New South Wales: State Authorities Superannuation Act 1987 (NSW)

State Authorities Superannuation Act 1987 No 211 An Act to establish a superannuation scheme for certain employees in the public sector; and for other purposes. Part 1 Preliminary 1 Name of Act This Act may be cited as the State Authorities Superannuation Act 1987. 2 Commencement This Act shall commence on 1 April 1988. 2A Closure of scheme to new entrants on and from 19 December 1992 (1) Despite any other provision of this Act, an employee is not entitled to make an election to contribute to the Fund on or after 19 December 1992 (the closure date). (2) However, a person who lodged an election to contribute to the Fund with the Board, or with the person's employer, before the closure date is taken to have elected to contribute to the Fund before that date and this Act applies accordingly. (3) An election that was sent to the Board or employer, by post or otherwise, before the closure date is taken to have been lodged with the Board before that date. 2B Employee may resume contributions after break in employment (1) Despite section 2A, an employee who resumes employment as an employee in the circumstances set out in section 30 may make an application under that section and may resume contributions. (2) Section 2A does not prevent an employee from exercising a transfer option conferred under Part 6 or Part 7 of the Superannuation Administration Act 1996. 2C Employee over 55 years may contribute after election to preserve benefit after salary reduction (1) Despite section 2A, an employee who has elected under Part 2 of Schedule 5 to make provision for a preserved benefit before the commencement of this section, or who so elects after the commencement of this section, is entitled to elect to contribute to the Fund. (2) Despite section 2A, an employee who has elected under Division 3B of Part 4 of the Superannuation Act 1916 to defer or preserve a benefit before the commencement of this section, or who so elects after the commencement of this section, is entitled to elect to contribute to the Fund. (3) The election to contribute to the Fund must be made when the employee elects to make provision for a preserved benefit or to defer or preserve a benefit. (4) Despite subsection (3), an employee who elected to make provision for a preserved benefit or to defer or preserve a benefit before the commencement of that subsection may elect to contribute to the Fund at any time within 3 months after the commencement of that subsection. 3 Definitions (1) In this Act— additional benefit has the meaning given by section 36. additional benefit levy means the levy that, in order to attract the additional benefit for a contributor, is paid to the Fund by transfer from the contributor's account under section 22 (2) (b). Administration Account means the STC Administration Account maintained under the Superannuation Administration Act 1996. applicable contribution period has the meaning given by section 36. appointed day means 1 April 1988. attributed salary, in relation to a contributor at any time, means— (a) where the contributor is a full-time employee at that time—the salary of the contributor at that time, or (b) where the contributor is a part-time employee at that time—the salary that would be payable to the contributor at that time if employed as a full-time employee. Aware Super Fund has the same meaning as Fund has in the Aware Super Act 1992. benefit means a benefit payable under this Act. Board means the State Authorities Superannuation Board referred to in section 4 of the Superannuation Administration Act 1991. Commonwealth taxation law means a law of the Commonwealth that provides for the levying and collection of a tax. complying approved deposit fund means a complying approved deposit fund for the purposes of section 47 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. complying superannuation fund means a complying superannuation fund for the purposes of section 45 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. contribution period means a named month or such other period as may be prescribed. contributor means an employee whose election to contribute to the Fund has taken effect. contributor-financed benefit, in relation to a benefit payable to, or in relation to, a contributor, means the balance at credit in the contributor's account at the time the benefit is paid. contributor's account means the account established and maintained under section 12 in respect of the contributor. deferred benefit, in relation to a contributor, means a benefit deferred under section 42AA, 43 or 43AA. discharge, in relation to a contributor, means the cessation of the contributor's employment expressed by the employer to be on the ground that the period, or successive periods, for which the contributor was employed has or have ended. dismissal means the termination by an employer of the employment of a contributor with the employer, but does not include retrenchment or discharge or a retirement on the grounds of incapacity in circumstances which entitle the employee to a benefit. early retirement age means the age of 59 years or, if some lower age (but not lower than the age of 55) is prescribed, that lower age. employee means a person who is employed by an employer and who is the subject of a certificate by the employer to the effect that— (a) if the regulations prescribe any class of persons as not being employees—the person is not within any such class, and (b) if the regulations prescribe any requirement with which a person must comply in order to be an employee—the person complies with the requirement (specifying the requirement), but does not include an excluded person referred to in Schedule 2. employee contribution means a contribution made under Part 3, other than a salary sacrifice contribution. employer means— (a) the Crown, the Government or a Minister or other member of Parliament, or (b) an authority specified in Schedule 1, and a reference to employment with an employer includes a reference to employment with successive employers. employer-financed benefit, in relation to a benefit payable to, or in relation to, a contributor, means so much of the benefit as is paid from the reserve for that employer. employer reserve means a reserve established and maintained under section 14. entry date, in relation to a contributor, means the date as at which the contributor's election to contribute to the Fund took effect, that election being— (a) the only such election made by the contributor, or (b) where the contributor has made more than one such election—the later or latest of those elections. executive officer means a contributor who is— (a) a Public Service senior executive within the meaning of the Government Sector Employment Act 2013, or (b) an employee (not being a Public Service senior executive) of an employer specified in Schedule 1 and who holds an office designated by the Secretary of the Treasury as the office of an executive officer, or (c) a police executive officer, or (d) an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975. (e) (Repealed) exit date, in relation to a contributor, means the date on which the contributor ceases employment with an employer, that cessation of employment being— (a) the only such cessation of employment of the contributor, or (b) where there has been more than one such cessation of employment of the contributor—the later or latest of those cessations of employment. family law superannuation legislation has the same meaning as it has in Part 5AA. family law superannuation payment has the same meaning as it has in Part 5AA. FTC means the FSS Trustee Corporation established under the Superannuation Administration Act 1996. full-time employee means an employee whose salary ratio is equal to 1. Fund means the State Authorities Superannuation Fund established under this Act. maximum benefit points has the meaning given by section 36. non-contributor spouse has the same meaning as it has in Part 5AA. part-time employee means an employee whose salary ratio is less than 1 but at least 0.1. penalty, in relation to a Commonwealth taxation law, includes (but is not limited to)— (a) a penalty rate of taxation under that law, and (b) the loss of a concessional rate of taxation under that law. police executive officer means an executive officer within the meaning of Part 5 of the Police Act 1990. preserved benefit, in relation to a contributor, means a benefit preserved under section 43AAA. prospective benefit points has the meaning given by section 36. relevant Commonwealth superannuation standard means a standard that would be applicable under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth if the Fund was a regulated superannuation fund under that Act. resign means cease to be employed by an employer, but does not include— (a) retrenchment, discharge or dismissal, or (b) ceasing to be employed because of death, or (c) ceasing to be employed on the privatisation of an employer, or (d) ceasing to be employed on the grounds of incapacity in circumstances which entitle the employee to a benefit. retire means cease (otherwise than by reason of death) in any manner to be employed by an employer on or after reaching the early retirement age. retirement savings account has the same meaning as in the Retirement Savings Accounts Act 1997 of the Commonwealth. retrenchment, in relation to a contributor, means the termination of the employment of the contributor with an employer where the employment is expressed by the employer to be— (a) compulsorily terminated by the employer on the ground that— (i) the employer no longer requires the contributor's services and, on termination of the contributor's employment, does not propose to fill the contributor's position, (ii) the work that the contributor was engaged to perform has been completed, or (iii) the amount of work that the employer requires to be performed has diminished and, due to that fact, it has become necessary to reduce the number of employees employed by the employer, or (b) terminated as a result of the acceptance by the contributor of an offer by the employer of terms of retrenchment made on a ground specified in paragraph (a). salary, in relation to a contributor, means salary of the contributor, determined in accordance with section 4 or 4A and expressed as an annual rate. salary ratio, in relation to a contributor at any time during a contribution period, means the number ascertained by dividing the salary of the contributor at the commencement of the contribution period by the attributed salary of the contributor at that commencement. salary sacrifice contribution means a contribution paid to the Fund for crediting in a contributor's account by the contributor's employer in accordance with an agreement referred to in section 19A (1) (b). spouse of a deceased contributor or deceased former contributor means the surviving spouse of the contributor or former contributor. STC means the SAS Trustee Corporation established under the Superannuation Administration Act 1996. superannuation contributions surcharge means the superannuation contributions surcharge imposed under the Superannuation Contributions Tax Imposition Act 1997 of the Commonwealth. superannuation guarantee shortfall has the same meaning as in the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth. superannuation scheme means a scheme, fund or arrangement (whether or not established by an Act) under which any superannuation or retirement benefits are provided by an employer. superannuation year means the year commencing on 1 April 1988 and each subsequent year commencing on 1 April. this Act includes the regulations. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) In this Act— (a) a reference to a function includes a reference to a power, authority and duty, and (b) a reference to the exercise of a function includes, where the function is a duty, a reference to the performance of the duty. (3) A reference in this Act to an authority where used in or in connection with the definition of employer is a reference to an authority, organisation, corporation, person or other entity. (4) If the inclusion of an employer in Schedule 1 is expressed to be limited in any respect, this Act has effect in relation to the employer subject to the limitation. (5) Notes included in this Act do not form part of this Act. 4 Salary (1) For the purposes of this Act, salary, in relation to a contributor (other than an executive officer) means the sum of— (a) the remuneration, salary or wages payable in money to the contributor in the contributor's capacity as a contributor, as reported to STC from time to time by the contributor's employer, including— (i) a loading in respect of any shift allowance, as determined in accordance with the regulations, and (ii) other allowances payable in money that are of a kind included within the value of leave paid on termination of employment, and (iii) weekly workers compensation paid to the contributor as from a date determined by STC under subsection (1B), but not including the excluded amounts or allowances referred to in subsection (2), and (a1) if salary sacrifice contributions are made in respect of the contributor, the amounts payable for those contributions under section 19B, and (b) if approved employment benefits are provided to the contributor, the cost of providing the approved employment benefits, as determined by the Minister, with the concurrence of the Treasurer. (1A) The weekly workers compensation to be treated as salary for the purposes of this Act does not include any amount by which the aggregate of— (a) the weekly workers compensation paid to an injured contributor, and (b) the salary actually paid to the contributor while partially incapacitated, exceeds the salary that the contributor would probably have been earning but for the injury (assuming the contributor had continued to be employed in the same or some comparable employment). (1B) STC may determine a date as from which weekly workers compensation paid to a contributor is to be treated as salary for the purposes of this Act, being a date not earlier than— (a) 1 April 1988 (the date of commencement of this Act), or (b) if the liability to pay weekly workers compensation in respect of the contributor first arose on a date later than 1 April 1988—that later date. (1C) Despite subsection (1), the regulations may provide that the salary of an employee or class of employees (other than an executive officer) for the purposes of this Act is to be determined in the manner prescribed by the regulations. (1D) A regulation may be made under subsection (1C) only if the Minister and the Treasurer certify in writing that— (a) there has been a change in the basis on which the remuneration of the employee or class of employees is determined, and (b) the effect of that change is to change the basis of remuneration to an annualised one, and (c) the effect of the regulation is not to reduce the benefits that would have accrued under this Act to the employee or class of employees, had there been no change in the basis of remuneration, and (d) the making of the regulation and associated arrangements will not result in a greater financial cost to the Government than if the regulation and associated arrangements were not made. (2) The excluded amounts or allowances are— (a) an amount paid for overtime or as a bonus, or an allowance instead of overtime, (b) except to the extent determined in accordance with the regulations, as referred to in subsection (1) (a)—an amount paid as shift allowance, (c) except to the extent that this section otherwise provides—a relieving allowance, (d) an expense allowance or an allowance for travelling, subsistence or other expenses, (e) an equipment allowance, (e1) in respect of any period during which the contributor takes extended leave (or leave in the nature of extended leave) otherwise than on full pay, such part of the remuneration received by the contributor as exceeds the salary (within the meaning of subsection (1)) that he or she would have received had he or she taken leave on full pay, (f) an amount paid for rent or as a residence, housing or quarters allowance, and (g) an amount of weekly workers compensation excluded by subsection (1A). (3) If a contributor's employer, or a person authorised to do so on behalf of the employer, certifies in writing to STC that a relieving allowance to be, or being, paid to the contributor in the contributor's capacity as an employee is likely to be paid for a continuous period of 1 year (whether or not the period is partly before the date of the certificate), the allowance is, as from— (a) the date on which the certificate is lodged with STC, or (b) the date from which the allowance becomes payable, whichever is the later, salary for the purposes of this Act. (4) If a relieving allowance has been paid to a contributor in the contributor's capacity as an employee for a continuous period of 1 year that ends after the appointed day and, during that period, the allowance has not been treated as part of the contributor's salary in accordance with subsection (3), the allowance shall, as from the expiration of that period of 1 year, be treated as part of the contributor's salary while its payment to the contributor continues. (4A) For the purposes of subsection (4), a reference to a continuous period of 1 year in relation to a contributor who is employed in an educational institution is to be read as a reference to the academic year of the institution. (5) If a contributor is on secondment to another employer, the salary of the contributor for the purposes of this Act is the salary paid or payable to the contributor by the other employer. (6) The Governor may, by order in writing, declare unconditionally, or subject to conditions, that subsection (7) applies— (a) to a contributor specified in the order who is on secondment but not to another employer, and (b) generally during the period of that secondment, or during such period as is specified in the order, being, in either case, a period commencing before, on or after the date of the order. (7) During the period in which this subsection is declared pursuant to subsection (6) to apply to a contributor on secondment, the contributor's salary shall, for the purposes of this Act, be that paid or payable in respect of the employment to which he or she is seconded. (8) In this section— academic year, in relation to an educational institution, means a continuous period commencing on the first day of any academic term of the institution and ending on the day before the first day of the corresponding academic term in the following calendar year. approved employment benefit means a benefit provided to a contributor at the cost of the contributor's employer (being a benefit of a private nature) that is approved by the Minister, with the concurrence of the Treasurer, for the purposes of this section in relation to the contributor or a class of employees of which the contributor is a member. shift allowance means an allowance paid to an employee in respect of shift work performed by the employee, and includes amounts paid as penalty rates. weekly workers compensation, in relation to a contributor, means weekly payments of compensation under the Workers Compensation Act 1987 (or the provisions of the Workers Compensation Act 1926 as applied by that Act) payable to the contributor because the contributor is partially incapacitated for work through injury. 4A Salary of executive officers (1) Definition of salary For the purposes of this Act, the salary of an executive officer is the salary as last nominated or changed in accordance with this section. (2) Nomination of salary on initial and subsequent appointments An amount of salary for the purposes of this Act must be nominated to an executive officer's employer by the officer, on, or as soon as practicable after, being appointed as an executive officer. An amount may also be nominated to the officer's employer by the officer on, or as soon as practicable after, being reappointed, or appointed to another position, as an executive officer. (3) Amount of salary The amount nominated is to be not less than the monetary remuneration payable to the executive officer at the date of nomination and not more than the total value of the remuneration package paid to the officer (less the cost of providing employer's contributions to superannuation, other than salary sacrifice contributions, under this Act and the State Authorities Non-contributory Superannuation Act 1987 and any performance-related incentive payment). (4) Failure to nominate salary If an executive officer fails to nominate an amount of salary within 28 days of first being appointed as an executive officer or within such further period as STC may allow, the officer is taken to have nominated an amount of salary that is equal to the monetary remuneration payable to the officer at the end of the applicable period. (5) Reduction in nominated salary An executive officer may, from time to time, by notice to the officer's employer elect to reduce the amount of salary nominated under this section, but not so that the amount is less than the monetary remuneration payable to the officer at the date of the election. (6) Increase in nominated salary An executive officer may, from time to time, by notice to the officer's employer elect to increase the amount of salary nominated under this section, but not so as to increase the amount nominated by a percentage of that amount that is more than the percentage by which the remuneration package of the officer has increased since the amount of salary was last nominated or changed. (7) Nominations and elections An employer must notify STC of a nomination or election under this section. Any such nomination or election takes effect on the date of notification to STC or on such other date as STC may determine with the consent of the executive officer concerned. (8) Effect of changes in packages Nothing in this section requires the nominated amount of salary to be increased if, because of a variation in the remuneration package of an executive officer or in the proportions of the remuneration package comprising monetary remuneration and employment benefits of the officer, the amount of salary as last nominated or changed for the purposes of this section is less than the monetary remuneration of the officer. (9) Transitional provision relating to nomination of salary by executive officers An executive officer may, within 3 months after the commencement of this subsection, nominate a new amount of salary in accordance with this section if, immediately before the commencement of this subsection, the officer was an executive officer. (10) Monetary remuneration In this section, the monetary remuneration payable to an executive officer is— (a) if the officer is a Public Service senior executive or a police executive officer, the monetary remuneration payable in accordance with the Government Sector Employment Act 2013 or the Police Act 1990, as the case requires, or (b) if the officer is an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975, the remuneration payable to the officer as reduced under that section by the cost of employment benefits provided to the officer, or (c) in the case of any other executive officer, the monetary remuneration payable to the officer. 4B (Repealed) 5 Secondment of employee otherwise than to employer (1) The Governor may, by order in writing, declare unconditionally or subject to conditions that subsection (2) applies— (a) to a contributor specified in the order who is on secondment but not to another employer, and (b) generally during the period of that secondment, or during such period as is specified in the order being, in either case, a period commencing before, on or after the date of the order. (2) During the period in which this subsection is declared under subsection (1) to apply to a contributor, the employer specified in the declaration shall be deemed to be the employer from whose employment the contributor is seconded. 6 Part-time employment with more than one employer (1) Where a contributor is in part-time employment with more than one employer at the same time, this Act applies to the contributor separately in relation to each such employment as if, in relation to each such employment, the contributor were a different person. (2) (Repealed) 7 Employees of Crown etc An employee of the Crown, the Government or a Minister or other member of Parliament shall, for the purposes of this Act, be deemed to be employed by such person or organisation as may be prescribed. 8 Provisions respecting certain employees (1) Members of the NSW Police Force are, for the purposes of this Act, to be taken to be employed in the NSW Police Force by the Crown. (2) (Repealed) 9 Persons not subject to Act Schedule 2 has effect. 10 Savings and transitional provisions Schedules 3 and 4 have effect. Part 2 The State Authorities Superannuation Fund 11 Establishment of the Fund (1) The Board shall establish, and shall maintain and administer, the State Authorities Superannuation Fund. (2) The Public Authorities Superannuation Fund established under the Public Authorities Superannuation Act 1985 is amalgamated with, and forms part of, the Fund. (3) STC shall cause to be paid to the Fund— (a) contributions or payments made by employers and employees, (b) income derived from investment of the Fund, and any profit made from realisation of any investment of the Fund, (c) money borrowed for the purposes of the Fund, and (c1) any fees paid to STC arising under the family law superannuation legislation or Part 5AA, and (d) any other amounts payable to the Fund. (4) STC shall cause to be paid from the Fund— (a) by transfer from the Fund to the Administration Account—administration costs incurred by STC under the Superannuation Administration Act 1996 and administration costs arising under the family law superannuation legislation or Part 5AA, (b) such amounts as are necessary to satisfy any liability of the Fund with respect to tax payable under any Commonwealth taxation law or an amount of superannuation contributions surcharge payable, (c) the benefits payable under this Act and any other prescribed superannuation scheme, and (c1) other amounts payable by STC and arising under the family law superannuation legislation or Part 5AA, and (d) any other amounts payable from the Fund. (5) If a loss is incurred in realising any investment forming part of the assets of the Fund, the Fund is accordingly reduced by the amount of that loss. 12 Contributors' accounts (1) STC shall establish and maintain within the Fund a separate account for each contributor. (2) There is to be credited to a contributor's account— (a) the contributions made by the contributor to the Fund, and (b) any salary sacrifice contributions made by the contributor's employer under Part 3 in respect of the contributor. (3) There shall be debited to a contributor's account— (a) where the contributor is covered for the additional benefit—the amount of the additional benefit levy, (a1) an amount equal to the tax payable by STC under Commonwealth taxation law in respect of any salary sacrifice contribution credited to a contributor's account, (b) such part of the amount of any benefit paid to the contributor as comprises the contributor-financed benefit, and (c) administration costs incurred by STC under the Superannuation Administration Act 1996 in relation to the contributor, and (d) the whole or part (as determined by STC) of an amount that is payable by STC and arises under the family law superannuation legislation or Part 5AA and that is payable to, or in respect of, a spouse or former spouse of the contributor or a person whose superannuation interest (within the meaning of Part 5AA) is derived from the contributor. 13 Additional Benefit Reserve Fund (1) STC shall establish and maintain an Additional Benefit Reserve Fund. (2) There shall be credited to the Reserve Fund the amounts debited under section 12 (3) (a). (3) There shall be debited to the Reserve Fund one-quarter of any payment of any additional benefits. 14 Reserves for employers (1) STC shall, in relation to each employer specified in Part 1 of Schedule 1, establish and maintain within the Fund a separate employer reserve. (2) STC shall, in relation to each of Parts 2 and 3 of Schedule 1, establish and maintain within the Fund a separate employer reserve. (3) There shall be credited to such an employer reserve the contributions made by the employer or employers to whom the reserve relates, other than salary sacrifice contributions made under Part 3. (4) There shall be debited to such an employer reserve— (a) the amount of the employer-financed benefit (including three-quarters of any payment of any additional benefits) included in the amount of any benefit paid to, or in relation to, a contributor who, immediately before the benefit became payable, was an employee of the employer or an employer to whom the reserve relates, and (b) administration costs incurred by STC under the Superannuation Administration Act 1996 or under the family law superannuation legislation or Part 5AA in relation to the employer or an employer to whom the reserve relates, and (c) the whole or part (as determined by STC) of an amount that is payable by STC and that arises under the family law superannuation legislation or Part 5AA and that is payable to, or in respect of— (i) a spouse or former spouse of an employee or former employee who, immediately before the payment, was an employee or former employee of the employer or an employer to whom the reserve relates, or (ii) a person whose superannuation interest (within the meaning of Part 5AA) is derived from any such employee or former employee. (4A) Despite any other provision of this Act, there is to be debited to the Crown employer reserve such amount of the administration costs incurred by STC in respect of the transfer of an eligible deferred benefit under Part 5B as is approved by the Treasurer. (5) If the amount standing to the credit of the employer reserve established for Part 3 of Schedule 1 is insufficient to meet the amounts payable from the reserve, the deficiency shall be recouped from the Consolidated Fund which is, to the necessary extent, appropriated accordingly. (6) STC may, with the concurrence of the Treasurer and after obtaining actuarial advice, adjust the amount credited to an employer reserve by crediting or debiting an amount, if it appears to STC appropriate to do so because of a change in the constitution or nature of an employer. (7) Subsection (6) does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative or other Government initiative. 14A Additional payments by certain employers (1) If the amount credited to an employer's reserve maintained for an employer specified in Part 1 of Schedule 1 is insufficient to meet the amounts payable from the reserve in respect of the employer, STC may require the employer to pay an amount into the Fund that is equal to the deficiency. (2) Any amount that is not paid by an employer within 14 days of written notice of the requirement to pay the amount being given by STC to the employer is a debt owed to STC and may be recovered by STC accordingly. (3) This section does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative. 14B Source of administration costs payments (1) The administration costs payable in respect of the superannuation scheme established under this Act are to be paid from employer reserves and contributors' accounts established in accordance with this Act. (2) The administration costs payable in respect of deferred benefits or preserved benefits are to be paid from contributors' accounts established in accordance with this Act. (3) The administration costs payable in respect of pensions provided under this Act are to be paid from employer reserves established in accordance with this Act. 15 Other accounts and reserves and assets portfolios (1) STC may establish and maintain within the Fund such other accounts and reserves as, in the opinion of STC, are necessary or convenient for the administration of the Fund and this Act. (2) Without limiting subsection (1), STC may establish separate asset portfolios, comprising assets of the Fund allocated by STC, for the purposes of the Fund. (3) A contributor or former contributor may at any time lodge with STC an election to have the contributor or former contributor's account, or part of the account, treated, for the purpose of allocating Fund earnings, as being invested as part of one or more particular asset portfolios nominated by STC to the contributor or former contributor. The contributor or former contributor may elect to revoke or vary any such election. (4) STC may determine that a contributor's or former contributor's account, or part of an account, is to be treated, for the purpose only of allocating the income of the Fund, as being invested as part of one or more particular asset portfolios if the contributor or former contributor does not make an election or revokes an election without making another election. (5) STC may treat an account (other than a contributor's or former contributor's account) or a reserve, or part of an account or reserve, for the purpose only of allocating Fund income, as being invested as part of one or more particular asset portfolios. 16 Adjustment of accounts and reserves for interest etc (1) STC shall, from time to time, adjust each of the accounts and reserves established under this Part at a rate fixed by STC, having regard to the income of the Fund and the earnings, as determined by STC, of any asset portfolio or portfolios in which the accounts or reserves or parts of them are treated as being invested and such other matters as STC considers relevant. (2) STC may, for the purpose of adjusting a contributor's or former contributor's account before paying out the balance at credit in the account, fix a rate for that purpose only. (3) In adjusting accounts or reserves under this section, STC may fix different rates for accounts or reserves, or parts of accounts or reserves, that are treated as being invested in different asset portfolios. (4) For the purpose of adjusting accounts and reserves, STC may allocate any income of the Fund, or any losses, as being attributable to a particular asset portfolio or portfolios, as it thinks fit. 16A Adjustment of employer reserves to take into account death and disability payments (1) STC may obtain actuarial advice on or after 1 July in each year as to the appropriate adjustment to employer reserves in the Fund to achieve an equitable pooling of liability for payment of employer contributions to death and disability benefits among all employers in respect of the preceding financial year. (2) STC may adjust the amount currently standing to the credit or debit of an employer's reserve in the Fund in accordance with actuarial advice obtained under this section. (3) STC may adjust an employer reserve under this section despite any other provision of this Act. (4) In this section— death benefit means a benefit payable under this Act on the death of a contributor or former contributor. disability benefit means a benefit payable under this Act on the ground of permanent mental or physical incapacity or infirmity of body or mind of a contributor or former contributor. 17 Funds, accounts and reserves generally (1) There may be credited to any fund, account or reserve established by or under this Act any amount that is required or permitted by or under this or any other Act to be credited to it. (2) There may be debited to any fund, account or reserve established by or under this Act any amount that is required or permitted by or under this or any other Act to be debited to it. 18 Actuarial investigation (1) An investigation as to the state and sufficiency of the funds established under this Act shall— (a) as at the appointed day, and (b) as at 30 June 1994 and at the end of each succeeding period of 3 years, be made by an actuary or actuaries appointed by STC. (2) Actuaries appointed under this section shall complete their investigation, and shall report the result to STC, not later than 6 months after the date as at which the investigation is made. (2A) The report referred to in subsection (2) must— (a) include a statement of the value of the assets of the Fund, and (b) include a statement of any liability for benefit payments that are not expected to be covered by— (i) the assets of the Fund, or (ii) any future contributions to, or earnings of, the Fund, or (iii) any guarantee by the Government or by any of its agencies, or (iv) an appropriation in respect of the Fund. (3) STC shall, not later than 1 month after it receives a report under this section, forward the report to the Minister with such comments as it thinks fit. (4) The Minister may, in relation to a particular investigation, extend or further extend the period referred to in subsection (2) if the Minister considers that special circumstances exist to justify an extension or further extension. (5) The Minister may, in relation to a particular investigation, extend or further extend the period referred to in subsection (3) if the Minister considers that special circumstances exist to justify an extension or further extension. Part 3 Employee contributions and salary sacrifice contributions 19 Election to have employee or salary sacrifice contributions paid to the Fund (1) An employee may at any time lodge with STC an election to contribute to the Fund. (2) An election under subsection (1) shall— (a) be in a form approved by STC for the purposes of this section, (b) specify the rate at which contributions are, subject to this Act, to be credited to the contributor's account in respect of the employee (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), being the rate of 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent of the employee's salary, (c) be supported by the certificate by the employee's employer referred to in the definition of employee in section 3 (1), and (d) be supported by a further certificate by the employee's employer that is in a form approved by STC. (3) The further certificate must state— (a) the date of birth of the employee, (b) the salary (and, in the case of a part-time employee, the attributed salary) of the employee, (c) that the employer has no reason to believe that the employee will not continue to be an employee within the meaning of this Act for at least 1 year from the date of the certificate, and (d) such other matters as STC considers necessary or convenient for the purposes of this section. (4) A failure to comply with subsection (2) (b) does not invalidate an election and, in the event of such a failure, the form of election shall be deemed to specify a rate of 1 per cent. (5) An election made by an employee under subsection (1) is ineffective if, at the time the election would take effect, the employee would be of or above the age of 70 years. (6) An election made by an employee under subsection (1) (other than an election referred to in subsection (5)) takes effect not later than the first day of the second contribution period after that in which the election is received in the office of STC, but, if an employee makes a subsequent election under section 27 (Variations of contribution rate), ceases to be in force immediately before the subsequent election takes effect. (7) If STC approves, an employee may, before an election made under this section takes effect, vary the election. (8) If a contributor to another superannuation scheme would become (but for being such a contributor) entitled to elect to contribute to the Fund by reason of a change of work category or for any other reason— (a) the contributor shall be deemed not to be a contributor to the other superannuation scheme for the purposes of making the election, (b) the contributor may make the election on condition that STC approves an application made by the person under section 20 to be covered for the additional benefit, and (c) the election takes effect as at a date determined by STC. 19A Contributions by or on behalf of employees (1) Contributions may be made to the Fund for crediting to a contributor's account— (a) by the contributor (employee contributions), and (b) by the contributor's employer in accordance with an agreement between the contributor and the employer under which the contributor is to forgo remuneration yet to be earned and the remuneration foregone is to be applied by the employer to contributions on behalf of the contributor (salary sacrifice contributions). (2) In this Act and the regulations, a reference (however expressed) to a contribution by an employee or a contributor or a contributor-financed portion of a benefit is taken to include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution. (3) In this Act and the regulations, a reference (however expressed) to an employer contribution or an employer-financed portion of a benefit does not include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution. 19B Amount payable for salary sacrifice contributions to allow for the contributions tax payable The amount payable to the Fund in respect of a salary sacrifice contribution in respect of a contributor is the amount that is necessary for an amount at the rate specified in accordance with this Part to be retained in the contributor's account out of the salary sacrifice contribution after the tax amount is deducted under section 12 (3) (a1). 20 Additional benefit (1) An employee under the early retirement age may lodge with STC an application to be covered for the additional benefit. (2) Such an application may be made— (a) by an employee who is not a contributor—at the time the employee makes an election under section 19 (Election to contribute to the Fund), or (b) except to the extent that section 23 or 24 (5) otherwise provides—at any time by a contributor. (3) Such an application shall— (a) be in a form approved by STC for the purposes of this section, and (b) be accompanied by such documents, evidence and information as STC may require for the purposes of this section. 21 Medical examination (1) This section applies to an application made under section 20 by a person to be covered for the additional benefit. (2) STC may require the applicant— (a) to submit to such medical examinations as may be required by STC, and (b) to provide such medical reports, evidence and information as are specified by STC. (3) Where the applicant— (a) fails, in the opinion of STC, to pass a medical examination to which the applicant has submitted in accordance with a requirement under this section, or (b) fails to comply with a requirement under this section, STC shall refuse the application. (4) For the purpose of deciding whether or not to approve the application, STC— (a) may, under subsection (2), require the applicant to submit to further medical examinations or provide further medical reports, and (b) may obtain such evaluations of medical examinations or medical reports as it thinks fit. 22 Approval of application (1) If STC approves an application made under section 20— (a) STC shall appoint the day on and from which the applicant's cover for the additional benefit is to commence and shall notify the applicant accordingly, and (b) the applicant becomes, and remains, liable for payment of the additional benefit levy in accordance with subsection (2). (2) Payment by a contributor of the additional benefit levy— (a) shall commence on a date appointed by STC and shall be made at a rate determined by STC and at times so determined, (b) shall be effected by transfer from the contributor's account, and (c) shall cease when the contributor no longer has available to be taken into account any prospective benefit points. 23 Refusal of application If an application made under section 20 is refused, the applicant may not again make such an application before the expiration of— (a) the period of 3 years that next succeeds the refusal, or (b) in a particular case—such shorter period as STC may decide. 24 Revocation of approval (1) If, after approving an application made under section 20, STC forms the opinion that, in relation to the application, or to a medical examination of the applicant, an untrue statement within the meaning of section 48 was made and that its approval would not have been given had the untrue statement not been made, STC shall, subject to this section, revoke the approval. (2) For the purpose of deciding whether or not, in relation to an application or a medical examination of an applicant, it is of the opinion referred to in subsection (1), STC may, if it thinks fit, require the applicant, within a time specified by STC or within such further time as STC may allow, to provide information, or to undergo a medical examination, or to provide medical reports, as specified by STC. (3) On the expiration of the time, or further time, referred to in subsection (2), STC may, whether or not the requirement so referred to is complied with, proceed to decide whether or not it is of the opinion referred to in subsection (1). (4) If the applicant fails to comply with a requirement under subsection (2), STC may revoke the approval. (4A) An approval may be revoked whether it relates to a contributor or a former contributor and the revocation has effect as if the contributor or former contributor had never been entitled to the cover. (5) If, under subsection (1) or (4), STC revokes its approval of an application— (a) the applicant (if a contributor) ceases to be covered for the additional benefit and ceases to be liable to pay the additional benefit levy, (b) the applicant (if a contributor) is disqualified for 3 years from again applying to be covered for the additional benefit, and (c) the amount of any additional benefit levy paid by the applicant (whether a contributor or a former contributor) before revocation of the approval is not recoverable. 25 Liability to contribute (1) Where an election under section 19 takes effect, the contributor who made the election becomes, and remains, liable to ensure that contributions are paid to the Fund in the amount necessary to result in an amount being credited to the contributor's account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), at the rate specified under section 19 (2) (b) and, except as provided by sections 27, 28, 29 and 35A, to ensure those contributions are paid in respect of successive contribution periods— (a) commencing with the contribution period in which the contributor's entry date occurs, and (b) ending with the last complete contribution period ending on or before the contributor's exit date. (2) Contributions under this Part are to be calculated on the basis of the contribution periods applicable to the contributor and a contribution payable in respect of a contribution period shall be paid to STC within 7 days after the last day of that period. (3) Contributions under this Part are payable to STC by the employer by which the contributor is employed and the employer is entitled to deduct those contributions from any amount or amounts that may become payable by the employer to the contributor, whether as salary or otherwise. (4) STC may, in a particular case, charge interest calculated on a daily basis at a rate determined by STC on a contribution under this Part for any period during which the contribution remains unpaid after the time allowed for payment under subsection (2) and any such interest— (a) shall be paid to STC by the employer in default, and (b) is not chargeable against any employee. (5) An employee is not entitled to contribute to the Fund, and STC is not to accept a contribution to the Fund offered by an employee, unless the employee is under 70 years of age. (5A) An employer is not entitled to pay a salary sacrifice contribution to the Fund on behalf of an employee, and STC is not to accept a salary sacrifice contribution to the Fund on behalf of an employee, unless the employee is under 70 years of age. (6) A contributor is not entitled to accrue benefit points after attaining the age of 70 years. 26 Salary basis for contributions Employee contributions and salary sacrifice contributions in respect of a contributor during a superannuation year shall be based on the salary paid to the contributor by his or her employer at the rate applicable as at— (a) 31 December last preceding the commencement of the superannuation year, or (b) the contributor's entry date, whichever is the later. 27 Variations of contribution rate (1) A contributor may, during the period that commences at the beginning of a superannuation year and ends on the next succeeding 31 December or such later date as STC may approve, lodge with STC an election to vary the rate specified under section 19 (2) (b). (2) An election under subsection (1)— (a) shall be in a form approved by STC for the purposes of this section, (b) is to specify the varied rate per cent (being 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent) of contributions to be credited to the contributor's account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), and (c) takes effect on 1 April next succeeding receipt of the election in the office of STC. (3) Where the nature of the employment of a contributor changes from full-time to part-time or from part-time to full-time, or the amount of time worked part-time by a contributor changes, the amount of contributions payable under this Part in respect of the contribution period during which the change operates, and each succeeding contribution period until varied in accordance with this Act, is the amount calculated by multiplying by the contributor's salary ratio at the commencement of the period the amount of the contribution that would be payable on the basis of the contributor's attributed salary last applicable for the purpose of calculating contributions payable under this Part. (4) Except as provided by subsection (3) or to the extent that STC upon the application of a contributor otherwise directs, a reduction in the salary of the contributor below that upon which his or her contributions are based does not, until the beginning of the superannuation year that next succeeds the reduction, affect the amount of contributions payable under this Part. (5) Except in the case of a contributor who applies for a direction of STC under subsection (4), where a contributor's attributed salary is reduced as a consequence of the contributor's ill-health or in circumstances considered by the contributor to be special, the contributor may apply to STC in a form that— (a) is approved by STC for the purposes of this subsection, and (b) is accompanied by such evidence of the cause of the reduction in salary as STC requires, for the application of subsection (6) in respect of the contributor. (6) Where STC approves an application by a contributor under subsection (5), the attributed salary of the contributor shall, for the purposes of this Act, be deemed to be the same as the contributor's attributed salary immediately before the reduction until— (a) the beginning of the superannuation year that next succeeds a 31 December as at which the contributor's attributed salary is equal to or greater than his or her attributed salary immediately before the reduction, or (b) STC's approval is revoked on the application of the contributor, whichever first occurs. (7) Subject to section 28, an election that takes effect under this section remains in force until a further election made under this section takes effect. 28 Variations of contribution rate: hardship (1) Despite section 27 (1), STC may, if it is satisfied that a continuation of contributions under this Part in respect of a contributor would result in financial hardship for the contributor, accept at any time an election under that subsection to reduce, as from a date determined by STC having regard to the circumstances of the contributor, the rate of contributions to be credited to the contributor's account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B) under this Part. (2) Despite section 27 (1), an election referred to in subsection (1) may specify as the varied rate the rate of 0 per cent. (3) During a period when a rate of 0 per cent is in force, no contributions are payable under this Part. (4) After an election referred to in subsection (1) is accepted by STC, STC must refund any resulting excess of contributions paid to the Fund under this Part to the person who paid them, after the date determined by STC for commencement of the new rate. (5) STC's acceptance of an election for a rate of 0 per cent is to be given only for a limited period or periods. 29 Contributions during leave without pay and other matters (1) In this section— leave without pay means a period of leave from employment with an employer (otherwise than on secondment as referred to in section 4) during which the contributor is not entitled to receive payment of salary from the employer. prescribed leave means leave without pay during which the contributor on leave is absent from employment with an employer— (a) pursuant to a grant of sick leave, (b) for a period during which the contributor receives periodic payments under an Act relating to workers' compensation, (c) pursuant to a grant of maternity leave, (d) pursuant to an agreement with the employer for the secondment of the contributor to employment that is not employment with an employer, (e) to enable the contributor to perform union duties unless, in a particular case, the employer certifies that this paragraph is not to apply, (f) to enable the contributor to perform duties that the employer certifies to be in the interests of the employer or the State, (g) on service with the naval, military or air forces of the Commonwealth, or (h) in circumstances approved by STC for the purposes of this section. (2) A contributor who takes leave without pay that is prescribed leave is liable to make contributions to the Fund under this Part in respect of the contribution periods occurring wholly or partly while on prescribed leave. (2A) However, a contributor who takes a single period of prescribed leave that is sick leave or maternity leave is not liable to make contributions to the Fund under this Part in respect of any contribution periods during the period of leave occurring wholly or partly more than 2 years after the period of leave commences. (3) A contributor who takes leave without pay that is not prescribed leave— (a) is liable to make contributions to the Fund under this Part in respect of— (i) a contribution period that begins before but finishes after the start of that leave, and (ii) a contribution period that begins before but finishes after the end of that leave, and (b) is not liable or entitled to make contributions to the Fund under this Part in respect of— (i) a contribution period that begins on the first day of that leave and finishes before the end of that leave, or (ii) a contribution period that, having begun after the start of that leave, finishes on the last day of that leave, or (iii) a contribution period that falls between a contribution period referred to in paragraph (a) (i) or subparagraph (i) and a contribution period referred to in paragraph (a) (ii) or subparagraph (ii) (whichever is relevant). (3A) For the purposes of this Act, a contributor who is employed by an employer for less than 10 hours a week for a single period of more than 2 years is not liable to make contributions to the Fund under this Part in respect of any contribution periods occurring wholly or partly more than 2 years after the period commences and while the contributor is so employed for less than 10 hours a week. (4) A contributor liable to make contributions under subsection (2) or (3) is to pay to the Fund in accordance with directions given by STC such contributions as would have been, but for the contributor being on leave without pay, required to be paid under this Part if the contributor had continued to be paid salary by the employer during the contribution period or periods concerned at the rate at which the contributor would have been paid. (5) A contribution period in respect of which a contributor is not liable to make contributions to the Fund under this section is not an applicable contribution period in relation to the contributor. 29A Other contributions by contributors (1) A contributor, who is not required by this Act to contribute to the Fund under this Act merely because the contributor is on authorised leave without pay as an employee, is entitled to remain a contributor to the Fund even though the contributor is not contributing to the Fund. (2) This section applies to a contributor only if— (a) the leave is for the purposes of raising children of whom the contributor is a parent, or for whom he or she has assumed the responsibility of a parent, and (b) he or she has been on that leave for less than 7 years consecutively, and (c) he or she has a statutory or contractual right to resume employment at the end of the leave. (3) A contribution period in respect of which a contributor is a contributor to whom this section applies is not an applicable contribution period in relation to the contributor. (4) This section has effect despite section 29. (5) In this section— authorised leave means— (a) leave approved by the contributor's employer, or (b) leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth. 30 Resumption of contributions after break in employment (1) This section applies to a contributor where the employment of the contributor with an employer— (a) ceases in circumstances entitling the contributor to be paid a benefit under section 40 (Benefit on partial and permanent invalidity before early retirement age), (b) ceases in circumstances entitling the contributor to be paid a benefit under section 41 (Benefit on resignation, dismissal or discharge before early retirement age) but the contributor does not elect to make provision for a deferred benefit, or (c) ceases in circumstances entitling the contributor to be paid a benefit under section 42 (Benefit on retrenchment before early retirement age), and the contributor has not made an application for payment of the benefit. (2) If the contributor resumes employment as an employee (with the same or any other employer) before the end of the period of 3 months after the contributor ceased employment in circumstances referred to in subsection (1), the contributor may apply to STC for the resumption of contributions under this Part. (3) If STC approves the application— (a) any intervening contribution period is taken to be an applicable contribution period in relation to the contributor as an employee of the employer with whom the contributor resumed employment, and (b) the contributor is liable to make contributions to the Fund under this Part in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer with whom the contributor has resumed employment for the duration of the intervening contribution period or periods, and (c) the employer with whom the contributor has resumed employment is liable to make contributions to the Fund under Part 4 in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer for the duration of the intervening contribution period or periods. (4) A contribution in respect of any intervening contribution period is payable in accordance with such directions as may be given by STC. (5) In this section, an intervening contribution period means any contribution period that— (a) begins before a contributor ceases employment in the circumstances referred to in subsection (1) and has not finished when the contributor ceases that employment, or (b) begins after a contributor ceases employment in the circumstances referred to in subsection (1) and finishes before the contri