Commonwealth: Superannuation Act 1965 (Cth)

Superannuation No. 97 of 1965 An Act relating to Superannuation. [Assented to 10 December, 1965] 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 1965. (2.) The Superannuation Act 1922-1963 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 1922-1965. Commencement. 2. This Act shall come into operation on the day on which it receives the Royal Assent. Parts. 3. This Act is divided into Parts, as follows:— Part I.—Preliminary (Sections 1-3). Part II.—Amendments of the Principal Act (Sections 4-58). Part III.—Distribution of Surplus in Superannuation Fund (Sections 59-64). Part IV.—Miscellaneous (Sections 65-73). Part II.—Amendments of the Principal Act. Title. 4. The title of the Principal Act is amended by inserting after the word "Commonwealth" the words "and by certain Commonwealth Authorities". Parts. 5. Section 3 of the Principal Act is amended— (a) by omitting the words— "Division 2.—Scale of Units (Sections 20-22)" and inserting in their stead the words— "Division 2—Units of Pension (Sections 20-22)"; (b) by omitting the words— "Division 1.—Retirement on Pension (Sections 37-41). "Division 2.—Grant of Pensions and Benefits (Sections 42-63)" and inserting in their stead the words— "Division 1.—Retirement on Pension (Sections 37-41b). "Division 2.—Grant of Pensions and Benefits (Sections 42-62)"; and (c) by omitting the words— "Division 4.—Re-employment of Pensioners (Sections 66-67). "Division 5.—Existing Pension Rights (Sections 68-73)." and inserting in their stead the words— "Division 5.—Existing Pension Rights (Sections 66-73)". Interpretation. 6. Section 4 of the Principal Act is amended— (a) by inserting in sub-section (1.), after the definition of "Department" the following definition:— "'eligible child' means— (a) a child under the age of sixteen years; or (b) a child who— (i) has attained the age of sixteen years but is under the age of twenty-one years; and (ii) is receiving full-time education at a school, college or university;"; (b) by omitting from sub-section (1.) the definition of "The actuarial member of the Board"; (c) by inserting after sub-section (1a.) the following sub-section:— "(1b.) A person, other than a person who has been retired on the ground of invalidity or of physical or mental incapacity to perform his duties, who is or becomes employed by the Commonwealth shall not be taken, for the purposes of this Act, to be employed otherwise than in a permanent capacity by reason only that his appointment was or is on probation and has not been confirmed."; (d) by inserting after sub-section (2.) the following sub-sections :— "(2a.) A reference in this Act to the pension, or to the number of units of pension, for which a contributor is contributing or for which he is a contributor shall be read as including a reference to any units of pension or fractions of a unit of pension for which he has completed payment of contributions. "(2b.) 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, or a fraction of a unit of pension or of an additional unit of pension, he shall be deemed to be a contributor for or in respect of that unit or additional unit, or that fraction of a unit or of an additional unit, as from the date when he becomes liable to contribute, or elects to contribute, as the case may be."; (e) by omitting from sub-section (3.) all the words after the word "deemed" (first occurring) and inserting in their stead the words "to continue to be an employee so long as he continues to be employed by the Commonwealth in that office (whether during or after the expiration of the term for which he was appointed) or in any other statutory office under the Commonwealth to which he may be appointed for a term of years."; (f) by omitting sub-section (3a.) and inserting in its stead the following sub-section:— "(3a.) A reference in the last preceding sub-section to a statutory office does not include a reference to a statutory office the holder of which is not required by the terms of his appointment to give the whole of his time to the duties of his office."; and (g) by omitting from sub-section (6.) the words "the Act under which" and inserting in their stead the words "the Act or any other law by or under which". 7. Section 5 of the Principal Act is repealed and the following sections are inserted in its stead:— Salaries of offices in First Division of Public Service and statutory offices. "4a.—(1.) Where— (a) the Parliament has not made provision determining the rate of salary payable in respect of an office in the First Division of the Public Service of the Commonwealth; and (b) the Treasurer, by instrument in writing, declares that, for the purposes of this Act, the rate of salary payable in respect of that office is to be deemed to be such rate as is specified in the instrument, salary at the rate specified in the instrument shall, for the purposes of this Act but not otherwise, be deemed to be payable in respect of that office as from the date on which the declaration is made, or as from the date as from which the declaration is expressed to have effect, whichever is the later, until— (c) the Parliament makes provision determining the rate of salary payable in respect of that office; or (d) salary is, by virtue of a further instrument in writing by the Treasurer under this sub-section, to be deemed, for the purposes of this Act, to be payable in respect of that office at a rate specified in the further instrument, being a rate that is greater or lesser than the rate specified in the first-mentioned instrument, whichever first occurs. "(2.) Where— (a) the Parliament has made provision determining the rate of salary payable in respect of an office in the First Division of the Public Service of the Commonwealth or in respect of a statutory office under the Commonwealth; and (b) the Treasurer, by instrument in writing, declares that, for the purposes of this Act, the rate of salary payable in respect of that office is to be deemed to be such rate as is specified in the instrument, being a rate that is greater or lesser than the rate determined by the provision made by the Parliament, salary at the rate specified in the instrument shall, for the purposes of this Act but not otherwise, be deemed to be payable in respect of that office as from the date on which the declaration is made, or as from the date as from which the declaration is expressed to have effect, whichever is the later, until— (c) the Parliament makes further provision determining the rate of salary payable in respect of that office; or (d) salary is, by virtue of a further instrument in writing by the Treasurer under this sub-section, to be deemed, for the purposes of this Act, to be payable in respect of that office at a rate specified in the further instrument, being a rate that is greater or lesser than the rate specified in the first-mentioned instrument, whichever first occurs. Medical examination of employees. "5.—(1.) Except as otherwise provided by this Act, and notwithstanding anything contained in any other Act, a person who becomes an employee after the commencement of the Superannuation Act 1965 shall not contribute to the Fund under Part III. of this Act or to the Provident Account unless— (a) he has, before becoming an employee, or within such period after becoming an employee as the Board allows, undergone a medical examination by a legally qualified medical practitioner approved by the Board; (b) a report of the result of the examination has been furnished by the medical practitioner to the Board; and (c) the Board is satisfied, after considering the report of the medical practitioner, that the health and physical fitness of the person are such as to justify his being accepted as a contributor to the Fund under Part III. of this Act or to the Provident Account, as the case may be. "(2.) Where— (a) a person who becomes an employee after the commencement of the Superannuation Act 1965 has, whether before or after becoming an employee, undergone a medical examination by a legally qualified medical practitioner approved by the Public Service Board; (b) a report of the result of the examination has been furnished by the medical practitioner to the Public Service Board; and (c) the Public Service Board certifies, after considering the report of the medical practitioner, that the health and physical fitness of the person are such as to justify his being accepted as a contributor to the Fund under Part III. of this Act or to the Provident Account, the Superannuation Board may, in its discretion, accept him as a contributor to the Fund under Part III. of this Act or to the Provident Account.". Superannuation provision for certain persons by way of life assurance. 8. Section 7 of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following sub-sections:— "(2.) Where a person with whom an arrangement has been made under this section— (a) is or becomes an employee; and (b) has not, before he became or becomes an employee, or within such period after he became or becomes an employee or after the commencement of the Superannuation Act 1965, whichever is the later, as the Board allows, undergone a medical examination referred to in section five of this Act, the Commonwealth or the approved authority, as the case may be, may, by notice in writing to the person, terminate the arrangement and, if the arrangement is so terminated— (c) the person shall, within two months after the termination or within such further period as the Treasurer allows, pay to the Commonwealth or to the approved authority, as the case may be, an amount equal to the sum of the contributions paid by the Commonwealth or the authority under the arrangement and compound interest on those contributions at the rate of Three pounds fifteen shillings per centum per annum, and— (i) if the amount is not paid within that period, it is recoverable by the Commonwealth or by the authority as a debt due to the Commonwealth or to the authority in any court of competent jurisdiction; and (ii) if the amount is not paid within that period and is not recovered in pursuance of the last preceding sub-paragraph (whether or not any action is taken so to recover the amount) and, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority—the Commonwealth or the authority, as the case may be, may, notwithstanding any obligation on the Commonwealth or the authority to assign the policy to the person, surrender the policy and apply the proceeds of the surrender in reduction of the amount and, if the proceeds exceed the amount, shall pay an amount equal to the excess to the person; and (d) where, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority and the policy has not been surrendered in accordance with the last preceding paragraph, the Commonwealth or the authority, as the case may be, shall, upon payment or recovery of the amount referred to in that paragraph, assign the policy to the person. "(2a.) Where a person with whom an arrangement has been made under this section is or becomes a contributor to the Fund under Part III. of this Act or to the Provident Account and the arrangement has not been terminated under the last preceding sub-section— (a) if the arrangement has not otherwise terminated, the arrangement is, by force of this sub-section, terminated; (b) the person shall, within two months after the date of commencement of the Superannuation Act 1965 or the date on which he became or becomes a contributor, whichever is the later date, or within such further period as the Treasurer allows, pay to the Commonwealth or to the approved authority, as the case may be, an amount equal to the sum of the contributions paid by the Commonwealth or the authority under the arrangement and compound interest on those contributions at the rate of Three pounds fifteen shillings per centum per annum, and— (i) if the amount is not paid within that period, it is recoverable by the Commonwealth or the authority as a debt due to the Commonwealth or to the authority in any court of competent jurisdiction; and (ii) if the amount is not paid within that period and is not recovered in pursuance of the last preceding sub-paragraph (whether or not any action is taken so to recover the amount) and, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority—the Commonwealth or the authority, as the case may be, may, notwithstanding any obligation on the Commonwealth or the authority to assign the policy to the person, surrender the policy and apply the proceeds of the surrender in reduction of the amount and, if the proceeds exceed the amount, shall pay an amount equal to the excess to the person; and (c) if, in pursuance of the arrangement, a life assurance policy has been assigned to the Commonwealth or to the authority and the policy has not been surrendered in accordance with the last preceding paragraph, the Commonwealth or the authority, as the case may be, shall, upon payment or recovery of the amount referred to in that paragraph, assign the policy to the person.". Payments by Commonwealth to Fund in respect of interest. 9. Section 18 of the Principal Act is amended— (a) by omitting sub-section (1.) and inserting in its stead the following sub-section:— "(1.) Where, in relation to any financial year, the amount ascertained in accordance with the formula 1.01875 I is less than the amount ascertained in accordance with the formula .01875 the Commonwealth shall pay to the Fund an amount equal to the difference between those amounts."; (b) by adding at the end of paragraph (b) of sub-section (3.) the word "and"; and (c) by omitting paragraphs (d) and (e) of sub-section (3.). Commencement and cessation of contributions. 10. Section 19 of the Principal Act is amended— (a) by omitting paragraphs (a) and (b) of sub-section (1a.) and inserting in their stead the following paragraphs:— "(a) in the case of a person other than a person to whom either of the next two succeeding paragraphs applies—the date on which he becomes an employee or, if that date is not a pay-day, the next succeeding pay-day after that date; "(b) in the case of a person who has been retired on the ground of invalidity or of physical or mental incapacity to perform his duties and is re-appointed on probation—the date on which his re-appointment is confirmed or, if that date is not a pay-day, the next succeeding pay-day after that date; or"; (b) by inserting after sub-section (2bd.) the following sub-section :— "(2be.) Subject to this Act, where a contributor is retired on the ground of invalidity or physical or mental incapacity to perform his duties, or dies, before he has commenced to make contributions, or additional contributions, for or in respect of a unit of pension or an additional unit of pension for or in respect of which he has become liable, or has elected, to contribute, 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 retirement or death, one contribution at the fortnightly rate applicable to the contributor for or in respect of that unit or additional unit, shall be made before a pension in respect of that unit or additional unit becomes payable and may be deducted from any payments of pension or benefit that become payable to or in respect of that contributor."; and (c) by omitting from paragraph (b) of sub-section (2c.) the words "whose maximum age for retirement" and inserting in their stead the words "the age for whose retirement". 11.—(1.) Division 2 of Part III. of the Principal Act is repealed and the following Division inserted in its stead:— "Division 2.—Units of Pension. Units of pension. "20.—(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 an employee shall contribute at any time (in this sub-section referred to as 'the relevant time') is— (a) in the case of an employee to whom the next succeeding paragraph does not apply— (i) if the salary of the employee at the relevant time does not exceed the prescribed amount— the number of units ascertained in accordance with the formula or (ii) if the salary of the employee at the relevant time exceeds the prescribed amount—the number of units ascertained in accordance with the formula and (b) in the case of an employee— (i) who became or becomes an employee on or after the fourteenth day of December, One thousand nine hundred and fifty-nine; (ii) whose salary at the relevant time exceeds One thousand three hundred pounds; and (iii) the number of years of whose prospective service is less than twenty, the number of units, disregarding any fraction of a unit, ascertained in accordance with the formula "(3.) For the purpose of the application at any time in relation to an employee of a formula contained in the last preceding sub-section— A is the number of pounds in the salary of the employee at that time or, if the number of pounds in the salary of the employee at that time is not a multiple of sixty-five, the next lower number that is such a multiple; B is the number of pounds in the prescribed amount; C is the number of pounds in the amount by which the salary of the employee at that time exceeds the prescribed amount or, if the number so ascertained is not a multiple of one hundred and fourteen, the next lower number that is such a multiple; D is the number by which the number of years of prospective service of the employee exceeds ten; and E is the number of units of pension for which the employee would be required to contribute at that time under paragraph (a) of the last preceding sub-section if that paragraph were applicable to him. "(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 sub-section (2.) of this section as it applied in relation to him 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.) 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. "(8.) Any additional contribution payable by reason of an increase in the prescribed amount is payable as from the date of the increase. "(9.) Where an employee who became or becomes an employee on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and to whom the proviso to section forty-three 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. "(10.) For the purposes of this section— (a) 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 twenty-four of this Act—the age of sixty years; and (ii) in any other case—the age of sixty-five years; and (b) 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. Rights of employees over 40 years of age in event of increase in salary or prescribed amount. "20a.—(1.) 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 the increase. "(2.) If the prescribed amount is increased and, by reason of the increase, an employee who had attained the age of forty years before the date of the increase 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 that date, elect not to contribute for all or any of the additional units attributable to the increase. "(3.) Where an employee to whom sub-section (1.) or sub-section (2.) of this section applies— (a) was a contributor for a number of units of pension less than the number of units ascertained in accordance with sub-section (2.) of the last preceding section as it applied in relation to him immediately before his salary or the prescribed amount, as the case may be, was increased; and (b) does not elect under sub-section (1.) or sub-section (2.) of this section, as the case may be, he may elect to contribute for such number of additional units of pension as does not exceed the difference between the number of units ascertained in accordance with sub-section (2.) of the last preceding section as it so applied and the number of units for which he was a contributor. "(4.) 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 sub-section (2.) of section one hundred and forty-seven of this Act) likely to render him incapable of performing his duties before attaining the maximum age for retirement. "(5.) Any additional contribution payable by reason of an election under sub-section (3.) of this section is payable as from the date of the election. Effect of reduction in salary or prescribed amount. "20b.—(1.) Where the number of units of pension for which an employee is required to contribute would, but for this section, be reduced by reason of a reduction in his salary or in the prescribed amount, the employee shall, subject to the next succeeding sub-section, continue to contribute for the number of units for which he was a contributor immediately before the reduction. "(2.) An employee to whom the last preceding sub-section applies may elect to reduce the number of units for which he is required to contribute to a number of units not less than the number of units ascertained in accordance with sub-section (2.) of section twenty of this Act as it applies in relation to him at the time of the election. Exemption of employee who has made adequate provision. "21. Where an employee satisfies the Board that adequate provision has been made for himself and his family, the Board may exempt him from contributing for more than two units of pension. Interpretation. "22.—(1.) For the purposes of this Division— (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 or decreased 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 award, order or determination is made shall be deemed to be the date on which the employee's salary is increased or decreased, as the case may be; and (c) the prescribed amount is Two thousand seven hundred and thirty pounds or such other amount, being a multiple of Sixty-five pounds, as is specified in the regulations for the purpose of this paragraph. "(2.) In making a regulation for the purpose of paragraph (c) of the last preceding sub-section, the Governor-General— (a) is not required to act on the recommendation of the Board; and (b) shall have regard to any general variations in the rates of salaries of employees that have occurred.". (2.) An election made by an employee before the commencement of this Act not to contribute for an additional unit or units of pension attributable to an increase in the prescribed amount shall be, and be deemed to have been, as valid and effectual as if sub-section (2.) of section 20a of the Principal Act as amended by this Act had been in force at the time at which the election was made. 12. Section 23 of the Principal Act is repealed and the following section inserted in its stead:— Contributions by employees. "23.—(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 reduced by an amount, if any, ascertained in accordance with the tables of reductions of contributions set out in the Sixth 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 first day of July, One thousand nine hundred and sixty-two, 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 XIV. or Table XVII. 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 twenty-six of this Act shall not apply to him is— (a) in respect of— (i) units of pension in respect of which the obligation to contribute came into existence on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and before the first day of July, One thousand nine hundred and sixty-two; or (ii) reserve units of pension for which he commenced to contribute on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and before the first day of July, One thousand nine hundred and sixty-two, an amount ascertained in accordance with the rates of contribution specified in Table I. in the Fourth Schedule to this Act reduced by an amount ascertained in accordance with the reductions in contributions specified in Table XVII. in the Sixth Schedule to this Act; and (b) in respect of— (i) units of pension in respect of which the obligation to contribute comes into existence on or after the first day of July, One thousand nine hundred and sixty-two; or (ii) reserve units of pension for which he commences to contribute on or after that date, an amount ascertained in accordance with the rates of contribution specified in Table II. in the Fourth Schedule to this Act.". Additional contributions by existing contributors. 13. Section 26 of the Principal Act is amended— (a) by omitting sub-section (5.) and inserting in its stead the following sub-section:— "(5.) The amount of contribution to be paid by a contributor who has not so elected is— (a) in respect of— (i) units of pension in respect of which the obligation to contribute came into existence on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and before the first day of July, One thousand nine hundred and sixty-two; or (ii) reserve units of pension for which such a contributor commenced to contribute on or after the fourteenth day of December, One thousand nine hundred and fifty-nine, and before the first day of July, One thousand nine hundred and sixty-two, an amount ascertained in accordance with the rates of contribution specified in Table IX. or Table XI. in the Third Schedule to this Act, as the case requires, reduced by an amount ascertained in accordance with the reductions in contributions specified in Table XIII. or Table XV. in the Sixth Schedule to this Act, as the case requires; and (b) in respect of— (i) units of pension in respect of which the obligation to contribute comes into existence on or after the first day of July, One thousand nine hundred and sixty-two; or (ii) reserve units of pension for which such a contributor commences to contribute on or after that date, an amount ascertained in accordance with the rates of contribution specified in Table XIII. or Table XVI. in the Third Schedule to this Act, as the case requires."; and (b) by adding at the end thereof the following sub-sections:— "(7.) A contributor who elected under sub-section (3.) of this section that this section shall not apply to him may, not later than the expiration of six months after the commencement of this sub-section, by notice in writing to the Board, revoke the election. "(8.) A revocation under the last preceding sub-section does not have effect unless the contributor satisfies the Board, within six months after the date of the revocation or within such further period as the Board allows, 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 sub-section (2.) of section one hundred and forty-seven of this Act) likely to render him incapable of performing his duties before attaining the maximum age for retirement. "(9.) An election that is so revoked shall, for the purposes of this Act, be deemed not to have been made. "(10.) Sub-sections (4.), (5.) and (6.) of this section do not apply to a contributor who so revokes an election, but such a contributor shall, from and including the date of the revocation— (a) in respect of each unit of pension (if any) for which he is contributing at that date, make to the Fund— (i) the contributions that he would, but for the revocation, be liable to make; and (ii) such additional contributions as the Board determines; and (b) in respect of— (i) each unit of pension (if any) in respect of which he has completed his contributions not later than that date; and (ii) each fully paid unit of pension (if any) that has been credited to him as from a date not later than that date, make such contributions as the Board determines. "(11.) The amount of contribution to be paid by a contributor who so revokes an election is, in respect of— (a) units of pension in respect of which the obligation to contribute comes into existence on or after the date of the revocation; or (b) reserve units of pension for which such a contributor commences to contribute on or after that date, an amount ascertained in accordance with the rates of contribution specified in Table XIII. or Table XVI. in the Third Schedule to this Act, as the case requires.". Cessation of additional contributions. 14. Section 28 of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:— "(1.) The succeeding sub-sections of this section have effect in respect of— (a) contributions under sub-section (4.) of section twenty-six of this Act or under that sub-section as applied by the last preceding section; and (b) contributions under sub-paragraph (ii) of paragraph (a), or paragraph (b), of sub-section (10.) of section twenty-six of this Act. "(2.) The contributor is, subject to the next succeeding sub-section, liable to pay the contributions in respect of each unit of pension until immediately after the last fortnightly payment before he ceases to be an employee or— (a) in the case of contributions referred to in paragraph (a) of the last preceding sub-section—the seventeenth day of December next preceding the attainment by him of the maximum age for retirement; or (b) in the case of contributions referred to in paragraph (b) of that sub-section—the anniversary of his initial contribution to which that sub-section applies next preceding the attainment by him of the maximum age for retirement, whichever first happens.". Contribution for reserve units of pension. 15. Section 30 of the Principal Act is amended— (a) by omitting from sub-section (2.) the word "eight" and inserting in its stead the word "twelve"; and (b) by omitting paragraph (a) of sub-section (3.) and inserting in its stead the following paragraph:— "(a) shall be in accordance with the Third or Fourth Schedule to this Act, whichever is appropriate, reduced by amounts, if any, ascertained in accordance with the tables of reductions of contributions set out in the Sixth Schedule to this Act; and". Payments by Commonwealth. 16. Section 33 of the Principal Act is amended by omitting sub-sections (6.) to (9.), inclusive, and inserting in their stead the following sub-section:— "(6.) The last three preceding sub-sections do not apply in respect of a payment of pension in respect of a child.". Break-down retirement. 17. Section 38 of the Principal Act is amended by adding at the end thereof the following sub-section:— "(2.) The compulsory termination (however expressed) of the service of a contributor in respect of whom an age for retirement is not fixed by law on the ground of invalidity or of physical or mental incapacity to perform his duties shall, for the purposes of this Act, be deemed to be the retirement of the contributor on that ground.". 18. Sections 39 to 41, inclusive, of the Principal Act are repealed and the following sections inserted in their stead:— Retrenchment and discharge. "39. Subject to section forty-one of this Act, the compulsory termination of the service of a contributor for the reason that his service or position is not necessary shall, for the purposes of this Act— (a) if he has been an employee for not less than ten years—be deemed to be retrenchment; and (b) if he has been an employee for less than ten years—be deemed to be discharge. Dismissal. "40. Subject to the next succeeding section, the compulsory termination (however expressed) of the service of a contributor, other than— (a) retirement on pension as provided by this Act; or (b) retrenchment or discharge, shall, for the purposes of this Act, be deemed to be dismissal. Compulsory termination of service of certain contributors for whom no retiring age is fixed by law. "41.—(1.) Subject to this section and to sub-section (2.) of section thirty-eight of this Act, the compulsory termination (however expressed) of the service of a contributor who has attained the age of sixty years and in respect of whom an age for retirement is not fixed by law shall, for the purposes of this Act— (a) in the case of a contributor who has not attained the age of sixty-five years and elects to treat the termination as discharge—be deemed to be discharge; and (b) in any other case—be deemed to be retirement and, if the contributor has not attained the age of sixty-five years, be deemed to be the retirement of a contributor the age for whose retirement is fixed by law at an earlier age than sixty-five years. "(2.) The last preceding sub-section does not apply where the Board is satisfied that the service of the contributor was compulsorily terminated by reason of his having been guilty of misconduct or by reason of his having been convicted of an offence against a law of the Commonwealth or of a State or Territory of the Commonwealth. "(3.) For the purposes of the last preceding sub-section, the service of a contributor who was employed in a temporary capacity under section eighty-two of the Public Service Act 1922-1964 shall be deemed to have been compulsorily terminated by reason of his having been guilty of misconduct if his services were dispensed with under that Act on the ground that he has been guilty of conduct that, if he were an officer of the Public Service of the Commonwealth, would have constituted an offence specified in sub-section (1.) of section fifty-five of that Act. Voluntary termination of service. "41a.—(1.) Voluntary termination (however expressed) of service by a contributor who, being entitled to retire on pension, elects not to do so shall, for the purposes of this Act, be deemed to be resignation. "(2.) Voluntary termination (however expressed) of service by a contributor who is not entitled to retire on pension shall, for the purposes of this Act— (a) in the case of a contributor who has not attained the age of sixty years or, having attained that age, elects to treat the termination as resignation—be deemed to be resignation; and (b) in any other case—be deemed to be retirement and, if the contributor has not attained the age of sixty-five years, be deemed to be the retirement of a contributor the age for whose retirement is fixed by law at an earlier age than sixty-five years. Holders of statutory offices. "41b. The cessation of the employment of a contributor by the Commonwealth, being a contributor who is the holder of a statutory office under the Commonwealth, by reason of the expiration of the term of his appointment to that office shall, for the purposes of this Act— (a) in the case of a contributor who has not attained the age of sixty years and does not desire to be re-appointed to that office—be deemed to be discharge; (b) in the case of any other contributor who has not attained the age of sixty years— (i) if he has been an employee for not less than ten years—be deemed to be retrenchment; or (ii) if he has been an employee for less than ten years—be deemed to be discharge; and (c) in the case of a contributor who has attained the age of sixty years—be deemed to be retirement and, if the contributor has not attained the age of sixty-five years, be deemed to be the retirement of a contributor the age for whose retirement is fixed by law at an earlier age than sixty-five years.". Pension to widow and children on death of contributor. 19. Section 46 of the Principal Act is amended— (a) by omitting paragraph (b) of sub-section (1.) and inserting in its stead the following paragraph:— "(b) in respect of each child of the widow who is an eligible child (other than a child of her remarriage), and in respect of each child of the contributor who is an eligible child—a pension at the rate of One hundred and four pounds per annum."; and (b) by omitting sub-sections (2.) and (3.) and inserting in their stead the following sub-section:— "(2.) On the death of the widow of any such male contributor, pension shall, in addition to any pension payable in pursuance of paragraph (b) of sub-section (1.) of this section, be payable in respect of each child of the widow who is an eligible child (other than a child of her remarriage), and in respect of each child of the male contributor who is an eligible child, at the rate of One hundred and fifty-six pounds per annum.". Pension to widow and children on death of pensioner. 20. Section 47 of the Principal Act is amended— (a) by omitting paragraph (b) of sub-section (1.) and inserting in its stead the following paragraph:— "(b) in respect of each child of the widow who is an eligible child (other than a child of her remarriage), and in respect of each child of the pensioner who is an eligible child—a pension at the rate of One hundred and four pounds per annum."; and (b) by omitting sub-sections (2.) and (3.) and inserting in their stead the following sub-section:— "(2.) On the death of the widow of a male pensioner, pension shall, in addition to any pension payable in pursuance of paragraph (b) of sub-section (1.) of this section, be payable in respect of each child of the widow who is an eligible child (other than a child of her remarriage), and in respect of each child of the pensioner who is an eligible child, at the rate of One hundred and fifty-six pounds per annum.". Pension to orphans on death of contributor or pensioner. 21. Section 48 of the Principal Act is amended— (a) by omitting sub-section (1.) and inserting in its stead the following sub-section:— "(1.) On the death of a male contributor or of a male pensioner, being a person whose wife is dead or divorced and who leaves children of himself or of his wife who are eligible children and were dependent upon him at the time of his death, there shall be paid to the guardian of the children, to be used for their support and education, a pension at the rate of Two hundred and sixty pounds per annum in respect of each child."; (b) by omitting from sub-section (1a.) the words "the actuarial member of"; and (c) by omitting sub-section (2.). 22.—(1.) After section 48 of the Principal Act the following sections are inserted:— Pension not payable in respect of children in certain circumstances. "48a. Where— (a) a male person to whom pension was payable under the Defence Forces Retirement Benefits Act 1948 or under that Act as amended has, whether before or after the commencement of this section, become a contributor; (b) the person has died since he became a contributor and pension is payable under the Defence Forces Retirement Benefits Act 1948-1965 in respect of a child of the person or of his wife; and (c) pension would, but for this section, be payable under this Act in respect of the child by reason of the person's having been a contributor, the last-mentioned pension is not payable. Pension not payable in certain circumstances. "48b. Where— (a) within three years after the obligation of a contributor to contribute to the Fund under Part III. of this Act came into existence, the contributor dies or is retired on the ground of invalidity or physical or mental incapacity to perform his duties; (b) the Board is satisfied that the death, invalidity or incapacity was caused, or substantially contributed to, by a physical or mental condition that, to the knowledge of the contributor, existed at the time when he underwent the medical examination referred to in sub-section (1.) or sub-section (2.) of section five, or sub-section (2.) of section seventy-nine, of this Act; and (c) the contributor did not disclose the existence of the condition to the person who made the examination or made or furnished a false or misleading statement to that person in respect of the condition, pension is not payable to or in respect of the contributor but there is payable to him or to his personal representatives, as the case may be, an amount equal to the amount of the contributions paid by him under this Act.". (2.) Section 48b of the Superannuation Act 1922-1965 applies only in respect of a medical examination that takes place after the commencement of this Act. Refund of contributions on death of certain contributors. 23. Section 49 of the Principal Act is amended— (a) by omitting from paragraph (a) the words "a widower with children under the age of sixteen years" and inserting in their stead the words "a person with children who are eligible children"; and (b) by omitting from paragraph (b) the words "under the age of sixteen years" and inserting in their stead the words "who are eligible children". Insanity of male pensioner. 24. Section 56 of the Principal Act is amended by omitting from sub-sections (1.) and (2.) the words "under the age of sixteen years" and inserting in their stead the words "eligible children". Payments in respect of children. 25. Section 58 of the Principal Act is amended by omitting from sub-section (2.) the words "under the age of sixteen years". Period for which pensions payable. 26. Section 59 of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following sub-section:— "(2.) Pension in respect of a child is payable only while the child is an eligible child". Commencement of pension or benefits. 27. Section 63 of the Principal Act is repealed. 28. Section 64 of the Principal Act is repealed and the following section inserted in its stead:— Break-down pensioners not required to contribute in respect of period of retirement. "64.—(1.) If a person— (a) who has been retired on the ground of invalidity or physical or mental incapacity to perform his duties; and (b) to whom a pension is payable under section forty-five of this Act or by virtue of sub-section (1.) of section eight of the Superannuation Act 1948, again becomes an employee, he shall, for the purposes of this Act, be deemed not to have ceased by reason of his retirement to be a contributor, but he is not required to contribute to the Fund in respect of the period from the time when he was retired until he again became an employee. "(2.) While a pension payable to a person is suspended under section sixty-five of this Act, the pension shall, for the purposes of this section, be deemed to continue to be payable to that person.". Power of Board to require break-down pensioners to be medically examined and to furnish information as to employment. 29. Section 64a of the Principal Act is amended by omitting from sub-section (1.) the words "who has been retired on pension under section forty-five of this Act" and inserting in their stead the words "to whom a pension is payable under section forty-five of this Act or by virtue of sub-section (1.) of section eight of the Superannuation Act 1948". 30. Section 65 of the Principal Act is repealed and the following section inserted in its stead:— Pensioner restored to health. "65.—(1.) If the Board is satisfied that— (a) the health of a person to whom a pension is being paid under section forty-five of this Act has become so restored as to enable him to perform duties of a kind that are, in the opinion of the Board, suitable to be performed by him, having regard to the duties performed by him immediately before his retirement; or (b) the degree of invalidity or incapacity in relation to civil employment of a person to whom a pension is being paid by virtue of sub-section (1.) of section eight of the Superannuation Act 1948 is less than ten per centum, the Board shall so inform a prescribed authority with a view to suitable employment being found for the person. "(2.) If a person referred to in the last preceding sub-section is offered by the Commonwealth or an approved authority employment— (a) that involves the performance of duties that, in the opinion of the Board, are suitable to be performed by him; (b) the terms of which require him to give the whole of his time to the duties of his office; and (c) that is at a rate of salary that is not less than two-thirds of the notional rate of salary in relation to him, and the person unreasonably refuses or fails to accept the offer within fourteen days, or within such further period as the Board allows, after receipt of the offer, the Board may cancel his pension. "(3.) If a person referred to in sub-section (1.) of this section again becomes an employee, the Board shall cancel his pension. "(4.) If a person referred to in sub-section (1.) of this section whose pension was cancelled under the last preceding sub-section is retired on the ground of invalidity or of physical or mental incapacity to perform his duties, the rate of pension that is payable to him shall be not less than the rate of pension that would have been payable to him if his pension bad not been cancelled. "(5.) If, after a person referred to in sub-section (1.) of this section has again become an employee, the person resigns or is dismissed or discharged, sub-section (1.) of section fifty-one of this Act applies in relation to him as if the reference in that sub-section to the amount of the actual contributions paid by him under this Act were a reference to the amount of so much of those contributions as was paid by him under this Act after he again became an employee. "(6.) If the Board is satisfied that— (a) the health of a person to whom a pension is being paid under section forty-five of this Act has become so restored as to enable him to perform duties of a kind that are, in the opinion of the Board, suitable to be performed by him, having regard to the duties performed by him immediately before his retirement; or (b) the degree of invalidity or incapacity in relation to civil employment of a person to whom a pension is being paid by virtue of sub-section (1.) of section eight of the Superannuation Act 1948 is less than ten per centum, and the person has not become an employee but is employed by the Commonwealth, by an approved authority or by any other employer or is engaged in work on his own account, being employment or work from which the rate of his earnings is not less than two-thirds of the notional rate of salary in relation to him, the Board may suspend his pension. "(7.) If, after the Board has so suspended the pension payable to a person— (a) in the case of a person referred to in paragraph (a) of the last preceding sub-section—the Board is satisfied that the health of that person has so deteriorated as to prevent him performing duties of a kind that are, in the opinion of the Board, suitable to be performed by him; (b) in the case of a person referred to in paragraph (b) of that sub-section—the Board is satisfied that the degree of invalidity or incapacity in relation to civil employment of the person has increased to not less than ten per centum; or (c) in the case of a person referred to in either paragraph (a) or paragraph (b) of that sub-section—the person has ceased to engage in employment or work of a kind referred to in that sub-section or the rate of his earnings from that employment or work has been reduced to less than two-thirds of the notional rate of salary, the Board shall remove the suspension and the removal shall be deemed to have taken effect as from the date as from which the Board is satisfied that the circumstances referred to in paragraph (a) or paragraph (b) of this sub-section occurred, or the date on which the circumstances referred to in paragraph (c) of this sub-section occurred, as the case may be. "(8.) If a pension is suspended, the pension is not payable in respect of the period of the suspension. "(9.) For the purposes of the application of this section in relation to a person, the notional rate of salary as at any time is such rate of salary as, having regard to general changes in the rates of salaries of contributors that occurred after the time of the retirement of the person, the Board determines to be the rate of salary that at that first-mentioned time corresponded with the rate of the salary that was payable to the person at the time of his retirement.". Repeal of Division 4 of Part IV. 31. Division 4 of Part IV. of the Principal Act is repealed. 32. Before section 68 of the Principal Act the following sections are inserted in Division 5 of Part IV.:— Limitation on dual pensions to widows. "66.—(1.) In this section— 'member' means a member as defined by sub-section (1.) of section four of the Defence Forces Retirement Benefits Act 1948-1965; 'pension' does not include tension payable in respect of a child. "(2.) Where an employee who is in receipt of a pension under section forty-six or section forty-seven 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 payable 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. "(3.) Where a member is in receipt of a pension under section forty-six or section forty-seven of this Act, she is, on retirement on pension under the Defence Forces Retirement Benefits Act 1948-1965, entitled to receive, in addition to pension under the last-mentioned Act— (a) the proportion of the pension under section forty-six or section forty-seven of this Act that is based upon the contributions payable 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 1948-1965. Certain pensioners who become employees not to contribute except in respect of difference. "67.—(1.) Notwithstanding anything contained in this Act, where a person who is in receipt of a pension under this Act (other than a pension under section forty-five, section forty-six or section forty-seven of this Act) becomes an employee, he shall not contribute for units of pension under this Act (other than units for which he commenced to contribute before he so became an employee) except as provided by this section. "(2.) Where the sum of the number of units of pension in respect of which an employee referred to in the last preceding sub-section is in receipt of a pension under this Act and the number of units of pension (if any) under this Act for which he is a contributor and for which he commenced to contribute before he became an employee is less than the number of units of pension ascertained in accordance with sub-section (2.) of section twenty of this Act as it would apply in relation to him if he were not in receipt of a pension under this Act, the employee may, within the prescribed time, elect to come under this Act for the purpose of the difference. "(3.) If an employee elects under the last preceding sub-section to come under this Act for the purpose of the difference, this Act applies, for the purpose of that difference, as if he were an employee not in receipt of a pension under this Act except that— (a) the employee shall not contribute in respect of a number of units of pension exceeding the difference; and (b) the contributions for the difference are payable as from the date of the election. "(4.) For the purposes of this section, the difference is the difference between— (a) the sum of the number of units of pension in respect of which the employee is in receipt of a pension under this Act and the number of units of pension (if any) under this Act for which he is a contributor and for which he commenced to contribute before he became an employee; and (b) the number of units of pension ascertained in accordance with sub-section (2.) of section twenty of this Act as it would apply from time to time in relation to him if he were not in receipt of a pension under this Act.". Right of employee not electing under section 69 to come under Act for limited purposes. 33. Section 70 of the Principal Act is amended— (a) by omitting paragraph (e) of sub-section (1.) and inserting in its stead the following paragraph:— "(e) a pension after his death for such of his children as are eligible children; or"; and (b) by omitting sub-section (6.). Exchange of pension rights for equivalent rights under this Act. 34. Section 71 of the Principal Act is amended by omitting from sub-sections (1.) and (1a.) the words "subject to the actuarial member of the Board certifying that the new rights" and inserting in their stead the words "being new rights that". Employee having right to refund or gratuity under other law may exchange his rights for an equivalent under this Act. 35. Section 72 of the Principal Act is amended by omitting from sub-sections (1.) and (1a.) the words "subject to the actuarial member of the Board certifying that the new rights" and inserting in their stead the words "being new rights that". Contributors to Provident Account. 36. Section 79 of the Principal Act is amended— (a) by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:— "(1.) The following persons shall be contributors to the Provident Account:— (a) employees who, by reason of the operation of section five of this Act, are accepted as contributors to the Provident Account; and (b) employees who elect under section eighty-one of this Act to contribute to the Provident Account. "(2.) Where— (a) a person who has become a contributor to the Provident Account otherwise than by virtue of section eighty-one of this Act applies to the Board to be allowed to contribute to the Fund under Part III. of this Act; (b) the person has undergone a medical examination by a legally qualified medical practitioner approved by the Board and a report of the result of the examination has been furnished by the medical practitioner to the Board; and (c) the Board is satisfied, after considering the report of the medical practitioner, that the health and physical fitness of the person are such as to justify his being accepted as a contributor to the Fund under Part III. of this Act, the Board may allow him to contribute to the Fund under Part III. of this Act."; and (b) by omitting from sub-section (5.) the words "the Commonwealth Actuary shall certify" and inserting in their stead the words "the Board shall determine". Payments on retirement 37. Section 82 of the Principal Act is amended by omitting from sub-section (1.) the words "the following amount, namely, the aggregate of his contributions to the Provident Account, together with compound interest on those contributions at the prescribed rate" and inserting in their stead the following words and paragraphs:— "the aggregate of— (c) the contributions paid by him to the Provident Account; and (d) compound interest on those contributions at the prescribed rate". Payments on death of contributor with dependants. 38. Section 83 of the Principal Act is amended— (a) by omitting from sub-section (1.) the words "the following amount, namely, the aggregate of his contributions to the Provident Account, together with compound interest on those contributions at the prescribed rate" and inserting in their stead the following words and paragraphs:— "the aggregate of— (a) the contributions paid by him to the Provident Account; and (b) compound interest on those contributions at the prescribed rate"; and (b) by omitting from sub-section (4.) the words "under the age of sixteen years" and inserting in their stead the words "who are eligible children". 39.—(1.) After section 83 of the Principal Act the following section is inserted:— Payment on death or invalidity in certain circumstances. "83a. Where— (a) within three years after a contributor to the Provident Account became such a contributor, he dies or his services are terminated on the ground of invalidity; (b) the Board is satisfied that the death or invalidity was caused, or substantially contributed to, by a physical or mental condition that, to the knowledge of the contributor, existed at the time when he underwent the medical examination referred to in sub-section (1.) or sub-section (2.) of section five of this Act; and (c) the contributor did not disclose the existence of the condition to the person who made the examination or made or furnished a false or misleading statement to that person in respect of the condition, the last two preceding sections do not apply but there is payable to the contributor or to his personal representatives, as the case may be, an amount equal to the amount of the contributions paid by him under this Act together with compound interest on those contributions at the prescribed rate.". (2.) The amendment made by the last preceding sub-section applies only in respect of a medical examination that takes place after the commencement of this Act. Payment on death of contributor without dependants. 40. Section 84 of the Principal Act is amended— (a) by omitting from paragraph (a) the words "a widower with children under the age of sixteen years" and inserting in their stead the words "a person with children who are eligible children"; and (b) by omitting from paragraph (b) the words "under the age of sixteen years" and inserting in their stead the words "who are eligible children". 41. Section 87 of the Principal Act is repealed and the following sections are inserted in its stead:— Retrenchment or discharge. "87. Subject to section eighty-seven b of this Act, the compulsory termination of the service of a contributor to the Provident Account for the reason that his service or position is not necessary shall, for the purposes of this Act— (a) 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) in any other case—be deemed to be discharge. Dismissal. "87a. Subject to the next succeeding section, the compulsory termination (however expressed) of the service of a contributor to the Provident Account other than retirement, retrenchment or discharge shall, for the purposes of this Act, be deemed to be dismissal. Compulsory termination of service of certain contributors to Provident Account for whom no retiring age it fixed by law. "87b.—(1.) Subject to this section, the compulsory termination (however expressed) of the service of a contributor to the Provident Account who has attained the age of sixty years and in respect of whom an age for retirement is not fixed by law shall, for the purposes of this Act, be deemed to be retirement. "(2.) The last preceding sub-section does not apply where the Board is satisfied that the service of the contributor was compulsorily terminated by reason of his having been guilty of misconduct or by reason of his having been convicted of an offence against a law of the Commonwealth or of a State or Territory of the Commonwealth. "(3.) For the purposes of the last preceding sub-section, the service of a contributor to the Provident Account who was employed in a temporary capacity under section eighty-two of the Public Service Act 1922-1964 shall be deemed to have been compulsorily terminated by reason of his having been guilty of misconduct if his services were dispensed with under that Act on the ground that he has been guilty of conduct that, if he were an officer of the Public Service of the Commonwealth, would have constituted an offence specified in sub-section (1.) of section fifty-five of that Act. Voluntary termination of service. "87c. Voluntary termination (however expressed) of service by a contributor to the Provident Account who is not entitled to retire shall, for the purposes of this Act— (a) in the case of a contributor who has not atta