Principal Act is amended by inserting in sub-section (1.), after the word "woman", the words "(not being a married woman whose husband is of unsound mind and unlikely to recover)". Superannuation Fund. 6. Section five of the Principal Act is amended by omitting from sub-section (1.) the words "; and from which shall be paid the benefits provided for in this Act". 7. After section five of the Principal Act the following sections are inserted:— Payments by Commonwealth to Fund. "5a. Payments by the Commonwealth to the Fund shall be made from the Consolidated Revenue Fund, which is appropriated accordingly. Benefits to be paid from Fund. "5b.—(1.) Subject to the next succeeding sub-section, payments in respect of benefits under this Act shall be made from the Fund. "(2.) Where the Commonwealth would be liable to pay to the Fund an amount equal to the whole or a part of a payment made to a person from the Fund, whether under this Act or under any other Act, that amount may be paid to that person by the Commonwealth instead of from the Fund, and the Consolidated Revenue Fund is appropriated accordingly. "(3.) A payment by the Commonwealth under the last preceding sub-section does not affect the liability of the Commonwealth to pay to the Fund an amount referred to in that sub-section. Payments to be made at end of financial year. "5c. Payments by the Commonwealth to the Fund (not being payments under section eleven a of this Act) shall be made on the last day of each financial year and on that day there shall be paid from the Fund to the Commonwealth an amount equal to the sum of the payments made by the Commonwealth under sub-section (2.) of the last preceding section during that financial year.". Commencement and cessation of contributions. 8. Section twelve of the Principal Act is amended— (a) by omitting sub-sections (2.), (2a.) and (2b.) and inserting in their stead the following sub-sections:— "(2.) In respect of units of pension the initial contributions for which were made before the ninth day of August, One thousand nine hundred and thirty, the contributor shall, subject to this section, be liable to pay the contributions until immediately after the last fortnightly payment before he ceases to be an employee or before the anniversary of his initial contribution next preceding the attainment by him of the maximum age for retirement, whichever first happens. "(2a.) In respect of units of pension the initial contributions for which were or are made on or after the ninth day of August, One thousand nine hundred and thirty, the contributor shall, subject to this section, be liable, in respect of each unit of pension or fraction of a unit of pension, to pay the contributions until immediately after the last fortnightly payment before he ceases to be an employee or before the anniversary of his initial contribution in respect of that unit or fraction of a unit next preceding the attainment by him of the maximum age for retirement, whichever first happens. "(2b.) In the case of a contributor whose initial contribution in respect of a unit of pension or fraction of a unit of pension is made within twelve months before he attains the maximum age for retirement, twenty-six contributions at the fortnightly rates applicable to the contributor in respect of that unit or fraction shall be made before a pension in respect of superannuation as regards that unit or fraction becomes payable. "(2ba.) For the purposes of the last three preceding sub-sections, the initial contribution of an employee in respect of any additional unit of pension or fraction of a unit of pension shall be deemed to have been made on the date as from which the contribution became payable. "(2bb.) After the attainment by a contributor of the anniversary of his birth next preceding the attainment by him of the maximum age for retirement in respect of any units of pension, he shall be liable to continue, subject to the next succeeding sub-section, to make fortnightly payments of contributions for those units of pension at a rate equal to the sum of the rates of the contributions payable by him for those units of pension immediately before that anniversary until he has completed payment of contributions for those units. "(2bc.) The amount of the last payment by a contributor (not being a contributor who ceases to be an employee before he has completed payment of his contributions) shall, if necessary, be reduced so that the amount of the payments made by the contributor does not exceed the amount of the contributions that the contributor would, but for the last preceding sub-section, have been liable to pay. "(2bd.) Sub-section (2bb.) of this section does not apply in relation to contributions in respect of which this Act provides that twenty-six contributions shall be payable."; and (b) by omitting sub-section (3.) and inserting in its stead the following sub-sections:— "(3.) Where (a) after, but as from a date before, the attainment by an employee of the maximum age for retirement; or (b) after, but as from a date before, the attainment by a pensioner of the maximum age for retirement, being a pensioner who retired on or after attaining that age, his salary is increased to a salary group in Part I. or Part II. of the First Schedule to this Act higher than the salary group in which it fell immediately before the increase, the employee or pensioner may elect to contribute for additional units of pension but so that the total number of units does not exceed the number specified in the appropriate column of Part I. or Part II. of the First Schedule to this Act opposite to that higher salary group. "(4.) In respect of units of pension for which an employee or pensioner elects to contribute under the last preceding sub-section, twenty-six contributions at the fortnightly rate applicable to the maximum age for retirement shall be made before pension in respect of superannuation becomes payable and, upon payment of those contributions, pension becomes payable as from the date of retirement.". Repeal of section 12a. 9. Section twelve a of the Principal Act is repealed. 10. Section thirteen of the Principal Act is repealed and the following section inserted in its stead:— Scale of units of pension. "13.—(1.) Subject to this Act, contributions by an employee shall be for units of pension. "(2.) Subject to this Act, the number of units of pension for which a person who is an employee on the thirteenth day of December, One thousand nine hundred and fifty-nine, shall contribute at any time is the number of units ascertained in accordance with Part I. of the First Schedule to this Act, having regard to his salary at that time. "(3.) Subject to this Act, the number of units of pension for which a person who becomes an employee on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, shall contribute at any time is the number of units ascertained in accordance with Part II. of the First Schedule to this Act, having regard to his salary at that time and to the number of years of his prospective service. "(4.) Subject to this Act, a contributor is not eligible or required to begin to contribute for an additional unit of pension as from a date after he has attained the maximum age for retirement. "(5.) The number of units of pension for which an employee would otherwise be required to contribute at any time shall be reduced by the number of units of pension (if any) by which the number of units of pension ascertained in accordance with Part I. or Part II. of the First Schedule to this Act, as the case may be, corresponding to the salary group in which his salary fell immediately before that time exceeds the number of units of pension for which he was then a contributor. "(6.) Where, at the time when an employee became or becomes a contributor, he was or is not less than forty years of age, he may elect to reduce the number of initial units in respect of which he is required to contribute to a number not being less than two. "(7.) If the salary of an employee who has attained the age of forty years is increased and, by reason of the increase, the employee would, but for this sub-section, be required to contribute for an additional unit or units of pension, he may, not later than six months after the date upon which his salary is increased, elect not to contribute for all or any of the additional units attributable to that increase in salary. "(8.) Where an employee to whom the last preceding subsection applies— (a) was a contributor for a number of units of pension less than the number of units ascertained in accordance with Part I. or Part II. of the First Schedule to this Act, as the case may be, corresponding to the salary group in which his salary fell immediately before his salary was increased; and (b) does not elect under the last preceding sub-section, he may elect to contribute for such number of additional units of pension as does not exceed the difference between the number of units corresponding to that salary group and the number of units for which he was a contributor. "(9.) An election under the last preceding sub-section does not have effect unless the employee satisfies the Board that he is not suffering from any physical or mental defect (not being a defect that, in the opinion of the Board, is the result of the service of the contributor as a member of the Forces as defined by subsection (2.) of section eighty c of this Act) likely to render him incapable of performing his duties before attaining the maximum age for retirement. "(10.) Any additional contribution payable by reason of an increase in the salary of an employee is payable as from the date upon which his salary is increased, or as from the date as from which his salary is increased, whichever is the later. "(11.) Any additional contribution payable by reason of an election under sub-section (8.) of this section is payable as from the date of the election. "(12.) Where an employee who became an employee on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and to whom the proviso to section twenty-nine of this Act applies ceases to be an employee at an earlier age than his selected retiring age— (a) that earlier age shall be deemed to have been his selected retiring age; and (b) where necessary, the number of units for which he was required to contribute shall be deemed to have been reduced accordingly. "(13.) For the purposes of this section— (a) the salary of an employee who is paid salary at a rate other than an annual rate of salary shall be ascertained as prescribed; (b) where the salary of an employee is increased by reason of an award, order or determination made by the Public Service Arbitrator or by the Commonwealth Conciliation and Arbitration Commission, the date on which the order or determination is made shall be deemed to be the date upon which the employee's salary is increased; (c) the selected retiring age of an employee is, subject to the last preceding sub-section— (i) in the case of an employee who has made an election under section sixteen a of this Act— the age of sixty years; and (ii) in any other case—the age of sixty-five years; and (d) the number of years of prospective service of an employee |is the number of complete years between the date upon which he became an employee and the date upon which he will attain his selected retiring age.". 11. Section fifteen of the Principal Act is repealed and the following section inserted in its stead:— Contributor reduced in salary. "15. Where the salary of a contributor is reduced and by reason of that reduction falls within a salary group specified in Part I. or Part II. of the First Schedule to this Act, as the case may be, lower than the salary group in which it fell before it was reduced, the contributor may elect to reduce the number of units of pension for or in respect of which he shall contribute to a number of units not less than the number of units appropriate to the first-mentioned salary group.". 12. Section sixteen of the Principal Act is repealed and the following section inserted in its stead:— Contributions by employees. "16.—(1.) Subject to this Act, the amount of contribution to be paid by an employee is an amount ascertained in accordance with the tables of contributions set out in the Third Schedule to this Act. "(2.) In the case of a male employee whose obligation to contribute to the Fund comes into existence on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, the rate of contribution in respect of two of his initial units of pension is the rate appropriate to his age next birthday set out in Table IX. or Table XI. in the Third Schedule to this Act, as the case may be, increased by Sixpence in respect of each of those two units. "(3.) The amount of contribution to be paid by an employee who has elected that section seventeen aa of this Act shall not apply to him is, in respect of— (a) units of pension in respect of which the obligation to contribute comes into existence on or after the fourteenth day of December, One thousand nine hundred and fifty-nine; or (b) reserve units of pension for which he elects to contribute on or after that date, an amount ascertained in accordance with the rates of contribution specified in the Fourth Schedule to this Act.". Election to contribute for full pension at sixty years of age. 13. Section sixteen a of the Principal Act is amended by omitting sub-section (2.). Election to contribute for additional units at sixty-five years age. 14. Section sixteen b of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following sub-section:— "(2.) A contributor who— (a) has made an election to contribute at rates based on a retiring age of sixty years; (b) has attained that age but has not attained the age of sixty-five years; (c) but for sub-section (4.) of section thirteen of this Act, would have been eligible or required to contribute for an additional unit of pension, may, within the prescribed time, elect to contribute for that additional unit at the appropriate rate based on a retiring age of sixty-five years.". Repeal of section 17. 15. Section seventeen of the Principal Act is repealed. 16. After Division 3 of Part III. of the Principal Act the following Division is inserted:— "Division 3aa.—Contributions for Additional Benefits for Widows. Additional contributions by existing contributors. "17aa.—(1.) In this section— (a) references to a contributor are references to a male contributor whose obligation to contribute to the Fund came into existence before the fourteenth day of December, One thousand Dine hundred and fifty-nine; and (b) references to a unit of pension include references to a reserve unit of pension and a fraction of a unit of pension. "(2.) A male contributor who, before the fourteenth day of December, One thousand nine hundred and fifty-nine, was credited with one or more fully paid units of pension shall, for the purposes of paragraph (a) of the last preceding sub-section, be deemed to be a male contributor whose obligation to contribute to the Fund came into existence before that date. "(3.) A contributor may, not later than the thirteenth day of June, One thousand nine hundred and sixty, elect that this section shall not apply to him. "(4.) A contributor who does not so elect shall, from and including the fourteenth day of December, One thousand nine hundred and fifty-nine, in respect of— (a) each unit of pension (if any) for which he is contributing at that date; (b) each unit of pension (if any) in respect of which he has completed his contributions not later than that date; and (c) each fully paid unit of pension (if any) which has been credited to him as from a date not later than that date, make such contributions (if any) to the Fund as are specified in the Fifth Schedule to this Act. "(5.) Contributions by a contributor who does not so elect, being contributions in respect of— (a) units of pension in respect of which the obligation to contribute comes into existence on or after the fourteenth day of December, One thousand nine hundred and fifty-nine; or (b) reserve units of pension for which such a contributor elects to contribute on or after that date, shall be at the rates of contribution specified in Table IX. or Table XI. in the Third Schedule to this Act, as the case requires. "(6.) Contributions payable under sub-section (4.) of this section are in addition to any other contributions payable by the contributor. Additional contributions by certain pensioners who become re-employed. "17ab.—(1.) If a male person— (a) who is, on the fourteenth day of December, One thousand nine hundred and fifty-nine, in receipt of a pension under section thirty of this Act; or (b) whose pension under that section is not, by reason of any provision of this Act, being paid to him on that date, again becomes an employee after that date, the last preceding section applies to him, subject to the next succeeding sub-section, as it applies to a contributor who has not elected under that section. "(2.) In the application of the last preceding section to a person by virtue of the last preceding sub-section— (a) the date from and including which that person shall contribute to the Fund in accordance with the Fifth Schedule to this Act is the day on which he again becomes an employee,, or, if that day is not a pay-day, the next following pay-day; and (b) the age of that person next birthday shall be deemed to be his age at his birthday next after the seventeenth day of December, One thousand nine hundred and fifty-nine. Cessation of additional contributions under previous sections. "17ac.—(1.) The succeeding sub-sections of this section have effect in respect of contributions under the last two preceding sections. "(2.) The contributor shall, subject to the next succeeding sub-section, be liable to pay the contributions in respect of each unit of pension until immediately after the last fortnightly payment before— (a) he ceases to be an employee; or (b) the seventeenth day of December next preceding the attainment by him of the maximum age for retirement, whichever first happens. "(3.) In the case of a contributor whose initial payment in respect of the contributions in respect of a unit of pension is made within twelve months before, or at any time after, he attains the maximum age for retirement, he shall pay those contributions until he ceases to be an employee by reason of his death or retirement on the ground of invalidity or physical or mental incapacity to perform his duties, or until he has paid twenty-six contributions, whichever first happens.". Reserve Units of Pension Account 17. Section seventeen a of the Principal Act is amended by omitting the words "under this Division" and inserting in their stead the words "for or in respect of reserve units of pension". Contribution for reserve units of pension. 18. Section seventeen b of the Principal Act is amended— (a) by omitting from sub-section (1.) the words ", as defined by section twelve a of this Act,"; (b) by omitting from sub-section (2.) the word "four" and inserting in its stead the word "eight"; and (c) by omitting sub-section (3.) and inserting in its stead the following sub-section:— "(3.) Contributions for a reserve unit of pension— (a) shall be in accordance with the Third or Fourth Schedule to this Act, whichever is appropriate; and (b) shall be payable as from the date on which the contributor elects to contribute for that reserve unit of pension.". 19. Division 4 of Part III. of the Principal Act is repealed and the following Division inserted in its stead:— "Division 4.—Contributions by the Commonwealth. Payments by Commonwealth. "18.—(1.) This section has effect except as otherwise provided by this Act or by the Superannuation Act 1959. "(2.) Subject to the next three succeeding sub-sections, the Commonwealth shall pay to the Fund an amount equal to five-sevenths of each payment of pension. "(3.) Subject to the next two succeeding sub-sections, in the case of a unit of pension for which contributions were made at a rate applicable to an age younger than the contributor's age at the date on which he commenced to make those contributions, the Commonwealth shall pay to the Fund an amount equal to the following proportion of each payment of pension in respect of that unit, that is to say, , where— A is the rate of contributions applicable to the age of the contributor at the date upon which he commenced to pay contributions; and B is the rate of contributions at which contributions were actually made. "(4.) Where— (a) a contributor referred to in sub-section (1.) of section thirty-one of this Act; or (b) a pensioner referred to in sub-section (1.) of section thirty-two of this Act, was entitled to make an election under section seventeen aa of this Act but did not make such an election, the Commonwealth shall pay to the Fund, in respect of each payment of pension to his widow in respect of each unit of pension for which he was contributing immediately before the fourteenth day of December, One thousand nine hundred and fifty-nine, the sum of— (c) the amount that the Commonwealth would have paid if the contributor had made an election under the last-mentioned section; and (d) an amount equal to five-sevenths of the amount by which the pension payable to the widow in respect of each of those units is increased by reason of the contributor not having made such an election. "(5.) Where a pension becomes payable under section thirty-two of this Act to the widow of a pensioner who became entitled to a pension on or before the fourteenth day of December, One thousand nine hundred and fifty-nine, the Commonwealth shall pay to the Fund an amount equal to the sum of— (a) the amount that would have been payable by the Commonwealth to the Fund in respect of each payment of pension to the widow if the Superannuation Act 1959 had not been enacted; and (b) the amount by which each payment of pension to the widow is increased by reason of the enactment of that Act. "(6.) The last four preceding sub-sections do not apply in respect of a payment of pension in respect of a child. "(7.) Subject to the next succeeding sub-section, the Commonwealth shall pay to the Fund, in respect of each payment of pension in respect of a child, an amount equal to three-eighths of the payment. "(8.) Where a contributor made contributions for his first two units of pension at a rate applicable to an age younger than the contributor's age at the date on which he commenced to make those contributions, the Commonwealth shall pay to the Fund, in respect of each payment of pension in respect of a child of the contributor or of the contributor's widow (except children of her re-marriage), an amount equal to the following proportion of each payment of pension, that is to say, , where— C is the rate of contributions for the first two units of pension applicable to the age of the contributor at the date upon which he commenced to pay contributions; and D is the rate at which contributions for the contributor's first two units of pension were actually made. "(9.) The last two preceding sub-sections do not apply in respect of so much of a payment of pension as is, by virtue of some other provision of this Act, payable without contribution by the Commonwealth.". 20. After section twenty-two of the Principal Act the following section is inserted in Division 5 of Part III.:— Determination of annual salary. "22a.—(1.) For the purposes of this Part, other than the last preceding section, the salary of an employee or contributor shall be taken to be his annual salary. "(2.) In ascertaining the annual salary of an employee or contributor for the purposes of this section— (a) subject to the next succeeding paragraph, if the employee or contributor is not receiving remuneration at the maximum rate applicable to his office or position, he shall be deemed to be receiving remuneration at that maximum rate; and (b) if the employee or contributor has not attained the age of twenty-one years and occupies an office or position in respect of which the remuneration varies according to the age of the occupant, the last preceding paragraph does not apply, but, in the case of such an employee or contributor who has not attained the age of twenty years, he shall be deemed to be receiving remuneration at the rate that would be applicable to him if he had attained the age of twenty years.". Pension units. 21. Section twenty-eight of the Principal Act is amended by omitting sub-section (2.). Amount of pension on retirement. 22. Section twenty-nine of the Principal Act is amended by inserting after the word "pension" (first occurring) the words ",as set out in the Second Schedule to this Act,". Contributor remaining in Service after attaining maximum age for retirement. 23. Section twenty-nine a of the Principal Act is amended by omitting from sub-section (2.) the words "one-half of the amount (if any) by which the pension which would have been payable to the contributor or pensioner, as the case may be, would have been increased under the last preceding sub-section" and inserting in their stead the words "an amount ascertained by multiplying that portion of the pension that is equivalent to the contributions made by her husband by the percentage that would have been applicable under the last preceding sub-section in relation to his pension". Pension to widow and children on death of contributor 24. Section thirty-one of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "one half" and inserting in their stead the word "five-eighths"; (b) by inserting after sub-section (1.) the following subsection:— "(1a.) In the application of the last preceding subsection to the pension of a widow whose husband elected that section seventeen aa of this Act should not apply to him, the reference in paragraph (a) of that sub-section to five-eighths of the pension for which her husband was contributing at the time of his death shall be read as a reference to one-half of that pension."; and (c) by omitting from sub-section (2.) the words "the last preceding sub-section" and inserting in their stead the words "sub-section (1.) of this section". Pension to widow and children on death of pensioner. 25. Section thirty-two of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "one half" and inserting in their stead the word "five-eighths"; (b) by omitting from that paragraph the words ",or pension at the rate of Forty-five pounds ten shillings per annum whichever is the greater"; (c) by inserting after sub-section (1.) the following subsections:— "(1a.) In the application of the last preceding sub-section to the pension of a widow whose husband elected that section seventeen aa of this Act should not apply to him, the reference in paragraph (a) of that sub-section to five-eighths of the pension payable to her husband at the time of his death shall be read as a reference to one-half of that pension. "(1b.) Where a person who— (a) is in receipt of a pension under section twenty-nine or thirty of this Act; and (b) at the time when she became a contributor was a married woman whose husband was of unsound mind and unlikely to recover, becomes entitled, on the death of her husband, to a pension under this section, she is entitled to receive— (c) the proportions of both pensions that are based upon the contributions paid by her and by her husband; and (d) the proportion payable by the Commonwealth— (i) of whichever of the pensions secures to her the greater payment from the Commonwealth; or (ii) if the payments from the Commonwealth are equal—of one only of those pensions."; (d) by omitting from sub-section (2.) the words "any such" and inserting in their stead the word "a"; and (e) by omitting from sub-section (2.) the words "the last preceding sub-section" and inserting in their stead the words "sub-section (1.) of this section". 26. Section thirty-four of the Principal Act is repealed and the following section inserted in its stead:— Refund of contributions on death of certain contributors. "34. here a contributor who is— (a) an unmarried male person (including such a person whose marriage has been dissolved or annulled but not including a widower with children under the age of sixteen years); (b) a widower without children under the age of sixteen years; or (c) a female, dies before retirement, there shall be paid to the personal representatives of the contributor, or, failing them, to such persons (if any) as the Board determines, an amount equal to the amount of the contributions paid by the contributor.". Certain contributors who change the nature of their employment to continue as contributors. 27. Section forty b of the Principal Act is amended by omitting paragraph (a) of sub-section (2.) and inserting in its stead the following paragraph:— "(a) the employment of a contributor, being a person who is deemed to be an employee by virtue of section four of this Act, sub-section (6.) of section nine of the High Commissioner Act 1909-1952, paragraph (c) of sub-section (1.) of section sixteen of the Statistics (Arrangements with States) Act 1956-1958 or subsection (2.) of section thirteen of the Australian Security Intelligence Organization Act 1956, terminates or is terminated; and". Insanity of male pensioner. 28. Section forty-three of the Principal Act is amended by inserting after sub-section (1.) the following sub-section:— "(1a.) In respect of any period during which the wife of a male pensioner in relation to whom the last preceding subsection applies is an employee or is in receipt of a pension under section twenty-nine or thirty of this Act, the Board shall not cause pension to be paid to her under that sub-section at a rate exceeding the rate at which pension would be payable to her under this Act if she were in receipt of a pension under section thirty-two of this Act.". 29. Section forty-eight of the Principal Act is repealed and the following section inserted in its stead:— Minimum pension. "48.—(1.) The minimum amount of pension payable to a contributor upon retirement is, except where this Act requires his pension to be actuarially determined, two units. "(2.) The minimum amount of pension payable to the widow of a contributor or pensioner (not being pension in respect of a child) is— (a) subject to the next succeeding paragraph—one and one-quarter units; or (b) in the case of a widow whose husband elected that section seventeen aa of this Act should not apply to him—one unit. "(3.) Any additional amount of pension required to be paid by reason of the operation of either of the last two preceding sub-sections shall be paid by the Commonwealth to the Fund.". 30. Section forty-eight b of the Principal Act is repealed and the following section inserted in its stead:— Commencement of pension or benefits. "48b. Subject to this Act, where, in pursuance of this Act, an employee becomes liable, or elects, to contribute for or in respect of a unit of pension or an additional unit of pension, he shall be deemed to be a contributor for or in respect of that unit or additional unit as from the date when he becomes liable to contribute, or elects to contribute, as the case may be, but, if any pension or benefit becomes payable to or in respect of that contributor before he has actually commenced to make contributions or additional contributions, there shall be deducted from the first payment of pension or benefit such contributions as are due by him for or in respect of that unit or additional unit, or, if a pay-day has not occurred before the pension or benefit becomes payable, one fortnightly contribution.". Heading. 31. Before section fifty a of the Principal Act the following heading is inserted:— "Division 3a.—Re-employment of Pensioners". Re-employment of pensioners. 32. Section fifty a of the Principal Act is amended by omitting sub-sections (3.), (4.) and (5.) and inserting in their stead the following sub-sections:— "(3.) Where an employee is in receipt of a pension under section thirty-one or thirty-two of this Act at a rate exceeding Three hundred and twelve pounds sixteen shillings and three pence per annum, the pension payable to her during any period during which she is an employee is, in lieu of the pension that would otherwise have been payable under this Act, a pension at the rate of— (a) Three hundred and twelve pounds sixteen shillings and three pence per annum; or (b) an amount equal to one-half of the pension that would otherwise have been payable, whichever is the greater. "(3a.) In the application of the last preceding sub-section to the pension of a person whose husband elected that section seventeen aa of this Act should not apply to him, the references to Three hundred and twelve pounds sixteen shillings and three pence shall be read as references to Two hundred and fifty pounds five shillings. "(4.) Where an employee who is in receipt of a pension under section thirty-one or thirty-two of this Act is a contributor, she is, on retirement on pension, entitled to receive— (a) the proportions of both pensions that are based upon the contributions paid by her and by her husband; and (b) the proportion payable by the Commonwealth— (i) of whichever of the pensions secures to her the greater payment from the Commonwealth; or (ii) if the payments from the Commonwealth are equal—of one only of those pensions. "(5.) Where an employee who is in receipt of a pension under section thirty-one or thirty-two of this Act is a contributor to the Provident Account, she shall, when she ceases to be an employee (except where she so ceases by reason of re-marriage), be entitled to receive a pension at the same rate as that to which she would have been entitled if she had not become an employee. "(5a.) In sub-sections (1.), (3.) and (4.) of this section, the reference to a pension does not include a reference to a pension payable in respect of a child.". 33. After section fifty a of the Principal Act the following section is inserted in Division 3a of Part IV.:— Widows who contribute to Defence Forces Retirement Benefits Fund. "50b.—(1.) In this section, 'member' means a member as defined by sub-section (1.) of section four of the Defence Forces Retirement Benefits Act 1948-1959. "(2.) Where a member is in receipt of a pension under section thirty-one or thirty-two of this Act at a rate exceeding Three hundred and twelve pounds sixteen shillings and three pence per annum, the pension payable to her in respect of any period during which she is contributing to the Defence Forces Retirement Benefits Fund is, in lieu of the pension that would otherwise have been payable under this Act, a pension at the rate of— (a) Three hundred and twelve pounds sixteen shillings and three pence per annum; or (b) an amount equal to one-half of the pension that would otherwise have been payable under this Act, whichever is the greater. "(3.) In the application of the last preceding sub-section to the pension of a person whose husband elected that section seventeen aa of this Act should not apply to him, the references to Three hundred and twelve pounds sixteen shillings and three pence shall be read as references to Two hundred and fifty pounds five shillings. "(4.) Where a member is in receipt of a pension under section thirty-one or thirty-two of this Act, she is, on retirement on pension under the Defence Forces Retirement Benefits Act 1948-1959, entitled to receive, in addition to pension under the latter Act— (a) the proportion of the pension under section thirty-one or thirty-two of this Act that is based upon the contributions paid by her husband; and (b) the amount (if any) by which the proportion of the pension payable by the Commonwealth under this Act exceeds the proportion of the pension payable by the Commonwealth under the Defence Forces Retirement Benefits Act 1948-1959. "(5.) In sub-sections (2.) and (4.) of this section, the reference to a pension does not include a reference to a pension payable in respect of a child. "(6.) Where, by reason of the operation of sub-section (2.) of this section, a payment of pension is reduced, the amount payable by the Commonwealth to the Fund in respect of that payment of pension is the amount that would be payable by the Commonwealth if the reduction had not been made, less the amount by which the payment of pension is so reduced.". Rights under other Acts and State Acts. 34. Section fifty-one of the Principal Act is amended by inserting after the word "pension" (first occurring) the words "(other than a widow's pension under the Defence Forces Retirement Benefits Act 1948-1959)". Election to come under Act for difference. 35. Section fifty-two of the Principal Act is amended— (a) by adding at the end of paragraph (b) of sub-section (3.) the word "and"; and (b) by omitting paragraphs (c) and (d) of that sub-section and inserting in their stead the following paragraph:— "(c) the contributions shall be payable as from the date of the election.". Right of employee not electing under section 52 to come under Act for limited purposes. 36. Section fifty-three of the Principal Act is amended— (a) by inserting in sub-section (1.), after the word "time,", the words "but not later than the thirteenth day of December, One thousand nine hundred and fifty-nine,"; (b) by omitting from paragraph (b) of sub-section (3.) the word "two-sevenths" and inserting in its stead the word "seventeen twenty eighths"; and (c) by omitting from paragraph (a) of sub-section (5.) the words "sub-section (1.) of section eighteen of this Act, or sub-section (1.) of section nineteen" and inserting in their stead the words "sub-section (2.) or (3.) of section eighteen". Increase in certain pensions. 37. Section fifty-nine of the Principal Act is amended by omitting from sub-section (4.) the words "and the Consolidated Revenue Fund is appropriated accordingly". Repeal of section 59a. 38. Section fifty-nine a of the Principal Act is repealed. The Provident Account. 39. Section sixty u of the Principal Act is amended by omitting the words "and from which shall be paid the benefits provided for in this Part". 40. After section sixty u of the Principal Act the following sections are inserted:— Payments by Commonwealth into Provident Account. "60ua. Payments by the Commonwealth into the Provident Account shall be made from the Consolidated Revenue Fund, which is appropriated accordingly. Benefits to be paid from Provident Account. "60ub.—(1.) Subject to the next succeeding sub-section, payments in respect of benefits under this Part shall be made from the Provident Account. "(2.) Where the Commonwealth would be liable to pay into the Provident Account an amount equal to the whole or a part of a payment made to a person from the Provident Account, that amount may be paid to that person by the Commonwealth instead of from the Provident Account, and the Consolidated Revenue Fund is appropriated accordingly. "(3.) A payment by the Commonwealth under the last preceding sub-section does not affect the liability of the Commonwealth to pay into the Provident Account an amount referred to in that sub-section. Payments to be made at end of financial year. "60uc. Payments by the Commonwealth into the Provident Account shall be made on the last day of each financial year and on that day there shall be paid from the Provident Account to the Commonwealth an amount equal to the sum of the payments made by the Commonwealth under sub-section (2.) of the last preceding section during that financial year.". Contributors to Provident Account. 41. Section sixty v of the Principal Act is amended— (a) by omitting from paragraph (b) of sub-section (3.) the words "rate of Three pounds per centum per annum" and inserting in their stead the words "prescribed rate"; and (b) by inserting in sub-section (5.), after the word "but the words", except as provided by section seventeen aa of this Act,". Contributions to Provident Account. 42. Section sixty w of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "salary payable to him" and inserting in their stead the words "his salary"; and (b) by omitting from sub-section (3.) the words "or, if that date is not a pay-day, as from the next succeeding pay-day after that date". Payments on retirement. 43. Section sixty y of the Principal Act is amended— (a) by omitting from sub-section (1.) the words "rate of Three pounds per centum per annum" and inserting in their stead the words "prescribed rate"; (b) by omitting from sub-section (2.) the words "annual rate of" (wherever occurring); and (c) by adding at the end thereof the following sub-section:— "(6.) In the case of a contributor to the Provident Account, being a person in receipt of a widow's pension under this Act or under the Defence Forces Retirement Benefits Act 1948-1959 or a married woman whose husband is in receipt of a pension under this Act— (a) sub-section (1.) of this section has effect as if the words 'three times' were omitted; and (b) sub-section (2.) of this section does not apply.". Payments on death of contributor with dependants. 44. Section sixty z of the Principal Act is amended— (a) by omitting from sub-section (1.) the words "rate of Three pounds per centum per annum" and inserting in their stead the words "prescribed rate"; and (b) by omitting from sub-section (3.) the words "annual rate of" (wherever occurring). 45. Section sixty aa of the Principal Act is repealed and the following section inserted in its stead:— Payment on death of contributor without dependants. "60aa. Where a contributor to the Provident Account who is— (a) an unmarried male person (including such a person whose marriage has been dissolved or annulled but not including a widower with children under the age of sixteen years); (b) a widower without children under the age of sixteen years; or (c) a female, dies before retirement, there shall be paid to the personal representatives of the contributor, or, failing them, to such persons (if any) as the Board determines, an amount equal to the amount of the contributions paid by the contributor into the Provident Account together with compound interest on the amount of those contributions at the prescribed rate.". Payments on resignation or dismissal. 46. Section sixty ab of the Principal Act is amended by omitting the words "rate of Three pounds per centum per annum" and inserting in their stead the words "prescribed rate". Certain contributors who change the nature of their employment to continue as contributors. 47. Section sixty aba of the Principal Act is amended by omitting paragraph (a) of sub-section (2.) and inserting in its stead the following paragraph:— "(a) the employment of a contributor to the Provident Account, being a person who is deemed to be an employee by virtue of section four of this Act, subsection (6.) of section nine of the High Commissioner Act 1909-1952, paragraph (c) of sub-section (1.) of section sixteen of the Statistics (Arrangements with States) Act 1956-1958 or sub-section (2.) of section thirteen of the Australian Security Intelligence Organization Act 1956, terminates or is terminated; and". Retrenchment or discharge. 48. Section sixty ac of the Principal Act is amended by omitting paragraphs (a) and (b) and inserting in their stead the following paragraphs:— "(a) shall, if he has had not less than ten years' continuous service immediately before the compulsory termination of his service, be deemed to be retrenchment; and "(b) shall, in any other case, be deemed to be discharge.". 49. After section sixty ad of the Principal Act the following sections are inserted:— Rate of interest. "60ada.—(1.) For the purposes of this Part, the prescribed rate of compound interest is a rate determined in accordance with this section. "(2.) In respect of contributions that became or become payable not later than the thirtieth day of June, One thousand nine hundred and sixty, the rate is, in respect of any period ending on or before that date, Three pounds per centum per annum. "(3.) In respect of contributions referred to in the last preceding sub-section, and in respect of contributions that become payable after the thirtieth day of June, One thousand nine hundred and sixty, the rate is, subject to the next succeeding sub-section, Three pounds fifteen shillings per centum per annum in respect of any period commencing after that date. "(4.) The Governor-General may, from time to time, by order published in the Gazette, fix a rate lower than Three pounds fifteen shillings per centum per annum, to have effect in respect of a period commencing on a date specified in the order, but such an order shall not increase the rate in force immediately before the order. Commencement of benefit. "60adb.—(1.) Where, in pursuance of this Part, an employee becomes liable to contribute to the Provident Account, he shall be deemed to be such a contributor as from the date when he becomes liable so to contribute, but if any benefit becomes payable to or in respect of that contributor before he has actually commenced to make contributions or additional contributions, there shall be deducted from the benefit such contributions as are due by him or, if a pay-day has not occurred before the benefit becomes payable, one fortnightly contribution. "(2.) Where a contribution is, or contributions are, required to be deducted from a benefit under the last preceding sub-section, that contribution or those contributions shall, for the purposes of determining the amount of that benefit, be deemed to be a contribution or contributions made to the Provident Account.". Payments by Commonwealth. 50. Section sixty ae of the Principal Act is amended by omitting sub-sections (3.) and (4.). 51. After section sixty ae of the Principal Act the following section is inserted in Part IVb.:— Determination of annual salary. "60aea.—(1.) For the purposes of this Part, other than paragraph (b) of sub-section (1.) of section sixty w of this Act, the salary of a contributor to the Provident Account shall be taken to be his annual salary. "(2.) In ascertaining the annual salary of a contributor to the Provident Account for the purposes of this section— (a) subject to the next succeeding paragraph, if he is not receiving remuneration at the maximum rate applicable to his office or position, he shall be deemed to be receiving remuneration at that maximum rate; and (b) if he has not attained the age of twenty-one years and occupies an office or position in respect of which the remuneration varies according to the age of the occupant, the last preceding paragraph does not apply, but, in the case of such a contributor to the Provident Account who has not attained the age of twenty years, he shall be deemed to be receiving remuneration at the rate that would be applicable to him if he had attained the age of twenty years.". Superannuation rights and obligations of former employees of Williamstown Dockyard. 52. Section sixty ag of the Principal Act is amended— (a) by inserting in sub-section (4.), after the word "fund", the words "for or"; (b) by omitting from sub-section (5.) the words "Schedule I. to this Act" and inserting in their stead the words "Table I. in the Third Schedule to this Act"; and (c) by inserting in sub-section (6.), after the word "for", the words "or in respect of". Increased contributions by Commonwealth. 53. Section sixty al of the Principal Act is amended— (a) by omitting the words "or nineteen"; and (b) by omitting the words "Schedule V. to this Act" and inserting in their stead the words "Table V. in the Third Schedule to this Act". Superannuation rights and obligations of persons formerly employed by States. 54. Section sixty ao of the Principal Act is amended— (a) by omitting from sub-section (1.) all the words after the word "contributions" (last occurring) and inserting in their stead the words "for those units of pension shall be at the same rate."; (b) omitting sub-section (3.); and (c) by inserting in sub-section (4.), after the word "for" (first and third occurring), the words "or in respect of". Increased contributions by Commonwealth. 55. Section sixty as of the Principal Act is amended— (a) by omitting the words "or nineteen"; and (b) by omitting the words "appropriate Schedules" and inserting in their stead the words "Third Schedule". Provisions relating to former contributors to Public Service Superannuation Funds. 56. Section sixty av of the Principal Act is amended by omitting from sub-section (3.) all the words after the word "but" and inserting in their stead the words ",except as provided by section seventeen aa of this Act, is not required to make contributions for or in respect of those units.". 57. Section sixty ax of the Principal Act is repealed and the following section inserted in its stead:— Application of Part. "60ax.—(1.) This Part applies to a person— (a) who, immediately after ceasing to be a member of the Defence Force of the Commonwealth, becomes employed by the Commonwealth or by an approved authority otherwise than as a casual, exempt or temporary employee; and (b) in respect of whom an amount is paid from the Defence Forces Retirement Benefits Fund into the Fund under Division 3 of Part V. of the Defence Forces Retirement Benefits Act 1948-1959. "(2.) This Part also applies to a person— (a) who, immediately after ceasing to be a member of the Defence Force of the Commonwealth, becomes employed by the Commonwealth or by an approved authority otherwise than in a permanent capacity and is, by the terms of his employment, required to give the whole of his time to the duties of his employment; (b) who, immediately before becoming so employed, had had not less than three years' continuous service as a member of the Defence Force of the Commonwealth; (c) in respect of whom— (i) in the case of a person employed by the Commonwealth otherwise than under the Australian Security Intelligence Organization Act 1956 or the High Commissioner Act 1909-1952—the Public Service Board, or, on appeal from the Public Service Board, the Treasurer; (ii) in the case of a person employed by an approved authority—that approved authority; (iii) in the case of a person employed under the Australian Security Intelligence Organization Act 1956—the Director-General of Security; or (iv) in the case of a person employed under the High Commissioner Act 1909-1952—the Minister administering that Act, on the recommendation of the High Commissioner of the Commonwealth in the United Kingdom, certifies that that person's employment is likely to be continued for a period of at least seven years; and (d) in respect of whom an amount is paid from the Defence Forces Retirement Benefits Fund into the Fund under Division 3 of Part V. of the Defence Forces Retirement Benefits Act 1948-1959.". Contributions. 58. Section sixty ay of the Principal Act. is amended— (a) by omitting sub-section (3.) and inserting in its stead the following sub-section:— "(3.) Subject to the next succeeding section, a person to whom this Part applies shall contribute to the Fund for so many units of pension (including, where necessary, a fraction of a unit) as the Commonwealth Actuary certifies will entitle that person to benefits equivalent to those to which he would have been entitled if his contributions to the Defence Forces Retirement Benefits Fund had been contributions to the Superannuation Fund based on a retiring age of sixty years."; and (b) by adding at the end thereof the following sub-section:— "(5.) In the application of sub-section (1.) of section thirty-one, and of sub-section (1.) of section thirty-two, of this Act to the pension of a widow of a person to whom this Part applies and who made an election under sub-section (6.) of section forty-seven, or sub-section (4.) of section forty-eight, of the Defence Forces Retirement Benefits Act 1959, the reference in paragraph (a) of each of the two first-mentioned sub-sections to five-eighths of the pension for which her husband was contributing at the time of his death, or that was payable to her husband at the time of his death, as the case may be, shall be read as a reference to one-half of that pension.". 59. Section sixty az of the Principal Act is repealed and the following section inserted in its stead:— Additional contributions. "60 az.—(1.) Subject to the next succeeding sub-section, the last preceding section does not affect the obligation or right (if any) of a person to whom this Part applies to contribute, in accordance with this Act, for units of pension additional to those for which he is required to contribute under that section. "(2.) In the case of a person to whom this Part applies who was a contributor for limited benefits under the Defence Forces Retirement Benefits Act 1948-1959, the number of additional units of pension for which that person would otherwise have the obligation or right to contribute shall be reduced by such number of units of pension as the Commonwealth Actuary certifies to be equivalent to the benefits to which that person would have been entitled under that Act in respect of his deferred pay if he had continued to contribute under that Act and had been a contributor for full benefits under that Act.". Date of becoming an employee or contributor for certain purposes. 60. Section sixty aza of the Principal Act is amended— (a) by omitting from sub-section (1.) the word "section" (first occurring) and inserting in its stead the words "sections thirteen and"; and (b) by omitting from sub-section (2.) the words "sections thirty-nine and forty of". 61. After Part IVf. of the Principal Act the following Part is inserted:— "Part IVg.—Special Provisions in Relation to Certain Members of the Police Force of the Australian Capital Territory. Interpretation. "60azc.—(1.) In this Part, unless the contrary intention appears— 'person to whom this Part applies' means a person from whose pay there were being deducted, immediately before the commencement of this section, sums under section seventeen of the Ordinance and who, within three months after the commencement of this section, makes an election having the effect of an election to contribute to the Fund; 'the Ordinance' means the Police Superannuation Ordinance 1928-1950 of the Australian Capital Territory. "(2.) In this Part, any reference to sums deducted from the pay of a person under section seventeen of the Ordinance includes a reference to contributions made by a person under section three of the Ordinance. Superannuation rights and obligations of certain members of the Australian Capital Territory Police Force. "60azd.—(1.) A person to whom this Part applies shall be deemed to be an employee and is liable to contribute to the Fund for so many units of pension (including, where necessary, a fraction of a unit) as the actuarial member of the Board certifies will entitle that person to benefits equivalent to those to which he would have been entitled if sums had continued to be deducted from his pay under section seventeen of the Ordinance in the amounts in which they were, immediately before the commencement of this section, being deducted, and his contributions for those units shall be in the same amounts. "(2.) Section four b of this Act does not apply to a person to whom this Part applies. "(3.) Subject to this Act, a person to whom this Part applies shall for all purposes of this Act be deemed to be a contributor— (a) in the case of such a person whose age for compulsory retirement under sub-section (1.) of section six of the Ordinance was fifty-five or sixty years—at rates based on a retiring age of sixty years; and (b) in any other case—at rates based on a retiring age of sixty-five years. "(4.) Sub-section (1.) of this section does not affect the obligation or right of a person to whom this Part applies to contribute, in accordance with this Act, for units of pension in excess of those for which he is required to contribute under that sub-section. Retrenchment, discharge, &c. "60aze.—(1.) A person to whom this Part applies shall, for the purposes of section twenty-five of this Act, be deemed to be an employee, and shall, for the purposes of section thirty-nine of this Act, be deemed to have been a contributor to the Fund from and including the date on which sums deducted from his pay under section seventeen of the Ordinance commenced to be deducted. "(2.) For the purposes of this Act, sums deducted under section seventeen of the Ordinance from the pay of a person to whom this Part applies shall be deemed to be contributions paid by that person to the Fund. Payments to be made by Commonwealth to Fund. "60azf.—(1.) The Commonwealth shall pay to the Fund an amount equal to the total of the sums deducted under section seventeen of the Ordinance from the pay of persons to whom this Part applies and the contributions made under section three of the Ordinance by persons to whom this Part applies. "(2.) Where a person to whom this Part applies is retired on the ground of invalidity or physical or mental incapacity to perform his duties, or dies, within five years after the commencement of this section, the Commonwealth shall pay to the Fund the amount by which the proportion of any pension payable to him equivalent to the total of the sums deducted from his pay under section seventeen of the Ordinance and the amount of the contributions made by him to the Fund is less than the amount of the pension. "(3.) Where a pension becomes payable to or in respect of a person to whom this Part applies, any payment that the Commonwealth is required by Division 4 of Part III. of this Act to pay to the Fund in respect of that person shall be increased by such an amount (if any) as the actuarial member of the Board certifies to be appropriate having regard to the contributions and payments made to the Fund for or in respect of units of pension referred to in sub-section (1.) of section sixty azd of this Act.". Term of office. 62.—(1.) Section sixty-two of the Principal Act is amended— (a) by omitting sub-section (1.) and inserting in its stead the following sub-sections:— "(1.) The members of the Board (other than the member elected by contributors) shall be appointed for a period not exceeding seven years. "(1a.) The member of the Board elected by contributors shall be appointed for a period not exceeding five years. "(1b.) A member of the Board is eligible for re-appointment."; and (b) by omitting sub-section (3.). (2.) Nothing in the last preceding sub-section affects the term of appointment of the member of the Board elected by contributors and holding office at the commencement of this section. Extraordinary vacancies—appointments to fill. 63. Section sixty-three of the Principal Act is amended— (a) by omitting from sub-section (1.) all the words after the word "vacancy"; (b) by inserting after that sub-section the following subsection:— "(1a.) Except in the case of a vacancy in the office of a member of the Board elected by contributors, the appointment shall be for the remainder of the term of the vacant office."; and (c) by omitting from sub-section (2.) the words "the last preceding sub-section" and inserting in their stead the words "sub-section (1.) of this section". Vacation of office. 64. Section sixty-six of the Principal Act is amended by omitting from paragraph (b) the words "first granted by the Governor-General" (wherever occurring) and inserting in their stead the words "granted by the Treasurer". Incorporation of Board. 65. Section seventy-one of the Principal Act is amended by omitting from sub-section (2.) the words "and of the secretary". 66. After section seventy-six a of the Principal Act the following sections are inserted:— Election after retirement of employee. "76b. Where— (a) it is provided by this Act that an election may be made by an employee; (b) a person purports to make the election after he ceases to be an employee; and (c) the Board is satisfied that— (i) hardship would accrue to that person or his dependants if the election were not recognized; and (ii) in all the circumstances of the case it is desirable that the election should be recognized, the Board may recognize the election as if it had been made before the person ceased to be an employee and, in the case of an election required to be made within a prescribed period, as if it had been made within that period. Provisions in respect of a fraction of a unit. "76c. Where, under this Act— (a) contributions are payable in respect of a fraction of a unit of pension, those contributions shall be in proportion to that fraction; and (b) pension is payable in respect of a fraction of a unit of pension, that pension shall be in proportion to that fraction. Contributions payable from next pay-day. "76d. Where the date from which any contributions would be payable under this Act is not a pay-day, those contributions are payable as from the next following pay-day. Refund of contributions. "76e. Where the number of units of pension for or in respect of which a contributor is required to contribute is reduced, any contributions paid by him for or in respect of units of pension in excess of the reduced number of units shall be refunded to him.". 67. After section eighty b of the Principal Act the following section is inserted:— Cost of medical examinations. "80ba. Where under this Act a medical examination of a person (being a person who is or becomes employed by an approved authority) is required, the cost of the examination shall be borne