Commonwealth Consolidated Acts Commonwealth Consolidated Acts
1 Rule 1.2.1 (definition of equivalent employment )
Repeal the definition.
2 Rule 1.2.1 (definition of involuntary retirement )
Omit:
• on the sale or transfer of all or part of an organisation, business, service, asset or function ( see Divisions 6 and 7 of Part 6 ); or
3 Division 3 of Part 6
Repeal the Division, substitute:
Involuntary Retirement Benefit Options
Division 3
Benefit options -- before minimum retiring age
6.3.1 A member who, before 1 July 2000 , ceases membership on involuntary retirement before minimum retiring age is entitled to leave his/her final benefit accrual in the scheme as a preserved benefit , or, as an alternative, may choose:
(a) to be paid a lump sum of that part of his/her final benefit accrual that the SIS Act permits to be paid in cash, or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual ; or
(iii) if the balance is 50% or more of his/her final benefit accrual , convert the balance into a pension ; or
(b) to take his/her final benefit accrual as a pension ; or
(c) to roll - over his/her final benefit accrual ; or
(d) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided the combined benefit does not exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she ceases membership on the sale or transfer of all or part of an organisation, business, service, asset or function (see Division 6 of Part 6) ; or
(B) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
6.3.2 A member who, on or after 1 July 2000 , ceases membership on involuntary retirement before minimum retiring age is entitled to leave his/her final benefit accrual in the scheme as a preserved benefit , or, as an alternative, may choose:
(a) to be paid a lump sum of that part of his/her final benefit accrual that the SIS Act permits to be paid in cash and that does not exceed his/her accumulated member contributions , or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(iii) convert the balance of his/her final benefit accrual into a pension ; or
(b) to take his/her final benefit accrual as a pension ; or
(c) to roll - over his/her final benefit accrual , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(d) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided the combined benefit does not exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she ceases membership on the sale or transfer of all or part of an organisation, business, service, asset or function (see Division 6 of Part 6) ; or
(B) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
Benefit options -- after minimum retiring age
6.3.3 A member who ceases membership on involuntary retirement on or after minimum retiring age may choose:
(a) to be paid a lump sum of that part of his/her final benefit accrual that the SIS Act permits to be paid in cash, or a lump sum of less than that amount, and:
(i) leave the balance, if any, of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance, if any, of his/her final benefit accrual ; or
(iii) if the balance is 50% or more of his/her final benefit accrual , convert the balance into a pension ; or
(b) to take his/her final benefit accrual as a pension ; or
(c) to leave his/her final benefit accrual in the scheme as a preserved benefit ; or
(d) to roll - over his/her final benefit accrual ; or
(e) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided the combined benefit does not exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she ceases membership on the sale or transfer of all or part of an organisation, business, service, asset or function (see Division 6 of Part 6) ; or
(B) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
4 Division 6 of Part 6
Repeal the Division, substitute:
Sale or Transfer of Assets Benefit Options
Division 6
Benefit options -- PSS membership continues
6.6.1 A member who continues to be a member on the sale or transfer of all or part of an organisation, business, service, asset or function is not entitled to any benefits until he/she ceases membership. When the member ceases membership he/she will be entitled to benefits under whichever Rule is applicable to him/her at that time.
Benefit options -- PSS membership ceases
6.6.2 A member who ceases membership on the sale or transfer of all or part of an organisation, business, service, asset or function and:
(a) continues in employment with the new owner or transferee; and
(b) could have continued to be a member of the scheme after the sale or transfer;
may choose:
(i) to leave his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided it will not cause him/her to exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
Benefit options -- Continues in employment, but does not change employer
6.6.3 A member who ceases membership on the sale or transfer of all or part of an organisation, business, service, asset or function and continues in employment with the new owner or transferee, but does not change employer, is entitled to leave his/her final benefit accrual in the scheme as a preserved benefit , or, as an alternative, may choose:
(i) to roll - over his/her final benefit accrual , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(ii) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided it will not cause him/her to exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she could have continued to be a member of the scheme after the sale or transfer (see Rule 6.6.2) ; or
(B) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
Benefit options -- Involuntary retirement before 1 July 2000
6.6.4 A member who ceases membership on involuntary retirement before 1 July 2000 on the sale or transfer of all or part of an organisation, business, service, asset or function is entitled to leave his/her final benefit accrual in the scheme as a preserved benefit , or, as an alternative, may choose:
(a) to be paid a lump sum of that part of his/her final benefit accrual that the SIS Act permits to be paid in cash, or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual ; or
(iii) if the balance is 50% or more of his/her final benefit accrual , convert the balance into a pension ;
provided that the member :
(A) ceases membership before minimum retiring age ; or
(B) ceases membership on or after minimum retiring age and before age 60, and remains in the workforce; or
(b) to be paid a lump sum of his/her final benefit accrual , or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual ; or
(iii) if the balance is 50% or more of his/her final benefit accrual , convert the balance into a pension ;
provided that the member :
(A) ceases membership on or after minimum retiring age and before age 60, and retires permanently from the workforce; or
(B) ceases membership on or after age 60; or
(c) to take his/her final benefit accrual as a pension ; or
(d) to roll - over his/her final benefit accrual ; or
(e) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided the combined benefit does not exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she:
(i) continues in employment with the new owner or transferee; and
(ii) could have continued to be a member of the scheme after the sale or transfer (see Rule 6.6.2) ; or
(B) he/she:
(i) continues in employment with the new owner or transferee, but does not change employer; and
(ii) was not allowed to continue to be a member of the scheme after the sale or transfer (see Rule 6.6.3) ; or
(C) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
Benefit options -- Circumstances other than on involuntary retirement, and involuntary retirement on or after 1 July 2000
6.6.5 A member who ceases membership:
on the sale or transfer of all or part of an organisation, business, service, asset or function is entitled to leave his/her final benefit accrual in the scheme as a preserved benefit , or, as an alternative, may choose:
(a) to be paid a lump sum of that part of his/her final benefit accrual that the SIS Act permits to be paid in cash and that does not exceed his/her accumulated member contributions , or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(iii) convert the balance of his/her final benefit accrual into a pension ;
provided that the member :
(A) ceases membership before minimum retiring age ; or
(B) ceases membership on or after minimum retiring age and before age 60, and remains in the workforce; or
(b) to be paid a lump sum of his/her final benefit accrual , or a lump sum of less than that amount, and:
(i) leave the balance of his/her final benefit accrual in the scheme as a preserved benefit ; or
(ii) roll - over the balance of his/her final benefit accrual ; or
(iii) if the balance is 50% or more of his/her final benefit accrual , convert the balance into a pension ;
provided that the member :
(A) ceases membership on or after minimum retiring age and before age 60, and retires permanently from the workforce; or
(B) ceases membership on or after age 60; or
(c) to take his/her final benefit accrual as a pension ; or
(d) to roll - over his/her final benefit accrual , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(e) to combine his/her final benefit accrual with the benefit accruing under another current period of membership , provided the combined benefit does not exceed his/her maximum benefit (see Rules 5.2.20 and 5.3.20) ;
unless:
(A) he/she:
(i) continues in employment with the new owner or transferee; and
(ii) could have continued to be a member of the scheme after the sale or transfer (see Rule 6.6.2) ; or
(B) he/she:
(i) continues in employment with the new owner or transferee, but does not change employer; and
(ii) was not allowed to continue to be a member of the scheme after the sale or transfer (see Rule 6.6.3) ; or
(C) he/she transfers his/her benefits to an eligible superannuation scheme (see Rule 6.8.6) , or joins an approved superannuation scheme (see Rule 6.8.10) or an authorised superannuation scheme (see Rule 6.8.11) .
5 Division 7 of Part 6
Repeal the Division.
6 Division 4 of Part 8
Repeal the Division, substitute:
Early Access to Preserved Benefit on Involuntary Retirement after Sale or Transfer of Assets
Division 4
Benefit options for certain preserved benefit members on subsequent retrenchment
8.4.1 A former member who was employed by an organisation, business, service or asset or function nominated by the Minister and agreed by the Board immediately before the date of sale or transfer of that organisation, business, service or asset or function, and who:
(a) was not allowed to continue to be a member after the sale or transfer; and
(b) became entitled to a preserved benefit under Rule 6.6.3, 6.6.4 or 6.6.5 which includes all of his/her accumulated member contributions (other than any refunded Excess Contribution Multiple), accumulated productivity contributions and unfunded preserved benefit ; and
(c) remains continuously in employment with the new owner or transferee, or any subsequent new owner or transferee; and
(d) is subsequently retrenched by the new owner or transferee, or any subsequent new owner or transferee, within a period of three years of the date of sale or transfer of the organisation, business, service, asset or function; and
(e) has not reached his/her maximum retiring age ;
may choose, within three months after the date of the retrenchment:
(A) any one of the options in Rule 8.4.2 if he/she is retrenched before 1 July 2000 and before minimum retiring age ; or
(B) any one of the options in Rule 8.4.3 if he/she is retrenched on or after 1 July 2000 and before minimum retiring age ; or
(C) any one of the options in Rule 8.4.4 if he/she is retrenched on or after minimum retiring age .
Benefit options on retrenchment before 1 July 2000 and before minimum retiring age
8.4.2 A preserved benefit member who is retrenched before 1 July 2000 and before minimum retiring age under the conditions set out in Rule 8.4.1 may choose:
(a) to retain his/her preserved benefit in the PSS scheme ; or
(b) to take his/her preserved benefit as a pension ; or
(c) to roll - over his/her preserved benefit ; or
(d) to be paid a lump sum of that part of his/her preserved benefit that the SIS Act permits to be paid in cash, or a lump sum of less than that amount, and:
(i) retain the balance of his/her preserved benefit in the PSS scheme ; or
(ii) roll - over the balance of his/her preserved benefit ; or
(iii) if the balance is 50% or more of his/her preserved benefit , convert the balance into a pension .
Benefit options on retrenchment on or after 1 July 2000 and before minimum retiring age
8.4.3 A preserved benefit member who is retrenched on or after 1 July 2000 and before minimum retiring age under the conditions set out in Rule 8.4.1 may choose:
(a) to retain his/her preserved benefit in the PSS scheme ; or
(b) to take his/her preserved benefit as a pension ; or
(c) to roll - over his/her preserved benefit , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(d) to be paid a lump sum of that part of his/her preserved benefit that the SIS Act permits to be paid in cash and that does not exceed his/her accumulated member contributions , or a lump sum of less than that amount, and:
(i) retain the balance of his/her preserved benefit in the PSS scheme ; or
(ii) roll - over the balance of his/her preserved benefit , with any amount that exceeds the member's accumulated member contributions being treated as a preserved benefit for the purposes of the SIS Act ; or
(iii) convert the balance into a pension .
Benefit options on retrenchment after minimum retiring age
8.4.4 A preserved benefit member who is retrenched on or after minimum retiring age under the conditions set out in Rule 8.4.1 may choose:
(a) to be paid a lump sum of that part of his/her preserved benefit that is permitted to be paid in cash under the SIS Act , or a lump sum of less than that amount, and:
(i) retain the balance, if any, of his/her preserved benefit in the PSS scheme ; or
(ii) roll - over the balance, if any, of his/her preserved benefit ; or
(iii) if the balance is 50% or more of his/her preserved benefit , convert the balance into a pension ; or
(b) to take his/her preserved benefit as a pension ; or
(c) to retain his/her preserved benefit in the PSS scheme ; or
(d) to roll - over his/her preserved benefit .
7 Amendment of Trust Deed
The powers of the Minister under section 5 of the Superannuation Act 1990 to amend the Trust Deed (within the meaning of that Act) extend to amending the Schedule to that Trust Deed for the purpose of changing the Rules contained in that Schedule as altered by this Schedule.