New South Wales: Superannuation Administration Act 1996 (NSW)

Superannuation Administration Act 1996 No 39 An Act to provide for trustees for State public sector superannuation schemes and the provision of investment and administration services for such schemes; to continue as a trustee for the defined benefit style schemes closed to new members the SAS Trustee Corporation (formerly the State Authorities Superannuation Board); to enable the establishment of additional superannuation schemes for State public sector employees and associated persons by trust deed; and for other purposes. Part 1 Preliminary 1 Name of Act This Act is the Superannuation Administration Act 1996. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Objects of Act The objects of this Act are as follows— (a) to establish the SAS Trustee Corporation as the trustee for the State defined benefit public sector superannuation schemes, (b) to provide for the provision of investment management services and other services for State public sector superannuation schemes, (c) to set out the functions and responsibilities of trustees and service providers for State public sector superannuation schemes, (d) (Repealed) (e) to enable the establishment of additional superannuation schemes for State public sector employees and associated persons by trust deed. 4 Definitions In this Act— benefit means a pension or lump sum retirement or superannuation benefit. exercise a function includes perform a duty. function includes a power, authority or duty. investment manager means a person who provides superannuation investment management services for a superannuation fund or funds or part of any such fund under a contract or an arrangement with STC, and includes any other person engaged by that person to provide all or any of those superannuation investment management services. local authority means a council within the meaning of the Local Government Act 1993. mandated investment manager—see section 60. public authority means a person or body constituted or established by an Act for a public purpose. SAC means the Corporation constituted under the Superannuation Administration Authority Corporatisation Act 1999. State sector employer means an employer under an STC scheme that is included in the consolidated Total State Sector financial statements under section 7.17 (1) of the Government Sector Finance Act 2018. STC means the SAS Trustee Corporation continued by this Act. STC dispute function means the principal function, referred to in section 50 (1) (e), to determine disputes under the Acts under which the STC schemes are established or constituted. STC disputes committee means a committee delegated the STC dispute function under section 77. STC fund or STC scheme means a superannuation fund or superannuation scheme established or constituted under any of the following Acts— (a) Police Regulation (Superannuation) Act 1906, (b) Superannuation Act 1916, (c) Local Government and Other Authorities (Superannuation) Act 1927, (d) Transport Employees Retirement Benefits Act 1967, (e) New South Wales Retirement Benefits Act 1972, (f) Public Authorities Superannuation Act 1985, (g) State Public Service Superannuation Act 1985, (h) State Authorities Superannuation Act 1987, (i) State Authorities Non-contributory Superannuation Act 1987. superannuation fund means a fund established under a superannuation scheme. superannuation investment management services include (but are not limited to) the following— (a) managing investments for any superannuation fund or funds or part of any such fund, (b) advising on investments and investment strategies and other related strategies for any superannuation fund or funds or part of any such fund, (c) providing services in relation to the custody of the assets and securities of any superannuation fund or funds or part of any such fund. superannuation scheme means a scheme, fund or arrangement (whether or not established by an Act) under which any benefits are provided. surplus funds means the funds in an employer's reserve in an account maintained under section 81 that are in excess of the amount that is required to meet current and future liabilities under the STC scheme to which the account relates. The amount of surplus funds is the amount that is actuarially determined in accordance with Accounting Standard AASB 119: Employee Benefits made by the Australian Accounting Standards Board (as in force from time to time) or another standard prescribed by the regulations. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. 5 (Repealed) 6 Notes in text Introductory notes to Parts or Divisions and other notes in the text of this Act do not form part of this Act. Part 2 7–47 (Repealed) Part 3 Trustee for STC schemes (STC) Introductory note— This Part continues in existence the State Authorities Superannuation Board, renames it the SAS Trustee Corporation and gives it the functions of the trustee for the STC schemes. These schemes are primarily defined benefit schemes established under Acts and are closed to new members. Generally, the trustee will have functions (which include powers, authorities and duties) that are consistent with the requirements of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. That Act regulates the functions of trustees of superannuation funds and the administration of superannuation schemes but does not apply directly to the STC schemes. The trustee will also be subject to provisions of the Trustee Act 1925. The trustee will have (among other functions) the function of administering the schemes and investing and managing the superannuation funds concerned. However, it will be required to arrange for these services to be provided by service providers in accordance with this Act. This will not detract from the primary responsibility and power of the trustee in these matters. Division 1 Establishment and principal functions of STC 48 Continuation of STC (formerly the State Authorities Superannuation Board) (1) The corporation constituted by the Superannuation Administration Act 1987 with the corporate name of State Authorities Superannuation Board and continued by the Superannuation Administration Act 1991 is continued by this Act. (2) The continued corporation is to have the corporate name SAS Trustee Corporation. The body may also be called STC, and the use of that name has the same effect for all purposes as the use of its corporate name. (3) STC is, for the purposes of any Act, a statutory body representing the Crown. 49 STC to be trustee for STC schemes (1) STC is the trustee for the STC schemes and is to hold in trust for the persons who are or will be entitled to benefits under the STC schemes all assets held by, and all contributions and other money paid or payable to, STC under this Act and any Act under which an STC scheme is constituted or established. (2) STC is a trustee for the purposes of the Trustee Act 1925. Accordingly, subject to this Act, and unless this Act, the Trustee Act 1925 or any other Act otherwise provides, STC has the obligations, rights and duties of a trustee under Division 2 of Part 2 of the Trustee Act 1925. Note— The effect of this is that STC is subject to both the common law obligations, duties and rights of trustees and the obligations, duties and rights of trustees under the Trustee Act 1925. These are in addition to its obligations, duties and rights under this Act, unless the Trustee Act 1925 or this Act otherwise provides. 50 Principal functions of STC (1) The principal functions of STC are— (a) to administer the STC schemes, and (b) to invest and manage the STC funds, and (c) to provide for the custody of the assets and securities of the STC schemes, and (d) to ensure that benefits payable to the persons entitled to receive benefits under the STC schemes are paid in accordance with the Acts under which the schemes are established or constituted, and (e) to determine disputes under those Acts, and (f) to exercise such other functions with respect to the STC schemes and STC funds as the Minister may from time to time approve by order in writing. (1A) The Minister may in an order for the purposes of subsection (1) (f), direct that a function specified in the approval may be exercised by STC directly or only by entering into a contract or arrangement under section 53 with SAC or (if the direction so provides) with a person of STC's choosing, under which SAC or that person undertakes to carry out the function on behalf of STC. (2) STC has such other functions as may be conferred or imposed on it by or under this or any other Act. (3) (Repealed) Note— The STC schemes include the State Authorities Superannuation Scheme, the Police Superannuation Scheme, the State Superannuation Scheme, the State Authorities Non-contributory Superannuation Scheme and other public sector schemes. None of these schemes are currently open to new members, though public sector employees still contribute to some of them. Other particular functions and obligations of STC are contained in the legislation establishing the STC schemes, including the Police Regulation (Superannuation) Act 1906, the Local Government and Other Authorities (Superannuation) Act 1927, the Superannuation Act 1916, the State Authorities Superannuation Act 1987 and the State Authorities Non-contributory Superannuation Act 1987. 51 Duties relating to functions (1) STC must— (a) act honestly in all matters relating to its functions relating to the STC schemes, and (b) exercise, in relation to all matters affecting the STC schemes, the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with property of another for whom the person felt morally bound to provide, and (c) ensure that its functions relating to the STC schemes are exercised in the best interests of persons entitled to receive benefits under the STC schemes, and (d) not enter into any contract or arrangement, or do anything else, that would prevent STC from, or hinder STC in, properly exercising STC's functions as a trustee. Note— The duties contained in subsection (1) reflect the covenants required of superannuation scheme trustees under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. (2) In exercising its functions, STC must have regard to— (a) the interests of persons entitled to receive benefits under the STC schemes, and (b) the Heads of Government Agreement, commencing 1 July 1996, relating to the exemption of certain State public sector superannuation schemes from the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, and (c) the future liabilities of the STC funds, and (d) any statement in writing of the policy of the Government on any matter that is relevant to the functions of STC given by the Minister to STC, and (e) the role of employers under STC schemes in funding benefits under those schemes. (3) Subsection (1) (d) does not prevent STC from entering into a contract or an arrangement under section 53. Note— Members of the STC Board have a duty to ensure that STC carries out its duties (see section 73). 52 Government policy statements to be laid before Parliament (1) The Minister is required to lay before each House of Parliament, within 14 sitting days after giving a statement under section 51 (2) (d), a copy of the statement. (2) If a House of Parliament is not sitting when the Minister seeks to comply with this section, the Minister is required to present a copy of the relevant statement to the Clerk of the House. (3) A copy of a statement presented to the Clerk of a House of Parliament under this section— (a) is, on presentation and for all purposes, taken to have been laid before the House, and (b) is required to be printed by authority of the Clerk, and (c) if printed by the authority of that Clerk, is, for all purposes, taken to be a document published by order or under the authority of that House, and (d) is to be recorded in the Minutes, or Votes and Proceedings, of that House on the first sitting day of that House after receipt of the copy by that Clerk. 53 Power to enter into contracts or arrangements (1) STC may enter into contracts or arrangements with any person— (a) under which the person undertakes to carry out the function of providing all or any superannuation investment management services for a superannuation fund or part of a fund under one or more of the STC schemes, on behalf of STC, or (b) under which the person undertakes to carry out the function of providing superannuation scheme administration services to the STC schemes on behalf of STC, or (c) (Repealed) (d) under which the person undertakes to carry out any other functions on behalf of STC under this or any other Act, or (e) for the performance of any other services. (1A) An investment manager who enters into a contract or arrangement with STC to provide superannuation investment management services may (subject to the terms of that contract or arrangement) engage another investment manager to provide any such service. In that case, a reference in this section to the person who enters into or makes the contract or arrangement with STC includes a reference to any such other investment manager engaged to provide the service. (2) The power of STC to enter into a contract or an arrangement does not extend to conferring on any other person the power of STC to appoint an actuary or actuaries to conduct an investigation into the state or sufficiency of an STC fund. (3) A person who enters into a contract or an arrangement with STC under this section has, while acting in accordance with the terms of the contract or arrangement, those functions of STC specified in the contract or arrangement. (4) STC may enter into a contract or an arrangement under this section only if STC is satisfied that the contract or arrangement is in the interests of the persons entitled to receive benefits under the STC schemes. (5) Any such contract or arrangement may deem the person with whom STC makes the contract or arrangement to be an agent of STC. (6) A contract or an arrangement entered into by STC under this section does not confer on the other party any of the principal functions and responsibilities of STC as trustee. 54 Minister's consent required (1) STC may not enter into a contract or an arrangement under section 53 (1) (a) or (b) with a person other than a mandated investment manager except with the Minister's consent. (2) The Minister may, by notice in writing given to STC, waive the requirement for consent generally or in such circumstances as may be specified by the Minister. 55 STC to be subject to Minister's directions in certain circumstances (1) The Minister may give a direction to STC relating to the exercise by STC of any one or more of its functions if the Minister is of the opinion that an act or omission, or conduct, by STC has had or could reasonably be expected to have a significant adverse effect on the Consolidated Fund or the financial management of the State. A direction must not be inconsistent with this or any other Act. (2) STC must comply with any such direction. (3) In giving a direction the Minister must have regard to— (a) the interests of persons entitled to receive benefits under the STC schemes, and (b) the duties and obligations of STC and the members of the STC Board. (4) Nothing in this section constitutes the Minister as a trustee of the STC schemes. (5) STC is not liable for anything done or omitted for the purpose only of complying with a direction of the Minister under this section. 56 Direction to be laid before Parliament (1) The Minister is required to lay before each House of Parliament, within 14 sitting days after giving a direction under section 55, a copy of the direction. (2) If a House of Parliament is not sitting when the Minister seeks to comply with this section, the Minister is required to present a copy of the relevant statement to the Clerk of the House. (3) A copy of a statement presented to the Clerk of a House of Parliament under this section— (a) is, on presentation and for all purposes, taken to have been laid before the House, and (b) is required to be printed by authority of that Clerk, and (c) if printed by the authority of that Clerk, is, for all purposes, taken to be a document published by order or under the authority of that House, and (d) is to be recorded in the Minutes, or Votes and Proceedings, of that House on the first sitting day of that House after receipt of the copy by that Clerk. 57 Powers of STC Without limiting any other function conferred or imposed on it, STC may do all things that are necessary or convenient to be done for, or in connection with, the exercise of STC's functions. Division 2 Investment of STC funds 58 Investment strategy (1) STC must, subject to this Part and section 129A, determine and give effect to an investment strategy for the STC funds (the investment strategy) and a strategy for the prudential management of any reserves of the funds (the reserves strategy). (2) The investment strategy must have regard to the circumstances of the STC schemes, including but not limited to the following— (a) the risk involved in making, holding and realising, and the likely return from, the investments having regard to the schemes' objectives and their cash flow requirements, (b) the composition of the investments as a whole, including the extent to which the investments are diverse or involve exposure to risks from inadequate diversification, (c) the liquidity of the investments having regard to the schemes' cash flow requirements, (d) the ability to discharge the existing and prospective liabilities under the STC schemes, (e) any other matter which a trustee is required to consider in determining an investment strategy under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. (3) The reserves strategy must be consistent with the investment strategy and the ability to discharge the existing and prospective liabilities under the STC schemes (whether actual or contingent) as and when they fall due. (4) In determining the reserves strategy, STC must have regard to any other matter which a trustee is required to consider in determining a reserves strategy under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. (5) STC may not contract out its functions under this section. 59 Investment manager to be appointed (1) In exercising its function of investing and managing an STC fund, or part of a fund, STC must enter into a contract or an arrangement under section 53 with an investment manager or managers who undertake to provide superannuation investment management services for a superannuation fund or part of a fund under the STC scheme concerned, on behalf of STC. STC may not itself provide such services. (2) STC must ensure that any such investment manager (and others the investment manager engages to provide the relevant services) operates within the investment powers of STC and complies with the investment strategy determined by STC and notified to the investment manager. (3) STC may enter into contracts or arrangements for the provision of superannuation investment management services with more than one provider of services. (3A) A contract or arrangement under which an investment manager undertakes to provide all superannuation investment management services for a superannuation fund or part of a fund is to make provision for the engagement of a separate person to provide services in relation to the custody of assets and securities. (4), (5) (Repealed) Note— The Minister's consent is required to any such contract or arrangement that is entered into with a person other than a mandated investment manager unless that requirement is waived (see section 54). 60 Mandated investment managers (1) The Treasurer may, with the approval of the Minister, by order in writing given to STC, require— (a) the investment of the whole or any part of the STC funds to be managed by one or more investment managers approved by the Treasurer (a mandated investment manager), and (b) STC to enter into a contract or arrangement referred to in section 59 with any such mandated investment manager with respect to superannuation investment management services for the whole or that part of the STC funds subject to the terms and conditions set out or described in the order. (2) Subsection (1) does not prevent STC from entering into a contract or arrangement containing additional terms or conditions that are not inconsistent with the terms and conditions set out or described in the order. (3) The Treasurer must consult with STC and the proposed mandated investment manager before giving an order under this section. (4) A mandated investment manager (or an investment manager engaged by a mandated investment manager to provide relevant services)— (a) may invest the whole or part of the STC funds concerned only in any investment that is authorised or permitted by this Act or any other applicable legislation, and (b) must carry out the superannuation investment management services concerned subject to the applicable terms and conditions and consistently with any relevant investment strategy or policy. (5) STC is taken to have discharged the obligations and duties imposed on it under this and any other law (written or unwritten) in relation to the investment and management of the whole or part of the STC funds, if a mandated investment manager (or an investment manager engaged by a mandated investment manager) provides superannuation investment management services in respect of the STC funds or part of the STC funds on behalf of STC in accordance with subsection (4). Note— Under section 69 (6) any act, matter or thing done in the name of, or on behalf of, STC by the STC Board is taken to have been done by STC. Section 80 protects persons such as the chief executive officer (who is subject to the control and direction of the Board) from personal and other liability. (6) An order under this section takes effect on the day specified in the order. (7) In this section— relevant investment strategy or policy, in relation to the whole or any part of the STC funds, means an investment strategy or reserves strategy determined by STC under section 58, or custodial policy determined by STC under this Act, in relation to the whole or that part of the STC funds. 61 (Repealed) 62 Borrowing and investment powers (1) STC may enter into financial arrangements under and subject to Part 6 of the Government Sector Finance Act 2018. (2) STC may take appropriate action to control or to enhance or protect the value of any investment made from the STC funds or to enhance or protect the return on any such investment. 63 Restrictions on investment powers (1) STC must not, from the assets of the funds under administration or in obtaining borrowings within the meaning of the Government Sector Finance Act 2018— (a) lend money to a contributor to, or to a person entitled to or receiving a benefit under, an STC scheme, either by lending the money directly or by lending it under arrangements entered into in the exercise of a general power of investment of the assets of the scheme, or (b) borrow money or maintain an existing borrowing of money, whether by way of a secured or unsecured loan, otherwise than to obtain temporary finance, or (c) invest any of the assets of an STC fund otherwise than on an arms-length basis, unless it is an in-house asset within the meaning of Part 8 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. (2) Subsection (1) does not prohibit the lending of money of an STC fund established before 25 May 1988 to a contributor if the trustee of the fund, on or before that date— (a) had express power to lend money to contributors, or (b) lent money to contributors and that lending was not expressly prohibited by the legislation establishing the fund. Division 3 Administration of STC schemes 64 Administrator to be appointed (1) STC may exercise its function of administering an STC scheme only by entering into a contract or an arrangement under section 53 with a person (a scheme administrator) who undertakes to provide superannuation scheme administration services for the scheme on behalf of STC. (2) STC must ensure that the scheme administrator operates within the powers of STC and complies with the policies determined by STC. (3)–(7) (Repealed) 65 Provision of additional benefits STC may enter into a contract or an arrangement under section 53 with any person— (a) for the insurance by that person, or the arranging of insurance by that person (on an individual or a group basis), of members of an STC scheme for the purpose of paying death or invalidity benefits (not being benefits based on past service) to or in respect of them, or (b) for the management of a scheme, carried out by or on behalf of that person, for the purpose of paying any such benefits to or in respect of any such members. 66 STC may compromise or settle claims (1) STC may compromise or otherwise settle any claim made against it. (2) If STC compromises or otherwise settles a claim in relation to a benefit, the compromise or settlement discharges STC's obligations as regards the benefit, and the amount payable is to be regarded as a benefit under the STC scheme concerned and is payable from the appropriate STC fund accordingly. (3) To the extent that an amount payable by STC following a compromise or settlement is not a benefit under the relevant STC scheme, the amount is payable from whichever fund or funds that STC considers appropriate. (4) STC may make such inquiries and investigations with respect to a claim made against it as it thinks fit. 67 Determination of disputes (1) A dispute under this or any other Act concerning an STC scheme is to be determined by STC or an STC disputes committee, except as otherwise provided by the regulations. (2) Regulations made for the purposes of subsection (1) may require that a dispute concerning the entitlements or obligations of an employee or beneficiary arising in respect of service by the employee with an employer that— (a) was responsible for the payment of benefits under an STC scheme of which the employee was a member or to which the employee was a contributor, and (b) has ceased to be responsible for the payment of benefits under that scheme but is responsible for the payment of benefits under a new superannuation scheme created in accordance with section 125, be determined, not by STC or an STC disputes committee, but by the trustee of the new superannuation scheme. (3) In determining a dispute, STC, an STC disputes committee or the relevant trustee may inform itself on any matter in such manner as it thinks fit and, in so doing, is not bound to observe rules of law relating to evidence. (4) A trustee acting in accordance with regulations referred to in subsection (2) and an STC disputes committee have and may exercise the powers conferred on STC by sections 66 and 68. (5) This section does not apply to a dispute in respect of which an application may be made to the District Court under section 21 of the Police Regulation (Superannuation) Act 1906. Note— The rights of a scheme member or other person to lodge a dispute with STC in relation to an STC scheme are set out in the Police Regulation (Superannuation) Act 1906, section 23E; the State Authorities Non-contributory Superannuation Act 1987, section 33B; the State Authorities Superannuation Act 1987, section 54B and the Superannuation Act 1916, section 85A. 68 Evidence from third parties (1) STC may request a person who has made a claim against STC, or who has a dispute with STC, to provide STC with an authority to obtain from a third person any information or evidence that is relevant to the subject-matter of the claim or dispute. (2) If such a person does not comply with any such request, STC is not obliged to proceed to process the claim or determine the dispute concerned. Division 4 Management of STC 69 STC Board (1) STC is to have a Board consisting of 8 part-time members and 1 full-time member appointed by the Minister. (2) Of the members— (a) 1 is to be appointed as Chairperson of the STC Board, and (b) 4 are to be appointed as employer representatives, and (c) 4 are to be appointed as employee representatives. (3) Of the members appointed as employee representatives, 1 is to be a full-time member. (4) Schedule 2 has effect with respect to the members and procedure of the Board. (5) The STC Board has the function of managing and controlling the affairs of STC. (6) Any act, matter or thing done in the name of, or on behalf of, STC by the STC Board is taken to have been done by STC. 70 Chairperson of STC Board (1) The Chairperson of the STC Board is to be appointed by the Minister. (2) To be eligible for appointment as Chairperson, a person must— (a) have significant knowledge of, and experience in, the conduct of superannuation schemes, investments, financial management or public administration, and (b) be independent of employers and employees and their respective interests. (3) The Minister must not appoint a person as Chairperson without having consulted Unions NSW. 71 Employer representative members (1) Of the members of the STC Board appointed as employer representatives, one is to be appointed on the recommendation of the Treasurer. (2) To be eligible for appointment as a member to represent the interests of employers a person must have knowledge of, and experience in, the conduct of superannuation schemes, investments, financial management or public administration. 72 Employee representative members (1) The members of the STC Board appointed as employee representatives are to be nominated by Unions NSW. (2) Unions NSW must not nominate a person to be a member unless it has consulted with organisations representing members of the STC schemes. (3) If Unions NSW fails to nominate persons for the purposes of this section within the period specified in a written request by the Minister to do so, the Minister may appoint a member or members as employee representatives. Any such member is taken to be properly appointed under this section. (4) (Repealed) 73 Duties of members of STC Board (1) A member of the STC Board must exercise a reasonable degree of care and diligence for the purposes of ensuring that STC carries out the duties referred to in section 51. (2) For the purposes of this section, a reasonable degree of care and diligence is the degree of care and diligence that a reasonable person in the position of the member would exercise in STC's circumstances. 74 Chief executive officer of STC (1) The STC Board is to employ a person as the chief executive officer of STC. (2) The chief executive officer has the function of exercising the day-to-day management of STC and has such other functions as may be conferred or imposed by or under this or any other Act. (3) The chief executive officer is subject to the control and direction of the STC Board. (4) The determination of the terms and conditions of employment of the chief executive officer of STC is subject to the concurrence of the Minister. (5) The Chairperson of the STC Board may, subject to any direction of the STC Board, appoint a member of staff of STC or other person to act in the office of the chief executive officer during the illness or absence of the chief executive officer (or during a vacancy in the office of chief executive officer), and the person while so acting has all the functions of the chief executive officer and is taken to be the chief executive officer. (5A)–(5C) (Repealed) (6) The STC Board or Chairperson may, at any time, remove a person from office as acting chief executive officer. (7), (8) (Repealed) 75 Staff Persons may be employed in the Public Service under the Government Sector Employment Act 2013 to enable STC to exercise its functions. Note— Section 59 of the Government Sector Employment Act 2013 provides that the persons so employed (or whose services STC makes use of) may be referred to as officers or employees, or members of staff, of STC. Section 47A of the Constitution Act 1902 precludes STC from employing staff (other than the chief executive officer of STC—see section 74 (1)). 76 Agents (1) STC may employ and pay an agent to transact any business or do any act (including receiving or paying money) that STC is authorised or required to transact or do in the exercise of its functions. (2) An agent may be employed by STC to receive or pay money even though the agent, or any subagent employed by the agent, is not a bank, building society or credit union. (3) Section 53 (3) of the Trustee Act 1925 applies to agents employed under this section. Note— That provision excuses a trustee from liability for the default of an agent employed in good faith. 77 Delegation of functions (1) STC may delegate to an authorised person any of its functions, other than this power of delegation. (2) STC may also delegate any of its functions relating to the STC schemes— (a) to a natural person with whom STC has entered into a contract or an arrangement under this Act, or (b) to the chief executive or Board of any organisation with which STC has entered into such a contract or an arrangement. (3) STC may not delegate any of its principal functions as trustee under this section, other than the STC dispute function. (3A) STC may, in respect of a dispute, a class of disputes or all disputes under the Acts under which the STC schemes are established or constituted, delegate the STC dispute function to a committee that is comprised of or includes members of the STC Board. (4) In this section, authorised person means a member of the STC Board, the chief executive of STC or a committee that is comprised of or includes members of the Board. (5) Section 64 (7) of the Trustee Act 1925 applies to STC and to a delegate under this section. 78 Committees (1) The STC Board may establish committees to give advice and assistance to the Board in connection with any particular matter or function of the Board. (2) It does not matter that some or all of the members of any committee are not members of the STC Board. (3) The procedure for the calling of meetings of a committee and for the conduct of business at those meetings is to be as determined by the Board or (subject to any determination of the Board) by the committee. 79 Corporate plan (1) STC is required to prepare and deliver to the Minister, not later than one month after the commencement of each financial year of STC, a corporate plan for the financial year. (2) A corporate plan must specify— (a) the objectives of STC's activities for the financial year concerned, and (b) the nature and scope of the activities to be undertaken, and (c) the strategies, policies and budgets for achieving those objectives (including the investment strategy and the reserves strategy), and (d) targets and criteria for assessing the performance of STC. (3) Annual reporting information prepared for STC under the Government Sector Finance Act 2018 must include an assessment of STC's performance, according to the targets and criteria for assessment set out in the corporate plan applicable to the annual reporting period concerned. (4) This section is subject to the requirements of any other Act or law. Note— STC must prepare annual reporting information for presentation to Parliament under the Government Sector Finance Act 2018. 80 Personal and other liability (1) A matter or thing done or omitted to be done by STC, the STC Board, a member of the Board, an STC disputes committee, a member of an STC disputes committee or any person acting under the direction of STC or the Board does not, if the matter or thing was done or omitted in good faith for the purpose of executing this or any other Act, subject such a member or a person so acting personally to any action, liability, claim or demand. (2) A decision made, or any act or thing done or omitted, by STC, the STC Board, a member of the Board, an STC disputes committee, a member of an STC disputes committee or any person acting under the direction of STC or the Board may not be called into question on any of the following grounds— (a) an alleged conflict of interest because STC, the Board or the person is involved in administering different Acts or different superannuation schemes, (b) that knowledge gained by STC, the Board or the person is or may be relevant to the exercise of a function under another such Act or scheme. (3) Subsection (1) does not preclude STC from being subject to any action, liability, claim or demand. Any money becoming payable by STC in respect of an action, liability, claim or demand is to be paid out of an STC fund or funds as determined by STC. (4) However, money is not payable under subsection (3) in circumstances in which a trustee may not be indemnified under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth. (5), (6) (Repealed) 80A STC not to indemnify officers without Ministerial approval (1) STC may indemnify a person who is or has been an officer of STC against a liability incurred as an officer of STC, or enter into an indemnity agreement, only with the written approval of the Minister. (2) For the purposes of this section, an indemnity agreement means an agreement or arrangement (whether made by deed or otherwise), between STC and a person who is or has been an officer of STC, that contains any one or more of the following provisions— (a) a provision that requires STC to indemnify the person against any liability incurred as an officer of STC, (b) a provision that requires STC to maintain an insurance policy in respect of any liability incurred by the person as an officer of STC, (c) a provision that requires STC to pay money to or on behalf of the person to assist in defending or responding to any claim, investigation or other proceedings relating to the person's term of office as an officer of STC (including a provision that requires payment in advance of any liability being incurred by the person), (d) a provision that confers on the person a right of access to documents held by STC, in any specified circumstances, in connection with any claim, investigation or other proceedings relating to the person's term of office as an officer of STC. (3) If an indemnity agreement is entered into by STC in accordance with the approval of the Minister under this section, STC may indemnify a person, as required by that agreement, without obtaining a further approval from the Minister. (4) The approval of the Minister under this section— (a) may be given generally or may be limited to a particular case or class of cases, and (b) is subject to such conditions (if any) as are specified in the approval. (5) In this section— officer of STC means the following— (a) a member of the STC Board, (b) the chief executive officer of STC. Division 5 Financial provisions 81 Amalgamation of funds and adjustment of accounts (1) The STC funds amalgamated as one fund under the Superannuation Administration Act 1991 continue to be amalgamated. (2) STC is to maintain separate accounts in the amalgamated fund in relation to each STC scheme concerned. (3) A reference in any provision of this Act or the regulations or any other Act or other instrument (other than this section) to an STC fund is taken to be a reference to that part of the amalgamated fund that is maintained for the purposes of the relevant STC scheme. (4) STC may, at the request of an employer, from time to time adjust the amounts credited to the employer's reserve in an account established under this section by debiting an amount and crediting that amount to the employer's reserve in another account established in the amalgamated fund in relation to another STC scheme. (5) STC may, at the request of the Treasurer, adjust the amounts credited to an employer's reserve (being an employer for whom the Crown makes contributions to the amalgamated fund) in an account established under this section by debiting an amount and crediting that amount to the employer's reserve, or the employer reserve of another employer for whom the Crown makes contributions to the amalgamated fund, in the same or another account established under this section. 81A Adjustment of employer reserves for surplus funds (1) STC may, at the request of the Treasurer, debit all or part of the surplus funds from an employer reserve of a State sector employer and credit that amount to any one or more of the following— (a) an employer reserve of that employer in an account maintained in relation to another STC scheme, (b) the employer reserve of one or more other State sector employers in an account maintained in relation to the same or another STC scheme. (2) STC may, at the request of an employer who is not a State sector employer and with the approval of the Treasurer, debit all or part of the surplus funds from the employer's reserve and pay that amount to that employer. 82 Re-establishment of separate funds and subsequent amalgamation (1) STC may re-establish any of the STC funds as separate funds. On the re-establishment of the funds, section 81 (2) ceases to operate in relation to the funds, but without prejudice to the previous operation of that subsection. (2) STC may amalgamate into one fund any 2 or more STC funds separated under this section. Section 81 (2) and (3) apply to any such amalgamated fund. 83 Powers of STC Without limiting the generality of sections 81 and 82, STC has power in New South Wales and elsewhere to do all things necessary and convenient to be done for, or in connection with, the re-establishment or amalgamation of a fund under this Division. 84 STC to maintain administration account STC must maintain an account called the STC Administration Account. 85 Administration costs generally (1) STC must charge administration costs that it incurs (including the remuneration or allowances of members of the STC Board and the chief executive officer) against the STC Administration Account. (2) The administration costs (including costs related to preserved benefits and investment management) that STC incurs in relation to the STC schemes are to be paid in accordance with this section to the STC Administration Account. (3) The administration costs (including costs related to preserved benefits and investment management) that STC incurs in relation to the STC schemes are payable by employers and contributors or members and former contributors or former members under the STC schemes, in accordance with the Acts under which those schemes are established. (4) If employees are employed by a group of employers, the costs are payable by the group of employers. If a contributor or member belongs or a former contributor or a former member belonged to a group of contributors or members which contributes to a scheme, the costs are payable by the group of contributors or members. (5) The amount, the rate and the basis on which an employer, group of employers or contributor or member or former contributor or former member or group of contributors or members is required to pay is to be determined by STC from time to time. (6) After calculating the appropriate amount or rate payable, STC may debit the appropriate account, fund or reserve in the relevant STC fund in accordance with this Division. (7) (Repealed) 86 Source of administration costs The administration costs (including costs relating to preserved benefits and investment management) payable in respect of an STC fund are to be paid in accordance with the Act under which the fund is established or, if the Act makes no provision, from the reserves or accounts established in the fund determined for the purposes of this section by STC. 87 Financial year of STC (1) The financial year of STC is the year commencing on 1 July. (2) However, the financial year of STC is to be the annual reporting period (if any) for STC if the Treasurer has made a determination under section 2.10 of the Government Sector Finance Act 2018 for that period to be different from the period referred to in subsection (1). Division 6 Miscellaneous 88 Appeals (1) A person aggrieved by a determination of STC or an STC disputes committee under section 67 (relating to determination of disputes) may appeal against the determination to the Industrial Relations Commission in Court Session (the Commission). (2) The appeal must be made within 6 months after the appellant is notified of the determination or within such further period as the Commission allows. (3) In dealing with the appeal, the Commission may exercise any function that could have been exercised by STC or the STC disputes committee, as the case may be, in making the determination the subject of the appeal. (4) In dealing with the appeal, the Commission is to have regard to this Act and any other relevant provisions regulating the superannuation scheme concerned and such other matters as it considers to be relevant. (5) In dealing with the appeal, the Commission is not bound by the rules of evidence and may inform itself in any manner it thinks fit. (6) The final determination made by the Commission on the appeal is to be given effect to as if it were a determination of STC. 89 STC Board must report events affecting functions (1) If the STC Board becomes aware of the occurrence of an event, or of a change in circumstances, having a significant adverse effect on the exercise of the functions of STC, the Board must give written notice to the Minister setting out particulars of the event or change in circumstances. (2) The STC Board must give the notice no later than the third business day after becoming aware of the event or change in circumstances. (3) Without limiting subsection (1), the STC Board must give written notice of an event if, as a result of the event, STC will not, or may not, be able to make payments to beneficiaries as and when the obligation to make those payments arises. 90 Provision of information to relevant Ministers (1) STC must furnish to the Minister administering this Act or the Minister administering the STC fund Acts such information relating to the general administration and operation of the STC schemes and the STC funds as the Minister concerned may from time to time require. (2) Despite subsection (1), STC must not furnish information relating to an individual member of an STC scheme to a Minister under this section, except with the member's consent. (3) In this section, STC fund Acts mean the Acts referred to in the definition of STC fund in section 4. 90A (Repealed) 91 Accounts and records of STC (1) STC, or any person with whom STC makes a contract or an arrangement, may maintain accounts and other records relating to the STC schemes or any other related functions in or on any medium, or combination of media, capable of recording information and may, from time to time, vary the manner or form in which those accounts or other records are maintained. (2) Subsection (1) is subject to the terms of any contract or arrangement referred to in that subsection. 92 Service of documents (1) A document may be served on STC by leaving it at, or by sending it by post to— (a) the office of STC, or (b) if it has more than one office, any one of its offices. (2) Nothing in this section affects the operation of any provision of a law or of the rules of a court authorising a document to be served on STC in any other manner. 93 Proof of certain matters not required In any legal proceedings, proof is not required (until evidence is given to the contrary) of— (a) the constitution of the STC Board, or (b) any resolution of the STC Board, or (c) the appointment of, or the holding of office by, any member of the STC Board, or (d) the presence or nature of a quorum at any meeting of the STC Board, or (e) the delegation of the STC dispute function to an STC disputes committee, or (f) the appointment of, or the holding of office by, any member of an STC disputes committee. 94 Recovery of amounts payable by STC (1) Any charge, fee or money due to STC may be recovered by STC as a debt in a court of competent jurisdiction. (2) Without limiting subsection (1), STC may recover any money owing to it under this or any other Act, together with interest on the money, as a debt in a court of competent jurisdiction. (3) Interest at a rate from time to time determined by STC is payable on any amount of money owing to it under this or any other Act calculated from the date on which the amount became due for payment until the date on which the amount is recovered or is otherwise paid. 95 Seal of STC The seal of STC is to be kept by the chief executive officer of STC and may be affixed to a document only— (a) in the presence of the chief executive officer or a member of staff of STC authorised in that behalf by the chief executive officer, and (b) with an attestation by the signature of the chief executive officer or that member of the fact of the affixing of the seal. Part 4 Monitoring STC 96 Definition In this Part— authorised person means a person appointed in writing by the Minister as an authorised person for the purposes of this Part. 97 Information to be given to Minister and authorised persons (1) The Minister or an authorised person may, by written notice to STC, require STC, within a specified period, to give to the Minister or authorised person in relation to a specified year of income the information, or a report on matters, specified in the notice. (2) STC must comply with any notice given to it under subsection (1). Maximum penalty—50 penalty units. (3) The information or report required to be provided under subsection (1) must relate to STC's exercise of its functions. (4) If STC gives information or a report to the Minister or authorised person as required by this section, the Minister or authorised person must give to STC a written statement that the information or report has been received. 98 Minister and authorised persons may require production of books (1) The Minister or an authorised person may, by written notice to STC, require STC to produce to the Minister or authorised person, at a reasonable time and reasonable place specified in the notice, any books relating to the affairs of STC. (2) STC must comply with a requirement referred to in subsection (1). Maximum penalty—50 penalty units. (3) The Minister or an authorised person may inspect, take extracts from and make copies of any book, or of any version of any book, produced to the Minister or authorised person under this section. 99 Access to premises (1) An authorised person may, for the purpose of monitoring the exercise by STC of its functions under this Act— (a) enter, at any reasonable time, any premises, other than any part of premises used for residential purposes, at which the authorised person has reason to believe books relating to the affairs of STC are kept, and (b) inspect any book found on the premises that relates to those affairs or that the authorised person believes on reasonable grounds to relate to those affairs, and (c) make copies of, or take extracts from, any such book. (2) The power of entry conferred by subsection (1) may only be exercised while business is being carried on, or during the hours that business is usually carried on, at or from the premises. 100–118 (Repealed) Part 5 Offences and remedies relating to officers 119 Duties and liabilities of persons involved in management (1) An officer must act honestly in the exercise of powers, and discharge of functions, as an officer of STC. Maximum penalty— (a) if the contravention is committed with intent to deceive or defraud STC, creditors of STC or creditors of another person or for another fraudulent purpose—500 penalty units or imprisonment for 5 years, or (b) in any other case—100 penalty units. (2) In the exercise of powers and the discharge of functions, an officer must exercise the degree of care and diligence that a reasonable person in a like position would exercise in the same circumstances. Maximum penalty—100 penalty units. (3) An officer, or a person who has been an officer, must not make improper use of information acquired because of his or her position as an officer— (a) to gain, directly or indirectly, an advantage for himself or herself or for another person, or (b) to cause detriment to STC. Maximum penalty—500 penalty units or imprisonment for 5 years. (4) An officer must not make improper use of his or her position as an officer— (a) to gain, directly or indirectly, an advantage for himself or herself or for another person, or (b) to cause detriment to STC. Maximum penalty—500 penalty units or imprisonment for 5 years. (5) In this section— officer means the chief executive officer of STC, a member of the STC Board or another person who is concerned, or takes part, in STC's management. (6), (7) (Repealed) 120 Recovery of profits from officers (1) If a person contravenes section 119, STC may recover from the person as a debt due to STC— (a) if the person or another person made a profit because of the contravention—an amount equal to the profit, and (b) if STC suffered loss or damage because of the contravention—an amount equal to the loss or damage. (2) An amount may be recovered from the person under this section whether or not the person has been convicted of an offence in relation to the contravention. (3) This section is in addition to, and does not limit, the Confiscation of Proceeds of Crime Act 1989. 121 Contraventions of trustee duties (1) A person (other than STC) who suffers loss or damage as a result of conduct of another person who was engaged in a contravention of, or failed to comply with, section 51 or 73 may recover the amount of the loss or damage by action against that other person or any other person knowingly involved in the contravention. (2) An action under this section may be begun at any time within 6 years after the day on which the cause of action arose. (3) For the purposes of this section, a person is knowingly involved in a contravention if, and only if, the person— (a) has aided, abetted, counselled or procured the contravention, or (b) has induced, whether by threats or promises or otherwise, the contravention, or (c) has been in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the contravention, or (d) has conspired with others to effect the contravention. 122 Defence relating to investment strategy It is a defence to an action under section 121 for loss or damage suffered by a person as a result of the making of an investment by or on behalf of STC if the defendant establishes that the investment was made in accordance with an investment strategy formulated in accordance with this Act. 123 Defence relating to management of reserves It is a defence to an action under section 121 for loss or damage suffered by a person as a result of the management of any reserves by STC if the defendant establishes that the management of the reserves was in accordance with a reserves strategy formulated in accordance with this Act. 124 Defences relating generally to actions arising from breach of duties (1) It is a defence to an action under section 121 for loss or damage suffered by a person if the defendant establishes that— (a) the contravention was due to reasonable mistake, or (b) the contravention was due to reasonable reliance on information supplied by another person, or (c) the contravention was due to the act or default of another person, or an accident, or some other cause beyond the person's control and that the defendant took reasonable precautions and exercised due diligence to avoid the contravention. (2) For the purposes of subsection (1) (b), a reference to another person does not include a reference to a person who was, when the contravention occurred, an employee or agent of the defendant or, if the defendant is a corporation, a director, employee or agent of the defendant. (3) A defendant is not entitled to rely on a defence under subsection (1) that a contravention was due to reliance on information supplied by another person or the act or default of another person unless— (a) the court grants leave, or (b) the defendant has, not later than 7 days before the day on which the hearing of the proceedings begins, served on the person bringing the action a written notice containing information that— (i) identifies, or would assist to identify, the other person, and (ii) was in the defendant's possession at the time of the contravention. Part 6 Public sector schemes 125 Additional State public sector superannuation schemes (1) The Minister may approve the preparation of a trust deed providing for a superannuation scheme (a trust deed scheme) for the benefit of any one or more of the following— (a) State public sector employees, (b) a class or classes of State public sector employees (including employees of a local authority or a public authority), (c) employees, or a class or classes of employees, or former employees, of employers or former employers under STC schemes, (d) other employees, or a class or classes of other employees, approved by the Minister, (e) local government councillors or a class or classes of local government councillors, (f) spouses or de facto partners of persons referred to in paragraphs (a)–(e), or a class or classes of such spouses or de facto partners. Note— "De facto partner" is defined in section 21C of the Interpretation Act 1987. (1A) The Minister may approve the extension of the application of a trust deed scheme to additional persons or classes of persons, being persons or a class or classes of persons of a kind referred to in subsection (1). (2) The trust deed may reflect the provisions of any other superannuation schemes, whether established by or under an Act, and may apply different provisions and benefits to different persons, according to the entitlements of the persons under existing State public sector superannuation schemes. (3) Further arrangements may be made for the incorporation of a body to be the trustee of the proposed trust deed scheme. (4) The trust deed must include provisions to ensure that a right that a contributor to, or a member of, the scheme it establishes has immediately before the deed takes effect is not removed or restricted. The rules included in the deed may, however, confer additional rights on a contributor or member. (5) The trust deed must be consistent with the requirements of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth for a regulated fund within the meaning of that Act and any trustee must satisfy the requirements of that Act for a trustee. (6) Before approving the preparation of a trust deed under this section, the Minister must consult with Unions NSW. (7) A trust deed approved under this section having effect immediately before the commencement of Part 4 of Schedule 3 to the Rural Fires Act 1997 and that relates to employees associated with or involved in local government activities is taken, subject to the regulations, to extend to any such employee who is a transferred officer within the meaning of that Part. Note— The employees concerned are certain fire control officers, deputy fire control officers and designated fire control officers who were employed by local government authorities before being transferred under the Rural Fires Act 1997 to the Department of Rural Fire Services. (8) In this section— local government councillor means a councillor within the meaning of the Local Government Act 1993. 126 Provisions consequent on establishment of additional superannuation schemes (1) Regulations may be made for or with respect to the following matters, in relation to the establishment of a superannuation scheme by a trust deed as referred to in section 125— (a) the transfer of members of, or contributors to, an STC scheme from that scheme to the new superannuation scheme, (b) the rights of persons who are eligible to become members of the new superannuation scheme to remain as members of, or contributors to, an STC scheme, (c) the transfer of assets and liabilities of an STC scheme, in respect of transferred members or contributors or former members or contributors, to the new superannuation scheme, (d) the payment of pensions and other benefits in respect of former members of, or former contributors to, an STC scheme under the new superannuation scheme, (e) the funds and reserves to be established in respect of the new superannuation scheme, (f) the preservation or deferral of benefits of persons transferring to the new superannuation scheme, (g) the entitlements, rights and obligations of a member of, or contributor to, an STC scheme who joins the new superannuation scheme, (h) the provision of services in relation to the new superannuation scheme by SAC (or its successors), (i) the deeming of employers to be no longer employers under an STC scheme where all the relevant employees are transferred from the STC scheme to the new superannuation scheme. (2) A regulation made under this section has effect despite any provision of an Act under which an STC scheme is constituted. 126A Mobility between public sector schemes and LGSS (1) In this sectio