Commonwealth Numbered Acts

SUPERANNUATION ACT 1976 No. 31, 1976 - SECT 145

Division 4-Miscellaneous
145. (1) Where-

   (a)  a person who becomes an eligible employee was, at any time before
        becoming an eligible employee, a member of-

        (i)    a superannuation scheme conducted in accordance with the system
               established in the United Kingdom of Great Britain and Northern
               Ireland and known as the Federated Superannuation System for
               Universities; or

        (ii)   a superannuation scheme that was, or is to be deemed to have
               been, an approved superannuation scheme for the purposes of
               this section at the time when he became an eligible employee;

   (b)  by virtue of sub-section 127 (3) a transfer value is to be deemed for
        the purposes of Division 2 to have become payable in respect of him
        after 25 May 1971 under that superannuation scheme by reason of his
        having the legal title to a life policy or life policies of a kind
        referred to in that sub-section or by reason of his being entitled to
        have the legal title to such a policy or policies assigned to him; and

   (c)  he has elected in accordance with paragraph 128 (1) (a) to pay to the
        Commissioner an amount equal to the amount of that transfer value, the
        succeeding provisions of this section have effect.

(2) The person may, within the period within which he was entitled to make an
election under paragraph 128 (1) (a), elect that this section shall have
effect in relation to him and, where an election is so made, section 128 has
effect as if the amount referred to in paragraph 128 (1) (b), or, if part only
of that amount relates to the transfer value referred to in sub-section (1) of
this section that part of that amount, had been paid to the Commissioner in
accordance with that paragraph and the Commissioner had made the payments
referred to in paragraphs 128 (2) (a) and 128 (2) (b) in relation to that
amount or that part of that amount, as the case may be.

(3) An election under sub-section (2) does not have effect unless the person
causes to be assigned to the Commissioner within the period referred to in
that sub-section, the life policy or life policies referred to in paragraph
(1) (b) free from any mortgages, charges or other encumbrances.

(4) If-

   (a)  the annual rate of salary of the person upon his becoming an eligible
        employee was greater than the annual remuneration that was payable to
        him in respect of the last employment in which he was employed and to
        which a superannuation scheme referred to in sub-section (1) related;
        or

   (b)  after the person became an eligible employee his salary is increased,
        the Commissioner shall so far as is practicable arrange for the amount
        or amounts of any life policy or life policies assigned to the
        Commissioner by the person to be increased by the amount or amounts by
        which the life policy or life policies would have been increased under
        that scheme, or for the issue of such additional life policy or life
        policies in relation to the person as would have been issued under
        that scheme, if he had remained a member of the scheme and had been in
        receipt of an annual remuneration equal to that salary or that
        increased salary, as the case may be.

(5) Subject to sub-section (14), so much of any premium payable in respect of
any life policy assigned to the Commissioner in accordance with sub-section
(3) or issued in accordance with sub-section (4) as relates to a period during
which the person is an eligible employee shall be paid out of the Consolidated
Revenue Fund, which is appropriated accordingly.

(6) Where the person is an eligible employee and the amount of the basic
contributions payable by him at any time is less than the amount that is the
prescribed amount in relation to him at that time, he is liable to pay to the
Commissioner an amount equal to the difference and any amount so paid to the
Commissioner shall be paid by the Commissioner into the Consolidated Revenue
Fund.

(7) Where a person (in this sub-section referred to as ''the former
contributor'') makes an election under sub-section 137 (1) and, within the
period that is the prescribed period in relation to him for the purposes of
Division 3, he becomes employed in employment in respect of which a
superannuation scheme referred to in paragraph (1) (a) of this section is
applicable and becomes a member of that scheme, then-

   (a)  subject to paragraph (c) of this sub-section, Division 3 has effect in
        relation to him as if that employment were public employment and that
        superannuation scheme were an eligible superannuation scheme;

   (b)  the Commissioner shall assign to the person administering that
        superannuation scheme the life policies assigned by the former
        contributor to the Commissioner in accordance with sub-section (3) of
        this section or issued in relation to the former contributor in
        accordance with sub-section (4) of this section;

   (c)  the assignment of those life policies in accordance with paragraph (b)
        of this sub-section shall be deemed to constitute the payment of a
        transfer value in respect of the former contributor in accordance with
        section 138 to the person administering that scheme; and

   (d)  the Commissioner shall-

        (i)    if the amount of any basic contribution paid by the former
               contributor to the Commissioner exceeded the amount that was
               the prescribed amount in relation to him at the time of the
               payment-pay to him out of the Superannuation Fund an amount
               equal to the amount of the excess; and

        (ii)   pay out of the Superannuation Fund and into the Consolidated
               Revenue Fund an amount equal to the amount that, but for this
               Part, would have been payable to the former contributor under
               section 80 less any amounts paid to him under sub-paragraph (d)
               (i) of this sub-section.

(8) If the life policy or life policies assigned by the person to the
Commissioner in accordance with sub-section (3) or issued in relation to him
in accordance with sub-section (4) becomes or become payable at or before the
time when he ceases to be an eligible employee-

   (a)  the Commissioner shall, out of the amount paid to him under the policy
        or policies-

        (i)    pay into the Superannuation Fund an amount equal to the amount
               that, but for sub-section (2) of this section would have been
               paid by the Commissioner into the Superannuation Fund under
               paragraph 128 (2) (a) together with compound interest on that
               amount, in respect of the period that commenced on the date on
               which the person made an election in accordance with paragraph
               128 (1) (a) and ended on the date on which the life policy or
               life policies became payable, at the rate or rates applicable
               in accordance with the regulations;

        (ii)   in the case of a policy or policies assigned by the person to
               the Commissioner in accordance with sub-section (3) of this
               section-pay to the person, or, if he is dead, to his personal
               representatives or to such person or persons (if any) as the
               Commissioner determines, an amount equal to so much of any
               premiums paid by the person in respect of the policy or
               policies as related to, or to any part of, the period that
               commenced on the date on which the transfer value referred to
               in paragraph (1) (b) of this section is to be deemed for the
               purposes of Division 2 to have become payable in respect of him
               and ended on the date on which he became an eligible employee;
               and

        (iii)  pay the balance into the Consolidated Revenue Fund; and

   (b)  a lump sum benefit of an amount equal to the sum of any amounts paid
        by the person to the Commissioner under sub-section (6) is payable to
        the person, or, if he is dead, to his personal representatives or to
        such person or persons (if any) as the Commissioner determines.

(9) Where the person attains his minimum retiring age while he is an
eligible employee or ceases to be such an eligible employee before he attains
that age, and neither sub-section (7) nor sub-section (8) applies in relation
to him, then, if the election made by the person under subsection (2) has not
been revoked in accordance with sub-section (10)-

   (a)  the Commissioner shall surrender the life policy or life policies
        assigned by him to the Commissioner in accordance with sub-section (3)
        or issued in relation to him in accordance with sub-section (4) and,
        out of the proceeds of the surrender, shall-

        (i)    pay into the Superannuation Fund an amount equal to the amount
               that, but for sub-section (2) of this section, would have been
               paid by the Commissioner into the Superannuation Fund under
               paragraph 128 (2) (a) together with compound interest on that
               amount, in respect of the period that commenced on the date on
               which the person made an election in accordance with paragraph
               128 (1) (a) and ended on the date as at which the surrender
               value or surrender values of the life policy or life policies
               was or were calculated, at the rate or rates applicable in
               accordance with the regulations;

        (ii)   in the case of a policy or policies assigned by the person to
               the Commissioner in accordance with sub-section (3) of this
               section pay to the person an amount equal to so much of any
               premiums paid by the person in respect of the policy or
               policies as related to, or to any part of, the period that
               commenced on the date on which the transfer value referred to
               in paragraph (1) (b) of this sub-section is to be deemed for
               the purposes of Division 2 to have become payable in respect of
               him and ended on the date on which he became an
               eligible employee; and

        (iii)  pay the balance into the Consolidated Revenue Fund; and

   (b)  a lump sum benefit of an amount equal to the sum of any amounts paid
        to the Commissioner under sub-section (6) shall be paid to the person.

(10) A person who has made an election under sub-section (2) may, if-

   (a)  he has not attained his minimum retiring age;

   (b)  he has not ceased to be an eligible employee; and

   (c)  the life policy or life policies assigned by him to the Commissioner
        in accordance with sub-section (3) or issued in relation to him in
        accordance with sub-section (4) has not or have not become payable, by
        notice in writing to the Commissioner revoke the election and, in that
        case, paragraphs (9) (a) and (b) have effect in relation to him.

(11) The Treasurer may, by instrument under his hand published in the Gazette,
declare a superannuation scheme, being a scheme under which benefits are
provided for by means of life policies or a scheme that is an eligible
superannuation scheme for the purposes of Division 3, to be an approved
superannuation scheme for the purposes of this section.

(12) A declaration under sub-section (11) shall come into force on the day on
which the instrument of declaration is published in the Gazette or, if an
earlier day (not being a day earlier than the commencing day) is specified in
the instrument as the day on which the declaration is to be deemed to have
come into force, shall be deemed to have come into force on that earlier day.

(13) A superannuation scheme shall be taken, for the purposes of this section,
to have been an approved superannuation scheme at a particular time if a
declaration by the Treasurer under sub-section (11) in respect of that scheme
was, or is to be deemed to have been, in force at that time.

(14) In the application of this section in relation to a person who is
employed by an approved authority-

   (a)  sub-section (5) does not apply but the premiums referred to in that
        sub-section shall be paid by that approved authority, which may apply,
        for the purpose of making the payments, any moneys under its control;
        and

   (b)  a reference in any other provision of this section to Consolidated
        Revenue Fund shall be read as a reference to that approved authority.

(15) In this section, ''the prescribed amount'', in relation to a person at
any time, is an amount ascertained in accordance with the formula-

AB
----

26C where-

A is the amount of the annual premium, or the sum of the amounts of the annual
premiums, applicable at that time under the life policy or life policies
assigned by him to the Commissioner in accordance with sub-section (3) or
issued in relation to him in accordance with sub-section (4);

B is the amount, or the sum of the amounts, payable by him under the
superannuation scheme referred to in sub-section (4) immediately before he
ceased to be a member of that scheme in respect of the annual premium or the
annual premiums under the life policy or life policies assigned by him to the
Commissioner in accordance with sub-section (3); and

C is the amount of the annual premium, or the sum of the amounts of the annual
premiums, applicable under the life policy or life policies assigned by him to
the Commissioner in accordance with sub-section (3) immediately before he
ceased to be a member of the superannuation scheme referred to in sub-section
(4).