Transport Employees Retirement Benefits Act 1967 (NSW)

Transport Employees Retirement Benefits Act 1967 No 96 An Act to make provision for a scheme providing retirement and other benefits for certain persons employed in the Departments of Railways, Government Transport and Motor Transport and the Police Department and certain other employees; to establish a Transport Retirement Fund; to constitute a Transport Retirement Board and to define its powers, authorities, duties and functions; to repeal the Railways Retirement Fund Act 1964; to amend the Government Railways Act 1912, the Transport Act 1930, the Superannuation Act 1916 and certain other Acts; and for purposes connected therewith. Part 1 Preliminary 1 Name of Act and commencement (1) This Act may be cited as the Transport Employees Retirement Benefits Act 1967. (2) (a) This Act, Parts 4 and 5 excepted, shall commence upon a day to be appointed by the Governor and notified by proclamation published in the Gazette, which day is in this Act referred to as "the commencement of this Act". (b) Part 4 shall commence upon a day to be appointed by the Governor and notified by proclamation published in the Gazette, which day shall be earlier than the day referred to in paragraph (a). (c) Part 5 shall commence upon a day to be appointed by the Governor and notified by proclamation published in the Gazette, which day shall be not earlier than the day referred to in paragraph (a). 2 (Repealed) 3 Definitions (1) In this Act, unless the context or subject-matter otherwise indicates or requires— Account means the Government Railways Superannuation Account under the Government Railways Act 1912. annual wages means, in relation to a person, the amount determined by the Board as the wages or salary payable in a year to that person, having regard to his ordinary remuneration, excluding amounts payable in respect of overtime. benefit wage factor, in relation to a person, means a number that is a multiple of one-half that has been nominated by that person as his benefit wage factor for the purposes of this Act. Board means the SAS Trustee Corporation continued by the Superannuation Administration Act 1996. contributor means a person who is contributing to the Fund, and a person eligible for a benefit under this Act calculated by reference only to his initial credit. contributor to the Account means a person who was contributing to the Account immediately before he becomes a contributor. contributor to the Railways Retirement Fund means a person who was a contributor under the Railways Retirement Fund Act 1964 immediately before he becomes a contributor. employee means— (a) a person who is employed by an employer, who is, by the terms of his employment, required not to engage in any employment outside the duties of his office and the date of confirmation of whose appointment is on or after the commencement of this Act, or (b) a person employed in the Police Department with the authority of the Premier, the date of confirmation of whose appointment is on or after the commencement of this Act, but does not include— (c) any person engaged in casual employment, as defined in any award relating to his employment, or any person appointed or employed pursuant to section 101 of the Transport Act 1930, (d) any person employed by the Commissioner for Railways temporarily as a workman on construction, deviation or duplication works, in the trading and catering services or in connection with any sawmill, other than a sawmill associated with a workshop, (e) any person who is employed in the Police Department and is a police cadet or a person employed under the Police Regulation Act 1899 or the Public Service Act 1902, (f) any person engaged as a contractor or on a contract basis, not being a person employed under a contract of employment, or (g) a person eligible to make an election under section 10 of the New South Wales Retirement Benefits Act 1972, or a person who, pursuant to section 11 of that Act, becomes a contributor within the meaning of that Act, or a person who ceases, pursuant to section 12 (8) of that Act, to contribute to the Transport Retirement Fund, or a person eligible to make an election under section 11 of the Public Authorities Superannuation Act 1985 or section 19 of the State Authorities Superannuation Act 1987. employer means an employer whose name is specified in Schedule 1 or whose name is added to that Schedule under section 59. financial year means— (a) except as provided by paragraph (b)—the year ended on 31 March, or (b) the period prescribed for the purposes of this definition. Fund means the State Authorities Superannuation Fund established under the State Authorities Superannuation Act 1987. gratuity scheme officer means a person referred to in paragraph (b) of subsection (1) of section 12 who elects to become a contributor. initial credit means— (a) in relation to a contributor to the Account who under section 12 elects to become a contributor, an amount equal to the sum of— (i) his contributions to the Account before he ceased to contribute thereto pursuant to subsection (4) of section 12, reduced, where any amounts have been paid to that contributor from the Account pursuant to Part 9 of the Government Railways Act 1912, by such amount as the Board may determine, and (ii) an allowance on those contributions, as so reduced, calculated in accordance with Schedule 3, (b) in relation to a contributor to the Railways Retirement Fund, an amount equal to the sum of— (i) his initial credit, if any, under the Railways Retirement Fund Act 1964, immediately before he becomes a contributor, (ii) the contributions paid, and any contributions due but unpaid, by him to the Railways Retirement Fund before he becomes a contributor, reduced by the sum of— (a) the difference between the amount of those contributions and the amount of contributions that would have been paid or been due and payable by him to the Railways Retirement Fund had all contributions been made or been due and payable in accordance with Scale 2 of Schedule 1 to the Railways Retirement Fund Act 1964, and (b) where any amounts have been paid to him from the Railways Retirement Fund, such amount as the Board may determine, and (iii) interest calculated at the rate of three and three-quarters per centum per annum, compounded annually at the end of each financial year, on his initial credit, if any, referred to in subparagraph (i) for the period that he was a contributor to the Railways Retirement Fund and on the contributions referred to in subparagraph (ii) calculated as the Board determines, having regard to the dates of payment and refund of the contributions to the date immediately prior to his becoming a contributor, (c) in relation to a gratuity scheme officer or a Police Department appointee, the amount paid by him or on his behalf as referred to in subsection (2) of section 18. initial credit benefit means, in relation to a person who under section 11 or 12 becomes a contributor, the benefit for which he would, upon attaining the age of sixty-five years and completing at least ten years' service, become eligible by virtue of paragraph (b) of subsection (1) of section 23. maximum benefit, in relation to a person, the upper level of whose wage group— (a) is less than four thousand dollars, means an amount equivalent to five times the upper level of his wage group, (b) is four thousand dollars or more than four thousand dollars but less than eight thousand dollars, means an amount equivalent to twenty thousand dollars plus four times the difference between the upper level of his wage group and four thousand dollars, (c) is eight thousand dollars or more than eight thousand dollars but less than twelve thousand dollars, means an amount equivalent to thirty-six thousand dollars plus three times the difference between the upper level of his wage group and eight thousand dollars, or (d) is twelve thousand dollars or more, means an amount equivalent to forty-eight thousand dollars plus twice the difference between the upper level of his wage group and twelve thousand dollars, less so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. ordinary minimum benefit, in relation to a person, means twice the lower level of his wage group, less so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. Police Department appointee means a person employed in the Police Department with the authority of the Premier, not being a police cadet or a person employed under the Police Regulation Act 1899, or the Public Service Act 1902, where the date of confirmation of his appointment is before the commencement of this Act. prescribed means prescribed by this Act or the regulations. Railways Retirement Fund means the Railways Retirement Fund under the Railways Retirement Fund Act 1964. regulations means regulations made under this Act. retrenchment means compulsory termination by an employer of the services of a contributor on the ground that the contributor's office has been abolished, no other office in the service of his employer or another employer having been found for him at annual wages of not less than five-sixths of the annual wages applicable to him at the date of the compulsory termination, and retrenched has a corresponding meaning. service means service under or employment by one or more employers, whether before or after the commencement of this Act. (2) For the purposes of this Act, a person who is an employee by reason of paragraph (b) of the definition of employee in subsection (1), or who is a Police Department appointee, shall be deemed to be employed by the Commissioner of Police. (3) The person by whom a contributor to the Account, a contributor to the Railways Retirement Fund or a contributor to the Fund is for the time being employed and whose name is not specified in Schedule 1 shall, for the purposes of this Act, be deemed to be the employer of that contributor. (4) A reference in this Act to an allowance on any contributions to the Account paid by a contributor to the Account is a reference to such percentage of those contributions as is specified in Schedule 3 under the heading "Allowance as a percentage of contributions to the Account" and is opposite the number of complete years, for which the contributor contributed to the Account, specified in that Schedule under the heading "Number of complete years of contributing to the Account". (5) A reference in this Act— (a) to a wage group of a person is a reference to the range— (i) that commences at one amount of annual wages and extends to and includes a higher amount of annual wages, the higher amount being two hundred dollars more than the lower and the lower being a multiple of two hundred dollars, and (ii) that includes the amount of the annual wages of that person, (b) to the upper level of the wage group of a person is a reference to the higher amount, referred to in subparagraph (i) of paragraph (a), of that person's wage group, and (c) to the lower level of the wage group of a person is a reference to the lower amount, referred to in subparagraph (i) of paragraph (a), of that person's wage group, but where the annual wages of a person are a multiple of two hundred dollars, the wage group of that person is the range, the lower level of which is his annual wages and the higher level of which is the sum of his annual wages and two hundred dollars. (6) For the purposes of this Act an employee's appointment shall be deemed to have been confirmed— (a) in the case of an employee whose employment by an employer commenced before or on, or within one month after, the commencement of the Transport Employees Retirement Benefits (Amendment) Act 1971, on the day determined under the provisions of this Act as in force immediately prior to that commencement, (b) in the case of an employee of the Commissioner for Railways, the Commissioner for Government Transport, the Commissioner for Motor Transport, the Commissioner of Police or the Public Authorities Superannuation Board, whose employment commenced on or after one month from the commencement of the Transport Employees Retirement Benefits (Amendment) Act 1971, on the day following the expiration of a period of twelve months after the day on which his employment by the Commissioner for Railways, the Commissioner for Government Transport, the Commissioner for Motor Transport, the Commissioner of Police, the New South Wales Retirement Board or the Public Authorities Superannuation Board, as the case may be, commenced, and (c) in the case of an employee of an employer whose name is added to Schedule 1 under section 59— (i) being an employee whose employment by that employer commenced within twelve months before the date, or commenced after the date, on which that employer's name was so added to that Schedule—on the day following the expiration of a period of twelve months after the day on which his employment by that employer commenced, or (ii) being an employee whose employment by that employer commenced more than twelve months before the date on which that employer's name was so added to that Schedule—on the day on which that employer's name was added to that Schedule. (7) Where, after an employee's appointment as an employee of an employer was or has been confirmed, he ceased or ceases to be employed by that employer and subsequently became or becomes an employee in the employment of the same or another employer, he shall, for the purposes of this Act, be deemed not to be an employee unless and until his appointment to the employment last referred to in this subsection is deemed, under subsection (6), to have been confirmed on a day ascertained in accordance with that subsection. (8) A reference in this Act to the first day of a pay period applicable to a person next following a particular date or event includes a reference to a pay period applicable to that person, the first day of which is that particular date or the date of that particular event. (9) Where a person has nominated a benefit wage factor for the purposes of this Act, the amount of the lump sum benefit for which he shall contribute under this Act shall be an amount equivalent to the difference between— (a) the product of that benefit wage factor and the upper level of his wage group, and (b) so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. (10) A reference in this Act to a refund of contributions made by any person is a reference to any contributions made by or on behalf of that person to the Account, the Railways Retirement Fund established under the Railways Retirement Fund Act 1964, or the Fund, reduced by the sum of— (a) any amounts paid from the Fund to that person, (b) any amount determined by the Board in respect of his initial credit under subparagraph (i) of paragraph (a), or subparagraph (ii) of paragraph (b), of the definition of initial credit in subsection (1), and (c) the difference between the contributions, if any, made by that person to that Railways Retirement Fund or the Fund and the contributions that would have been so made by him had those contributions been calculated wholly at the rates applicable to that portion of a benefit that is in excess of two thousand dollars, without any addition of interest. (11) In this Act, unless the context or subject-matter otherwise indicates or requires, a reference to an Act includes a reference to that Act as amended, whether by subsequent Acts or otherwise, and to any Act passed in substitution for that Act. Part 2 4–9 (Repealed) Part 3 Contributions and benefits 10 Employee contributors An employee shall, subject to this Act, contribute to the Fund, in accordance with this Act— (a) in the case of an employee the name of whose employer is at the commencement of this Act specified in Schedule 1—as on and from the first day of the pay period applicable to him next following the date of confirmation of his appointment, or (b) in the case of an employee the name of whose employer is added to Schedule 1 under section 59—as on and from such date as the Governor may specify in the notification published under that section or as on and from the first day of the pay period applicable to him next following the date of confirmation of his appointment, whichever is the later. 11 Contributors who formerly contributed to Railways Retirement Fund A person who was, immediately before the commencement of this Act, a contributor within the meaning of the Railways Retirement Fund Act 1964, shall, subject to this Act, become a contributor to the Fund in accordance with this Act as on and from the first day of the pay period applicable to him next following that commencement and the contributions that would, but for the repeal of the Railways Retirement Fund Act 1964, have been payable on that day to the Railways Retirement Fund shall be paid to the Fund. 12 Contributors who were formerly contributors to the Account, or are Transport Department officers or Police Department appointees (1) The following persons, that is to say— (a) a contributor to the Account, (b) an officer within the meaning of the Transport Act 1930 who at the commencement of this Act was not a contributor to any superannuation fund or account established under the Transport Act 1930, the Government Railways Act 1912, the Superannuation Act 1916, the Railways Retirement Fund Act 1964, and the date of confirmation of whose appointment was before that commencement, and (c) a Police Department appointee, may elect to become a contributor. (2) A contributor to the Account, a gratuity scheme officer of a Police Department appointee who made such an election before the commencement of the Transport Employees Retirement Benefits (Amendment) Act 1971, shall be deemed to have made the election on a prescribed date (which date shall be treated for the purposes of this Act as the date on or before which he was required to make an election), and to have become a contributor on a date determined as provided in subsection (3). (2A) In subsection (2) prescribed date means a date determined by the Board being— (a) in the case of a person referred to in paragraph (a) of subsection (1), either the thirty-first day of March, or the thirty-first day of August, one thousand nine hundred and sixty-nine, (b) in the case of a person referred to in paragraph (b) of subsection (1), either the fifteenth day of May, or the thirtieth day of September, one thousand nine hundred and sixty-nine, or (c) in the case of a person referred to in paragraph (c) of subsection (1), either the thirtieth day of August, one thousand nine hundred and sixty-eight, or the thirty-first day of August, one thousand nine hundred and sixty-nine. (3) A contributor to the Account, a gratuity scheme officer or a Police Department appointee who has made an election under this section shall, subject to this Act, become a contributor as on and from the first day of the pay period applicable to him next following the date on or before which he is required to make his election. (4) A contributor to the Account, upon becoming a contributor, shall cease to contribute to or, subject to this Act, to be entitled to receive any benefit from the Account. (5) A gratuity scheme officer, upon becoming a contributor, shall cease to be eligible for any benefit under section 132A of the Transport Act 1930. 12A Certain persons deemed to be contributors (1) In this section prescribed person means a person who elected under paragraph (b) of subsection (1) of section 24 of the Railways Retirement Fund Act 1964, not to become a contributor under that Act. (2) A prescribed person who made an election with the concurrence of the Board on or before the thirty-first day of August, one thousand nine hundred and sixty-nine, or on or before such later date as the Board allowed in any particular case, to become a contributor, shall be deemed as on and from the first day of the pay period applicable to him next following the thirty-first day of August, one thousand nine hundred and sixty-nine, to have become a contributor liable to contribute to the Fund for a lump sum benefit of an amount equal to his ordinary minimum benefit at the date on which he became a contributor. (3) Any election purporting to have been made by a prescribed person in accordance with the provisions of subsections (2) and (3) of section 13 and made with the concurrence of the Board on or before the date on which he is deemed under subsection (2) to have become a contributor, or on or before such later date as the Board allowed in any particular case, shall be deemed to be and to have been an election made in accordance with those provisions. 13 Amount of benefits (1) The amount of the lump sum benefit for which a person, upon becoming a contributor, shall, subject to this Act, contribute to the Fund shall be— (a) in the case of an employee, an amount equal to his ordinary minimum benefit at the date he becomes a contributor, (b) in the case of a contributor under section 11, such amount as is determined by the Board as being the actuarial equivalent appropriate to the rate of his contributions to the Railways Retirement Fund immediately before the commencement of this Act, (c) in the case of a contributor under subsection (3) of section 12, an amount equal to his ordinary minimum benefit at the date applicable to him under that subsection. (2) A contributor or a person eligible to become a contributor may elect, in accordance with this section, for an additional amount of lump sum benefit. (3) An election under subsection (2) shall be made by the contributor— (a) by his nominating the maximum benefit applicable to him, or (b) by his nominating a benefit wage factor the application of which would produce an amount of lump sum benefit that is less than the maximum benefit then applicable to him, and any such nomination shall have effect on and from the date on which he becomes a contributor. (4) An election to be made under subsection (2) shall be made— (a) by an employer on or before the date on which he becomes a contributor in accordance with section 10 or such later date as the Board in any particular case may allow, (b) by a contributor under section 11 on or before a date, being not later than six months after the commencement of this Act, to be appointed for the purposes of this paragraph by the Governor and notified by proclamation published in the Gazette or such later date as the Board in any particular case may allow, or (c) by a contributor to the Account, a gratuity scheme officer or a Police Department appointee on or before the date on or before which he is required to make an election under section 12. (5) The contributions attributable to the additional amount of lump sum benefit for which a person elects to contribute under this section shall be payable as on and from the first day of the pay period next following the date on or before which he is required to make the election. 13A Further election by certain contributors (1) If a person, being a contributor for a benefit at age sixty-five years of less than twice the upper level of his wage group, contributed, with the concurrence of the Board, after the prescribed date, in accordance with an election to do so made before that date, for a benefit at age sixty-five years of at least twice such upper level, or for the maximum benefit appropriate to his age level if that maximum benefit were less than twice such upper level, he shall, as on and from the prescribed date, be deemed to have become a contributor in accordance with that election and liable to contribute in respect of such additional amount of lump sum benefit from the first day of the pay period applicable to him next following the prescribed date. (2) In this section prescribed date means— (a) in relation to a contributor who was a gratuity scheme officer or who is an employee of the Commissioner for Government Transport or the Commissioner for Motor Transport, the thirtieth day of September, one thousand nine hundred and sixty-nine, or such later date as the Board in any particular case allowed, or (b) in relation to any other contributor, the thirty-first day of August, one thousand nine hundred and sixty-nine, or such later date as the Board in any particular case allowed. 14 Variation of benefits (1) In this section— contributor includes an employee who ceased to be a contributor on his attainment of the age of sixty-five years. review date means, in relation to a contributor, a date determined by the Board for the purpose of calculating the lump sum benefit applicable in relation to the annual wages of the contributor at that date. (2) Except as provided by this section and by sections 15 and 16, the lump sum benefit for which a contributor is contributing shall not be varied. (3) Subject to subsection (4), where the annual wages of a contributor are increased so that the amount thereof falls within a wage group that is higher than the wage group within which the amount thereof fell immediately before the increase he shall, not earlier than the review date that next follows the increase, contribute as provided by subsection (6)— (a) in the case of a contributor who is contributing for his ordinary minimum benefit—for the ordinary minimum benefit appropriate for his higher wage group, (b) in the case of a contributor who is contributing for his maximum benefit—for the maximum benefit appropriate for his higher wage group, or (c) in the case of a contributor who had nominated a benefit wage factor—for the lesser of— (i) the maximum benefit appropriate for his higher wage group, and (ii) a lump sum benefit calculated by applying to the upper level of the wage group in which his increased salary falls the benefit wage factor last nominated by him before that review date and by deducting from the resulting amount so much of his initial credit benefit, if any, as is a multiple of one hundred dollars. (4) Where a lump sum benefit becomes payable in respect of a contributor, subsection (3) applies as if the date on which the lump sum benefit became payable were a review date for the contributor. (5) For the purposes of subsection (4), a reference in subsection (3) to an increase of annual wages includes a reference to such an increase paid after a lump sum benefit became payable under this Act if the increase took effect on and from a day that is earlier than, and is in respect of, a period that includes the date on which the lump sum benefit became payable. (6) The increased contributions to be paid to the Fund by a contributor contributing for an increased lump sum benefit pursuant to this section shall be payable— (a) where the review date for the contributor is not determined as provided by subsection (4)—on and from the first day of the pay period next following a date determined by the Board in relation to the contributor for the purposes of this section, or (b) where the review date for the contributor is determined as provided by subsection (4)—on and from the first day of the pay period next following the date with effect from which the annual wages of the contributor were increased. 15 Increase in benefits triennially (1) Once in every period of three years the Board shall by proclamation published in the Gazette notify a date, being at least three months after the date of publication of the proclamation, on or before which a contributor, who at the date he makes the election referred to in this subsection, is contributing to the Fund for a lump sum benefit which is less than the maximum benefit applicable to him at that date, may, within three months before that date, elect for a higher lump sum benefit by— (a) nominating his maximum benefit at that date, or (b) nominating a benefit wage factor that would produce an amount of lump sum benefit that is less than his maximum benefit at that date. (2) An election under subsection (1) shall have effect notwithstanding any previous election made under this Act by the person making that election. (3) Where an election has been made under subsection (1) the increased contributions to be paid to the Fund by a contributor in pursuance of that election shall be payable as on and from the first day of the pay period next following the date notified under that subsection. 16 Reduction of benefits where annual wages reduced (1) Where the annual wages of a contributor are reduced and as a result of the reduction his annual wages are in a lower wage group, then if the benefit for which he was, immediately before the reduction, contributing is greater than his maximum benefit calculated by reference to his new wage group, the lump sum benefit for which he shall be entitled to contribute shall be reduced to that maximum benefit, his contributions shall be adjusted actuarially and any excess contributions may be refunded by the Board. (2) Where the reduction in annual wages (in this section referred to as the reduction) has not been made for disciplinary reasons and the contributor applies to the Board to be allowed to continue to contribute for the whole or part of the lump sum benefit for which he was contributing before the reduction— (a) the Board may allow him to do so if the application is made by the contributor within such time as may be prescribed or such longer time as the Board may, in any particular case, allow and— (i) the reduction is due to medical reasons, (ii) the contributor has held, for the period of not less than five years next preceding the reduction, the employment classification that he held immediately before the reduction, (iii) the employer certifies that within a period of three years next following the date from which the reduction was made, the whole of which period is before the date on which he would attain the age of sixty-five years, the contributor's annual wages are likely to be restored to the wage group applicable to him before the reduction, or (iv) there are special circumstances other than those referred to in subparagraph (i), (ii) or (iii) on the basis of which the employer recommends that benefits and contributions should not be reduced following the reduction, and (b) if the Board so allows him, the contributor shall contribute for the benefit applied for, his contributions shall be adjusted actuarially and any excess contributions may be refunded by the Board. 17 Certain persons may opt to make reduced contributions or not to contribute (1) In this section, prescribed date means, in relation to a person, the date on which that person is entitled to make an election under this section. (2) An employee who, at the prescribed date, has attained the age of thirty years, may elect— (a) to contribute for a lump sum benefit that is less than his ordinary minimum benefit, or (b) not to become a contributor. (3) A contributor, other than an employee, who, at the prescribed date, has attained the age of thirty years may elect— (a) to contribute for a lump sum benefit which is less than his ordinary minimum benefit, (b) where he was a