New South Wales: New South Wales Retirement Benefits Act 1972 (NSW)

New South Wales Retirement Benefits Act 1972 No 70 An Act to make provision for a scheme providing retirement and other benefits for certain employees of the Crown and of certain public authorities; to establish a New South Wales Retirement Fund; to amend the Government Railways Act 1912, the Superannuation Act 1916, the Transport Act 1930, the Transport Employees Retirement Benefits Act 1967, and the Securities Industry Act 1970; and for purposes connected therewith. Part 1 Preliminary 1 Name of Act (1) This Act may be cited as the New South Wales Retirement Benefits Act 1972. (2) (Repealed) 2 Commencement (1) Section 1 and this section shall commence on the date of assent to this Act. (2) Part 6 and sections 3, 7, 10, 11, 12 (subsections (3) and (4) excepted), 56, 61, 64, 65, 67 (5) and 67 (6) shall commence on such day as may be appointed by the Governor in respect thereof and as may be notified by proclamation published in the Gazette. (3) Subject to subsections (1), (2) and (4), this Act shall commence on such day as may be appointed by the Governor in respect thereof and as may be notified by proclamation published in the Gazette, being a day that is later than the day appointed pursuant to subsection (2). (4) Part 7 shall commence on such day as may be appointed by the Governor in respect thereof and as may be notified by proclamation published in the Gazette, being a day that is later than the day appointed pursuant to subsection (3). (5) (Repealed) 2A Closure of Fund (1) In this section— commencement day means the day on which the Public Authorities Superannuation Act 1985 commences. Public Authorities Superannuation Fund means the Fund established under the Public Authorities Superannuation Act 1985. (2) Notwithstanding any other provision of this Act— (a) a person is not entitled to elect on or after the commencement day to become a contributor, (b) a person is not entitled to become a contributor pursuant to an election that was made before, but did not take effect before, the commencement day, (c) a person who, immediately before the commencement day, was contributing to the Fund ceases on and from that day to be entitled or liable to contribute to the Fund, and (d) a benefit under this Act is not payable on or after the commencement day to, or in relation to, a contributor unless the benefit was so payable before that day. (3) A benefit under this Act that had become payable before the commencement day but had not been paid, or had not commenced to be paid, before that day shall be paid from the Public Authorities Superannuation Fund. (4) Any pension under this Act of which payment had commenced before the commencement day shall, on and after that day, be paid from the Public Authorities Superannuation Fund. (5) Any amount that, before the commencement day, a person was liable to pay, but had not paid, to the New South Wales Retirement Fund is payable to the Public Authorities Superannuation Fund. (6) On and from 1 April 1988, a reference in this section to the Public Authorities Superannuation Fund shall be read as a reference to the State Authorities Superannuation Fund established under the State Authorities Superannuation Act 1987. 3 Definitions (1) In this Act, except to the extent that the context or subject-matter otherwise indicates or requires— Account means the Government Railways Superannuation Account under the Government Railways Act 1912. annual wages means, in relation to an employee at a particular time, the amount determined by the Board as the amount of wages or salary payable at that time on an annual basis to that employee, having regard to his ordinary remuneration but disregarding amounts payable in respect of overtime. appointed day means the day appointed pursuant to section 2 (3). Board means the SAS Trustee Corporation continued under the Superannuation Administration Act 1996. contributor means— (a) a person who is contributing, or is liable to contribute, to the Fund, (b) a person who was so contributing, or was liable so to contribute, but ceased, pursuant to section 20 (1) so to contribute, and (c) a person eligible for a benefit under this Act calculated by reference only to his initial credit. contributor to the Account means a person who is contributing to the Account. contributor to the Transport Retirement Fund means a person who is a contributor under the Transport Employees Retirement Benefits Act 1967. employee means a person employed by an employer but— (a) does not include a person employed on a part-time basis, (b) does not include a person who is not within a class of persons specified in the Second Column of Schedule 2, (c) does not, except in the case of— (i) a person referred to in section 11 or 12 (3), or (ii) a person who is within a class of persons referred to in section 12 (1) (a) (ii), include a person who, by virtue of his employment, participates in or, in the opinion of the Board, would with the effluxion of time participate in, a superannuation scheme, (d) subject to subsection (10), does not include a person who, for any reason based on non-compliance with a requirement as to medical fitness, is ineligible to participate in a superannuation scheme in which, but for that reason, he would be eligible to participate, (e) does not include a person who, being eligible to contribute to the Fund established under the Superannuation Act 1916, has been granted exemption from contributing thereto, (f) does not include a person who, by an act or omission not involving a requirement as to medical fitness, renders himself ineligible to participate in a superannuation scheme in which, but for the act or omission, he would be eligible to participate, and (g) does not include a person engaged as a contractor, or on a contract basis, otherwise than under a contract of employment. employer means— (a) the Crown or a Minister of the Crown, (b) a person described in the First Column of Schedule 2 and an association of persons so described. financial year means— (a) except as provided by paragraph (b)—the year ended on 31 March, or (b) the period prescribed for the purposes of this definition. Fund means the New South Wales Retirement Fund established by this Act. initial credit means— (a) in relation to a contributor who, before he became a contributor, was a contributor to the Account—an amount equal to the sum of— (i) the total amount of his contributions to the Account before he ceased to contribute thereto pursuant to section 12 (9) reduced, where any amounts have been paid to him pursuant to Part 9 of the Government Railways Act 1912, by an amount determined by the Board, and (ii) an allowance of an amount calculated as provided by subsection (2), (b) in relation to a contributor who, before he became a contributor, was a contributor to the Transport Retirement Fund—an amount equal to the sum of— (i) the amount of his initial credit, if any, within the meaning of the Transport Employees Retirement Benefits Act 1967, immediately before he became a contributor, (ii) an amount calculated as provided by subsection (3), (iii) an amount calculated as provided by subsection (4), (c) in relation to a contributor who, before he became a contributor, was a participant in a superannuation scheme by virtue of his employment, not being a superannuation scheme referred to in paragraph (a) or (b)—any amount paid into the Fund by or in relation to the contributor as a consequence of an order under section 12 (1) or an election under section 12A, being the amount of any money paid to him or on his behalf, or recovered by him or on his behalf, upon withdrawal from the scheme less such part of that amount, if any, as may be required, by terms and conditions referred to in section 12 (1) (c) or in accordance with a determination of the Board under section 12A (4), to be paid into the Fund on behalf of an employer or any other person or otherwise disbursed to or on behalf of an employer or any other person. initial credit benefit means, in relation to a contributor who, immediately before he became a contributor, was a contributor to the Account, the Transport Retirement Fund or another superannuation scheme—an amount equal to the sum of— (a) his initial credit, and (b) interest on that initial credit, as provided by section 53, for the period from the date on which he became a contributor to the date on which he attains the age of sixty years. maximum benefit means, in relation to a person at a particular time, an amount equivalent to twice his annual wages at that time, reduced by so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. minimum benefit means, in relation to a person at a particular time, an amount equivalent to one-half of his annual wages at that time reduced by so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. regulations means regulations made under this Act. retrenchment means compulsory termination by an employer of the services of an employee on the ground that the employee's office has been abolished, no other office in the service of that employer or another employer having been found for him at not less than two-thirds of his annual wages at the date of that termination, but does not include termination of employment— (a) by reason of the expiration of the term of service for which the employee was engaged, or (b) where the employee was engaged until certain work ceased to be available—by reason of that work ceasing to be available. superannuation scheme means a retirement scheme, fund or arrangement to or in respect of which an employer or a public or local authority constituted by an Act makes, or is liable to make, a payment in respect of a person employed by the employer or authority but does not include the scheme established by this Act. Transport Retirement Fund means the Transport Retirement Fund established by the Transport Employees Retirement Benefits Act 1967. widow includes widower and words in the feminine gender relating to a widow include the corresponding words in the masculine gender that relate to a widower. (1A) For the purposes of paragraph (a) of the definition of employee in subsection (1), a person is employed on a part-time basis if, and only if— (a) he is a person specified in Schedule 2A or is a member of a class of persons so specified, or (b) he— (i) is not a person referred to in paragraph (a), (ii) is classified by his employer as a person employed on a part-time basis and the Minister has not directed the employer to withdraw that classification, (iii) would be an employee if he were employed otherwise than on a part-time basis, and (iv) has failed before the day prescribed for him by subsection (1B) to appeal to the Minister, in the manner prescribed, against the classification referred to in subparagraph (ii) or, where he has so appealed, his appeal has been dismissed. (1B) For the purposes of subsection (1A) (b) (iv), the day prescribed for a person by this subsection is— (a) the day that is three months after the day appointed under section 2 (2) of the New South Wales Retirement Benefits (Amendment) Act 1976, or (b) the day on which that person would, if he were not a person employed on a part-time basis, be entitled to elect to contribute to the Fund, whichever is the later day. (1C) In determining an appeal referred to in subsection (1A) (b) (iv), the Minister shall have regard to— (a) the hours and days during which work is ordinarily done at the appellant's place of employment by persons employed at that place, and (b) such other matters as the Minister considers to be relevant. (1D) Where an appeal referred to in subsection (1A) (b) (iv) is upheld, the Minister may direct any employer of a person within a specified class of persons (being a class of which the successful appellant is a member) to withdraw any classification of that person as a person employed on a part-time basis and the employer shall forthwith— (a) inform that person of the direction and of the days specified by the Minister under subsections (1E) (a) (ii) and (1E) (b) (ii), and (b) give effect to the direction. (1E) Where an appeal referred to in subsection (1A) (b) (iv) is upheld, section 10 or 12, whichever is appropriate, applies to and in respect of the successful appellant, and any person in respect of whom a direction under subsection (1D) applies, as if— (a) in the case of section 10, the day on which an election may be made under that section were any day that is— (i) not earlier than the day specified in section 10 (1), and (ii) not later than a day specified by the Minister for the purposes of this paragraph when giving his decision on the appeal and when giving any direction under subsection (1D), and (b) in the case of section 12, the day on which an election may be made under that section were any day that is— (i) not earlier than the election date under that section for that appellant or person, and (ii) not later than a day specified by the Minister for the purposes of this paragraph when giving his decision on the appeal and when giving any direction under subsection (1D). (2) For the purposes of paragraph (a) (ii) of the definition of initial credit in subsection (1), the amount of allowance for a contributor is an amount equal to such percentage of the amount referred to in paragraph (a) (i) of that definition as is specified in the Second Column of Schedule 6 opposite the number of years specified in the First Column of that Schedule that is equal to the number of complete years for which the contributor contributed to the Account. (3) The amount referred to in paragraph (b) (ii) of the definition of initial credit in subsection (1) is, in respect of a contributor so referred to, an amount equal to the total amount of the contributions paid by him or on the behalf to the Transport Retirement Fund before he became a contributor under this Act, reduced by the sum of— (a) the difference between that total amount and the total amount of contributions that would have been paid by him or on his behalf to the Transport Retirement Fund had they been made in accordance with Scale 2 of Schedule 2 to the Transport Employees Retirement Benefits Act 1967, and (b) where any amounts have been paid to him from the Transport Retirement Fund—such amount as the Board may determine. (4) The amount referred to in paragraph (b) (iii) of the definition of initial credit in subsection (1) is, in respect of a contributor so referred to, an amount equal to the sum of— (a) an amount of interest on his initial credit, if any, for the period for which he contributed to the Transport Retirement Fund, and (b) an amount of interest on the amount calculated in accordance with paragraph (b) (ii) of that definition, calculated in a manner determined by the Board in respect of that person (regard being had to the respective dates of payment of each of the contributions so referred to), the interest in each case being calculated at a rate or rates determined by the Board having regard to the average earning rate on the Transport Retirement Fund for each year ending on 30th June that ended during the period referred to in paragraph (a), that average earning rate being calculated in accordance with the formula where, in the application of the formula in respect of a year ending on 30 June— I represents the total amount of interest, dividends and rents credited to the Transport Retirement Fund during that year ending on 30th June, together with any profit derived from the realisation or appreciation of assets, reduced by— (a) the amount of any interest charges against the Transport Retirement Fund, (b) the amount of any depreciation of assets and the amount of any loss on the realisation of assets, and (c) costs of management of the Transport Retirement Fund. C represents the amount of the Transport Retirement Fund at the beginning of that year ending on 30 June. D represents the amount of the Transport Retirement Fund at the end of that year ending on 30 June, and, in determining the values to be assigned to the symbols I, C and D, accrued income and expenditure, including costs of management accrued and not paid, shall be taken into account. (5) For the purposes of this Act, the time at which a person becomes a contributor is, in the case of a person who becomes a contributor on more than one occasion, the later or latest of those occasions, except where the regulations otherwise provide. (6) Where a period of service is referred to in this Act in relation to an employee, the period so referred to is a period of continuous employment as an employee, being a period that is continuous with, and includes, the period of employment by virtue of which he is an employee and, for the purposes of calculating the duration of the period of service of an employee— (a) he shall be deemed to have been an employee at a time before the coming into force of the provisions of this Act whereby he is an employee if, had those provisions been in force at that time, he would have been an employee at that time, (b) where he became an employee by reason of his being within a class of persons referred to in section 12 (1) (a) (ii), he shall be deemed to have been an employee during any continuous period immediately before he so became an employee during which he participated in, or, in the opinion of the Board, would with the effluxion of time have participated in, a superannuation scheme by virtue of his employment with— (i) an employer, or (ii) such other public or local authority constituted by an Act as the Minister may approve in respect of him, (b1) where he became an employee pursuant to an election under subsection (10), he shall be deemed to have been an employee during any continuous period immediately before he so became an employee during which— (i) for any reason based on non-compliance with a requirement as to medical fitness, he was ineligible to participate in a superannuation scheme in which, but for that reason, he would have been eligible to participate, and (ii) he was employed by an employer or such other public or local authority constituted by an Act as the Minister may approve in respect of him, (b2) where the employee— (i) was a contributor to the State Superannuation Fund, (ii) made the election referred to in section 12A (1), and (iii) paid an amount to the Board in accordance with section 12A (3), the employee shall be deemed to have been an employee during any continuous period immediately before ceasing to be a contributor to the State Superannuation Fund during which the employee was such a contributor, and (c) he shall, if he becomes a contributor pursuant to an election under section 16, be deemed, notwithstanding paragraphs (a) and (b), not to have been an employee during any period before the day that was twelve months earlier than the day on which he becomes a contributor. (6A) Notwithstanding subsection (6), the regulations may prescribe that a period specified or described in the regulations is, or is not, a period of service for the purposes of this Act. (7) A reference in this Act to the first day of a pay period for or applicable to a person that next follows a specified day or event includes a reference to a pay period for or applicable to that person the first day of which is that specified day or the day on which the specified event occurred. (8) A reference in this Act to a description of a person, or to a class of persons, includes a reference to the name of a person and, where the reference is to a class of persons, the class may be described by reference to— (a) all persons within a specified class of persons, or (b) all persons within a specified class of persons other than— (i) a specified person or specified persons, or (ii) a specified class, or specified classes, of persons. (9) Where this Act provides for the making of an election on a specified day, the Board may arrange for the election to be made in anticipation of that day but— (a) an election so made does not take effect before that day, and (b) takes effect only to the extent that, had it not been made, it could be made on that day. (10) Where a person is not an employee by reason only of his being a person described in paragraph (d) of the definition of employee in subsection (1), he becomes an employee if, within the period of three months after being notified by the Board that he may do so, and while in the employment of an employer, he elects to be subject to the provisions of this Act. (11) In this Act, a reference to the amount in respect of which a contributor is contributing to the Fund— (a) is a reference to the amount upon which his rate of contribution is based, and (b) does not include any amount referred to in section 26 (3) (b) or 26 (5) (c). Part 2 4–9 (Repealed) Part 3 Employee contributions 10 Certain employees may elect to contribute to the Fund (1) Subject to section 3 (9), on the day on which an employee completes twelve months' service on or after the appointed day he may, if he has not attained the age of sixty years, elect to contribute to the Fund unless he is a person who will become a contributor pursuant to section 11 or a person referred to in section 12 (2) or 12 (3). (2) Where an employee was, immediately before he became an employee, a participant in a superannuation scheme by virtue of his employment he shall, for the purposes of subsection (1), be deemed to have completed twelve months' service— (a) on the day on which he became an employee, or (b) on the day that is twelve months later than the day on which he took up the employment by virtue of which he became a participant in the superannuation scheme, whichever is the later day. (3) Where a person who becomes an employee by virtue of an election under section 3 (10) had completed more than nine months' service at the time he first became entitled to make that election, subsection (1) applies to him as if he had completed nine months' service at that time. (4) An employee who makes an election under this section shall contribute to the Fund on and from a day determined by the Board, being a day that is not earlier than the day on which, pursuant to subsection (1), he is entitled to make the election. 11 Certain persons required to contribute to Fund (1) On and from the first day of the pay period applicable to him that next succeeds the appointed day, a person who, immediately before the appointed day, is a contributor within the meaning of the Transport Employees Retirement Benefits Act 1967, and has not attained the age of thirty years— (a) shall cease to contribute to the Transport Retirement Fund, (b) shall, except to the extent provided by this Act, cease to be entitled to receive any benefit under the Transport Employees Retirement Benefits Act 1967, and (c) shall contribute to the Fund at the same rate as the rate at which he was contributing to the Transport Retirement Fund immediately before ceasing to contribute to the Transport Retirement Fund or, if the rate necessary to provide for his minimum benefit immediately before that day is a higher rate, at that higher rate. (2) Subject to section 3 (9), a person who will become a contributor pursuant to subsection (1) may, on the appointed day, elect to vary the amount in respect of which he is to contribute to the Fund to an amount that is not less than the minimum benefit, and not more than the maximum benefit, for him at a date determined by the Board. (3) Where a person makes an election under subsection (2), the necessary variation in his rate of contribution to the Fund shall take effect on and from a day determined by the Board, being a day that is not earlier than the day on which that person becomes a contributor. 12 Certain classes of persons may elect to contribute to the Fund (1) The Minister— (a) by order published in the Gazette may specify a class or classes of persons being either or both of the following classes, namely— (i) a class of employees, (ii) a class of persons in the employment of an employer, being persons who, immediately before the date of publication of the order in the Gazette, were participants in a superannuation scheme by virtue of their employment, (b) shall, where he specifies a class or classes of persons referred to in paragraph (a), declare in the order that a specified date, being a date that is not earlier than 3 months later than the date of publication of the order in the Gazette, is the election date for the purposes of this section in respect of a person within any such class, and (c) shall, where he specifies a class of persons referred to in paragraph (a) (ii), determine terms and conditions of either or both of the following kinds, namely— (i) such terms and conditions as he thinks fit in compliance with which a person within that class may elect on that election date to become a contributor to the Fund, (ii) such terms and conditions as he thinks fit which shall apply to a person within that class who elects on that election date to become a contributor to the Fund. (1A) The terms and conditions referred to in subsection (1) (c)— (a) in relation to a person within a class of persons referred to in subsection (1) (a) (ii), may include terms and conditions in relation to the withdrawal from a superannuation scheme and the disposition of money payable to him or on his behalf, or recoverable by him or on his behalf, upon withdrawal from the scheme, and (b) may be made to vary in their application according to time or circumstance. (1B) The Board shall notify, in writing, a person referred to in subsection (1) (a) (ii) of the terms and conditions determined in relation to him under subsection (1) (c) as soon as practicable after the publication in the Gazette of the order under subsection (1) that relates to him. (2) Subject to this section and compliance with any terms and conditions determined under subsection (1) (c) (i) in relation to him, an employee who— (a) is an employee to whom an election date specified in an order under subsection (1) relates, and (b) if he were to remain in the employment of an employer until immediately before that election date would complete not less than twelve months' service, may, subject to section 3 (9), elect on that election date to contribute to the Fund. (2A) A person within a class of persons referred to in subsection (1) (a) (ii) may, for the purpose of complying with any terms and conditions determined under subsection (1) in relation to him, withdraw from a superannuation scheme in which he was, immediately before the date of publication of the order in the Gazette, a participant by virtue of his employment as if he had resigned, immediately before his withdrawal from the superannuation scheme, from the employment of his employer. (2B) Where a person within a class of persons referred to in subsection (1) (a) (ii) fails to comply with a term or condition of a kind referred to in subsection (1) (c) (ii), the Board may— (a) treat the person for the purposes of this Act in such manner, and (b) take such action, as will, having regard to the circumstances of the case, on actuarial advice, be reasonably appropriate to deal with the failure. (2C) Without limiting the generality of subsection (2B), the action which the Board may take under that subsection may include either of the following— (a) treating the election by the person to contribute to the Fund as having been a nullity and refunding to him an amount equal to the sum of— (i) the total of the amounts of his contributions to the Fund, and (ii) the amount of his initial credit, if any, (b) withholding or reducing any benefit payable under this Act to the extent to which the benefit is attributable to the person's employer's contributions to the Fund, or to a lesser extent. (3) The Minister may, by order published in the Gazette after the appointed day declare that a specified date that is not earlier than three months later than the publication of the order is the election date for the purposes of this section in respect of— (a) a contributor within the meaning of the Transport Employees Retirement Benefits Act 1967 who attained the age of thirty years on or before the appointed day or an employee within the meaning of that Act who ceased to be such a contributor by reason of his having attained the age of sixty-five years on or before the publication of the order, (b) a contributor to the Account, (c) an officer within the meaning of the Transport Act 1930 who was not, immediately before the appointed day, a contributor to a superannuation fund or account established under the Transport Act 1930, the Government Railways Act 1912, the Superannuation Act 1916, or the Transport Employees Retirement Benefits Act 1967, or (d) a person who elected under section 24 (1) (b) of the Railways Retirement Fund Act 1964, or section 17 (2) (b) of the Transport Employees Retirement Benefits Act 1967, not to be a contributor. (4) Subject to this section, a person in respect of whom an election date has been specified under subsection (3) may, subject to section 3 (9), elect on that election date to contribute to the Fund. (5) A person aged sixty years or more is not entitled to make an election under this section unless— (a) he has completed ten years' service, or (b) where he has not completed ten years' service—it would, in the opinion of the Board, be possible for him to continue in the service of an employer until he completes ten years' service before retirement. (6) Where the employer of a person within a class of persons referred to in subsection (1) (a) (ii) is entitled to be paid on its own behalf, or to recover on its own behalf, or has been paid on its own behalf, or has recovered on its own behalf, money from a superannuation scheme from which the person has withdrawn as a consequence of an order under subsection (1), the Minister may direct the employer, in writing, to pay the money into the Fund. (6A) The Board may, in any court of competent jurisdiction, recover as a debt from an employer any money that the employer has been directed to pay into the Fund pursuant to subsection (6). (7) Where an election by an employee under this section takes effect, the employee shall contribute to the Fund on and from a day determined by the Board, being a day that is not earlier than the day after the last day on which he could have made the election. (8) A person referred to in subsection (3) (a) who makes an election under this section shall, upon becoming a contributor, cease to contribute to the Transport Retirement Fund and, except to the extent provided by this Act, shall not be entitled to receive any benefit under the Transport Employees Retirement Benefits Act 1967. (9) A person referred to in subsection (3) (b) who makes an election under this section shall, upon becoming a contributor, cease to contribute to the Account and, except to the extent provided by this Act shall not be entitled to receive any benefit from the Account. (10) A person referred to in subsection (3) (c) shall, upon becoming a contributor, cease to be eligible for any benefit under section 132A of the Transport Act 1930. 12A Contributors to State Superannuation Fund becoming employees (1) Subject to subsection (2), a person who, not more than 3 months before becoming an employee, was a contributor to the State Superannuation Fund may, at the time of becoming an employee, elect to contribute to the Fund and to take the benefit of this section. (2) A person may not make an election referred to in subsection (1) if— (a) the person has attained the age of 60 years, or (b) immediately before ceasing to be a contributor to the State Superannuation Fund, the person was treated by the State Superannuation Board as if the person were not an employee within the meaning of the Superannuation Act 1916. (3) An employee who makes the election referred to in subsection (1) shall pay to the Board an amount equivalent to the sum (if any) received by the employee by virtue of ceasing to be a contributor to the State Superannuation Fund or such part thereof as the Board determines in respect of the employee. (4) The Board may determine that such part as it may specify of an amount paid to the Board by an employee as referred to in subsection (3) be paid into the Fund on behalf of any other person (whether an employer or not) who previously employed the employee during a period of service in respect of which any benefit payable from the Fund to or in respect of the employee is required to be calculated or may determine that that part be otherwise disbursed to or on behalf of that person. (5) An employee who makes the election referred to in subsection (1) shall contribute to the Fund on and from a day determined by the Board. (6) Nothing in this section prevents the application of section 10 to a person referred to in subsection (1) who does not make the election referred to in that subsection. 13 Contributions by certain persons aged sixty years or more at time of making election Where a person aged sixty years or more makes an election under section 12— (a) he shall contribute to the Fund for the pension benefit referred to in section 26 (7) as if he were contributing for a lump sum benefit and shall, not withstanding section 18, so contribute at such rate and over such period as is determined by the Board, (b) he shall, if he becomes entitled to a benefit from the Fund before he has paid the total amount of contributions that, in the opinion of the Board is the total amount of contributions necessary to provide the benefit for which he is contributing when he becomes so entitled, pay such contributions to the Fund, additional to those already paid by him, as are actuarially determined by the Board as being necessary to provide that benefit or make arrangements satisfactory to the Board for their payment, and (c) subject to compliance with paragraph (b), he is entitled to have taken into account in calculating the benefit to which he is entitled under section 26 (7) or to which any other person is entitled under section 28 an allowance of an amount equal to an amount of interest as provided by section 53 on the amount in respect of which he is contributing for the period that commenced on the day on which he attained the age of sixty years and ended on the day on which he retired or sooner died. 14 Amount of benefit for which contributor must contribute A person who elects to become a contributor shall, upon his election taking effect, contribute to the Fund in respect of an amount that is not less than the minimum benefit for that person nor more than the maximum benefit for that person— (a) at the time he made the election, or (b) where, at the time of making the election, he had attained the age of sixty years—on the day on which he attained that age. 15 Variation of benefits and contributions (1) In this section— contributor means a contributor who has not attained the age of sixty years at his election date. election date means, in relation to a contributor, a date determined by the Board for the purposes of subsection (2). review date means, in relation to a contributor, a date determined by order of the Board for the purpose of calculating the benefit applicable in relation to the annual wages of the contributor at that date. (2) Subject to subsection (7), a contributor may, on a date determined by the Board for the purposes of this subsection in relation to the contributor or within three months thereafter, elect— (a) to contribute in respect of an increased amount not exceeding the maximum benefit for the contributor at the review date, or (b) to reduce his rate of contribution to the Fund, but not so that he is contributing in respect of an amount that is less than his minimum benefit at the review date, and, except as provided in subsections (3) and (4), the amount in respect of which a contributor is contributing shall not be varied unless it is varied pursuant to such an election. (2A) Where an election is made by a contributor for the purposes of subsection (2) (a) or (b) in any year, the election shall be treated as relating to the review date for the contributor for that year, whether or not that review date is specified in the election. (3) Except pursuant to an election under subsection (2) (b), where the annual wages of a contributor are reduced, his rate of contribution to the Fund shall not be reduced unless the Board, on the application of the contributor, so approves and, where such an application is approved, the reduced contributions shall be paid on and from a day determined by the Board. (4) Where, at a review date for a contributor, the amount in respect of which he is contributing is less than the minimum benefit for the contributor at that date, he shall pay to the Fund such increased contributions as are required to be made in respect of an amount equal to that minimum benefit. (5) Where, as a result of an election under subsection (2) (b) or an application under subsection (3), a contributor's rate of contribution to the Fund is reduced— (a) a refund of any amount by which a past contribution to the Fund exceeded the reduced rate shall not be made, (b) the amounts by which any of his past contributions to the Fund exceeded the reduced rate shall, subject to section 17, be taken into account when calculating any benefit to which he is entitled. (6) Where a contributor makes an election under subsection (2) or his rate of contribution to the Fund is increased under subsection (4), his contributions to the Fund at the varied rate shall be paid on and from a day determined by the Board that is not earlier than the election date nor more than three months after that date. (7) A contributor who is aged fifty years or more at his election date may not elect under subsection (2) (a) to increase the amount in respect of which he is contributing to the Fund to an amount greater than the amount ascertained in accordance with the formula— where— a represents the contributor's annual wages at his next preceding review date within the meaning of this section. b represents the sum of the amount in respect of which the contributor was contributing immediately before the election and the amount of his initial credit benefit if any. c represents the contributor's annual wages at his review date that next preceded the review date referred to in the definition of the symbol a. 16 Periodic opportunities to elect to become a contributor (1) This section applies to— (a) an employee who— (i) has not attained the age of sixty years, and (ii) having been entitled to elect under section 10 (1), or under this section, to become a contributor has failed to do so, (b) an employee referred to in section 12 (1) (a) (i) or 12 (3) (d) who— (i) has not attained the age of sixty years, and (ii) having been entitled to elect under that section or under this section, to become a contributor has failed to do so, and (c) an employee who— (i) has not attained the age of sixty years, and (ii) pursuant to section 21 (1) is not a contributor and has not been a contributor during the period of twelve months that next preceded the later or latest of the days appointed pursuant to subsection (2). (2) The Board shall, by notification published in the Gazette before the expiration of the period of three years that next succeeds the appointed day, and by a notification so published once during every third year that succeeds the expiration of that period, appoint a day for the purpose of making an election under this section, being a day that is not earlier than three months after the publication of the notification. (3) An employee to whom this section applies may, on or before the day appointed by a notification published under subsection (2) or, where more than one such notification has been published, on or before the day appointed by the later or latest such notification, elect to contribute to the Fund. (4) An employee who becomes a contributor pursuant to an election under this section shall contribute to the Fund on and from a day determined by the Board, being a day that is not earlier than the day appointed under subsection (2) for making the election. 17 Certain moneys to be paid to Employees Reserve Account Where a contributor attains the age of sixty years and the Board is of the opinion that the contributions made or to be made by him would, but for this section, entitle him, if he became eligible for a lump sum benefit, to receive amounts referred to in section 26 (1) (b) that would exceed the amount of the maximum benefit for the contributor at that age, an amount equal to the excess shall be paid to the credit of the contributor as if the contributor had paid it pursuant to section 24 (1) (b). 18 Rates of contribution (1) Where a person is liable initially to contribute to the Fund or becomes liable to contribute to the Fund in respect of an increased amount, the amount of his initial fortnightly contribution or, as the case may be, the amount of his additional fortnightly contribution in respect of that increased amount is the amount determined in accordance with the formula— where— c represents the amount of the fortnightly contribution or, as the case may be, the additional fortnightly contribution, to be paid by the contributor to the Fund. b represents the amount in respect of which or, as the case may be, the amount of the increase in respect of which, the contributor is liable to contribute. r represents the amount specified— (a) in the Second Column of Schedule 3, or (b) in the Second Column of Schedule 3A, opposite the age specified in the First Column of that Schedule that is the age next birthday of the contributor. z is to be disregarded where the calculation to be made is a calculation relating to a contribution in respect of an increased amount but otherwise represents the amount of twelve cents. (2) (Repealed) (3) Where the rate at which a contributor is contributing to the Fund is reduced before he attains the age of sixty years, the amount in respect of which he is contributing at the reduced rate is the amount determined by the Board on an actuarial basis as the reduced amount in respect of which he is contributing. (4) Where a contribution to the fund that, but for this subsection, would be payable to the Fund by a contributor includes a fraction of a cent, the contribution shall be increased to the next higher whole cent. 19 Payment of contributions (1) Subject to subsection (2), contributions required to be paid to the Fund shall be deducted by employers from the salaries or wages of contributors at each payment thereof and shall be paid by employers to the Board within a period of fourteen days from the date of deduction. (2) Subsection (1) does not apply to or in respect of contributions that, with the approval of the Board, are to be paid by the contributor directly to the Board. (3) Where the amount of a contribution that has been deducted from the salary or wages of a contributor and paid to the Fund, or paid directly by a contributor to the Fund, exceeds the amount of the contribution that should have been paid to the Fund, the Board may refund to the contributor the amount of the excess or treat it as a payment made by the contributor under section 24 (1) (b). (4) Where the amount of a contribution deducted from the salary or wages of a contributor and paid to the Fund, or paid by a contributor directly to the Fund, is less than the amount of the contribution required to be paid to the Fund, or where a contribution that should have been paid to the Fund is not so paid, the Board may— (a) waive payment of the contribution to the extent that it is unpaid and reduce, to the extent that it considers appropriate having regard to the unpaid amount, the amount in respect of which the contributor would, but for that reduction, be contributing, (b) allow an amount to be transferred from the balance at the contributor's credit under section 24, if any, in payment or part payment of the unpaid amount and interest thereon as provided by section 53, or (c) deduct the unpaid amount, and interest thereon as provided by section 53— (i) where a lump sum benefit is payable—from the total benefit that would otherwise be payable, or (ii) where a pension is payable pursuant to section 26 (7)—from the amount by reference to which the pension is calculated, and any amount transferred or deducted under paragraph (b) or (c) (interest as provided by section 53 excepted) shall be deemed to be a contribution to the Fund made by the contributor. 20 Cessation of payment of contributions (1) Subject to section 62, a contributor who pays contributions to the Fund in accordance with Schedule 3 shall cease to pay those contributions on the first day of the pay period applicable to him during which he ceases to be employed by an employer, dies, retires or attains the age of sixty years, whichever first occurs. (2) Subject to section 62, a contributor who pays contributions to the Fund in accordance with Schedule 3A shall cease to pay those contributions on the first day of the pay period applicable to him during which he ceases to be employed by an employer, dies or retires. (3) (Repealed) 21 Exemption from payment of contributions (1) Where— (a) a contributor makes written application to the Board for an exemption under this section, and (b) the Board is satisfied— (i) that adequate provision has been made for the contributor and his family, if any, with respect to the retirement of the contributor, or (ii) that there are other special circumstances which justify his being exempted from the payment of contributions under this Act, the Board may, by its order, exempt him from paying contributions to the Fund. (2) Notwithstanding any other provision of this Act, while an order made under subsection (1) is in force, the person in respect of whom the order was made— (a) shall not be required to contribute to the Fund, and (b) shall be deemed not to be a contributor for the purposes of this Act. 22 Election following increase in wages between review date and age of sixty years (1) In this section contributor includes a person who ceased to be a contributor on his retirement. (2) Notwithstanding section 14, where a contributor is aged sixty years or more and, between his review date (within the meaning of section 15) that next preceded his attainment of that age and the day on which he attained that age, the amount of his annual wages was increased to an amount greater than the multiple of one hundred dollars next higher than the amount of his wages immediately before the increase he shall contribute in respect of the additional amount referred to in subsection (3), unless he makes an election— (a) to contribute in respect of a lesser additional amount, or (b) not to contribute in respect of an additional amount. (3) The additional amount in respect of which a contributor shall contribute under subsection (2), if he does not make an election under that subsection, is such an amount that— (a) the fraction obtained by dividing the total amount in respect of which he has elected to contribute by his annual wages on his attainment of the age of sixty years— does not exceed— (b) the fraction obtained by dividing the amount in respect of which he was contributing immediately before his attainment of the age of sixty years by his annual wages at the review date referred to in that subsection. (4) For the purposes of this section, the annual wages of a contributor on his attainment of the age of sixty years include any increase in his annual wages paid after he attains that age if— (a) the increase is effective from a day that was earlier than the day on which he attained that age, and (b) was payable in respect of a period that included the day on which he attained that age. (5) An election under this section shall be made— (a) where the increase in annual wages is paid on or before the attainment by the contributor of the age of sixty years—within three months after his attainment of that age, or (b) where the increase in annual wages is paid after the attainment by the contributor of that age—within three months after the day on which the increase is paid. (6) Where a person's rate of contribution to the Fund is varied under this section, whether or not pursuant to an election made under this section, the variation shall be made from a date determined by the Board. 23 Effect of lapse of period between employment by successive employers (1) Where an employee ceases to be employed by an employer and, not having attained the age of sixty years he is, on or before the expiration of the next succeeding period of three months, employed by the same or a different employer, he shall, for the purposes of this Act, be deemed not to have ceased to be an employee if he complies with subsection (2). (2) An employee complies with this subsection if— (a) not later than the expiration of the period of three months that next succeeds his resumption of employment with an employer, he applies to the Board for its approval to his broken service being reckoned as continuous service, (b) he repays to the Board, or makes arrangements satisfactory to the Board for the payment of, the amount of any benefit under this Act that he received before, or receives after, making his application under paragraph (a) together with interest thereon in accordance with section 53 from the date on which the benefit was paid to him to the date on which he repays it to the Board, and (c) where he would have been a contributor had he continued in the employment of an employer during the period between the cessation of his employment with an employer and his resumption of employment with an employer—he pays to the Board, or makes arrangements satisfactory to the Board for the payment of, the amount of any contributions that would have been payable by him had he so continued in the employment of an employer, together with interest thereon in accordance with section 53 as if he had so continued in the employment of an employer without paying those contributions. (3) Where an employee referred to in subsection (1) fails to comply with subsection (2) he shall, for the purposes of the application of this Act to him after the commencement of his employment secondly referred to in subsection (1), be deemed not to have been employed by an employer before that commencement. (4) This section applies to and in respect of a person who, having ceased to be an employee by reason of his becoming employed on a part-time basis, again becomes an employee by being employed otherwise than on a part-time basis, and it so applies as if, on ceasing to be an employee, he ceased to be employed by an employer and as if, upon again becoming an employee, he had resumed employment with an employer. 24 Contributor may make additional contributions (1) A contributor may— (a) authorise his employer to deduct from his salary or wages and pay to the Fund any amount in excess of the contributions payable by him under this Act and may at any time cancel the authorisation, (b) pay directly to the Fund any amount additional to those contributions. (2) Payments made under subsection (1)— (a) form part of the Fund, (b) shall bear interest as provided by section 53, (c) shall not be withdrawn prior to a benefit becoming payable to or in respect of the contributor under this Act, (d) may, on application by the contributor and subject to the approval of the Board, be employed in payment of any arrears of contributions payable by the contributor under this Act. (3) Where a contributor ceases for any reason to be employed by an employer, any amount standing to his credit in accordance with this section— (a) may be withdrawn by the contributor on a benefit becoming payable to him under this Act, (b) where section 26 (6) or 27 applies to the contributor, may be the subject of an election under section 26 (6) or 27, as the case may be, as if it were an addition to the amount upon which the calculation of the pension is based, or (c) where section 28 applies in respect of the contributor, may be paid as an addition to a benefit payable under that section in respect of the contributor. Part 4 Benefits 25 Definitions (1) For the purpose of calculating the amount of a benefit under this Act, a reference to the amount of a contribution is a reference to the amount paid to the Fund as that contribution, reduced by— (a) the value, if any, ascribed to the symbol z when calculating the amount of the contribution in accordance with the formula referred to in section 18 (1), and (b) where any part of the contribution was refunded—an amount equal to the amount of the refund. (2) Where, during any period of his service, an employee is employed on a part-time basis, the amount of the benefit that would, but for this subsection, be payable to him, or in consequence of his death, shall be reduced as prescribed. 26 Benefits (1) In this section prescribed amount in relation to a contributor to whom subsection (2), (2A), (2B) or (4) applies is the lesser of— (a) the amount of the maximum benefit for the contributor together with his initial credit benefit (if any)— (i) where he retires, or is retired, as provided in subsection (2) or (2A) or is retrenched—at the date of his retirement or retrenchment, or (ii) where he retires as provided in subsection (4)—on the day on which he attains the age of sixty years, and (b) an amount equal to the sum of— (i) the total of the amounts of his contributions to the Fund, (ii) the amount of his initial credit, if any, and (iii) interest, as provided by section 53, on the amounts referred to in subparagraphs (i) and (ii) in respect of the period that commenced on the date on which he became a contributor and ended on his attainment of the age of sixty years or his earlier retirement or retrenchment. (iv) (Repealed) (1A) In subsections (2) and (4), a reference to the prescribed service is a reference to not less than 5 years' service. (2) Where a contributor who has completed the prescribed service ceases to be employed by an employer by reason of his retirement on attaining the age of 60 years at the end of a period of not less than 5 years' continuous service as a contributor, there shall be paid to him from the Fund as a lump sum benefit the amount referred to in subsection (2C). (2A) Where a contributor who has completed not less than 10 years' service ceases to be employed by an employer by reason of his retirement through infirmity of body or mind and the Board is satisfied that the infirmity— (a) incapacitates the contributor from performing his duties, and (b) is likely to be permanent, there shall be paid to him from the Fund as a lump sum benefit the amount referred to in subsection (2C). (2B) Where a contributor who has completed not less than 10 years' service ceases to be employed by an employer by reason of his retrenchment, there shall be paid to him from the Fund as a lump sum benefit the amount referred to in subsection (3). (2C) The amount payable under subsection (2) or (2A) to a contributor referred to therein is an amount equal to the sum of— (a) the prescribed amount for the contributor, (b) an allowance of an amount that is a percentage of the prescribed amount, being the percentage calculated, in accordance with the formula prescribed by Schedule 5, with respect to the number of months of service that had been completed by that person on or before his retirement, and (c) if the contributor has paid contributions to the Fund in accordance with Schedule 3A—an allowance of an amount that is a percentage, being the percentage applicable in relation to the contributor under paragraph (b), of the difference between the prescribed amount and what the prescribed amount would have been if he had instead paid those contributions in accordance with Schedule 4A. (3) The amount payable under subsection (2B) to a contributor referred to therein is an amount equal to the sum of— (a) the prescribed amount for the contributor, and (b) an allowance of an amount that is a percentage of the prescribed amount, being the percentage calculated, in accordance with the formula prescribed by Schedule 5, with respect to the number of months of service that had been completed by that person on or before his retrenchment. (4) Where a contributor (not being a contributor who attained the age of sixty years on or before his election date under section 12) continues in the service of an employer after he attains the age of sixty years and then retires after completing the prescribed service and at the end of a period of not less than 5 years' continuous service as a contributor, there shall be paid to him from the Fund as a lump sum benefit the amount referred to in subsection (5). (5) The amount payable under subsection (4) to a contributor referred to therein is an amount equal to the sum of— (a) an amount equal to the sum of— (i) the total of the amounts of his contributions to the Fund, and (ii) the amount of his initial credit, if any, (b) interest, as provided by section 53, on the amounts referred to in paragraph (a) in respect of the period that commenced on the day on which he became a contributor and ended on the day on which he retired, and (c) an allowance of an amount that is a percentage, being the percentage calculated, in accordance with the formula prescribed by Schedule 5, with respect to the number of months of service that had been completed by the contributor before his retirement, of the total of— (i) the maximum amount for the contributor or the amount of the benefit for which he was contributing, being the benefit, including his initial credit benefit (if any), related to his annual wage at the age of 60 years, whichever is the lesser amount, and (ii) interest on the lesser amount referred to in subparagraph (i) at the rate of 5½ per centum per annum compounded annually from the day on which he attained the age of 60 years until the day on which he retired. (5A) In subsection (5) (c) (i), maximum amount, in relation to a contributor, means the amount of the maximum benefit for the contributor together with his initial credit benefit (if any) on the day on which he attained the age of 60 years. (6) An election for the purposes of subsection (7) may be made by a contributor who retires on or after his attainment of the age of sixty years and, but for— (a) his having completed, on his retirement, a period of less than five years' continuous service as a contributor, or (b) his having attained the age of sixty years on or before his election date under section 12, would be entitled to a benefit under subsection (2), (2A) or (4). (7) There shall be paid from the Fund to a contributor referred to in subsection (6) and in accordance with his election— (a) a pension for himself for life on and from the day that next succeeds his retirement, (b) a pension for himself for life on and from the day that next succeeds his retirement with an increase of ten per centum in the amount thereof at the expiration of the period of three years that next succeeds the first payment of pension and at the expiration of each succeeding period of three years, each such increase being calculated by reference to the rate at which that first payment of pension was made, (c) a pension for himself for life on and from the day following his retirement and, if his spouse at the date on which the pension becomes payable is living at his death, a pension for that spouse for life, on and from the day that next succeeds his death, of an amount equal to five-eighths of the pension payable to him immediately before his death, or (d) pensions as provided in paragraph (c), with either pension, or with both pensions, as may be specified in the election, being increased as provided in the case of a pension referred to in paragraph (b). (8) The amount payable to a contributor as a pension under subsection (7) is the amount that, in the opinion of the Board, is the actuarial equivalent of the total benefit that would, but for a circumstance referred to in subsection (6) (a) or (6) (b), have been payable to him. 27 Alternative benefits (1) This section does not apply to a contributor entitled to make an election under section 26 (6) but applies to any contributor who is entitled to an amount under section 26 because of his ceasing to be employed by an employer— (a) by reason of his retirement aged sixty years or more, or (b) where he is aged fifty years or more, by reason of his retirement through infirmity of body or mind where the Board is satisfied that the infirmity— (i) incapacitates the contributor from performing his duties, and (ii) is likely to be permanent, or (c) where he is aged fifty years or more, by reason of his retrenchment. (2) Where a person to whom this section applies so elect