Commonwealth: Superannuation Legislation Amendment Act (No. 2) 1986 (Cth)

Superannuation Legislation Amendment Act (No. 2) 1986 No. 151 of 1986 TABLE OF PROVISIONS PART I—PRELIMINARY Section 1. Short title 2. Commencement PART II—AMENDMENTS OF THE SUPERANNUATION ACT 1976 3. Principal Act 4. Interpretation 5. Annual rate of salary 6. Contributory service—additional periods 7. Temporary employees employed under contract 8. Statutory office holders 9. Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies, &c. 10. Medical examinations and benefit classification certificates 11. Repeal of section 22 and substitution of new section— 22. Resignation 12. Termination of appointment 13. Repeal of section 24 and substitution of new section— 24. Acting Commissioner 14. Delegation by Commissioner 15. Delegation by Trust 16. Delegation by principal member 17. Trust to keep accounts and records in respect of Fund, &c. 18. Leave of absence without pay 19. Absences under Maternity Leave (Commonwealth Employees) Act 1973 20. Insertion of new section— 57a. Age retirement pension on election under section 76a 21. Early retirement—voluntary or involuntary retirement before attaining 60 years of age TABLE OF PROVISIONS—continued Section 22. Insertion of new section— 61a. Early retirement pension on election under section 76a 23. Election for lump sum benefit in case of involuntary retirement 24. Entitlement to invalidity benefit 25. Invalidity benefit where pension not reduced on medical grounds and election not made under section 68 or 69 26. Election where benefit not reduced on medical grounds 27. Election where benefit not reduced on medical grounds and period of prospective service less than 8 years 28. Invalidity benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 71 or 72 29. Election where benefit reduced on medical grounds and period of contributory service not less than 8 years 30. Election where benefit reduced on medical grounds and period of contributory service less than 15, but not less than 8, years 31. Invalidity benefit where benefit reduced on medical grounds and period of contributory service less than 8 years 32. Insertion of new section— 73a. Reduction of invalidity pensions because of earnings 33. Power of the Commissioner to require invalidity pensioner to be medically examined, &c. 34. Insertion of new section— 74a. Cancellation of invalidity pension where pension suspended for 12 months, &c. 35. Insertion of new section— 76a. Renunciation of invalidity pension in favour of age pension 36. Payment of accumulated contributions where no other benefit payable under Part 37. Entitlement to spouse's benefit under Division 38. Spouse's benefit where benefit not reduced on medical grounds and election not made under section 83 or 84 39. Election where pension not reduced on medical grounds 40. Election where benefit not reduced on medical grounds and period of prospective service less than 8 years 41. Spouse's benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 86 or 87 42. Election where benefit reduced on medical grounds and period of contributory service not less than 8 years 43. Election where pension reduced on medical grounds and period of contributory service less than 15, but not less than 8, years 44. Spouse's benefit where pension reduced on medical grounds and period of contributory service less than 8 years 45. Election to commute spouse's additional pension entitlement 46. Orphan benefit—death of eligible employee after attaining maximum retiring age 47. Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit not reduced on medical grounds and direction not given under section 99 48. Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit not reduced on medical grounds, period of prospective service less than 8 years and direction given under this section 49. Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit reduced on medical grounds and period of contributory service not less than 8 years 50. Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit reduced on medical grounds and period of contributory service less than 8 years 51. Eligible employee or retirement pensioner survived by more than one spouse 52. Payments into and out of Consolidated Revenue Fund 53. Attachment of benefits 54. Effect of section 121, 122 or 123 in relation to a person to whom Part applies 55. Interpretation 56. Eligible employment 57. Election that Division apply TABLE OF PROVISIONS—continued Section 58. Circumstances in which person entitled to deferred benefits 59. Insertion of new section— 139a. Election for transfer value by persons in relation to whom deferred benefits are applicable 60. Person who is entitled to rights under Division not entitled to rights under other provisions of Act 61. Certain former eligible employees not entitled to benefits under Division 62. Invalidity pensioner restored to health 63. Special provisions affecting certain former contributors under certain superannuation schemes 64. Interpretation 65. Increases in pensions 66. Review of decisions 67. General provisions applicable to elections under Act 68. Cost of administration of, and of medical examinations under, Act, &c. 69. Insertion of new sections— 163a. Power to require persons to give information and produce documents 163b. Correction of clerical errors 70. Delegation 71. Persons not to make false statements to Commissioner, &c. 72. Insertion of new section— 167aa. Proceedings against corporations 73. Repeal of section 167a, substitution of new section— 167a. Provision of superannuation under other laws, &c. 74. Regulations 75. Existing invalidity pensioners 76. Medical examinations and benefit classification certificates PART III—AMENDMENTS OF THE SUPERANNUATION ACT 1922 77. Principal Act 78. Interpretation 79. Pension to spouse and children on death of contributor 80. Pension to spouse and children on death of pensioner 81. Pension to orphans on death of contributor or pensioner 82. Special grants of pension 83. Period for which pensions payable 84. Transfer value 85. Election that Division apply 86. Circumstances in which person entitled to deferred benefits 87. Insertion of new sections— 119wa. Medical examination, &c., of persons to whom deferred benefits by way of pension are payable under section 119w 119wb. Cancellation of pension where pension suspended for 12 months, &c. 119wc. Election for transfer value by persons in relation to whom deferred benefits are applicable 88. Certain former contributors not entitled to benefits under Division 89. Invalid pensioner restored to health 90. Interpretation 91. Increases in pensions Superannuation Legislation Amendment Act (No. 2) 1986 No. 151 of 1986 An Act to amend the Superannuation Act 1976 and the Superannuation Act 1922, and for related purposes [Assented to 18 December 1986] BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows: PART I—PRELIMINARY Short title 1. This Act may be cited as the Superannuation Legislation Amendment Act (No. 2) 1986. Commencement 2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent. (2) The amendments made by sub-sections 23 (1) and 24 (1), section 25, sub-sections 26 (1) and 27 (1), section 28, sub-sections 29 (1) and 30 (1), section 31, sub-section 33 (1), sections 37 to 51 (inclusive), sub-section 52 (1), sections 54 and 55 and sub-sections 63 (1), 68 (1) and 75 (1) shall be deemed to have come into operation on 1 July 1976. (3) The amendments made by sub-section 9 (1) shall be deemed to have come into operation on 15 March 1981. (4) The amendments made by section 21 shall be deemed to have come into operation on 1 October 1984. (5) The amendments made by section 56 shall be deemed to have come into operation on 1 July 1978. (6) The amendments made by sections 20, 22 and 32, sub-section 33 (3), section 35 and sub-sections 67 (2) and 75 (3) shall come into operation on a day to be fixed by Proclamation. PART II—AMENDMENTS OF THE SUPERANNUATION ACT 1976 Principal Act 3. The Superannuation Act 19761 is in this Part referred to as the Principal Act. Interpretation 4. (1) Section 3 of the Principal Act is amended— (a) by omitting from the definition of "eligible employee" in sub-section (1) "but does not include" and substituting "but, in relation to a person to whom any of the preceding paragraphs of this definition, other than paragraph (ea), applies, does not include"; (b) by inserting in sub-section (6) "of the Commonwealth or" after "law"; and (c) by adding at the end the following sub-section: "(8) A reference in this Act to a medical examination by a medical practitioner does not include a reference to a medical examination by a person other than a person registered or licensed as a medical practitioner under a law of a State or Territory that provides for the registration or licensing of medical practitioners unless— (a) the medical examination is made in a place that is not in Australia or an external Territory; and (b) the person is registered or licensed as a medical practitioner under a law of that place that provides for the registration or licensing of medical practitioners.". (2) Notwithstanding the amendment made by paragraph (1) (a), where, immediately before the commencement of this section, a person to whom paragraph (ea) of the definition of "eligible employee" in sub-section 3 (1) of the Principal Act applied was not an eligible employee within the meaning of the Principal Act because paragraph (h), (j), (k) or (l) of that definition applied to the person, that person shall become an eligible employee within the meaning of the Principal Act as amended and in force after the commencement of this section if, and only if, he or she becomes a person to whom paragraph (b), (c), (d), (e), (ea), (f) or (g), but none of the other paragraphs, of the definition of "eligible employee" in sub-section 3 (1) of the Principal Act as so amended and in force applies. Annual rate of salary 5. (1) Section 5 of the Principal Act is amended— (a) by omitting sub-section (1) and substituting the following sub-section: "(1) In this section, 'salary' means salary or wages and includes any allowance, or the value of any allowance, or any fee, that is an allowance or fee of a kind that, under the regulations, is to be treated as salary for the purposes of this Act, but does not include any part of any salary or wages that, under the regulations, is not to be treated as salary for the purposes of this Act."; (b) by omitting from sub-section (2) "sub-section (3)" and substituting "sub-sections (3), (3a), (3b) and (3c)"; (c) by inserting after sub-section (3) the following sub-sections: "(3a) Where, immediately before a person ceased or last ceased to be an eligible employee, the person was entitled to partial invalidity pension under section 77 or 78, the annual rate of salary payable to the person immediately before the person so ceased or last so ceased shall, for the purposes of this Act, other than sections 77 and 78— (a) in a case where that entitlement was an entitlement under section 77—be taken, subject to sub-section (3b), to be the amount per annum that would have been the person's final annual rate of salary on the occasion on which the person ceased or last ceased to be an eligible employee that preceded the person's becoming so entitled to that partial invalidity pension; or (b) in a case where that entitlement was an entitlement under section 78—be taken, subject to sub-section (3c), to be the amount per annum that would, if the person had ceased to be an eligible employee on the day immediately preceding the day on which the person became so entitled to that partial invalidity pension, have been the person's final annual rate of salary on the occasion of the person's so ceasing. "(3b) Where at any time the Commissioner, having regard to any changes in rates of remuneration which have occurred since the occasion on which a person referred to in paragraph (3a) (a) ceased to be an eligible employee that preceded the person's becoming entitled to partial invalidity pension under section 77 and which the Commissioner considers to be relevant, is of the opinion that the annual rate of salary of the person should, for the purposes of this Act, be a rate other than the rate referred to in sub-section (3a) or a rate specified by the Commissioner in a previous determination made under this sub-section, the Commissioner may determine that, for the purposes of this Act, other than sections 77 and 78, the annual rate of salary payable to the person shall, from the day of the determination or such other day as is specified in the determination, be deemed to be such rate as is specified in the determination. "(3c) Where at any time the Commissioner, having regard to any changes in rates of remuneration which have occurred since a person referred to in paragraph (3a) (b) became entitled to partial invalidity pension and which the Commissioner considers to be relevant, is of the opinion that the annual rate of salary of the person should, for the purposes of this Act, be a rate other than the rate referred to in sub-section (3a) or a rate specified by the Commissioner in a previous determination made under this sub-section, the Commissioner may determine that, for the purposes of this Act, other than sections 77 and 78, the annual rate of salary payable to the person shall, from the day of the determination or such other day as is specified in the determination, be deemed to be such rate as is specified in the determination."; and (d) by omitting from sub-section (4) "sub-section (2)" and substituting "this section". (2) Regulations in force at the commencement of this section for the purposes of sub-section 5 (1) of the Principal Act continue in force as if made for the purposes of sub-section 5 (1) of the Principal Act as amended by this Act. Contributory service—additional periods 6. Section 8 of the Principal Act is amended by adding at the end the following sub-section: "(3) Where— (a) a person ceases to be an eligible employee and, upon so ceasing, deferred benefits are applicable in relation to the person by virtue of Division 3 of Part IX; (b) those deferred benefits ceased to be applicable in relation to the person upon a deferred benefit by way of invalidity pension becoming payable to the person; and (c) the person again becomes an eligible employee and the person's entitlement to deferred benefit is, upon the person's so becoming an eligible employee, cancelled under sub-section 76 (1), then, upon the person's next ceasing to be an eligible employee, there shall be added to the period that, but for this sub-section, would be the person's period of contributory service— (d) the period that was the person's period of contributory service upon the person's previously ceasing to be an eligible employee and becoming a person in relation to whom deferred benefits are applicable; and (e) if, during any period after the person's previously so ceasing to be an eligible employee and before the person again becomes an eligible employee, the person was in receipt of deferred benefit by way of invalidity pension in accordance with section 67 or 68—any period in respect of which that pension was payable.". Temporary employees employed under contract 7. Section 13 of the Principal Act is amended— (a) by omitting from sub-section (1) ", as from the date of the direction,"; and (b) by adding at the end the following sub-section: "(2) A direction under sub-section (1) in relation to a person who is employed under a contract has effect from— (a) where the person has been employed under that contract for longer than one year—the day of the direction; or (b) in any other case—the day specified in the direction, which may be a day earlier than the day on which the direction is given but not earlier than the day on which the person commenced to be employed under that contract.". Statutory office holders 8. Section 14 of the Principal Act is amended— (a) by omitting from sub-section (1) ", as from the date of the direction,"; and (b) by adding at the end the following sub-section: "(4) A direction under sub-section (1) in relation to a person who is the holder of a statutory office has effect from— (a) where the person has been holding that office for longer than one year—the day of the direction; or (b) in any other case—the day specified in the direction, which may be a day earlier than the day on which the direction is given but not earlier than the day on which the person commenced to hold that office.". Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies, &c. 9. (1) Section 14a of the Principal Act is amended— (a) by omitting from paragraph (1) (b) "or"; (b) by adding at the end of sub-paragraph (1) (c) "or by virtue of having been deemed to have been so re-appointed in accordance with section 87q of that Act; or"; and (c) by adding at the end of sub-section (1) the following paragraph: "(d) is a person (other than a person referred to in paragraph (c)) who is a permanent employee, or a temporary employee, by virtue of having been, or having been deemed to be, reappointed or re-employed in circumstances similar to the circumstances in which a person could have been reappointed to the Australian Public Service under section 63f, 63g or 66b of the Public Service Act or could have been deemed to have been re-appointed to the Australian Public Service in accordance with section 87q of that Act.". (2) Section 14a of the Principal Act is amended— (a) by omitting from paragraph (1) (c) "or" (last occurring); (b) by adding at the end of sub-section (1) the following word and paragraph: "; or (e) is a person included in a class of persons specified in the regulations as a class of persons to which this section applies."; (c) by inserting in sub-section (3) "or has applied" after "applies" (wherever occurring); (d) by inserting in sub-section (4) "or has applied" after "applies"; (e) by inserting in sub-section (5) "or has applied" after "applies"; and (f) by adding at the end the following sub-section: "(6) Where— (a) a person who has ceased to be an eligible employee again becomes an eligible employee— (i) by virtue of having been re-appointed to the Australian Public Service under section 63f, 63g or 66b of the Public Service Act or having been deemed to have been so re-appointed in accordance with section 87q of that Act; (ii) by virtue of having been, or having been deemed to be, re-appointed (otherwise than to the Australian Public Service), or re-employed, in circumstances similar to the circumstances in which a person could have been re-appointed to the Australian Public Service under section 63f, 63g or 66b of that Act or could have been deemed to have been re-appointed to the Australian Public Service in accordance with section 87q of that Act; or (iii) by virtue of being, under the provisions of that Act, declared to be, or reinstated as, a person to whom Division 3 of Part IV of that Act applies; and (b) upon last ceasing to be an eligible employee before that reappointment, declaration or reinstatement, his or her accumulated contributions had been paid out of the Superannuation Fund into the Consolidated Revenue Fund, an amount equal to those accumulated contributions shall, upon that re-appointment, declaration or reinstatement, be paid out of the Consolidated Revenue Fund (which is appropriated accordingly) into the Superannuation Fund.". Medical examinations and benefit classification certificates 10. (1) Section 16 of the Principal Act is amended— (a) by omitting from sub-section (6) "revoke or vary the certificate" and substituting "revoke the certificate or to revoke the certificate and issue in substitution for the certificate a new benefit classification certificate"; (b) by omitting from sub-paragraph (8) (b) (ii) "vary the certificate by deleting the reference in the certificate to any other condition or conditions so specified" and substituting "revoke the certificate and issue in substitution for the certificate a new benefit classification certificate specifying only the condition or conditions in respect of which the Commissioner is of the opinion referred to in this subparagraph"; (c) by omitting from paragraph (8) (c) "revoke or vary the benefit classification certificate" and substituting "revoke the benefit classification certificate or to revoke the benefit classification certificate and to issue in substitution for the certificate a new benefit classification certificate"; (d) by omitting sub-section (9) and substituting the following sub-section: "(9) Where the Commissioner, in pursuance of sub-section (8) revokes a benefit classification certificate, that revocation, and the new benefit classification certificate (if any) issued in substitution for that certificate, has or have effect on and from the day on which the revocation is made."; (e) by omitting from paragraph (10) (a) "or ceases to be an eligible employee by reason of retirement on the ground of invalidity" and substituting ", ceases to be an eligible employee because of retirement on the ground of invalidity or becomes entitled to partial invalidity pension under section 78 because of a decrease in the annual rate of the person's salary that the Commissioner is satisfied can properly be regarded as attributable to physical or mental incapacity"; (f) by omitting from paragraph (10) (b) "or the incapacity which was the ground for his retirement" and substituting ", the incapacity which was the ground for the person's retirement or the incapacity to which the Commissioner is satisfied that the decrease in the person's annual rate of salary could properly be regarded as attributable, as the case requires"; (g) by adding at the end of sub-section (10) "or immediately before the person became entitled to partial invalidity pension under section 78, as the case requires"; (h) by omitting sub-sections (11) and (11a) and substituting the following sub-sections: "(11) Where the Commissioner is satisfied, in respect of a person who is a relevant person— (a) that, at or in connection with a medical examination that the person was required to undergo for the purposes of this section, the person failed to give any information that the person was required to give or gave false or misleading information; and (b) that, if the person had not failed to give the information that the person was required to give or had not given that false or misleading information— (i) in a case where a benefit classification certificate is in force in respect of the person—a particular physical or mental condition or particular physical or mental conditions of the person not specified in the certificate would have been so specified; or (ii) in a case where no benefit classification certificate is in force in respect of the person—a benefit classification certificate would have been issued in respect of the person in which a particular physical or mental condition or particular physical or mental conditions of the person would have been specified, the Commissioner shall— (c) if there is a benefit classification certificate in force in respect of the person—revoke that certificate and issue a new benefit classification certificate in respect of the person in which the particular condition or conditions referred to in sub-paragraph (b) (i) is or are specified either in addition to or in substitution for the physical or mental condition that is, or for any or all of the physical or mental conditions that are, specified in the first-mentioned certificate; or (d) if there is no benefit classification certificate in force in respect of the person—issue a benefit classification certificate in respect of the person in which the particular condition or conditions referred to in sub-paragraph (b) (ii) is or are specified. "(11a) In sub-section (11), a reference to a relevant person shall be read as a reference to a person— (a) who is an eligible employee, has a period of contributory service of less than 20 years and has not attained his or her maximum retiring age; (b) who is or was an eligible employee to whom partial invalidity pension is or was payable under section 78 and who, at the time when partial invalidity pension became so payable, had a period of contributory service of less than 20 years; or (c) who has ceased to be an eligible employee, by reason of invalidity or death and who, at the time when he or she so ceased, had a period of contributory service of less than 20 years and had not attained his or her maximum retiring age. "(11b) Where the Commissioner, in pursuance of paragraph (11) (c), revokes a benefit classification certificate and issues a new benefit classification certificate in substitution for that certificate, the first-mentioned certificate shall be deemed never to have been issued and the new certificate shall be deemed to have been issued under sub-section (4) on the day that was, but for the operation of this sub-section, the day on which the first-mentioned certificate was issued. "(11c) Where the Commissioner, in pursuance of paragraph (11) (d), issues a benefit classification certificate, the certificate shall be deemed to have been issued under sub-section (4) on the day that the Commissioner determines to be the day on which a benefit classification certificate would have been issued if the person concerned had not, at or in connection with a medical examination, failed to give the information the person was required to give or had not given false or misleading information."; (j) by omitting from sub-section (12) ", and a copy of any revocation or variation of such a certificate, and notice of refusal by the Commissioner of a request to revoke or vary such a certificate," and substituting ", notice of any revocation of such a certificate and notice of any refusal by the Commissioner of a request under sub-section (6) in relation to such a certificate,"; and (k) by omitting from sub-section (13) "that deals with matters arising under this Act". (2) Where the Commissioner has not, before the commencement of this section, taken action under sub-section 16 (8) of the Principal Act in respect of a request made under sub-section 16 (6) of that Act for the revocation or variation of a benefit classification certificate, the Commissioner shall, for the purposes of the Principal Act as amended by this section, treat the request— (a) if it is a request for the revocation of a benefit classification certificate—as if it were a request made under sub-section 16 (6) of the Principal Act as so amended for the revocation of that benefit classification certificate; or (b) if it is a request for a variation of a benefit classification certificate—as if it were a request made under sub-section 16 (6) of the Principal Act as so amended for the revocation of that certificate and for the issue of a new benefit classification certificate in substitution for that certificate. 11. Section 22 of the Principal Act is repealed and the following section is substituted: Resignation "22. The Commissioner may resign office by writing signed by the Commissioner and delivered to the Governor-General.". Termination of appointment 12. Section 23 of the Principal Act is amended— (a) by inserting after paragraph (2) (a) the following paragraph: "(aa) fails, without reasonable excuse, to comply with the Commissioner's obligations under sub-section (3);"; and (b) by adding at the end the following sub-sections: "(3) The Commissioner shall give written notice to the Minister of all direct or indirect pecuniary interests that he or she has or acquires in any business or in any body corporate carrying on any business. "(4) The reference in sub-section (3) to the Commissioner shall be read as including a person acting as Commissioner by virtue of an appointment under section 24.". 13. (1) Section 24 of the Principal Act is repealed and the following section is substituted: Acting Commissioner "24. (1) The Minister may appoint a person to act as Commissioner— (a) during a vacancy in the office of Commissioner; or (b) during any period, or during all periods, when the Commissioner is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office of Commissioner, but a person appointed to act during a vacancy shall not continue so to act for more than 12 months. "(2) An appointment of a person under sub-section (1) may be expressed to have effect only in such circumstances as are specified in the instrument of appointment. "(3) The Minister may— (a) determine the terms and conditions of appointment, including remuneration and allowances, of a person acting as Commissioner; and (b) terminate such an appointment at any time. "(4) Where a person is acting as Commissioner in accordance with paragraph (1) (b) and the office of Commissioner becomes vacant while that person is so acting, then, subject to sub-section (2), that person may continue so to act until the Minister otherwise directs, the vacancy is filled or a period of 12 months from the date on which the vacancy occurred expires, whichever first happens. "(5) A person appointed to act as Commissioner may resign by writing signed by the person and delivered to the Minister. "(6) While a person is acting as Commissioner, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law. "(7) Anything done by or in relation to a person purporting to act under sub-section (1) is not invalid on the grounds that— (a) the occasion for the person's appointment had not arisen; (b) there is a defect or irregularity in connection with the person's appointment; (c) the person's appointment had ceased to have effect; or (d) the occasion for the person to act had not arisen or had ceased.". (2) Where, immediately before the day on which this Act receives the Royal Assent, a person was acting as Commissioner by virtue of an appointment under section 24 of the Principal Act, then, notwithstanding the repeal of that section by this Act, that section continues to apply to and in relation to that person as if that repeal had not been made. Delegation by Commissioner 14. Section 25 of the Principal Act is amended— (a) by omitting from sub-section (1) "any of his powers under this Act or the superseded Act," and substituting "all or any of the Commissioner's powers under this Act, the superseded Act, regulations under this Act or regulations under the superseded Act,"; and (b) by omitting from sub-section (2) "or the superseded Act," and substituting ", the superseded Act, regulations under this Act or regulations under the superseded Act". Delegation by Trust 15. (1) Section 38 of the Principal Act is amended by omitting from sub-section (1) "person (including a member of the Trust)" and substituting "member, officer or employee of the Trust all or". (2) A delegation under section 38 of the Principal Act that was in force immediately before the commencement of this section to a member, officer or employee of the Trust continues in force after the commencement of this section as if given under that section as amended by sub-section (1). (3) Any delegation that the Trust purported to make before the commencement of this section of all of its powers under the Superannuation Act 1976 shall be deemed to have been as valid as it would have been if the reference in sub-section 38 (1) of the Superannuation Act 1976, as in force at the time when the purported delegation was made, to any of the Trust's powers under the Superannuation Act 1976 had been a reference to all or any of the Trust's powers under that Act. Delegation by principal member 16. (1) Section 39 of the Principal Act is amended by omitting from sub-section (1) "person (including another member of the Trust)" and substituting "another member of the Trust or to an officer or employee of the Trust". (2) A delegation under section 39 of the Principal Act that was in force immediately before the commencement of this section to a member of the Trust or to an officer or employee of the Trust continues in force after the commencement of this section as if given under that section as amended by sub-section (1). Trust to keep accounts and records in respect of Fund, &c. 17. Section 44 of the Principal Act is amended by inserting after sub-section (2) the following sub-sections: "(2a) The Auditor-General shall inspect and audit the accounts and records of financial transactions of the Trust and records relating to assets of, or in the custody of, the Trust and shall forthwith draw the attention of the Minister to any irregularity disclosed by the inspection and audit that is, in the opinion of the Auditor-General, of sufficient importance to justify so doing. "(2b) The Auditor-General may, at the discretion of the Auditor-General, dispense with all or any part of the detailed inspection and audit of any accounts or records referred to in sub-section (1). "(2c) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under sub-section (2a).". Leave of absence without pay 18. Section 51 of the Principal Act is amended by inserting in sub-section (3) "or permitted" after "required" (wherever occurring). Absences under Maternity Leave (Commonwealth Employees) Act 1973 19. Section 51a of the Principal Act is amended by inserting in sub-section (2) "or permitted" after "required". 20. After section 57 of the Principal Act the following section is inserted in Division 1 of Part V: Age retirement pension on election under section 76a "57a. Where a person— (a) makes an election under section 76a; and (b) would, if he or she had retired otherwise than on the ground of invalidity, have been entitled to a standard age retirement pension under section 55, then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to— (c) standard age retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had retired otherwise than on the ground of invalidity; and (d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional age retirement pension in accordance with sub-section 57 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.". Early retirement—voluntary or involuntary retirement before attaining 60 years of age 21. Section 58 of the Principal Act is amended by inserting after paragraph (3) (a) the following paragraph: "(aa) in the case of a person holding a Senior Executive Service office within the meaning of the Public Service Act—the person retires pursuant to section 76r of that Act;". 22. After section 61 of the Principal Act the following section is inserted: Early retirement pension on election under section 76a "61a. Where a person— (a) makes an election under section 76a; and (b) would, if he or she had resigned or had retired otherwise than on the ground of invalidity, have been entitled to a standard early retirement pension under section 59, then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to— (c) standard early retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had resigned or had retired otherwise than on the ground of invalidity; and (d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional early retirement pension in accordance with sub-section 61 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.". Election for lump sum benefit in case of involuntary retirement 23. (1) Section 62 of the Principal Act is amended— (a) by omitting from sub-section (1) "under sub-section (2) of this section and, where he had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section" and substituting "under this section"; and (b) by omitting sub-sections (2) and (3) and substituting the following sub-section: "(2) Where a person makes an election under sub-section (1), the person is entitled, in lieu of pension and lump sum benefit to which, but for the election, the person would be entitled under section 59, to payment of a lump sum benefit equal to the sum of— (a) 3½ times the amount of the person's accumulated basic contributions; and (b) the amount of the person's accumulated supplementary contributions (if any).". (2) Section 62 of the Principal Act is amended— (a) by inserting in sub-section (1) ", or is about to cease," after "ceases"; (b) by inserting in sub-section (1) "or will, upon so ceasing, be deemed," after "deemed,"; and (c) by omitting from sub-section (1) "his last day of service" and substituting ", and not earlier than 3 months before, the day on which he or she so ceases to be an eligible employee". Entitlement to invalidity benefit 24. (1) Section 66 of the Principal Act is amended— (a) by omitting from paragraph (1) (c) "sub-section 69 (2) and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 69 (3)" and substituting "that section"; (b) by omitting from sub-paragraph (2) (d) (iii) "sub-section 72 (2), and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 72 (3)" and substituting "that section"; and (c) by omitting from paragraph (2) (e) "sub-section 73 (2) and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 73 (3)" and substituting "section 73". (2) Section 66 of the Principal Act is amended by inserting after sub-section (2) the following sub-sections: "(2a) Where the Commissioner is of the opinion that— (a) a person will, in the near future, cease to be an eligible employee by reason of retirement on the ground of invalidity before attaining the person's maximum retiring age; (b) there will be in force in respect of the person, immediately before the person's retirement, a benefit classification certificate; and (c) the incapacity which will be the ground for the person's retirement was caused, or was substantially contributed to, by a physical or mental condition or conditions specified in the certificate or by a physical or mental condition or conditions connected with such a condition or such conditions; then— (d) the Commissioner shall inform the person in writing that the Commissioner has formed the opinions referred to in paragraphs (a), (b) and (c); and (e) where the person becomes a person referred to in paragraph (2) (a) and to whom paragraph (2) (b) applies, the Commissioner shall be taken to have formed the opinion referred to in paragraph (2) (c) in relation to that person immediately on the person becoming a person referred to in paragraph (2) (a) unless, whether before or after the person became a person so referred to, the Commissioner informed the person in writing that this sub-section is not to apply to the person. "(2b) Where the Commissioner forms the opinion referred to in paragraph (2) (c) in relation to a person on a date after the date on which the person retired, any payment to that person before the first-mentioned date of benefit or of pension purported to be made under sub-section (2) shall be deemed to have been as valid as it would have been if the Commissioner had formed that opinion immediately on the person's retirement.". Invalidity benefit where pension not reduced on medical grounds and election not made under section 68 or 69 25. Section 67 of the Principal Act is amended by omitting from sub-section (5) ", payable out of the Fund,". Election where benefit not reduced on medical grounds 26. (1) Section 68 of the Principal Act is amended by omitting from sub-section (5) ", payable out of the Fund,". (2) Section 68 of the Principal Act is amended— (a) by inserting in sub-section (1) ", or is about to become," after "becomes"; and (b) by inserting in sub-section (1) ", but not earlier than 3 months before he or she becomes," after "becoming". Election where benefit not reduced on medical grounds and period of prospective service less than 8 years 27. (1) Section 69 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section: "(2) Where a person makes an election under sub-section (1), the lump sum benefit to which the person is entitled is an amount equal to whichever is the greater of— (a) the sum of— (i) 3½ times the amount of the person's accumulated basic contributions; and (ii) the amount of the person's accumulated supplementary contributions (if any); or (b) the sum of— (i) one-half of the amount that is the amount per annum of the person's final annual rate of salary; and (ii) the amount of the person's accumulated supplementary contributions (if any).". (2) Section 69 of the Principal Act is amended— (a) by inserting in paragraph (1) (a) ", or is about to become," after "becomes"; (b) by omitting from paragraph (1) (b) "is less than 8 years," and substituting ", at the time of his or her so becoming entitled to invalidity benefit is, or will be, less than 8 years,"; and (c) by inserting in sub-section (1) ", but not earlier than 3 months before he or she becomes," after "becoming". Invalidity benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 71 or 72 28. Section 70 of the Principal Act is amended by omitting from sub-section (5) ", payable out of the Fund,". Election where benefit reduced on medical grounds and period of contributory service not less than 8 years 29. (1) Section 71 of the Principal Act is amended by omitting from sub-section (5) ", payable out of the Fund,". (2) Section 71 of the Principal Act is amended— (a) by inserting in paragraph (1) (a) ", or is about to become," after "becomes"; (b) by omitting from paragraph (1) (b) "is not less than 8 years," and substituting ", at the time of his or her so becoming entitled to invalidity benefit is not, or will not be, less than 8 years,"; and (c) by inserting in sub-section (1) ", but not earlier than 3 months before he or she becomes," after "becoming". Election where benefit reduced on medical grounds and period of contributory service less than 15, but not less than 8, years 30. (1) Section 72 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section: "(2) Where a person makes an election under sub-section (1), the lump sum benefit to which the person is entitled is an amount equal to whichever is the greater of— (a) the sum of— (i) 3½ times the amount of the person's accumulated basic contributions; and (ii) the amount of the person's accumulated supplementary contributions (if any); or (b) the sum of— (i) one-half of the amount that is the amount per annum of the person's final annual rate of salary; and (ii) the amount of the person's accumulated supplementary contributions (if any).". (2) Section 72 of the Principal Act is amended— (a) by inserting in paragraph (1) (a) ", or is about to become," after "becomes"; (b) by omitting from paragraph (1) (b) "is less than 15 years, but is not less than 8 years," and substituting ",at the time of his or her so becoming entitled to invalidity benefit is, or will be, less than 15 years, but not less than 8 years,"; and (c) by inserting in sub-section (1) ", but not earlier than 3 months before he or she becomes," after "becoming". Invalidity benefit where benefit reduced on medical grounds and period of contributory service less than 8 years 31. Section 73 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section: "(2) The lump sum benefit to which a person to whom this section applies is entitled is an amount equal to whichever is the greater of— (a) the sum of— (i) 3½ times the amount of the person's accumulated basic contributions; and (ii) the amount of the person's accumulated supplementary contributions (if any); or (b) the sum of— (i) one-half of the amount that is the amount per annum of the person's final annual rate of salary; and (ii) the amount of the person's accumulated supplementary contributions (if any).". 32. After section 73 of the Principal Act the following section is inserted: Reduction of invalidity pensions because of earnings "73a. (1) In this section— 'earnings rate', in relation to an invalidity pensioner, means the amount per annum last estimated by the Commissioner under sub-section (3) as the annual rate of the personal earnings of the pensioner; 'invalidity pensioner' means a person to whom invalidity pension is payable and who has not attained the age of 65 years; 'personal earnings', in relation to an invalidity pensioner, means salary, wages, fees or other amounts received by the pensioner for services rendered, or work performed, by the pensioner, and includes— (a) remuneration paid to the pensioner as the director of a company; and (b) commission received by the pensioner for canvassing, collecting or similar activities; 'prescribed maximum rate' means— (a) before the operation of sub-section (2)—$19,200 per annum increased by the relevant percentage of that rate; or (b) after the operation of that sub-section—the rate that is the prescribed maximum rate by virtue of that sub-section; 'prescribed percentage', in relation to a prescribed year, means the prescribed percentage in relation to that year for the purposes of section 148; 'prescribed year' means a prescribed year within the meaning of Part X, other than a year commencing before 1 July 1988; 'relevant maximum rate', in relation to an invalidity pensioner, means— (a) the prescribed maximum rate; or (b) 75% of the amount per annum that the Commissioner, having regard to any changes in the rates of remuneration that have occurred since the pensioner ceased to be an eligible employee and any other matters that the Commissioner considers relevant, determines would have been the annual rate of salary of the pensioner if the pensioner had not ceased to be an eligible employee and had continued to occupy the position held immediately before so ceasing, whichever is the greater; 'relevant pension rate', in relation to an invalidity pensioner, means— (a) where the pensioner did not make an election under section 68 or 71—the annual rate of the invalidity pension of the pensioner; or (b) where the pensioner made such an election—the rate that would have been the annual rate of that pension if the pensioner had not made the election; 'relevant percentage' means the percentage that represents A—B expressed as a percentage of B, where— A is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the March quarter of 1987; and B is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the June quarter of 1986. "(2) Where rates at which invalidity pensions were payable immediately before the commencement of a prescribed year are increased in accordance with section 148, the rate that, immediately before that commencement, was (because of paragraph (a) of the definition of 'prescribed maximum rate' or the previous operation of this sub-section) the prescribed maximum rate is increased, with effect from that commencement, by the prescribed percentage, in relation to that prescribed year, of that rate. "(3) Where an invalidity pensioner or a person acting on behalf of the pensioner gives the Commissioner particulars of the pensioner's personal earnings and an estimate of those earnings for the next 12 months (whether in compliance with a notice under sub-section 74 (1) or otherwise), the Commissioner shall estimate the amount per annum that is the annual rate of the personal earnings of the pensioner. "(4) Subject to sub-sections (5) and (6) but notwithstanding any other provision of this Act, during any period during which the sum of the relevant pension rate of an invalidity pensioner and the earnings rate of the pensioner exceeds the relevant maximum rate for the pensioner, then— (a) where the lesser of the excess or of that earnings rate is less than the annual rate of the invalidity pension of the pensioner—the amount of the fortnightly instalments of that pension shall be ascertained as if the annual rate of the pension were reduced by the lesser of the excess or of that earnings rate; or (b) where the lesser of the excess or of that earnings rate is equal to or exceeds the annual rate of that pension—the pension is suspended. "(5) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has been, or is being, paid instalments of invalidity pension, that, by virtue of that sub-section, should not have been, or be, paid or the amount of which should have been, or be, lower, then, notwithstanding that sub-section, those instalments shall be taken to have been, or be, lawfully paid. "(6) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has, because of a previous calculation for those purposes, not been paid instalments of invalidity pension that should have been paid or been paid instalments of invalidity pension the amount of which should have been higher, that invalidity pensioner is not entitled to be paid, but may be paid, the amount of those instalments or of the balance of those instalments, as the case may be. "(7) Where an invalidity pensioner— (a) is, on the commencement of this section, in receipt of personal earnings; or (b) begins, after the commencement of this section, to receive personal earnings, the pensioner, or a person acting on behalf of the pensioner, shall give the Commissioner particulars in writing of these personal earnings and an estimate of the amount of the personal earnings that the pensioner expects to receive in the next 12 months. "(8) Where— (a) an estimate of the personal earnings of an invalidity pensioner has been given to the Commissioner under this Act; and (b) the pensioner or a person acting on behalf of the pensioner revises that estimate, the pensioner or the person acting on behalf of the pensioner shall give to the Commissioner particulars in writing of the personal earnings of the pensioner and an estimate of those earnings for the next 12 months. "(9) In ascertaining, for the purposes of this Act or of the superseded Act, the annual rate of an invalidity pension or the rate at which an invalidity pension is payable, any reduction or suspension under this section shall be disregarded but nothing in this sub-section or in any other provision of this Act or in any provision of the superseded Act shall be taken to imply that a person is entitled to be paid an amount not paid because of such a reduction or suspension.". Power of the Commissioner to require invalidity pensioner to be medically examined, &c. 33. (1) Section 74 of the Principal Act is amended by omitting from sub-section (6) "sub-section 106 (3)" and substituting "sub-sections 106 (3) and 108 (3)". (2) Section 74 of the Principal Act is amended— (a) by omitting from sub-section (1) "but who has not attained the age of 65 years"; (b) by inserting in paragraph (1) (a) ", being a time before the person attains the age of 65 years," after "time"; (c) by inserting in paragraph (1) (b) ", being a period that ends before the person attains the age of 65 years," after "period" (first occurring); (d) by omitting sub-sections (2), (3), (4) and (5) and substituting the following sub-sections: "(2) A notice under sub-section (1) shall set out the effect of sub-section (3). "(3) Where a person fails to comply with a notice given under sub-section (1) and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner may, by notice in writing given to the person, suspend the person's invalidity pension with effect from such day as the Commissioner determines, being a day not earlier than— (a) in a case where the first-mentioned notice required the person to submit himself or herself for medical examination on a day specified in the notice—the day next following that day; or (b) in a case where the first-mentioned notice required the person to furnish information within a period specified in the notice—the day next following the expiration of that period. "(4) A notice to a person under sub-section (3) shall set out the effect of sub-sections (5c), (5e) and (5f) and of section 74a. "(5) Subject to section 74a, a suspension of a person's invalidity pension under sub-section (3) continues in force, unless sooner revoked, until the person attains the age of 65 years. "(5a) Invalidity pension is not payable in respect of a period during which a suspension of the pension under sub-section (3) is in force. "(5b) Where— (a) the invalidity pension of a person is suspended under sub-section (3); and (b) the Commissioner, having regard to such matters as he or she considers relevant, is of the opinion that the suspension should be revoked, the Commissioner may, by notice in writing given to the person or to the person and a person acting on the person's behalf, as the case requires, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than the day on which the notice is given. "(5c) Without limiting sub-section (5b), where the invalidity pension of a person (in this sub-section referred to as the 'relevant person') is suspended under sub-section (3), the relevant person, or another person acting on his or her behalf, may, by notice in writing given to the Commissioner, request the Commissioner to revoke the suspension, and where such a request is made, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be— (a) if the pension has been suspended by virtue of the relevant person's having failed to comply with a notice requiring the relevant person to submit himself or herself for medical examination—require the relevant person to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the relevant person attains the age of 65 years, and place specified in the second-mentioned notice; or (b) if the pension has been suspended by virtue of the relevant person's having failed to comply with a notice requiring the relevant person to give information to the Commissioner (in this paragraph referred to as 'the original notice')—require the relevant person to give in writing to the Commissioner, within such period as is specified in the second-mentioned notice, being a period that ends before the relevant person attains the age of 65 years, such information as was required by the original notice to be given. "(5d) A notice given by the Commissioner under sub-section (5c) shall set out the effects of sub-sections (5e) and (5f) and of section 74a. "(5e) Where— (a) because of a request having been made to revoke the suspension of the invalidity pension of a person (in this sub-section referred to as the 'relevant person'), a notice under sub-section (5c) is given to the relevant person or to the relevant person and another person; and (b) either— (i) the relevant person complies with the notice; or (ii) the relevant person fails to comply with the notice but the Commissioner is satisfied that there was a reasonable excuse for the failure, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than— (c) in a case to which sub-paragraph (b) (i) applies—the day on which the relevant person so complied with the notice; or (d) in a case to which sub-paragraph (b) (ii) applies—the day on which the Commissioner became so satisfied. "(5f) Where— (a) because of a request having been made to revoke the suspension of the invalidity pension of a person (in this sub-section referred to as the 'relevant person'), a notice under sub-section (5c) is given to the relevant person or to the relevant person and another person; and (b) the relevant person fails to comply with the notice and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, refuse to revoke the suspension. "(5g) A notice under sub-section (5f) shall set out the effect of section 74a."; and (e) by adding at the end the following sub-sections: "(9) Where the Commissioner is required by this section to give a person a notice, the notice shall be taken to have been given to the person if— (a) the notice is served on the person personally; (b) the notice is sent to the person by pre-paid post as a letter and the person acknowledges receipt of the letter; or (c) where the Commissioner has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre-paid post to— (i) in a case where the Commissioner is satisfied that at least one reliable address of the person has been ascertained—that reliable address, or one of the reliable addresses, ascertained; or (ii) in any other case—the last address of the person known to the Commissioner. "(10) A reference in sub-section (9) to a reliable address of a person shall be read as a reference to an address where, if a letter were sent to the person by pre-paid post to the address, the person would probably receive the letter. "(11) Nothing in this section shall be taken, by implication, to exclude or limit the application of section 154 to decisions under this section that are reviewable decisions within the meaning of that section.". (3) Section 74 of the Principal Act is amended— (a) by omitting paragraph (1) (b) and substituting the following paragraph: "(b) to give in writing to the Commissioner, within such period as is specified in the notice, being a period that ends before the person attains the age of 65 years— (i) such information as is required by the notice with respect to any employment (whether as an employee or on the person's own account) in which the person has been engaged during such period as is specified in the notice; or (ii) particulars of the person's personal earnings, within the meaning of section 73a, and an estimate of the amount of those earnings that the person expects to receive in the next 12 months."; and (b) by inserting in sub-sections (6) and (7) "or sub-section 73a (4)" after "(3) of this section". (4) Section 74 of the Principal Act as amended by sub-section (2)— (a) applies in relation to notices given under sub-section 74 (1) of the Principal Act before the commencement of this sub-section as if the notices had been given under sub-section 74 (1), and complied with sub-section 74 (2), of the Principal Act as so amended; and (b) applies in relation to the suspension under section 74 of the Principal Act of invalidity pension before that commencement as if the suspension had been under sub-section 74 (3) of the Principal Act as so amended. 34. After section 74 of the Principal Act the following section is inserted: Cancellation of invalidity pension where pension suspended for 12 months, &c. "74a. Where— (a) a person's invalidity pension is suspended under sub-section 74 (3); (b) immediately before the suspension, the person had not attained the age of 64 years; and (c) the suspension is not revoked— (i) in a case where a request to revoke the suspension is made under section 74 before the expiration of a period of 12 months after the suspension came into force and the Commissioner does not make a decision under section 74 in relation to that request within that period—upon the making of that decision; or (ii) in any other case—for a period of 12 months, the Commissioner may, by notice in writing given to the person, cancel the person's entitlement to invalidity pension.". 35. After section 76 of the Principal Act the following section is inserted: Renunciation of invalidity pension in favour of age pension "76a. Where a person— (a) became entitled to an invalidity pension under section 66 after attaining his or her minimum retiring age; (b) did not make an election under section 69 or 72; (c) would, if he or she had resigned or had retired otherwise than on the ground of invalidity, have been entitled to a pension under section 55 or 59; and (d) has not attained the age of 65 years, the person may make, by notice in writing to the Commissioner, an election to renounce the invalidity pension and, where the person does so, the person is not entitled to the invalidity pension on and after a day determined by the Commissioner (not being a day earlier than the day on which the election was made).". Payment of accumulated contributions where no other benefit payable under Part 36. Section 80 of the Principal Act is amended— (a) by omitting from paragraph (2) (f) all the words after "exceeds" and substituting the following: "the difference between— (i) the total of the amounts of invalidity pension at any time paid to the person in accordance with section 67 or 70 and the amounts of deferred benefit by way of invalidity pension at any time paid to the person in accordance with either of those sections (other than an amount, if any, taken into account in a previous application of t