Parliamentary and Judicial Retiring Allowances Act 1973 (Cth)

Parliamentary and Judicial Retiring Allowances Act 1973 No. 47 of 1973 AN ACT Relating to Parliamentary and Judicial Retiring Allowances. [Assented to 8 June 1973] BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:— Part I—Preliminary Short title. 1. This Act may be cited as the Parliamentary and Judicial Retiring Allowances Act 1973. Commencement. 2. This Act shall come into operation on the day on which it receives the Royal Assent. Part II—Parliamentary Retiring Allowances Citation. 3. (1) The Parliamentary Retiring Allowances Act 1948-1968 is in this Part referred to as the Principal Act. (2) The Principal Act, as amended by this Part, may be cited as the Parliamentary Retiring Allowances Act 1948-1973. Parts. 4. Section 3 of the Principal Act is repealed. 5. Section 4 of the Principal Act is repealed and the following section substituted:— Interpretation. "4. (1) In this Act, unless the contrary intention appears— 'annuity' means annuity under this Act; 'Commonwealth supplement' means the amount of the Commonwealth supplement ascertained in accordance with section 16; 'contributions' means contributions under Part IV, 'House' means a House of the Parliament; 'life policy' means a life policy as defined by sub-section (1) of section 4 of the Life Insurance Act 1945-1965; 'member' means a member of either House; 'parliamentary allowance' means the allowance paid to a member— (a) under section 3 of the Parliamentary Allowances Act 1920 or of that Act as amended; or (b) under sub-section (1) of section 4 or sub-section (1) of section 5 of the Parliamentary Allowances Act 1952 or of that Act as amended, and includes the allowance so paid, to a person who has been a member, from and including the day of dissolution or expiration of the House of which he was a member to and including the day to which the allowance was reckoned by virtue of section 4 or section 5 of the Act referred to in paragraph (a) or is reckoned by virtue of sub-section (4) of section 4 or sub-section (5) of section 5 of the Act referred to in paragraph (b); 'participant', in relation to a superannuation scheme applying in relation to any employment, means any person employed in that employment in respect of whom benefits are applicable under the scheme by reason of his being so employed, whether or not he has made contributions under the scheme; 'period of service', in relation to a member or former member, means (subject to section 20) the period, or the sum of the periods (whether continuous or not), whether before or after the commencement of this Act, during which the member or former member was entitled to a parliamentary allowance, and includes— (a) any period that is deemed to be included in the period of service of the member or former member by virtue of section 20a; and (b) any period by which the period of service of the member or former member is deemed to be increased by virtue of sub-section (4) of section 22q; 'retiring allowance' means a retiring allowance under this Act; 'Trust' means the Parliamentary Retiring Allowances Trust established under this Act; 'trustee' means one of the trustees who constitute the Trust, and includes a Minister performing the powers and functions of the Treasurer as a trustee. "(2) A reference in this Act to the contributions of a person does not include a reference to any contributions that have been refunded to him and have not been repaid by him. "(3) A reference in this Act to a superannuation scheme shall be read as a reference to a superannuation or retirement scheme, however established, other than the retirement scheme constituted by the provisions of this Act. "(4) For the purposes of this Act, a benefit payable to or in respect of a member under a superannuation scheme shall not be taken to have been based partly on contributions under the scheme by the employer by reason only that the benefit included interest upon contributions made under the scheme by the member.". 6. After section 4 of the Principal Act the following section is inserted in Part I:— Transfer value payable in respect of previous employment. "4a. (1) In this Act— (a) a reference, in relation to a member, to a transfer value payable to or in respect of the member under a superannuation scheme applicable in relation to any employment in which he was em­ployed at any time before the date on which he became a member is a reference to a benefit by way of a lump sum payable to or in respect of the member under that scheme upon the termination of the employment otherwise than on the ground of invalidity or of physical or mental incapacity to perform the duties of the employment, being a benefit that was based wholly upon contributions under the scheme by the employer or was based partly upon such contributions and partly upon contributions under the scheme by the member; and (b) a reference to the amount of a transfer value— (i) if the transfer value was based in part upon an amount or amounts paid to or in respect of the member under this Act—is a reference to so much only of the lump sum constituting the transfer value as exceeded that amount or the total of those amounts; and (ii) does not include a reference to any part of the lump sum constituting the transfer value that was based upon contributions by the member that were of a similar nature to contributions under the Superannuation Act 1922-1973 for reserve units of pension. "(2) If, after a transfer value became payable to or in respect of a person under a superannuation scheme, the whole or any part of that transfer value was paid to a person administering another superannuation scheme— (a) where the whole of the transfer value was so paid—that transfer value shall be disregarded for the purposes of this Act; or (b) where part of the transfer value was so paid—the amount of that transfer value shall be deemed, for the purposes of this Act, to be reduced by the amount so paid. "(3) Subject to sub-section (4), a transfer value shall be deemed for the purposes of this Act to have become payable in respect of a person under a superannuation scheme upon the termination of any employment if, upon the termination of that employment, he had the legal title to a life policy, or was entitled to have the legal title to a life policy assigned to him, being a policy the premiums for which were, while he was employed in that employment, paid in whole or in part by his employer, and, in that case, the surrender value of the policy as at the date of the termination of the employment shall be taken to be the amount of the transfer value. "(4) Where a transfer value is, by virtue of sub-section (3), deemed for the purposes of this Act to have become payable in respect of a person upon the termination of any employment by reason that, upon the termination of that employment, he had the legal title to a life policy, or was entitled to have the legal title to a life policy assigned to him, a transfer value shall not be deemed, for those purposes, to have become payable in respect of the person upon the termination of any previous employment by reason that, upon the termination of that previous employment, he had the legal title to that policy, or was entitled to have the legal title to that policy assigned to him.". Temporary trustees. 7. Section 7 of the Principal Act is amended by omitting sub-section (2). Delegation. 8. Section 8a of the Principal Act is amended by omitting sub-section (2). Repeal of Part III. 9. (1) Part III of the Principal Act is repealed. (2) The assets of the Parliamentary Retiring Allowances Fund are, by force of this section, vested in the Commonwealth. (3) The Treasurer, or an officer of the Department of the Treasury authorized by the Treasurer by instrument under his hand, may convert into money any assets to which sub-section (2) applies that do not consist of money. Contributions by members. 10. Section 13 of the Principal Act is amended— (a) by omitting from sub-section (1) the words "contribute to the Fund" and substituting the words "pay contributions to the Commonwealth"; and (b) by omitting from sub-section (4) the words "into the Fund" and substituting the words "to the Commonwealth". Contributions by Commonwealth. 11. Section 14 of the Principal Act is repealed. Heading. 12. The heading to Part V is repealed and the following heading substituted:— "Part V—Benefits". 13. Before section 15 of the Principal Act the following section is inserted in Part V:— Benefits to be paid by Commonwealth. "14a. Payments in respect of benefits (including refunds of contributions) provided for by this Act shall be made by the Commonwealth.". Benefits applicable only to present and future members. 14. Section 15 of the Principal Act is amended by omitting the word "pensions" and substituting the words "retiring allowances, annuities". Benefits to members. 15. (1) Section 18 of the Principal Act is amended— (a) by omitting from sub-section (1) the words "from the Fund"; (b) by omitting paragraph (a) of sub-section (2) and substituting the following paragraphs:— "(a) where his period of service is not less than eight years—a retiring allowance during his life-time at the rate applicable in accordance with the scale set out in sub-section (6); (aa) where his period of service is less than eight years but he has, on each of at least three occasions (including occasions before the commencement of this paragraph), ceased to be a member upon the dissolution or expiration of the House of which he was then a member or upon the expiration of his term of office—a retiring allowance during his life-time at the rate applicable in accordance with the scale set out in sub-section (6) in the case of a member whose period of service is eight years; or"; (c) by omitting from sub-section (3) the words "paragraph (a) of the last preceding sub-section" and substituting the words "paragraph (aa) of sub-section (2)"; (d) by omitting from sub-paragraph (i) of paragraph (a) of sub-section (4) the word "forty" and substituting the word "forty-five"; (e) by omitting from paragraph (a) of sub-section (4) the word "pension" and substituting the words "retiring allowance"; (f) by omitting from sub-section (5) the word "pension" (wherever occurring) and substituting the words "retiring allowance"; and (g) by omitting sub-sections (6) and (7) and substituting the following sub-section:— "(6) The rate of retiring allowance payable to a person under this section is such percentage of the rate of the parliamentary allowance for the time being payable under sub-section (1) of section 4, or sub-section (1) of section 5, whichever is appropriate, of the Parliamentary Allowances Act 1952-1973 as is applicable in accordance with the following scale:— Number of complete years in period of service of person Percentage of parliamentary allowance to be paid as retiring allowance 8................................................ 50 9................................................ 52 10................................................ 54 11................................................ 56 12................................................ 58 13................................................ 60 14................................................ 62 15................................................ 64 16................................................ 66 17................................................ 68 18................................................ 70 19................................................ 72 20 or more .......................................... 75". (2) The amendment made by paragraph (1)(d) does not apply to a person who was a member immediately before the date of commencement of this Act. (3) The amendments made by sub-section (1) other than the amendment made by paragraph (1)(d) apply from the commencement of this Act to a person who— (a) ceased to be entitled to a parliamentary allowance before the date of commencement of this Act; and (b) immediately before that date was entitled to a pension in accordance with the Parliamentary Retiring Allowances Act 1948 or that Act as amended, in like manner as they apply to a person who ceases to be entitled to a parliamentary allowance on or after that date. (4) Notwithstanding the amendments made by sub-section (1), the rate of the retiring allowance payable under section 18 of the Principal Act as amended by this Part to a person who was a member immediately before the commencement of this Act shall be not less than the rate of the pension that would have been payable under section 18 of the Principal Act to that person if those amendments had not been made. 16. After section 18 of the Principal Act the following section is inserted:— Certain members who retire by reason of ill-health deemed to have had eight years' service. "18a. (1) This section applies to— (a) a person— (i) who ceases to be a member by reason of his having resigned his place before the expiration of his term of office; (ii) whose period of service is less than eight years; and (iii) who satisfies the Trust that his resignation was made bona fide on account of ill-health; (b) a person— (i) who ceases to be a senator upon the expiration of the term of office of a class of senators or the dissolution of the Senate; (ii) whose period of service is less than eight years; (iii) who is not, at the time of an election to fill places in the Senate that become vacant at the time when his place becomes vacant, a candidate for election as a senator or, if elections of members of the House of Representatives are held, or an election of a member of the House of Representatives is held, at the same time as such a Senate election, a candidate for election either as a senator or as a member of the House of Representatives; and (iv) who satisfies the Trust that his failure to be such a candidate was due to ill-health; (c) a person— (i) who ceases to be a member of the House of Representatives upon the dissolution or expiration of that House; (ii) whose period of service is less than eight years; (iii) who is not, at the time of the next ensuing elections for the House of Representatives, a candidate for election to that House or, if elections of senators are held, or an election of a senator is held, at the same time as those elections for that House, a candidate for election either as a senator or as a member of the House of Representatives; and (iv) who satisfies the Trust that his failure to be such a candidate was due to ill-health; and (d) a person— (i) who ceases to be a senator by reason of the election of a successor under section 15 of the Constitution; (ii) whose period of service is less than eight years; (iii) who is not, at the time of the election at which his successor is elected, a candidate for election as a senator or, if his successor is elected at a general election of members of the House of Representatives, a candidate for election either as a senator or as a member of the House of Representatives; and (iv) who satisfies the Trust that his failure to be such a candidate was due to ill-health, but does not apply to a person to whom paragraph (aa) of sub-section (2) of section 18 applies. "(2) The period of service of a person to whom this section applies shall be deemed to be eight years if— (a) the person satisfies the Trust that the ill-health was attributable to a physical or mental injury or condition that occurred while he was a member; (b) in the case of a person to whom paragraph (c) does not apply—the person furnished to the Trust within three months, or, if the Trust so allowed, six months, after the day on which he became a member or the date of commencement of this section, whichever was the later, a certificate by a legally qualified medical practitioner to the effect that the person was not likely to become, within a period of eight years, incapable by reason of ill-health of per­forming the duties of a member; or (c) in the case of a person referred to in sub-section (1) of section 20 or a person to whom section 20a or 22q applies—he furnished to the Trust within three months, or, if the Trust so allowed, six months, after the day on which he became a member (or, if he has become a member on more than one occasion, the day on which he last became a member) or the date of commencement of this section, whichever was the later, a certificate by a legally qualified medical practitioner to the effect that the person was not likely to become, within a period specified in the certificate being a period that is not less than the period that is the prescribed period in relation to the person, incapable by reason of ill-health of performing the duties of a member. "(3) For the purposes of paragraph (c) of sub-section (2), the prescribed period in relation to a person to whom that paragraph applies is the period of eight years less any period or periods referred to in any one or more of the following paragraphs that is or are applicable in relation to him:— (a) if he is a person referred to in sub-section (1) of section 20 who has contracted in accordance with that sub-section—the part of the period of service of the person that is referred to in that sub-section; (b) if he is a person to whom section 20a applies—the period that is, or the sum of the periods that are, deemed to be included in the period of service of the person by virtue of sub-section (1) of that section; and (c) if he is a person to whom section 22q applies—the period by which the period of service of the person is deemed to be increased by virtue of sub-section (4) of that section. "(4) Where— (a) a person to whom this section applies is a person referred to in sub-section (1) of section 20 who has contracted in accordance with that sub-section; (b) the person again became a member within three months after he last ceased to be a member; and (c) if the person had not ceased to be a member, his period of service would have been deemed to be eight years by virtue of another provision of this section, the period of service of the person shall be deemed to be eight years. "(5) Where— (a) a person to whom this section applies is a person to whom sub-section (1) of section 20a applies; (b) the person became a member within three months after he ceased to be a member of the Parliament of the State concerned; (c) the person furnished to the appropriate authority in accordance with the law of that State providing for pensions for members of that Parliament a certificate by a medical practitioner indicating that, for the purposes of the application of that law, the health of the person was satisfactory; and (d) the person satisfies the Trust that— (i) in the case of a person who ceased to be a member of that Parliament by reason of his resignation—the resignation was not made on account of ill-health; or (ii) in the case of a person who ceased to be a member of that Parliament by reason of the dissolution or expiration of the House of that Parliament of which he was a member or upon the expiration of his term of office—his failure to be a candidate for re-election as a member of that Parliament was not due to ill-health, the period of service of the person shall be deemed to be eight years. "(6) Subject to sub-section (7), where— (a) by reason of the termination of the employment in which a person to whom this section applies was last employed before he became a member— (i) a transfer value became payable to or in respect of him under a superannuation scheme applicable in relation to that employment; (ii) a pension became payable to him under such a superannuation scheme; or (iii) deferred benefits became applicable in respect of him under such a superannuation scheme; (b) in the case of a person to whom sub-paragraph (i) of paragraph (a) applies—an amount equal to the amount of the transfer value referred to in that sub-paragraph has been paid to the Commonwealth in accordance with sub-section (1) of section 22q; (c) any of the following sub-paragraphs applies— (i) the person underwent a medical examination required under the rules of the superannuation scheme referred to in paragraph (a) for the purpose of determining whether his health and physical fitness were of such a standard as would justify his being admitted as a participant in that scheme; (ii) the person was admitted as a participant in the superannuation scheme under provisions of the rules of that scheme corresponding to the provisions of this sub-section; or (iii) the person underwent a medical examination required by the person by whom he was employed in the employment referred to in paragraph (a) for the purpose of determining whether his health and physical fitness were of such a standard as would justify his being employed in that employment; and (d) under the superannuation scheme referred to in paragraph (a)— (i) the benefits that would have been applicable in respect of the person if the termination of that employment had been caused by his ill-health would have been benefits by way of a pension; (ii) those benefits would have been the maximum benefits available under the scheme; and (iii) the applicability of those maximum benefits would not have been attributable to his having paid contributions at a higher rate than the ordinary rate of contributions, the period of service of the person shall be deemed to be eight years. "(7) Sub-section (6) does not apply in relation to a person if— (a) a period of more than three months elapsed between the termina­tion of the employment referred to in paragraph (a) of that sub-section and the date on which he became a member; or (b) in the case of a person referred to in sub-paragraph (i) or (ii) of paragraph (a) of that sub-section—the employment referred to in that paragraph terminated by reason of his ill-health. "(8) In the application of this section to a person who is a member at the commencement of this section, a reference in paragraph (b) of sub-section (2) or in sub-section (3) to eight years shall be construed as a reference to the period by which eight years exceeds so much of the period that, but for this section and sections 20, 20a and 22q, would be the period of service of the member as occurred before the commencement of this section.". 17. (1) Sections 19 and 19aa of the Principal Act are repealed and the following sections substituted:— Benefits on death of member. "19. (1) Where a person dies— (a) while entitled to a parliamentary allowance; or (b) while entitled to a retiring allowance under the foregoing pro­visions of this Part, benefits are payable in accordance with this section. "(2) Subject to sub-section (7), if the deceased person is survived by a widow or widower, there is payable to the widow or widower, at her or his option, to be exercised as prescribed, either— (a) an annuity, during her or his life-time but ceasing upon her or his re-marriage, at a rate ascertained in accordance with sub­section (3); or (b) the sum of the deceased person's contributions and the Common­wealth supplement in relation to the deceased person, less the amount of retiring allowance, if any, received by or accrued due to, the deceased person before the death of that person. "(3) The rate of the annuity referred to in paragraph (a) of sub­section (2) is— (a) if the period of service of the deceased person was less than eight years—five-sixths of the rate of the retiring allowance applicable in accordance with the scale set out in sub-section (6) of section 18 in the case of a person whose period of service is eight years; or (b) in any other case—five-sixths of the rate of the retiring allowance applicable in accordance with that scale in the case of a person whose period of service is equal to the period of service of the deceased person. "(4) Where a widow or widower who has an option under sub-section (2) dies or re-marries without having exercised that option, the widow or widower shall be deemed, for the purposes of this Act, to have exercised that option immediately before her or his death or re-marriage by electing to be paid the amount ascertained in accordance with paragraph (b) of that sub-section. "(5) Where— (a) a widow or widower who has an option under sub-section (2) exercises that option by electing to be paid an annuity in accord­ance with paragraph (a) of that sub-section; and (b) the widow or widower re-marries, there is payable to the widow or widower the amount, if any, by which the amount ascertained in accordance with paragraph (b) of sub-section (2) exceeds the amount of annuity, if any, received by, or accrued due to, the widow or widower before her or his re-marriage. "(6) If the deceased person is not survived by a widow or widower to whom an annuity or other benefit is payable under this section, there is payable to the personal representative of the deceased person the sum of the contributions paid by the deceased person and the Commonwealth supplement in relation to the deceased person, less the amount of retiring allowance, if any, received by, or accrued due to, the deceased person before the death of that person. "(7) Where a deceased person who was entitled to a retiring allowance at the time of his or her death is survived by a widow or widower who married that person— (a) after that person became entitled to that retiring allowance, whether or not the retiring allowance was payable at the time of the marriage; (b) after that person attained the age of sixty years; and (c) less than five years before that person died, that widow or widower is not entitled to an annuity or other benefit on the death of that person. Benefits in respect of orphaned children. "19aa. (1) In the cases specified in this section, benefits for the care and maintenance of eligible children are payable in such manner and subject to such conditions as the Trust determines. "(2) Where— (a) a widow or widower dies— (i) while entitled to a parliamentary allowance; or (ii) while entitled to a retiring allowance under section 18; (b) a person dies while entitled to a retiring allowance under section 18 being a person who, but for re-marriage after becoming entitled to that retiring allowance to a person who is not entitled to an annuity under section 19, would have been a widow or widower; or (c) a widow or widower who has an option under sub-section (2) of section 19 dies without having exercised that option, and is survived by a child who is a dependent child of the deceased person and is an eligible child but is not (in a case where paragraph (b) applies) a child born after the re-marriage of the deceased person or adopted after that re-marriage by the deceased person either alone or together with another person, benefit in accordance with this section is payable in respect of the child, and in any such case— (d) any benefit payable to the personal representative of the deceased person under sub-section (6) of section 19, or any benefit payable to the widow or widower under paragraph (b) of sub-section (2) of that section by virtue of the operation of sub-section (4) of that section, does not become payable until the benefit in respect of the child ceases to be payable; and (e) the amount of any such benefit otherwise payable to the personal representative or to the widow or widower, as the case may be, is reduced by the total of the amounts of benefit paid in respect of the child. "(3) Where a widow or widower entitled to an annuity under section 19 dies and is survived by a child who is a dependent child of the widow or widower or of the late spouse of the widow or widower and is an eligible child, benefit in accordance with this section is payable in respect of the child. "(4) The benefit in respect of an eligible child is an annuity at the rate of the amount per annum ascertained by dividing by four (or, if the number of eligible children of the deceased person in respect of whom benefit is payable under this section is greater than four, by the number of those children)— (a) where the benefit became payable on the death of a person referred to in paragraph (a) or paragraph (b) of sub-section (2)—the amount of the annual rate of annuity that would have been payable to the widow or widower of that person if that person had died leaving a widow or widower entitled to an annuity under this Act; (b) where the benefit became payable on the death of a widow or widower referred to in paragraph (c) of sub-section (2)—the amount of the annual rate of annuity that would have been payable to the widow or widower if an annuity had been payable to her or him under paragraph (a) of sub-section (2) of section 19; or (c) where the benefit became payable on the death of a widow or widower referred to in sub-section (3)—the amount of the annual rate of annuity that would have been payable to the widow or widower if she or he had not died. "(5) In this section— 'child', in relation to a person, includes a child adopted by that person; 'eligible child' means— (a) a child who has not attained the age of sixteen years; or (b) a child who— (i) has attained the age of sixteen years but has not attained the age of twenty-five years; and (ii) is receiving full-time education at a school, college or university.". (2) Where a person died before the date of commencement of this Act leaving a widow who was, immediately before that date, entitled to a pension in pursuance of the Parliamentary Retiring Allowances Act 1948 or that Act as amended, the widow is, from the commencement of this Act, entitled, in lieu of that pension, to an annuity at the rate at which she would be entitled to an annuity if section 19 of the Principal Act as amended by this Part had been in force immediately before the death of the person. (3) Section 19aa of the Principal Act as amended by this Part applies, from the commencement of this Act, in relation to a person who died after the commencement of the Parliamentary Retiring Allowances Act 1948 and before the commencement of this Act in like manner as it applies in relation to a person who dies after the commencement of this Act. Additional benefit to Prime Minister. 18. Section 19a of the Principal Act is amended— (a) by omitting from sub-section (1) the word "pension" and substituting the words "retiring allowance (b) by omitting sub-section (2) and substituting the following sub-section:— "(2) Where a person who has held office as specified in paragraph (a) of sub-section (1) has died or dies (either while holding office as Prime Minister or after ceasing so to hold office), and that person is survived by a widow or widower, the widow or widower shall be paid an annuity, during her or his life-time but ceasing upon her or his re-marriage, at a rate equal to one-half of the rate of the retiring allowance calculated, in relation to the service of her late husband or his late wife as Prime Minister, in accordance with the scale set out in sub-section (2a)."; (c) by omitting from sub-section (2a) the word "pension" (wherever occurring) and substituting the words "retiring allowance and (d) by omitting sub-sections (3) and (4) and substituting the following sub-section:— "(3) A retiring allowance or annuity under this section is payable notwithstanding that the person to whom the retiring allowance or annuity is payable is entitled to some other benefit under this Act.". Re-election. 19. (1) Section 20 of the Principal Act is amended— (a) by omitting from sub-section (1) the word "Trust" (last occurring) and substituting the word "Commonwealth"; (b) by omitting from sub-sections (2) and (3) the word "pension" (wherever occurring) and substituting the words "retiring allowance"; and (c) by omitting sub-sections (4) and (5) and substituting the following sub-sections:— "(4) Where a person in receipt of an annuity as a widow or widower becomes a member— (a) the annuity is not payable in respect of the period during which t