Commonwealth Numbered Acts

SUPERANNUATION ACT 1976 No. 31, 1976 - SECT 127

Division 2-Eligible Employees with Preserved Rights from Previous Employment
127. (1) In this Division-

   (a)  a reference, in relation to an eligible employee, to a transfer value
        payable to or in respect of the member under a superannuation scheme
        applicable in relation to any employment in which he was employed at
        any time before the day on which he became an eligible employee is a
        reference to a benefit by way of a lump sum payable to or in respect
        of the member under that scheme upon the termination of the employment
        otherwise than on the ground of invalidity or of physical or mental
        incapacity to perform the duties of the employment, being a benefit
        that was based wholly upon contributions under that scheme by the
        employer or was based partly upon such contributions and partly upon
        contributions under the scheme by the member; and

   (b)  a reference to the amount of a transfer value to which paragraph (a)
        applies does not include a reference to any part of the lump sum that
        was based upon contributions by the member that were of a similar
        nature to supplementary contributions under this Act or to
        contributions under the superseded Act for reserve units of pension.

(2) If, after a transfer value became payable to or in respect of a person
under a superannuation scheme, an amount equal to the whole or any part of
that transfer value was paid to a person administering another superannuation
scheme (not being the scheme constituted by the provisions of this Act)-

   (a)  where the whole of the transfer value was so paid-that transfer value
        shall be disregarded for the purposes of this Division; or

   (b)  where part of the transfer value was so paid-the amount of that
        transfer value shall be deemed for the purposes of this Division, to
        be reduced by the amount so paid.

(3) Subject to sub-section (4), a transfer value shall be deemed, for the
purposes of this Division, to have become payable in respect of a person under
a superannuation scheme upon the termination of any employment if, upon the
termination of that employment, he had the legal title to a life policy, or
was entitled to have the legal title to such a policy assigned to him, being a
policy the premiums for which were, while he was employed in that employment,
paid in whole or in part by his employer, and, in that case, the surrender
value of the policy as at the date of the termination of the employment shall
be taken to be the amount of the transfer value.

(4) Where a transfer value is, by virtue of sub-section (3), to be deemed, for
the purposes of this Division, to have become payable in respect of a person
upon the termination of any employment by reason that, upon the termination of
that employment, he had the legal title to a life policy, or was entitled to
have the legal title to a life policy assigned to him, a transfer value shall
not be deemed, for those purposes, to have become payable in respect of the
person upon the termination of any previous employment by reason that, upon
the termination of that previous employment, he had the legal title to that
policy, or was entitled to have the legal title to that policy assigned to
him.