Superannuation Act (No. 2) 1969 (Cth)

Superannuation (No. 2) No. 26 of 1969 An Act relating to Superannuation. [Assented to 4 June 1969] BE it enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:— Part I.—Preliminary. Short title and citation. 1.—(1.) This Act may be cited as the Superannuation Act (No. 2) 1969. (2.) The Superannuation Act 1922–1968, as amended by the Superannuation Act 1969, is in this Act referred to as the Principal Act. (3.) Section 1 of the Superannuation Act 1969 is amended by omitting sub-section (2.). (4.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922–1969. Commencement. 2.—(1.) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent. (2.) The amendments made by paragraphs (d) and (e) of section 17 of this Act shall be deemed to have come into operation on the twenty-sixth day of May, One thousand nine hundred and sixty-seven. (3.) The amendments made by paragraph (b) of section 23 of this Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and sixty-two, and apply only in relation to contributors who retire or die on or after that date. Parts. 3. This Act is divided into Parts, as follows:— Part I.—Preliminary (Sections 1–3). Part II.—Amendments of the Principal Act (Sections 4–28). Part III.—Miscellaneous (Sections 29–32). Part II.—Amendments of the Principal Act. Parts. 4. Section 3 of the Principal Act is amended by inserting after the words— "Division 2—Units of Pension (Sections 20–22)." the words— "Division 2a.—Non-contributory Units of Pension (Sections 22a–22m).". Interpretation. 5. Section 4 of the Principal Act is amended— (a) by omitting from the definition of "Employee" in sub-section (1.) the words "section three of the Judges' Pensions Act 1948–1956" and inserting in their stead the words "sub-section (1.) of section four of the Judges' Pensions Act 1968"; and (b) by adding at the end of sub-section (2a.) the words "and, unless the contrary intention appears, shall, subject to section seventy-three of the Superannuation Act 1959 and section thirty-three of the Superannuation Act 1963, also be read as including a reference to any units of pension in respect of which the whole or a part of his contributions has been deferred by virtue of either of those sections". Commencement and cessation of contributions. 6. Section 19 of the Principal Act is amended— (a) by omitting from sub-section (2c) the words "pension to be paid to him on retirement equal to the pension" and inserting in their stead the words "pension in respect of units of pension for which he is a contributor to be paid to him on retirement equal to the pension in respect of those units"; and (b) by omitting sub-section (3.) and inserting in its stead the following sub-sections:— "(2d.) A contributor— (a) who elects, or is called upon, to retire on or after attaining the age of sixty years; or (b) the age for whose retirement is fixed at an earlier age than sixty-five years, but not less than sixty years, and who retires on attaining the age so fixed, may, notwithstanding anything contained in this section, contribute, in a lump sum, or in such smaller sums and at such periods as the Board approves, the amount necessary to enable a pension in respect of non-contributory units of pension applicable in relation to him to be paid to him on retirement equal to the pension in respect of those units that would have been paid to him if he had retired at such later age (not exceeding the age of sixty-five years) as the Board approves. "(2e.) For the purposes of the last preceding sub-section, the amount necessary to be contributed to enable a pension in respect of non-contributory units of pension to be paid to a contributor on retirement equal to the pension in respect of those units that would have been paid to him if he had retired at a later age is an amount equal to five-sevenths of the amount that would be required to be contributed by him under sub-section (2c.) of this section in respect of those units in relation to that age if he had become liable to contribute for those units on the respective dates when those units became applicable in relation to him as non-contributory units and he had contributed for those units at the appropriate rates based on a retiring age of sixty-five years. "(2f.) Amounts equal to amounts contributed under subsection (2d.) of this section are payable to the Commonwealth out of the Fund. "(3.) Where— (a) after, but as from a date before, the attainment by an employee of the maximum age for retirement; or (b) after, but as from a date before, the attainment by a pensioner of the maximum age for retirement, being a pensioner who retired on or after attaining that age, his salary is increased and the number of units of pension ascertained in accordance with sub-section (2.) of section twenty of this Act as it applied at the time when he attained the maximum age for retirement having regard to his salary immediately after the increase is greater than the number of units of pension ascertained in accordance with that sub-section as it applied at the time when he attained the maximum age for retirement having regard to his salary immediately before the increase, he may elect to contribute for additional units of pension but so that the total number of units of pension (including non-contributory units of pension applicable in relation to him) does not exceed the first-mentioned number of units of pension.". Units of pension. 7. Section 20 of the Principal Act is amended— (a) by omitting from sub-paragraph (ii) of paragraph (a) of sub-section (2.) the figures "228" and inserting in their stead the figures "163"; (b) by omitting from sub-section (3.) the words "two hundred and twenty-eight" and inserting in their stead the words "one hundred and sixty-three"; (c) by inserting after sub-section (4.) the following sub-section:— "(4a.) Where the obligation of a contributor to contribute for an additional unit of pension came into existence on or before the date on which he attained the maximum age for retirement but, by reason of sub-section (1.) of section one hundred and thirty-eight of this Act, contributions for that unit are payable as from a date after he attained that age— (a) the last preceding sub-section and sub-section (2.) of section one hundred and thirty-eight of this Act do not apply in relation to that unit; and (b) sub-section (2b.) of section nineteen of this Act applies as if his initial contribution in respect of that unit were made on the date on which his obligation to contribute for that unit came into existence."; (d) by inserting in sub-section (6.), after the word "may", the words ", subject to section twenty-two j of this Act,"; (e) by inserting after sub-section (8.) the following sub-section:— "(8a.) Where— (a) the number of units of pension ascertained in relation to an employee in accordance with sub-section (2.) of this section is reduced by reason of an election made by the employee under section twenty-four of this Act; and (b) the sum of the number of units of pension for which he is a contributor and the number of non-contributory units of pension (if any) applicable in relation to him exceeds the reduced number of units so ascertained, the number of non-contributory units of pension (if any) applicable in relation to him shall, where necessary, be deemed to have been reduced accordingly and, if there are no non-contributory units of pension applicable in relation to him, whether by reason of the operation of this sub-section or otherwise, the number of units of pension for which he was required to contribute shall, where necessary, be deemed to have been reduced accordingly."; (f) by omitting from paragraph (a) of sub-section (9.) the word "and"; (g) by omitting paragraph (b) of sub-section (9.) and inserting in its stead the following paragraphs:— "(b) where necessary, the number of non-contributory units of pension (if any) applicable in relation to him shall be deemed to have been reduced accordingly; and "(c) if there are no non-contributory units of pension applicable in relation to him, whether by reason of the operation of the last preceding paragraph or otherwise, the number of units of pension for which he was required to contribute shall, where necessary, be deemed to have been reduced accordingly."; and (h) by adding at the end thereof the following sub-section:— "(11.) Where by reason of sub-section (8a.), or paragraph (b) of sub-section (9.), of this section the number of non-contributory units of pension applicable in relation to an employee is to be deemed to have been reduced, those units shall be deemed to have been reduced in the reverse of the order in which they became applicable in relation to him as non-contributory units of pension.". Rights of employees over 40 years of age. 8. Section 20a of the Principal Act is amended— (a) by inserting in sub-sections (1.) and (2.), after the word "may,", the words "subject to section twenty-two h of this Act,"; and (b) by omitting sub-section (3.) and inserting in its stead the following sub-section:— "(3.) Where an employee who has attained the age of forty years is a contributor for a number of units of pension less than the difference between— (a) the number of units of pension ascertained in accordance with sub-section (2.) of the last preceding section as it applies in relation to him; and (b) the number of non-contributory units of pension, if any, applicable in relation to him, he may elect to contribute for such number of additional units of pension as does not exceed the number by which that difference exceeds the number of units of pension for which he is a contributor.". Effect of reduction in salary or prescribed amount. 9. Section 20b of the Principal Act is amended by inserting in sub-section (2.), after the word "may", the words ", subject to section twenty-two j of this Act,". Interpretation. 10.—(1.) Section 22 of the Principal Act is amended— (a) by omitting sub-section (1.) and inserting in its stead the following sub-section:— "(1.) For the purposes of this Division, the prescribed amount is such amount, being a multiple of One hundred and thirty dollars, as is specified in the regulations for the purpose of this sub-section."; and (b) by omitting from sub-section (2.) the words "paragraph (c) of". (2) Notwithstanding the amendments made by the last preceding sub-section — (a) any regulation in force immediately before the date of commencement of this section for the purpose of paragraph (a) of sub-section (1.) of section 22 of the Principal Act continues in force as if it had been made for the purpose of paragraph (b) of sub-section (1.) of section 36 of the Principal Act as amended by this Act; and (b) any regulation in force immediately before that date for the purpose of paragraph (c) of sub-section (1.) of section 22 of the Principal Act continues in force as if it had been made for the purpose of sub-section (1.) of section 22 of the Principal Act as so amended, but any regulation so continued in force may be amended or repealed by regulations made under the Principal Act as so amended. 11. After Division 2 of Part III. of the Principal Act the following Division is inserted:— "Division 2a.—Non-contributory Units of Pension. Election to take up rejected units as non-contributory units. "22a.—(1.) Where an employee who has attained the age of forty years but has not attained the age of sixty-five years is a contributor for a number of units of pension less than the difference between— (a) the number of units of pension ascertained in accordance with sub-section (2.) of section twenty of this Act as it applies in relation to him; and (b) the number of non-contributory units of pension, if any, applicable in relation to him, he may, subject to this Act and to the Superannuation Act (No. 2) 1969, elect that such number of units of pension as does not exceed the number by which that difference exceeds the number of units of pension for which he is a contributor are to be applicable in relation to him as non-contributory units of pension. "(2.) An election by an employee under the last preceding sub-section does not have effect in relation to a unit of pension unless the sum of— (a) the fortnightly amount of the contributions (other than contributions for reserve units of pension) that are payable by him to the Fund on the date of the election or, if that date is not a pay-day, that would be so payable if that date were a pay-day; and (b) the fortnightly amount of the contributions that, if he became liable to contribute for that unit on that date, would be payable by him to the Fund in respect of that unit on that date or, if that date is not a pay-day, on the next following pay-day, exceeds three-one thousand and fortieths of his salary as at the date of the election. Election by certain contributors to convert existing units to non-contributory units. "22b.—(1.) Subject to this Act, an employee who has attained the age of forty years, but has not attained the age of sixty-five years, before the date of commencement of this section and is a contributor at that date may, before the expiration of the prescribed period, if he is still an employee, elect that such number of units of pension as is specified in the election, being units of pension for which he was a contributor immediately before that date and at the date of the election and the obligation to contribute for which came into existence on or after the date on which he attained the age of forty years, are to be applicable in relation to him as non-contributory units of pension. "(2.) An election by an employee under the last preceding sub-section— (a) shall, if it is made after the date of commencement of this section, be deemed, for the purposes of this Division, to have taken effect on that date; and (b) shall be taken to relate to units of pension in the reverse of the order in which he became liable to contribute for those units. "(3.) An election under this section by an employee other than an employee to whom sub-section (2bb.) of section nineteen of this Act applies does not have effect, and shall be deemed not to have had effect, in relation to a unit of pension unless, if the election had had effect on the day immediately before the date of commencement of this section, the fortnightly amount of the contributions (other than contributions for reserve units of pension) that, but for the operation of the election in relation to that unit, would have been payable by him to the Fund on that day or, if that day was not a pay-day, that would have been so payable if that day had been a pay-day, exceeds three-one thousand and fortieths of his salary as at that day. "(4.) An election under this section by an employee to whom sub-section (2bb.) of section nineteen of this Act applies does not have effect, and shall be deemed not to have had effect, in relation to a unit of pension unless, if the election had had effect on the day immediately before the date of commencement of this section, the sum of— (a) the fortnightly amount of the contributions (other than contributions for reserve units of pension) that, but for this section, would have been payable by him to the Fund under sub-section (2bb.) or sub-section (2bc.) of section nineteen of this Act on that day or, if that day was not a pay-day, that would have been so payable if that day had been a pay-day; and (b) the fortnightly amount of any other contributions that, but for this section, would have been payable by him to the Fund on that day or, if that day was not a pay-day, that would have been so payable if that day had been a pay-day, reduced by the fortnightly amount of the contributions ascertained in relation to him in accordance with the appropriate tables set out in the Third, Fourth, Fifth and Sixth Schedules to this Act in respect of units of pension in respect of which an election by him under this section has, or is to be deemed to have had, effect, exceeds three-one thousand and fortieths of his salary as at that day. "(5.) Where— (a) after the date of commencement of this section an employee in relation to whom a non-contributory unit of pension is applicable makes an election under this section in relation to a unit of pension (in this sub-section referred to as 'the contributory unit'); and (b) if the election had been made before the non-contributory unit became applicable in relation to him, the non-contributory unit would not have become so applicable by reason of the operation of sub-section (2.) of section twenty-two a, sub-section (3.) of section twenty-two c, section twenty-two d or section twenty-two e of this Act or section thirty-one of the Superannuation Act (No. 2) 1969, the election under this section does not have effect in relation to the contributory unit. "(6.) Sections one hundred and thirty-five and one hundred and thirty-six of this Act do not apply in relation to an election under this section. "(7.) For the purposes of this section, 'the prescribed period' is, subject to the next succeeding sub-section, the period of six months commencing on the date of commencement of this section or, if the Board (whether before or after the expiration of that period) extends that period, the period as so extended. "(8.) Where the Board has, under the last preceding sub-section, extended the period of six months referred to in that sub-section, the Board may (whether before or after the expiration of the period as so extended) further extend, or successively further extend, that period and, in that case, the prescribed period is the period as so further extended. Election to take up units as non-contributory units where salary increased after attainment of maximum age for retirement. "22c.—(1.) Where an employee, or a pensioner who retires after the commencement of this section, is entitled to make an election under sub-section (3.) of section nineteen of this Act to contribute for an additional unit of pension, the employee or pensioner may, subject to this Act, instead of making that election, elect that that additional unit of pension is to be applicable in relation to him as a non-contributory unit of pension. "(2.) An election under this section shall, for the purposes of this Act, be deemed to have taken effect on the date on which the employee or pensioner attained the maximum age for retirement or the date of commencement of this section, whichever is the later. "(3.) An election under this section does not have effect, and shall be deemed not to have had effect, in relation to a unit of pension unless the sum of— (a) the fortnightly amount of the contributions (if any) that are payable or, where they have been previously paid, would be payable if they had not been so paid, by him to the Fund on the date of the election or, if that date is not a pay-day, that would be so payable if that date were a pay-day; and (b) the fortnightly amount of the contributions that, if the employee or pensioner had on the date of the election made an election under sub-section (3.) of section nineteen of this Act in relation to that unit, would be payable by him to the Fund in respect of that unit on that date or, if that date is not a pay-day, that would be so payable if that date were a pay-day, exceeds three-one thousand and fortieths of his salary as at— (c) in the case of an election by an employee—the date of the election; or (d) in the case of an election by a pensioner—the time immediately after the increase in salary by virtue of which he became entitled to make the election. Election ineffective if number of contributory units is, or falls below, number of initial units. "22d.—(1.) An election by an employee under section twenty-two a of this Act does not have effect, and an election by an employee under section twenty-two c of this Act does not have effect and shall be deemed not to have had effect, where— (a) in a case to which neither of the next two succeeding paragraphs applies—the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election is less than his initial unit entitlement; (b) in the case of an employee to whom section sixty-seven of this Act applies—the sum of 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 the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act is less than his initial unit entitlement; or (c) in the case of an employee to whom section sixty-nine of this Act applies or applied—the sum of 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 the number of units of pension in respect of which his right referred to in section sixty-eight of this Act is or was, under section seventy-one or section seventy-two of this Act, commutable for new rights is less than his initial unit entitlement. "(2.) An election by an employee under section twenty-two b of this Act does not have effect, and shall be deemed not to have had effect, in relation to a unit of pension where, if it had effect in relation to that unit— (a) in a case to which neither of the next two succeeding paragraphs applies—the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect would be less than his initial unit entitlement; (b) in the case of an employee to whom section sixty-seven of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect; and (ii) the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act, would be less than his initial unit entitlement; or (c) in the case of an employee to whom section sixty-nine of this Act applies or applied, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect; and (ii) the number of units of pension in respect of which his right referred to in section sixty-eight of this Act is or was, under section seventy-one or section seventy-two of this Act, commutable for new rights, would be less than his initial unit entitlement. "(3.) An election by a pensioner under section twenty-two c of this Act does not have effect, and shall be deemed not to have had effect, where— (a) in a case to which the next succeeding paragraph does not apply, the sum of— (i) the number of units of pension (if any) for which he is a contributor at the time of the election; and (ii) the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act at that time, is less than his initial unit entitlement; or (b) in the case of a pensioner to whom section sixty-nine of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of the last preceding paragraph; and (ii) the number of units of pension (other than units of pension so referred to) in respect of which his right referred to in section sixty-eight of this Act was, under section seventy-one or section seventy-two of this Act, commutable for new rights, is less than his initial unit entitlement. "(4.) A reference in the preceding sub-sections of this section to the initial unit entitlement of an employee or pensioner shall be read as a reference to the full unit entitlement of the employee or pensioner as at the time when he became a contributor to the Fund, or, if he became a contributor to the Fund after having previously ceased to be a contributor to the Fund, when he last became a contributor to the Fund. "(5.) In the case of an employee or pensioner who made an election under section twenty-four of this Act that had the effect of reducing the number of units of pension ascertained in relation to him in accordance with sub-section (2.) of section twenty of this Act, his initial unit entitlement shall be ascertained for the purposes of this section as if he had made the election at the time when he became, or last became, a contributor to the Fund. Election ineffective if number of contributory units is, or fails below, one-half of full unit entitlement "22e.—(1) An election by an employee under section twenty-two a of this Act does not have effect, and an election by an employee under section twenty-two c of this Act does not have effect and shall be deemed not to have had effect, where— (a) in a case to which neither of the next two succeeding paragraphs applies—the number of units of pension (other than reserve units of pension) for which he is a contributor at the time of the election is less than one-half of his full unit entitlement as at that time; (b) in the case of an employee to whom section sixty-seven of this Act applies—the sum of 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 the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act is less than one-half of his full unit entitlement as at that time; or (c) in the case of an employee to whom section sixty-nine of this Act applies or applied—the sum of 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 the number of units of pension in respect of which his right referred to in section sixty-eight of this Act is or was, under section seventy-one or section seventy-two of this Act, commutable for new rights is less than one-half of his full unit entitlement as at that time. "(2.) An election by an employee under section twenty-two b of this Act does not have effect, and shall be deemed not to have had effect, in relation to a unit of pension where, if it had effect in relation to that unit— (a) in a case to which neither of the next two succeeding paragraphs applies—the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect would be less than one-half of his full unit entitlement as at the time immediately after the time as from which the election has or had effect; (b) in the case of an employee to whom section sixty-seven of this Act applies, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect; and (ii) the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act, would be less than one-half of his full unit entitlement as at the time immediately after the time as from which the election has or had effect; or (c) in the case of an employee to whom section sixty-nine of this Act applies or applied, the sum of— (i) the number of units of pension (other than reserve units of pension) for which he was a contributor as at the time immediately before the time as from which the election has or had effect less the number of units of pension in respect of which an election by the employee under section twenty-two b of this Act has effect; and (ii) the number of units of pension in respect of which his right referred to in section sixty-eight of this Act is or was, under section seventy-one or section seventy-two of this Act, commutable for new rights, would be less than one-half of his full unit entitlement as at the time immediately after the time as from which the election has or had effect. "(3.) An election by a pensioner under section twenty-two c of this Act does not have effect, and shall be deemed not to have had effect, where— (a) in a case to which the next succeeding paragraph does not apply, the sum of— (i) the number of units of pension (if any) for which he is a contributor at the time of the election; and (ii) the number of units of pension (other than non-contributory units of pension) in respect of which he is in receipt of a pension under this Act at that time, is less than one-half of his full unit entitlement as at the time of the election; or (b) in the case of a pensioner to whom section sixty-nine of this Act applied, the sum of— (i) the total number of units of pension referred to in sub-paragraphs (i) and (ii) of the last preceding paragraph; and (ii) the number of units of pension (other than units of pension so referred to) in respect of which his right referred to in section sixty-eight of this Act was, under section seventy-one or section seventy-two of this Act, commutable for new rights, is less than one-half of his full unit entitlement as at the time of the election. "(4.) In ascertaining the full unit entitlement of an employee or pensioner for the purposes of the application of this section in relation to an election under section twenty-two c of this Act, regard shall be had to his salary immediately after the increase in salary by virtue of which he became entitled to make that election. Effect of election. "22f.—(1.) Where an employee or pensioner makes an election under this Division in relation to a unit of pension— (a) that unit of pension becomes, or shall be deemed to have become, on and from the date as from which the election has or had effect, a non-contributory unit of pension applicable in relation to him; (b) subject to sub-section (2d.) of section nineteen of this Act, he is not required or permitted to contribute, or to continue to contribute, as the case may be, for that unit of pension; (c) if any contributions payable by him for that unit have been deferred in whole or in part by virtue of section seventy-three of the Superannuation Act 1959 or section thirty-three of the Superannuation Act 1963—the compound interest payable upon the deferred contributions ceases to accrue upon the date of the election, and the amount of the interest that has accrued before that date is payable forthwith to the Fund and— (i) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the employee or pensioner under this Act, be deducted by the Board from the benefit; and (ii) may, to the extent, if any, that it exceeds the amount of that benefit, be recovered by the Board in any court of competent jurisdiction as a debt due by the employee or pensioner to the Board; (d) subject to the next succeeding sub-section, any