Superannuation Act 1971 (Cth)

Superannuation No. 46 of 1971 An Act relating to Superannuation. [Assented to 25 May 1971] BE it enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:— Short title and citation. 1.—(1.) This Act may be cited as the Superannuation Act 1971. (2.) The Superannuation Act 1922–1969 is in this Act referred to as the Principal Act. (3.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922–1971. Commencement. 2. This Act shall come into operation on the day on which it receives the Royal Assent. Parts. 3. Section 3 of the Principal Act is amended— (a) by omitting the words— "Division 5.—Existing Pension Rights (Sections 67–73)." and inserting in their stead the words— "Division 5.—Existing Pension Rights (Sections 66–73)."; (b) by omitting the words— "Part VIII.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds (Sections 108–109)." and inserting in their stead the words— "Part VIII.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds (Sections 108–110c)."; and (c) by inserting after the words— "Part X.—Special Provisions in Relation to Certain Members of the Police Force of the Australian Capital Territory (Sections 116–119)." the words— "Part Xa.—Preservation of Rights of Certain Contributors and Former Contributors. Division 1.—Preliminary (Sections 119a–119b). Division 2.—Employees Who Have Preserved Rights from Previous Employment (Sections 119c–119m). Division 3.—Preservation of Rights of Persons Ceasing to be Contributors (Sections 119n–119zb). Division 4.—Miscellaneous (Sections 119zc–119ze).". Interpretation. 4. Section 4 of the Principal Act is amended by omitting sub-section (6.) and inserting in its stead the following sub-sections:— "(5a.) Where— (a) a person employed by the Commonwealth under the Australian Security Intelligence Organization Act 1956 otherwise than in a permanent capacity is by the terms of his employment required to give the whole of his time to the duties of his employment; (b) that person has been so employed for a continuous period of not less than three years; and (c) the Director-General of Security certifies that that person's employment is likely to be continued for a period of at least seven years, the Director-General of Security may direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the direction. "(5b.) Where— (a) a person referred to in paragraph (a) of sub-section (5.) or paragraph (a) of sub-section (5a.) of this section was, during any period prior to the commencement of his employment by the Commonwealth, employed in employment within or outside Australia upon the termination of which— (i) a transfer value within the meaning of Division 2 of Part Xa. of this Act became payable to or in respect of him after the commencement of this sub-section under a superannuation scheme applicable in relation to that employment; (ii) a prescribed pension within the meaning of that Division became payable to him under such a scheme; or (iii) any deferred benefits within the meaning of that Division became applicable in respect of him after the commencement of this sub-section under such a scheme, and was, during that period, a member of that superannuation scheme; and (b) if the prior employment was employment in relation to which sub-paragraph (i) of the last preceding paragraph applies—an amount equal to the amount of the transfer value referred to in that sub-paragraph has been paid to the Board in accordance with sub-section (1.) of section one hundred and nineteen j of this Act, then sub-section (5.) or sub-section (5a.), as the case may be, of this section has effect in relation to the person subject to the modifications referred to in the next succeeding sub-section. "(5c.) The modifications referred to in the last preceding sub-section are as follows:— (a) any period of the prior employment shall be deemed, for the purposes of paragraph (b) of sub-section (5.) or paragraph (b) of sub-section (5a.), as the case may be, of this section, to have been a period of employment of the same nature as the employment of the person referred to in paragraph (a) of that sub-section and to have been continuous with that employment; (b) if the total of the periods of the prior employment is more than three years but less than ten years—the reference in paragraph (c) of sub-section (5.) or sub-section (5a.), as the case may be, of this section to seven years shall be read as a reference to the difference between ten years and the total of the periods of the prior employment; and (c) if the total of the periods of the prior employment is not less than ten years—sub-section (5.) or sub-section (5a.), as the case may be, of this section has effect as if paragraph (c) of that sub-section were omitted. "(6.) Subject to the next succeeding sub-section, where a person employed by an approved authority is required by the terms of his employment to give the whole of his time to the duties of his office and— (a) the approved authority certifies that the person's employment is likely to be continued for a period of at least seven years; (b) the person was, immediately prior to the commencement of his employment by the approved authority, a contributor to a Public Service Superannuation Fund as defined by section one hundred and eight of this Act; or (c) the person was, during any period prior to the commencement of his employment by the approved authority, employed in employment within or outside Australia upon the termination of which— (i) a transfer value within the meaning of Division 2 of Part Xa. of this Act became payable to or in respect of him after the commencement of this sub-section under a superannuation scheme applicable in relation to that employment; (ii) a prescribed pension within the meaning of that Division became payable to him under such a scheme; or (iii) any deferred benefits within the meaning of that Division became applicable in respect of him after the commencement of this sub-section under such a scheme, and was, during that period, a member of that superannuation scheme and, if the prior employment was employment in relation to which sub-paragraph (i) of this paragraph applies, an amount equal to the amount of the transfer value referred to in that sub-paragraph has been paid to the Board in accordance with sub-section (1.) of section one hundred and nineteen j of this Act, the Minister administering the Act or other law by or under which the approved authority is constituted may, on the recommendation of the approved authority, direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the direction or, in the case of a person referred to in paragraph (b) of this sub-section, shall be deemed to have been such an employee as from the date on which his employment by the approved authority commenced. "(7.) Where, in the case of a person referred to in paragraph (c) of the last preceding sub-section, the total of the periods of the prior employment referred to in that paragraph was less than seven years, that sub-section does not apply in relation to that person unless the approved authority certifies that the person's employment is likely to be continued for a period that is not less than the difference between seven years and the total of the periods of his prior employment.". Superannuation provision for certain persons by way of life assurance. 5. Section 7 of the Principal Act is amended by adding at the end thereof the following sub-sections:— "(4.) Payments by the Commonwealth in pursuance of an arrangement made under this section may be made out of the Consolidated Revenue Fund, which is appropriated accordingly. "(5.) This section has effect subject to section one hundred and nineteen zd of this Act.". Commencement and cessation of contributions. 6. Section 19 of the Principal Act is amended by omitting paragraph (c) of sub-section (1a.) and inserting in its stead the following paragraph:— "(c) in the case of a person who is to be deemed to be an employee within the meaning of section four of this Act by virtue of sub-section (4.), (5.), (5a.) or (6.) of that section—the date as from which he is to be deemed to be, or to have been, an employee or, if that date is not, or was not, a pay-day, the next succeeding pay-day after that date.". Units of pension. 7. Section 20 of the Principal Act is amended by omitting paragraph (b) of sub-section (10.) and inserting in its stead the following paragraph:— "(b) the number of years of prospective service of an employee is the number of complete years included in the sum of the following periods:— (i) the period that commenced on the date upon which he became an employee and ends on the date upon which he will attain his selected retiring age; (ii) in the case of an employee who became an employee after the commencement of the Superannuation Act 1971 and was, immediately before he became an employee, a contributor to a Public Service Superannuation Fund within the meaning of Part VIII. of this Act—the period during which he was a contributor to that Fund; and (iii) in the case of an employee who became an employee after the commencement of the Superannuation Act 1971 and was, at any time before he became an employee, employed in employment of a kind referred to in section one hundred and nineteen h of this Act—any periods of such employment during which he was a member of a superannuation scheme applicable in relation to the employment.". Election ineffective if number of contributory units is, or falls below, number of initial units. 8. Section 22d of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "neither of the next two succeeding paragraphs" and inserting in their stead the words "none of the next three succeeding, paragraphs"; (b) by omitting from paragraph (b) of sub-section (1.) the word "or"; (c) by omitting from paragraph (c) of sub-section (1.) the word "entitlement." and inserting in its stead the words "entitlement; or"; (d) by adding at the end of sub-section (1.) the following paragraph :- "(d) in the case of an employee to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen j, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than his initial unit entitlement."; (e) by omitting from paragraph (a) of sub-section (3.) the words "the next succeeding paragraph does not apply" and inserting in their stead the words "neither of the next two succeeding paragraphs applies"; (f) by omitting from paragraph (a) of sub-section (3.) the word "or"; (g) by omitting from paragraph (b) of sub-section (3.) the word "entitlement." and inserting in its stead the words "entitlement; or"; and (h) by adding at the end of sub-section (3.) the following paragraph:— "(c) in the case of a pensioner in relation to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of paragraph (a) of this sub-section; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than his initial unit entitlement.". Election ineffective if number of contributory units is, or falls below, one-half of full unit entitlement. 9. Section 22e of the Principal Act is amended— (a) by omitting from paragraph (a) of sub-section (1.) the words "neither of the next two succeeding paragraphs" and inserting in their stead the words "none of the next three succeeding paragraphs"; (b) by omitting from paragraph (b) of sub-section (1.) the word "or"; (c) by omitting from paragraph (c) of sub-section (1.) the word "time." (last occurring) and inserting in its stead the words "time; or"; (d) by adding at the end of sub-section (1.) the following paragraph:— "(d) in the case of an employee to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e), of sub-section (1.) of section one hundred and nineteen h of this Act, is less than one-half of his full unit entitlement as at that time."; (e) by omitting from paragraph (a) of sub-section (3.) the words "the next succeeding paragraph does not apply" and inserting in their stead the words "neither of the next two succeeding paragraphs applies"; (f) by omitting from paragraph (a) of sub-section (3.) the word "or"; (g) by omitting from paragraph (b) of sub-section (3.) the word "election." and inserting in its stead the words "election; or";. and (h) by adding at the end of sub-section (3.) the following paragraph :— "(c) in the case of a pensioner to whom paragraph (c) or paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of paragraph (a) of this sub-section; and (ii) so many of the number of units of pension specified in relation to him in a determination by the Board under sub-paragraph (iii) or (iv) of paragraph (c) of sub-section (3.) of section one hundred and nineteen j, or paragraph (b) or (c) of sub-section (2.) of section one hundred and nineteen k, of this Act as are referable to the pension referred to in paragraph (c), or the deferred benefits referred to in paragraph (e) of sub-section (1.) of section one hundred and nineteen h of this Act, is less than one-half of his full unit entitlement as at the time of the election.". Choice of benefits for contributor who is retrenched. 10. Section 50 of the Principal Act is amended by omitting sub-sections (3.) and (4.) and inserting in their stead the following sub-section:— "(3.) Where an employee who has been retrenched and is in receipt of a pension again becomes an employee, the pension does not cease to be payable by reason that he has again become an employee.". 11. Sections 51 to 53, inclusive, of the Principal Act are repealed and the following sections inserted in their stead:— Refund of contributions in event of resignation, dismissal or discharge. "51. Where a contributor resigns, or is dismissed or is discharged, there shall be paid to him the amount of the contributions paid by him to the Fund. Rights of contributors who resign to contest elections. "52.—(1.) This section applies to a person who, being a contributor, voluntarily terminates his employment in order to become a candidate for election as a member of a House of the Parliament of the Commonwealth or of a State, but so applies only if the termination took effect not earlier than one month before the day on which nominations for the election closed. "(2.) Where a person to whom this section applies dies on or before the day of the declaration of the result of the election, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee. "(3.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected— (a) dies within the period of two months after the day of the declaration of the result of the election; or (b) applied within that period to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and dies before the application is determined or, if the application is granted, before becoming so employed, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an. employee. "(4.) Where— (a) the Board is satisfied that, if a person to whom this section applies had not terminated his employment, he would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the termination and ended on the day of the declaration of the result of the election, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; and (b) he was not a candidate at the election by reason of the invalidity or incapacity or was such a candidate but failed to be elected, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(5.) Where— (a) a person to whom this section applies and who was a candidate at the election but failed to be elected does not apply, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment; and (b) the Board is satisfied that, if he had not terminated his employment, he would, at a time (in this sub-section referred to as ' the relevant time') within that period, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(6.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected applies, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and the Board is satisfied that— (a) in the case of a person whose application is rejected—if he had not terminated his employment, he would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day of the rejection, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; (b) in the case of a person whose application has been granted but who has not become employed by the Commonwealth or by that authority—if he had not terminated his employment, he would, at a time (in this sub-section also referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day on which he was required to commence his employment with the Commonwealth or the authority, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties; or (c) in the case of a person whose application has not been determined—if he had not terminated his employment, he would, at a time (in this sub-section also referred to as 'the relevant time') after the day of the declaration of the result of the election, have been retired on the ground of invalidity or physical or mental incapacity to perform his duties, then he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee but shall be deemed to have been retired at the relevant time on that ground. "(7.) Where— (a) a person to whom this section applies was a candidate at the election but failed to be elected; and (b) on application made by him within two months after the day of the declaration of the result of the election, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of the termination of his employment, to be a contributor or to be, or to be deemed to be, an employee. "(8.) If a refund of the amount of the contributions of a person referred to in sub-section (1.) of this section was paid under section fifty-one of this Act upon the termination of his employment, the preceding provisions of this section do not apply in relation to him unless an amount equal to the amount of the refund is paid to the Fund before the expiration of two months after the day of the declaration of the result of the election or within such further period as the Board allows. "(9.) Where a person is, by virtue of a preceding provision of this section, to be deemed not to have ceased, by reason of the termination of his employment, to be a contributor, any pension that became payable to him under this Act upon that termination shall be deemed not to have been payable and he is liable to pay to the Fund, before the expiration of two months after the day of the declaration of the result of the election or within such further period as the Board allows, an amount equal to the amount of the payment, or the sum of the amounts of the payments, of that pension that were made to him. "(10.) An amount, or the sum of the amounts, paid to the Fund under the last preceding sub-section in respect of payments of pension received by a person shall, to the extent that it exceeds the difference between the sum of the payments of pension and the sum of the amounts paid by the Commonwealth in respect of the payments of pension, be paid from the Fund to the Commonwealth. Certain contributors who change the nature of their employment to continue as contributors. "53. Where— (a) the employment of a contributor terminates or is terminated; and (b) immediately after the day on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor or to be, or to be deemed to be, an employee.". Power of Board to require break-down pensioners to be medically examined and to furnish information as to employment. 12. Section 64a of the Principal Act is amended by inserting in sub-section (1.), before the word "require", the words "or to whom a deferred benefit by way of a pension that is applicable under Division 3 of Part Xa. of this Act is payable by virtue of paragraph (a) of sub-section (2.) of section one hundred and nineteen w of this Act,". 13. Before section 67 of the Principal Act the following section is inserted in Division 5 of Part IV.:— Application of Division. "66.—(1.) The succeeding sections of this Division do not apply in relation to a person in relation to whom section one hundred and nineteen h of this Act applies. "(2.) An employee to whom section sixty-eight of this Act applies and who became an employee before the first day of January, One thousand nine hundred and seventy, may, within three months after the commencement of this section or within such further period as the Board, in special circumstances, allows, elect to contribute in accordance with Division 2 of Part Xa. of this Act and, in that case, that Division (other than section one hundred and nineteen m) has effect in relation to him and. so has effect as if he had become an employee on the date of the election. "(3.) Any contribution payable by reason of an election made under the last preceding sub-section is payable as from the date of the election.". Contributors to Provident Account. 14. Section 79 of the Principal Act is amended— (a) by inserting in paragraph (a) of sub-section (1.), after the word "five", the words "or section one hundred and nineteen m"; (b) by inserting in paragraph (c) of sub-section (3.), before the word "he", the words "subject to Division 2 of Part Xa. of this Act,"; and (c) by omitting sub-sections (4.), (5.) and (6.). 15. Section 86 of the Principal Act is repealed and the following section inserted in its stead:— Certain contributors to the Provident Account who change the nature of their employment to continue as contributors. "86. Where— (a) the employment of a contributor to the Provident Account terminates or is terminated; and (b) immediately after the day on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment, he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee.". 16. Section 88 of the Principal Act is repealed and the following section inserted in its stead:— Rights of contributors to Provident Account who resign to contest elections. "88.—(1.) This section applies to a person who, being a contributor to the Provident Account, voluntarily terminates his service in order to become a candidate for election as a member of a House of the Parliament of the Commonwealth or of a State, but so applies only if the termination took effect not earlier than one month before the day on which nominations for the election closed. "(2.) Where a person to whom this section applies dies on or before the day of the declaration of the result of the election, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee. "(3.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected— (a) dies within the period of two months after the day of the declaration of the result of the election; or (b) applied within that period to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and dies before the application is determined or, if the application is granted, before becoming so employed, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee. "(4.) Where— (a) the Board is satisfied that, if a person to whom this section applies had not terminated his service, his services would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the termination and ended on the day of the declaration of the result of the election, have been terminated on the ground of invalidity; and (b) he was not a candidate at the election by reason of the invalidity or was such a candidate but failed to be elected, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(5.) Where— (a) a person to whom this section applies and who was a candidate at the election but failed to be elected does not apply, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment; and (b) the Board is satisfied that, if he had not terminated his service, his services would, at a time (in this sub-section referred to as 'the relevant time') within that period, have been terminated on the ground of invalidity, he shall be deemed not to have ceased, by reason of the termination of his service, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(6.) Where a person to whom this section applies and who was a candidate at the election but failed to be elected applies, within two months after the day of the declaration of the result of the election, to become employed by the Commonwealth or by an approved authority in employment the terms of which would require him to give the whole of his time to the duties of his employment and the Board is satisfied that, if he had not terminated his service— (a) in the case of a person whose application is rejected—his services would, at a time (in this sub-section referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day of the rejection, have been terminated on the ground of invalidity; (b) in the case of a person whose application has been granted but who has not become employed by the Commonwealth or by that authority—his services would, at a time (in this sub-section also referred to as 'the relevant time') within the period that commenced on the day after the day of the declaration of the result of the election and ended on the day on which he was required to commence his employment with the Commonwealth or the authority, have been terminated on the ground of invalidity; or (c) in the case of a person whose application has not been determined —his services would, at a time (in this sub-section also referred to as 'the relevant time') after the day of the declaration of the result of the election, have been terminated on the ground of invalidity, then he shall be deemed not to have ceased, by reason of the termination of his services, to be a contributor to the Provident Account or to be, or to be deemed to be, an employee but his services shall be deemed to have been terminated at the relevant time on the ground of invalidity. "(7.) If an amount was paid under section eighty-two or section eighty-five of this Act to a person to whom this section applies upon the termination of his service, any amount payable to or in respect of him under this Act by reason of t