Commonwealth: Superannuation Act 1971 (Cth)

Superannuation No. 46 of 1971 An Act relating to Superannuation. [Assented to 25 May 1971] BE it enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:— Short title and citation. 1.—(1.) This Act may be cited as the Superannuation Act 1971. (2.) The Superannuation Act 1922–1969 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 1922–1971. Commencement. 2. This Act shall come into operation on the day on which it receives the Royal Assent. Parts. 3. Section 3 of the Principal Act is amended— (a) by omitting the words— "Division 5.—Existing Pension Rights (Sections 67–73)." and inserting in their stead the words— "Division 5.—Existing Pension Rights (Sections 66–73)."; (b) by omitting the words— "Part VIII.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds (Sections 108–109)." and inserting in their stead the words— "Part VIII.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds (Sections 108–110c)."; and (c) by inserting after the words— "Part X.—Special Provisions in Relation to Certain Members of the Police Force of the Australian Capital Territory (Sections 116–119)." the words— "Part Xa.—Preservation of Rights of Certain Contributors and Former Contributors. Division 1.—Preliminary (Sections 119a–119b). Division 2.—Employees Who Have Preserved Rights from Previous Employment (Sections 119c–119m). Division 3.—Preservation of Rights of Persons Ceasing to be Contributors (Sections 119n–119zb). Division 4.—Miscellaneous (Sections 119zc–119ze).". Interpretation. 4. Section 4 of the Principal Act is amended by omitting sub-section (6.) and inserting in its stead the following sub-sections:— "(5a.) Where— (a) a person employed by the Commonwealth under the Australian Security Intelligence Organization Act 1956 otherwise than in a permanent capacity is by the terms of his employment required to give the whole of his time to the duties of his employment; (b) that person has been so employed for a continuous period of not less than three years; and (c) the Director-General of Security certifies that that person's employment is likely to be continued for a period of at least seven years, the Director-General of Security may direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the direction. "(5b.) Where— (a) a person referred to in paragraph (a) of sub-section (5.) or paragraph (a) of sub-section (5a.) of this section was, during any period prior to the commencement of his employment by the Commonwealth, employed in employment within or outside Australia upon the termination of which— (i) a transfer value within the meaning of Division 2 of Part Xa. of this Act became payable to or in respect of him after the commencement of this sub-section under a superannuation scheme applicable in relation to that employment; (ii) a prescribed pension within the meaning of that Division became payable to him under such a scheme; or (iii) any deferred benefits within the meaning of that Division became applicable in respect of him after the commencement of this sub-section under such a scheme, and was, during that period, a member of that superannuation scheme; and (b) if the prior employment was employment in relation to which sub-paragraph (i) of the last preceding paragraph applies—an amount equal to the amount of the transfer value referred to in that sub-paragraph has been paid to the Board in accordance with sub-section (1.) of section one hundred and nineteen j of this Act, then sub-section (5.) or sub-section (5a.), as the case may be, of this section has effect in relation to the person subject to the modifications referred to in the next succeeding sub-section. "(5c.) The modifications referred to in the last preceding sub-section are as follows:— (a) any period of the prior employment shall be deemed, for the purposes of paragraph (b) of sub-section (5.) or paragraph (b) of sub-section (5a.), as the case may be, of this section, to have been a period of employment of the same nature as the employment of the person referred to in paragraph (a) of that sub-section and to have been continuous with that employment; (b) if the total of the periods of the prior employment is more than three years but less than ten years—the reference in paragraph (c) of sub-section (5.) or sub-section (5a.), as the case may be, of this section to seven years shall be read as a reference to the difference between ten years and the total of the periods of the prior employment; and (c) if the total of the periods of the prior employment is not less than ten years—sub-section (5.) or sub-section (5a.), as the case may be, of this section has effect as if paragraph (c) of that sub-section were omitted. "(6.) Subject to the next succeeding sub-section, where a person employed by an approved authority is required by the terms of his employment to give the whole of his time to the duties of his office and— (a) the approved authority certifies that the person's employment is likely to be continued for a period of at least seven years; (b) the person was, immediately prior to the commencement of his employment by the approved authority, a contributor to a Public Service Superannuation Fund as defined by section one hundred and eight of this Act; or (c) the person was, during any period prior to the commencement of his employment by the approved authority, employed in employment within or outside Australia upon the termination of which— (i) a transfer value within the meaning of Division 2 of Part Xa. of this Act became payable to or in respect of him after the commencement of this sub-section under a superannuation scheme applicable in relation to that employment; (ii) a prescribed pension within the meaning of that Division became payable to him under such a scheme; or (iii) any deferred benefits within the meaning of that Division became applicable in respect of him after the commencement of this sub-section under such a scheme, and was, during that period, a member of that superannuation scheme and, if the prior employment was employment in relation to which sub-paragraph (i) of this paragraph applies, an amount equal to the amount of the transfer value referred to in that sub-paragraph has been paid to the Board in accordance with sub-section (1.) of section one hundred and nineteen j of this Act, the Minister administering the Act or other law by or under which the approved authority is constituted may, on the recommendation of the approved authority, direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the direction or, in the case of a person referred to in paragraph (b) of this sub-section, shall be deemed to have been such an employee as from the date on which his employment by the approved authority commenced. "(7.) Where, in the case of a person referred to in paragraph (c) of the last preceding sub-section, the total of the periods of the prior employment referred to in that paragraph was less than seven years, that sub-section does not apply in relation to that person unless the approved authority certifies that the person's employment is likely to be continued for a period that is not less than the difference between seven years and the total of the periods of his prior employment.". Superannuation provision for certain persons by way of life assurance. 5. Section 7 of the Principal Act is amended by adding at the end thereof the following sub-sections:— "(4.) Payments by the Commonwealth in pursuance of an arrangement made under this section may be made out of the Consolidated Revenue Fund, which is appropriated accordingly. "(5.) This section has effect subject to section one hundred and nineteen zd of this Act.". Commencement and cessation of contributions. 6. Section 19 of the Principal Act is amended by omitting paragraph (c) of sub-section (1a.) and inserting in its stead the following paragraph:— "(c) in the case of a person who is to be deemed to be an employee within the meaning of section four of this Act by virtue of sub-section (4.), (5.), (5a.) or (6.) of that section—the date as from which he is to be deemed to be, or to have been, an employee or, if that date is not, or was not, a pay-day, the next succeeding pay-day after that date.". Units of pension. 7. Section 20 of the Principal Act is amended by omitting paragraph (b) of sub-section (10.) and inserting in its stead the following paragraph:— "(b) the number of years of prospective service of an employee is the number of complete years included in the sum of the following periods:— (i) the period that commenced on the date upon which he became an employee and ends on the date upon which he will attain his selected retiring age; (ii) in the case of an employee who became an employee after the commencement of the Superannuation Act 1971 and was, immediately before he became an employee, a contributor to a Public Service Superannuation Fund within the meaning of Part VIII. of this Act—the period during which he was a contributor to that Fund; and (iii) in the case of an employee who became an employee after the commencement of the Superannuation Act 1971 and was, at any time before he became an employee, employed in employment of a kind referred to in section one hundred and nineteen h of this Act—any periods of such employment during which he was a member of a superannuation scheme applicable in relation to the employment.". Election ineffective if number of contributory units is, or falls below, number of initial units. 8. Section 22d of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "neither of the next two succeeding paragraphs" and inserting in their stead the words "none of the next three succeeding, paragraphs"; (b) by omitting from paragraph (b) of sub-section (1.) the word "or"; (c) by omitting from paragraph (c) of sub-section (1.) the word "entitlement." and inserting in its stead the words "entitlement; or"; (d) by adding at the end of sub-section (1.) the following paragraph :- "(d) in the case of an employee to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen j, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than his initial unit entitlement."; (e) by omitting from paragraph (a) of sub-section (3.) the words "the next succeeding paragraph does not apply" and inserting in their stead the words "neither of the next two succeeding paragraphs applies"; (f) by omitting from paragraph (a) of sub-section (3.) the word "or"; (g) by omitting from paragraph (b) of sub-section (3.) the word "entitlement." and inserting in its stead the words "entitlement; or"; and (h) by adding at the end of sub-section (3.) the following paragraph:— "(c) in the case of a pensioner in relation to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of paragraph (a) of this sub-section; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than his initial unit entitlement.". Election ineffective if number of contributory units is, or falls below, one-half of full unit entitlement. 9. Section 22e of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "neither of the next two succeeding paragraphs" and inserting in their stead the words "none of the next three succeeding paragraphs"; (b) by omitting from paragraph (b) of sub-section (1.) the word "or"; (c) by omitting from paragraph (c) of sub-section (1.) the word "time." (last occurring) and inserting in its stead the words "time; or"; (d) by adding at the end of sub-section (1.) the following paragraph:— "(d) in the case of an employee to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than one-half of his full unit entitlement as at that time."; (e) by omitting from paragraph (a) of sub-section (3.) the words "the next succeeding paragraph does not apply" and inserting in their stead the words "neither of the next two succeeding paragraphs applies"; (f) by omitting from paragraph (a) of sub-section (3.) the word "or"; (g) by omitting from paragraph (b) of sub-section (3.) the word "election." and inserting in its stead the words "election; or";. and (h) by adding at the end of sub-section (3.) the following paragraph :— "(c) in the case of a pensioner to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of paragraph (a) of this sub-section; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act, is less than one-half of his full unit entitlement as at the time of the election.". Choice of benefits for contributor who is retrenched. 10. Section 50 of the Principal Act is amended by omitting sub-sections (3.) and (4.) and inserting in their stead the following sub-section:— "(3.) Where an employee who has been retrenched and is in receipt of a pension again becomes an employee, the pension does not cease to be payable by reason that he has again become an employee.". 11. Sections 51 to 53, inclusive, of the Principal Act are repealed and the following sections inserted in their stead:— Refund of contributions in event of resignation, dismissal or discharge. "51. Where a contributor resigns, or is dismissed or is discharged, there shall be paid to him the amount of the contributions paid by him to the Fund. Rights of contributors who resign to contest elections. "52.—(1.) This section applies to a person who, being a contributor, voluntarily terminates his employment in order to become a candidate for election as a member of a House of the Parliament of the Commonwealth or of a State, but so applies only if the termination took effect not earlier than one month before the day on which nominations for the election closed. "(2.) Where a person to whom this section applies dies on or before the day of the declaration of the result of the election, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee. "(3.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected— (a) dies within the period of two months after the day of the declaration of the result of the election; or (b) applied within that period to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and dies before the application is determined or, if the application is granted, before becoming so employed, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an. employee. "(4.) Where— (a) the Board is satisfied that, if a person to whom this section applies had not terminated his employment, he would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the termination and ended on the day of the declaration of the result of the election, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; and (b) he was not a candidate at the election by reason of the invalidity or incapacity or was such a candidate but failed to be elected, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(5.) Where— (a) a person to whom this section applies and who was a candidate at the election but failed to be elected does not apply, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment; and (b) the Board is satisfied that, if he had not terminated his employment, he would, at a time (in this sub-section referred to as ' the relevant time') within that period, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(6.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected applies, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and the Board is satisfied that— (a) in the case of a person whose application is rejected—if he had not terminated his employment, he would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day of the rejection, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; (b) in the case of a person whose application has been granted but who has not become employed by the Commonwealth or by that authority—if he had not terminated his employment, he would, at a time (in this sub-section also referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day on which he was required to commence his employment with the Commonwealth or the authority, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; or (c) in the case of a person whose application has not been determined—if he had not terminated his employment, he would, at a time (in this sub-section also referred to as 'the relevant time') after the day of the declaration of the result of the election, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties, then he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(7.) Where— (a) a person to whom this section applies was a candidate at the election but failed to be elected; and (b) on application made by him within two months after the day of the declaration of the result of the election, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee. "(8.) If a refund of the amount of the contributions of a person referred to in sub-section (1.) of this section was paid under section fifty-one of this Act upon the termination of his employment, the preceding provisions of this section do not apply in relation to him unless an amount equal to the amount of the refund is paid to the Fund before the expiration of two months after the day of the declaration of the result of the election or within such further period as the Board allows. "(9.) Where a person is, by virtue of a preceding provision of this section, to be deemed not to have ceased, by reason of the termination of his employment, to be a contributor, any pension that became payable to him under this Act upon that termination shall be deemed not to have been payable and he is liable to pay to the Fund, before the expiration of two months after the day of the declaration of the result of the election or within such further period as the Board allows, an amount equal to the amount of the payment, or the sum of the amounts of the payments, of that pension that were made to him. "(10.) An amount, or the sum of the amounts, paid to the Fund under the last preceding sub-section in respect of payments of pension received by a person shall, to the extent that it exceeds the difference between the sum of the payments of pension and the sum of the amounts paid by the Commonwealth in respect of the payments of pension, be paid from the Fund to the Commonwealth. Certain contributors who change the nature of their employment to continue as contributors. "53. Where— (a) the employment of a contributor terminates or is terminated; and (b) immediately after the day on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor or to be, or to be deemed to be, an employee.". Power of Board to require break-down pensioners to be medically examined and to furnish information as to employment. 12. Section 64a of the Principal Act is amended by inserting in sub-section (1.), before the word "require", the words "or to whom a deferred benefit by way of a pension that is applicable under Division 3 of Part Xa. of this Act is payable by virtue of paragraph (a) of sub-section (2.) of section one hundred and nineteen w of this Act,". 13. Before section 67 of the Principal Act the following section is inserted in Division 5 of Part IV.:— Application of Division. "66.—(1.) The succeeding sections of this Division do not apply in relation to a person in relation to whom section one hundred and nineteen h of this Act applies. "(2.) An employee to whom section sixty-eight of this Act applies and who became an employee before the first day of January, One thousand nine hundred and seventy, may, within three months after the commencement of this section or within such further period as the Board, in special circumstances, allows, elect to contribute in accordance with Division 2 of Part Xa. of this Act and, in that case, that Division (other than section one hundred and nineteen m) has effect in relation to him and. so has effect as if he had become an employee on the date of the election. "(3.) Any contribution payable by reason of an election made under the last preceding sub-section is payable as from the date of the election.". Contributors to Provident Account. 14. Section 79 of the Principal Act is amended— (a) by inserting in paragraph (a) of sub-section (1.), after the word "five", the words "or section one hundred and nineteen m"; (b) by inserting in paragraph (c) of sub-section (3.), before the word "he", the words "subject to Division 2 of Part Xa. of this Act,"; and (c) by omitting sub-sections (4.), (5.) and (6.). 15. Section 86 of the Principal Act is repealed and the following section inserted in its stead:— Certain contributors to the Provident Account who change the nature of their employment to continue as contributors. "86. Where— (a) the employment of a contributor to the Provident Account terminates or is terminated; and (b) immediately after the day on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee.". 16. Section 88 of the Principal Act is repealed and the following section inserted in its stead:— Rights of contributors to Provident Account who resign to contest elections. "88.—(1.) This section applies to a person who, being a contributor to the Provident Account, voluntarily terminates his service in order to become a candidate for election as a member of a House of the Parliament of the Commonwealth or of a State, but so applies only if the termination took effect not earlier than one month before the day on which nominations for the election closed. "(2.) Where a person to whom this section applies dies on or before the day of the declaration of the result of the election, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee. "(3.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected— (a) dies within the period of two months after the day of the declaration of the result of the election; or (b) applied within that period to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and dies before the application is determined or, if the application is granted, before becoming so employed, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee. "(4.) Where— (a) the Board is satisfied that, if a person to whom this section applies had not terminated his service, his services would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the termination and ended on the day of the declaration of the result of the election, have been terminated on the ground of invalidity; and (b) he was not a candidate at the election by reason of the invalidity or was such a candidate but failed to be elected, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(5.) Where— (a) a person to whom this section applies and who was a candidate at the election but failed to be elected does not apply, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment; and (b) the Board is satisfied that, if he had not terminated his service, his services would, at a time (in this sub-section referred to as 'the relevant time') within that period, have been terminated on the ground of invalidity, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(6.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected applies, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and the Board is satisfied that, if he had not terminated his service— (a) in the case of a person whose application is rejected—his services would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day of the rejection, have been terminated on the ground of invalidity; (b) in the case of a person whose application has been granted but who has not become employed by the Commonwealth or by that authority—his services would, at a time (in this sub-section also referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day on which he was required to commence his employment with the Commonwealth or the authority, have been terminated on the ground of invalidity; or (c) in the case of a person whose application has not been determined —his services would, at a time (in this sub-section also referred to as 'the relevant time') after the day of the declaration of the result of the election, have been terminated on the ground of invalidity, then he shall be deemed not to have ceased, by reason of the termination of his services, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(7.) If an amount was paid under section eighty-two or section eighty-five of this Act to a person to whom this section applies upon the termination of his service, any amount payable to or in respect of him under this Act by reason of the operation of a preceding provision of this section shall be reduced by an amount equal to the amount so paid. "(8.) Where— (a) a person to whom this section applies was a candidate at the election but failed to be elected; (b) on application made by him within two months after the day of the declaration of the result of the election, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment; and (c) an amount equal to the amount paid to him under section eighty-two or section eighty-five of this Act upon the termination of his service is paid to the Provident Account before the expiration of that period or within such further period as the Board allows, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee. "(9.) Where a person is to be deemed, by virtue of the preceding provisions of this section, not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee, he shall be deemed to have received salary from the time of the termination of his service to the time of his death, the time at which his services are to be deemed to have been terminated on the ground of invalidity or the time of the commencement of his employment by the Commonwealth or by the authority, as the case may be, at the rate at which he would have received salary if he had not terminated his service. "(10.) An amount, or the sum of the amounts, paid to the Provident Account in accordance with paragraph (c) of sub-section (8.) of this section in respect of an amount paid to a person under section eighty-two of this Act shall, to the extent that it exceeds the difference between the amount so paid to the person and the amount paid by the Commonwealth in respect of the amount so paid to the person, be paid from the Provident Account to the Commonwealth.". Interpretation. 17. Section 108 of the Principal Act is amended— (a) by omitting the words "the regulations" and inserting in their stead the words "regulations made for the purposes of this section before the commencement of the Superannuation Act 1971"; and (b) by adding at the end thereof the following sub-section:— "(2.) For the purposes of this Part, regard shall not be had to so much (if any) of the amount refunded to a person from a Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund as was refunded to him in respect of contributions paid by him to that Fund that were of a similar nature to contributions under this Act for reserve units of pension.". 18. Section 109 of the Principal Act is repealed and the following sections are inserted in its stead:— Former contributors to Public Service Superannuation Funds who elect to pay refunds to Board. "109.—(1.) Where— (a) an employee who becomes a contributor after the commencement of the Superannuation Act 1971 was, immediately before becoming an employee, a contributor to a Public Service Superannuation Fund; (b) he elects within three months after becoming an employee to pay to the Board an amount equal to the amount refunded to him from the Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund; and (c) that amount has, before the expiration of three months after he became an employee, been paid to the Board, the succeeding provisions of this section have effect. "(2.) The Board may, if it is satisfied that there are special circumstances that justify it in so doing, extend the period for the making of an election and the payment of an amount to the Board under the last preceding sub-section. "(3.) The Board shall determine the number of units of pension (including, where necessary, a fraction of a unit of pension) that was equivalent, as at the date on which the employee became a contributor, to the amount refunded to the employee from the Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund, and the employee shall be deemed to be a contributor for that number of units of pension but is not required to make contributions for or in respect of those units of pension. "(4.) An amount paid to the Board under this section shall be paid by the Board to the Fund and, when so paid, shall be deemed, for the purposes of this Act, to be contributions made to the Fund by the employee. "(5.) If at any time the number of units of pension for which an employee to whom sub-section (1.) of this section applies would, but for this section, be required to contribute to the Fund does not exceed the number of units of pension specified in the determination made by the Board in relation to him under sub-section (3.) of this section, the employee shall not be required or permitted to contribute to the Fund at that time in respect of units of pension. "(6.) If at any time the number of units of pension for which an employee to whom sub-section (1.) of this section applies would, but for this section, be required to contribute to the Fund exceeds the number of units of pension specified in the determination made by the Board in relation to him under sub-section (3.) of this section, the employee shall not be required or permitted to contribute to the Fund at that time in respect of a number of units of pension greater than the excess. "(7.) Nothing in this Act shall be taken to require or permit a reduction in the number of units of pension for which an employee to whom sub-section (1.) of this section applies is a contributor to a number that is less than the number of units of pension that are specified in the determination made by the Board in relation to him under sub-section (3.) of this section. Former contributors to Public Service Superannuation Funds who do not elect to pay refunds to Board. "110.—(1.) Where— (a) an employee who becomes a contributor after the commencement of the Superannuation Act 1971 was, immediately before becoming an employee, a contributor to a Public Service Superannuation Fund; and (b) the last preceding section does not apply in relation to him, the succeeding provisions of this section have effect. "(2.) If at any time the number of units of pension for which the employee would, but for this section, be required to contribute to the Fund does not exceed such number of units of pension (including, where necessary, a fraction of a unit of pension) as the Board determines to have been equivalent, as at the date on which he became a contributor, to the amount refunded to him from the Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund, the employee shall not be required or permitted to contribute to the Fund at that time in respect of units of pension. "(3.) If at any time the number of units of pension for which the employee would, but for this section, be required to contribute to the Fund exceeds the number of units of pension that are specified in the determination made by the Board in relation to him under the last preceding sub-section, the employee shall not be required or permitted to contribute to the Fund at that time in respect of a number of units of pension greater than the excess. Determination in respect of employee who has not elected under section 24. "110a. A determination made for the purposes of either of the last two preceding sections in relation to an employee who has not made an election under section twenty-four of this Act may specify different numbers of units of pension as having been equivalent to the amount refunded to him from the Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund, according to whether or not the employee makes such an election after the determination is made. Board to make determinations on actuarial advice. "110b.—(1.) The Board shall make a determination for the purposes of this Part only after receiving advice in writing from an actuary. "(2.) Where, in pursuance of this Part, the Board has power to make a determination in relation to a matter, the power shall be construed as including a power, exercisable in the like manner and subject to the like conditions (if any), to vary a determination so made. "(3.) In furnishing advice to the Board in relation to the determination by the Board, for the purposes of section one hundred and nine or section one hundred and ten of this Act, of the number of units of pension that were equivalent to an amount refunded to a person from a Public Service Superannuation Fund, an actuary shall have regard to actuarial principles and practice and shall take into account all relevant matters, including— (a) the age of the person at the date on which he became a contributor; (b) whether the person has made an election under section twenty-four of this Act; (c) the respective rates of mortality, invalidity and withdrawal from the Fund that are assumed, for the purposes of the advice, to apply in relation to the class of contributors in which the person is included; and (d) the rates of interest that it is assumed, for the purposes of the advice, will be earned by the assets of the Fund. "(4.) For the purpose of any advice to be furnished to the Board by an actuary in relation to the determination of the number of units of pension that were equivalent to an amount refunded to a person from a Public Service Superannuation Fund, the amount so refunded shall be treated as if it were increased by an amount equal to two and one-half times that amount. Part VIII. not to apply in certain cases. "110c.—(1.) This Part does not apply in relation to an employee if, but for the refund to him of an amount from a Public Service Superannuation Fund, a transfer value referred to in paragraph (b), or a prescribed pension referred to in paragraph (d), of sub-section (1.) of section one hundred and nineteen h of this Act would have become payable to or in respect of him or deferred benefits referred to in paragraph (ƒ) of that sub-section would have become applicable in respect of him. "(2.) Where the application of this Part in relation to an employee is not excluded by reason of the last preceding sub-section but section one hundred and nineteen h of this Act applies in relation to him, sub-sections (5.) and (6.) of section one hundred and nine, and section one hundred and ten, of this Act do not apply in relation to him.". Application of Division. 19. Section 111 of the Principal Act is amended by adding at the end thereof the following sub-section:— "(3.) Notwithstanding the last two preceding sub-sections, this Part does not apply to a person who becomes employed by the Commonwealth or by an approved authority after the commencement of the Superannuation Act 1971.". 20. After Part X. of the Principal Act the following Part is inserted:— "Part Xa.—Preservation of Rights of Certain Contributors and Former Contributors. "Division 1.—Preliminary. Interpretation. "119a.—(1.) In this Part, unless the contrary intention appears— 'employment' means employment by the terms of which persons employed in that employment are required to give the whole of their time to the duties of their employment; 'life policy' means a life policy as defined by sub-section (1.) of section four of the Life Insurance Act 1945–1965; 'member', in relation to a superannuation scheme applying in relation to any employment, includes any person employed in that employment in respect of whom benefits are applicable under the scheme by reason of his being so employed, whether or not he has made contributions under the scheme; 'the rules', in relation to a superannuation scheme, means the rules governing the operation of the scheme, whether contained in a law or in a trust deed or other instrument. "(2.) For the purposes of this Part, the membership by a person of a House of the Parliament of the Commonwealth or of a State shall be treated as if it were employment of the person by the Commonwealth or by that State, as the case may be. "(3.) A reference in this Part to a superannuation scheme shall be read as a reference to a superannuation or retirement scheme, however established, and, unless the contrary intention appears, shall be read as including a reference to— (a) the superannuation scheme constituted by the provisions of this Act relating to the Fund; and (b) the retirement scheme constituted by the provisions of this Act relating to the Provident Account. "(4.) For the purposes of this Part, a benefit payable to or in respect of an employee under a superannuation scheme shall not be taken to have been based partly upon contributions under the scheme by the employer by reason only that the benefit included interest upon contributions made under the scheme by the employee. Determinations by the Board. "119b.—(1.) The Board shall make a determination under this Part only after receiving advice in writing from an actuary. "(2.) Where, in pursuance of this Part, the Board has power to make a determination in relation to a matter, the power shall be construed as including a power, exercisable in the like manner and subject to the like conditions (if any), to vary a determination so made. "Division 2.—Employees Who Have Preserved Rights from Previous Employment. Application of Division to former contributors to Provident Account "119c. Where a contributor to the Provident Account is allowed by the Board to contribute to the Fund under Part III. of this Act, this Division other than section one hundred and nineteen g applies as if he had become an employee on the date on which he became a contributor to the Fund under that Part. Transfer value payable in respect of previous employment. "119d.—(1.) In this Division— (a) a reference, in relation to an employee, to a transfer value payable to or in respect of the employee under a superannuation scheme applicable in relation to any employment in which he was employed at any time before the date on which he became an employee is a reference— (i) in the case of the superannuation scheme constituted by the provisions of this Act relating to the Fund or by the provisions of this Act relating to the Provident Account—to a lump sum payable to the employee under section fifty of this Act, a lump sum payable to the employee under section eighty-two of this Act where his services are terminated owing to retrenchment or a transfer value payable in respect of the employee under Division 3 of this Part; (ii) in the case of the superannuation scheme constituted by the provisions of the Defence Forces Retirement Benefits Act 1948–1971 and the other Acts relating to retirement benefits for members of the Defence Force—to a transfer value payable in respect of the employee under Division 3 of Part VIc. of the Defence Forces Retirement Benefits Act 1948–1971 or to a refund of contributions and a gratuity payable to the employee; and (iii) in the case of any other superannuation scheme—to a benefit by way of a lump sum payable to or in respect of the employee under that scheme upon the termination of the employment otherwise than on the ground of invalidity or of physical or mental incapacity to perform the duties of the employment, being a benefit that was based wholly upon contributions under the scheme by the employer or was based partly upon such contributions and partly upon contributions under the scheme by the employee; and (b) a reference to the amount of a transfer value to which sub-paragraph (iii) of the last preceding paragraph applies does not include a reference to any part of the lump sum that was based upon contributions by the employee that were of a similar nature to contributions under this Act for reserve units of pension. "(2.) If, after a transfer value became payable to or in respect of a person under a superannuation scheme, an amount equal to the whole or any part of that transfer value was paid to a person administering another superannuation scheme (not being the superannuation scheme constituted by the provisions of this Act relating to the Fund or by the provisions of this Act relating to the Provident Account)— (a) where the whole of the transfer value was so paid—that transfer value shall be disregarded for the purposes of this Division; or (b) where part of the transfer value was so paid—the amount of that transfer value shall be deemed, for the purposes of this Division, to be reduced by the amount so paid. "(3.) Subject to the next succeeding sub-section, a transfer value shall be deemed, for the purposes of this Division, to have become payable in respect of a person under a superannuation scheme upon the termination of any employment if, upon the termination of that employment, he had the legal title to a life policy, or was entitled to have the legal title to a life policy assigned to him, being a policy the premiums for which were, while he was employed in that employment, paid in whole or in part by his employer, and, in that case, the surrender value of the policy as at the date of the termination of the employment shall be taken to be the amount of the transfer value. "(4.) Where a transfer value is, by virtue of the last preceding sub-section, to be deemed, for the purposes of this Division, to have become payable in respect of a person upon the termination of any employment by reason that, upon the termination of that employment, he had the legal title to a life policy, or was entitled to have the legal title to a life policy assigned to him, a transfer value shall not be deemed, for those purposes, to have become payable in respect of the person upon the termination of any previous employment by reason that, upon the termination of that previous employment, he had the legal title to that policy, or was entitled to have the legal title to that policy assigned to him. Pension payable in respect of previous employment. "119e. In this Division— (a) a reference, in relation to an employee, to a prescribed pension payable to the employee under a superannuation scheme applicable in relation to any employment in which he was employed at any time before the date on which he became an employee is a reference— (i) in the case of the superannuation scheme constituted by the provisions of this Act relating to the Fund—to a pension payable to the employee under this Act; and (ii) in the case of any other superannuation scheme—to a pension payable to the employee under that scheme that was based wholly upon contributions under the scheme by the employer or was based partly upon such contributions and partly upon contributions by the employee, but does not include a reference to a pension the payment of which was deferred; and (b) where a pension referred to in the last preceding paragraph was commuted, in whole or in part, for a lump sum after the pension became payable and before the date on which the person to whom the pension was payable became an employee, the pension shall, for the purposes of this Division, be treated as not having been so commuted. Deferred benefits applicable in respect of previous employment. "119f. In this Division, a reference, in relation to an employee, to deferred benefits applicable in respect of the employee under a superannuation scheme applicable in relation to any employment in which he was employed at any time before the date on which he became an employee is a reference— (a) in the case of the superannuation scheme constituted by the provisions of this Act relating to the Fund or by the provisions of this Act relating to the Provident Account—to deferred benefits applicable in respect of the employee under Division 3 of this Part; and (b) in the case of any other superannuation scheme—to benefits, whether by way of a lump sum or of a pension, applicable in respect of the employee under the scheme but not immediately payable, being benefits based wholly upon contributions under the scheme by the employer or based partly upon such contributions and partly upon contributions under the scheme by the employee. Declaration by employee who has previously been in employment. "119g.—(1.) Where a person who has attained the age of twenty-one years becomes an employee, he shall, before the expiration of one month after the date on which he became an employee, or before such later time as the Board in special circumstances allows, furnish to the Board a declaration in writing in accordance with a form made available by the Board— (a) stating whether he has previously been in employment within or outside Australia; and (b) if he has so previously been in employment, stating whether, upon the termination of that employment— (i) a transfer value became payable to or in respect of him on or after the date of commencement of this section under a superannuation scheme applicable in relation to that employment; (ii) a transfer value would have become so payable on or after that date but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which a transfer value would have become so payable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing; (iii) a prescribed pension became payable to him under such a scheme; (iv) a prescribed pension would have become so payable on or after the date of commencement of this section but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which a prescribed pension would have become so payable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing; (v) any deferred benefits became applicable in respect of him on or after the date of commencement of this section under such a scheme; (vi) any deferred benefits would have become so applicable on or after that date but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which any deferred benefits would have become so applicable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing; or (vii) in the case of a person who, immediately before becoming an employee, was a contributor to a Public Service Superannuation Fund within the meaning of Part VIII. of this Act—a refund of the whole or any part of any contributions made by him to that Fund became payable, and, if so, setting out particulars of the transfer value, prescribed pension, deferred benefits or refund that became, or would have become, payable. "(2.) A person to whom the last preceding sub-section applies shall furnish to the Board, within the period referred to in that sub-section, an authority in writing authorizing the Board to obtain information in relation to any transfer value, prescribed pension, deferred benefits or refund referred to in that sub-section from his previous employer or from any person administering the superannuation scheme applicable in relation to his previous employment. Contributors with superannuation rights from previous employment "119h.—(1.) Where a person who, after the commencement of this section, becomes an employee and a contributor to the Fund or to the Provident Account has, at any time before becoming an employee, been in employment within or outside Australia upon the termination of which— (a) a transfer value became payable to or in respect of him on or after the date of commencement of this section under a superannuation scheme applicable in relation to that employment; (b) a transfer value would have become so payable on or after that date but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which a transfer value would have become so payable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing; (c) a prescribed pension became payable to him under such a scheme; (d) a prescribed pension would have become so payable on or after the date of commencement of this section but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which a prescribed pension would have become so payable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing; (e) any deferred benefits became applicable in respect of him on or after the date of commencement of this section under such a scheme; or (ƒ) any deferred benefits would have become so applicable on or after that date but for an election or choice made, option exercised or other act or thing done by him, or he was entitled to make an election or choice, exercise an option or do any other act or thing as a result of which any deferred benefits would have become so applicable on or after that date but he did not make the election or choice, exercise the option or do the other act or thing, the succeeding sections of this Division have effect. "(2.) Paragraph (b) of the last preceding sub-section shall not be taken to apply in relation to a person by reason of the doing of, or the failure to do, any act or thing if, as a result of the doing of the act or thing or as a result of the failure, paragraph (c) or paragraph (e) of that sub-section applies in relation to him. "(3.) Paragraph (d) of sub-section (1.) of this section shall not be taken to apply in relation to a person by reason of the doing of, or the failure to do, any act or thing if, as a result of the doing of the act or thing or as a result of the failure, paragraph (a) or paragraph (e) of that sub-section applies in relation to him. "(4.) Paragraph (f) of sub-section (1.) of this section shall not be taken to apply in relation to a person by reason of the doing of, or the failure to do, any act or thing if, as a result of the doing of the act or thing or as a result of the failure, paragraph (a) or paragraph (c) of that sub-section applies in relation to him. Rights of contributors who elect to pay transfer value to Board. "119j.—(1.) If— (a) a transfer value or transfer values became payable to or in respect of the person in accordance with paragraph (a) of sub-section (1.) of the last preceding section; (b) the person elected before the date on which he became an employee, or elects not later than three months after that date, to pay to the Board an amount equal to the amount of that transfer value or, if two or more transfer values became payable, to the sum of the amounts of those transfer values; and (c) that amount has, before the expiration of that period of three months, been paid to the Board, the succeeding provisions of this section have effect. "(2.) The Board may, if it is satisfied that there are special circumstances that justify it in so doing, extend the period for the making of an election and the payment of an amount to the Board under the last preceding sub-section. "(3.) Where the person is a contributor to the Fund— (a) so much of the amount paid to the Board as is equal to the employee component of the transfer value, or to the sum of the employee components of the transfer values, as the case may be, shall be paid by the Board to the Fund and, when so paid— (i) shall be deemed, for the purposes of this Act other than section fifty-one, to be contributions made to the Fund by the person; and (ii) shall, to the extent to which it was payable to the person upon the termination of the employment in respect of which the transfer value or any of the transfer values become payable irrespective of whether he engaged in further employment, be deemed, for the purposes of section fifty-one of this Act, to be contributions made to the Fund by the person; (b) the person shall be deemed, for the purposes of this Act, to have completed payment of contributions to the Fund for such number of units of pension (including, where necessary, a fraction of a unit of pension) as the Board determines to have been equivalent, as at the date on which the person became an employee, to the amount of the transfer value or the total of the amounts of the transfer values; (c) if at any time the number of units of pension for which the person would, but for this Division, be required to contribute to the Fund does not exceed the sum of— (i) the number of units of pension for which he is to be deemed by the last preceding paragraph to have completed payment of contributions; (ii) such number of units of pension (including, where necessary, a fraction of a unit of pension) as the Board determines to have been equivalent, as at the date on which the person became an employee, to the total of the amounts of any transfer values referred to in paragraph (b) of sub-section (1.) of section one hundred and nineteen h of this Act that would have become payable to or in respect of him; (iii) such number of units of pension (including, where necessary, a fraction of a unit of pension) as the Board determines to have been equivalent, as at the date on which the person became an employee, to any pensions referred to in paragraphs (c) and (d) of that sub-section that are, or would have become, payable to him; (iv) such number of units of pension (including, where necessary, a fraction of a unit of pension) as the Board determines to have been equivalent, as at the date on which the person became an employee, to any deferred benefits referred to in paragraphs (e) and (ƒ) of that sub-section that are, or would have become, applicable in respect of him; and (v) in the case of a person who becomes a contributor after the commencement of this section and was, immediately before becoming an employee, a contributor to a Public Service Superannuation Fund within the meaning of Part VIII. of this Act, other than a person to whom that Part does not apply by reason of the operation of sub-section (1.) of section one hundred and ten c of this Act—the number of units of pension determined by the Board in relation to him under sub-section (3.) of section one hundred and nine of this Act or, if that section does not apply in relation to him, the number of units of pension that would have been determined by the Board in relation to him under sub-section (2.) of section one hundred and ten of this Act if that last-mentioned section were applicable in relation to him, the person shall not be required or permitted to contribute to the Fund at that time in respect of units of pension; (d) if at any time the number of units of pension for which the person would, but for this Division, be required to contribute to the Fund exceeds the sum referred to in the last preceding paragraph, the person shall not be required or permitted to contribute to the Fund at that time in respect of a number of units of pension greater than the excess; and (e) nothing in this Act shall be taken to require or permit a reduction in the number of units of pension for which the person is a contributor to a number that is less than the number of units of pension for which he is to be deemed by paragraph (b) of this sub-section to have completed payment of contrib