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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Superannuation Legislation Further
Amendment Bill 2002
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Acts 2
4 Explanatory notes 2
Schedules
1 Amendment of First State Superannuation Act 1992
No 100 3
2 Amendment of Police Regulation (Superannuation)
Act 1906 No 28 8
3 Amendment of State Authorities Non-contributory
Superannuation Act 1987 No 212 9
4 Amendment of State Authorities Superannuation
Act 1987 No 211 12
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY,
has finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of
NEW SOUTH WALES.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2002
New South Wales
Superannuation Legislation Further
Amendment Bill 2002
Act No , 2002
An Act to amend various superannuation Acts with respect to death and
incapacity benefits for firefighters, disengagement benefits for police officers,
investment of superannuation contributions and transfer of benefits; and for
other purposes.
I have examined this Bill, and find it to correspond in all respects with the Bill
as finally passed by both Houses.
Chairman of Committees of the Legislative Assembly.
Clause 1 Superannuation Legislation Further Amendment Bill 2002
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Superannuation Legislation Further Amendment
Act 2002.
2 Commencement
This Act commences on the date of assent.
3 Amendment of Acts
The Acts specified in Schedules 1-4 are amended as set out in those
Schedules.
4 Explanatory notes
The matter appearing under the heading "Explanatory note" in any
of the Schedules does not form part of this Act.
Page 2
Superannuation Legislation Further Amendment Bill 2002
Amendment of First State Superannuation Act 1992 No 100 Schedule 1
Schedule 1 Amendment of First State Superannuation
Act 1992 No 100
(Section 3)
[1] Part 4A
Insert after Part 4:
Part 4A Death or incapacity benefits for
firefighters
20A Definitions
In this Part:
death or incapacity benefit means a benefit payable to or in
respect of a firefighter under a firefighters award (whether
provided for in that award or by or under any Act, law or
instrument) if:
(a) the firefighter dies, or
(b) the firefighter suffers total and permanent incapacity or
partial and permanent incapacity.
firefighter means:
(a) a member of the permanent fire brigade, or
(b) a member of a volunteer fire brigade,
under the Fire Brigades Act 1989.
firefighters award means a State industrial instrument
applying to firefighters and prescribed by the regulations for
the purposes of this definition.
20B Application of Part
This Part has effect despite any other provision of this Act, the
regulations, the trust deed or the rules under this Act.
20C Provision to be made with respect to death or incapacity
benefits for firefighters
(1) The trust deed, and rules made by FTC, may make provision
for or with respect to the following:
Page 3
Superannuation Legislation Further Amendment Bill 2002
Schedule 1 Amendment of First State Superannuation Act 1992 No 100
(a) the payment of amounts from the Fund in respect of
death or incapacity benefits payable to or in respect of
a member or former member who is or was a firefighter,
(b) the benefits payable to or in respect of a member or
former member who is or was a firefighter and who is
covered for a death or incapacity benefit, including the
reduction or application of any benefit otherwise
payable to or in respect of the member or former
member under this Act or the trust deed,
(c) the payment of benefits payable to or in respect of a
member or former member who is or was a firefighter
and who is covered for a death or incapacity benefit,
(d) the effect on coverage under this Act or the trust deed
for a death or invalidity benefit of a member or former
member who is or was a firefighter and is covered for a
death or incapacity benefit,
(e) any other matter that is necessary or convenient for the
purposes of complying with or giving effect to a
firefighters award or this Part.
(2) A provision made under subsection (1) may apply:
(a) to a benefit that was payable (but unpaid) before the
commencement of this section, and
(b) to a benefit that was deferred or preserved before that
commencement.
(3) Without limiting section 20B, a provision of the trust deed or
the rules made for the purposes of this Part is not required to
comply with section 15, 16 or 17, but only to the extent that
the inconsistency with any of those provisions is necessary for
the purpose of compliance with or giving effect to a
firefighters award.
Page 4
Superannuation Legislation Further Amendment Bill 2002
Amendment of First State Superannuation Act 1992 No 100 Schedule 1
[2] Part 5A, heading
Omit the heading to the Part. Insert instead:
Part 5A Preserved or deferred benefits
transferred to First State
Superannuation Fund
[3] Section 37 Definitions
Omit the definitions of eligible preserved benefit, transfer day and
transferred member.
Insert instead:
eligible preserved benefit means:
(a) an eligible preserved benefit or associated preserved
benefit within the meaning of Part 4B of the State
Authorities Non-contributory Superannuation Act
1987, or
(b) an eligible deferred benefit within the meaning of Part
5B of the State Authorities Superannuation Act 1987.
transfer day means, in relation to a person whose benefit is
transferred under any of the transfer provisions, the day on
which the benefit is transferred by STC under the provision
concerned.
transfer provision means any of the following provisions:
(a) Part 4B of the State Authorities Non-contributory
Superannuation Act 1987,
(b) Part 5B of the State Authorities Superannuation Act
1987.
transferred member means a person whose eligible preserved
benefit is transferred under a transfer provision.
[4] Section 38 Transfer to First State Superannuation Fund
Omit "section 27AD of the State Authorities Non-contributory
Superannuation Act 1987" wherever occurring.
Insert instead "a transfer provision".
Page 5
Superannuation Legislation Further Amendment Bill 2002
Schedule 1 Amendment of First State Superannuation Act 1992 No 100
[5] Section 40 Rights, liabilities and other matters
Insert after section 40 (1):
(1A) Nothing in the Superannuation Legislation Further
Amendment Act 2002 affects the following:
(a) any rights, liabilities or obligations of STC relating to
eligible deferred benefits under the State Authorities
Superannuation Act 1987 or associated preserved
benefits under the State Authorities Non-contributory
Superannuation Act 1987 in existence immediately
before the transfer day,
(b) any rights, liabilities or obligations of a transferred
member arising under the State Authorities
Superannuation Act 1987 or the State Authorities Non-
contributory Superannuation Act 1987 and in existence
immediately before the transfer day.
[6] Section 40 (2)
Insert "or (1A)" after "subsection (1)".
[7] Schedule 3 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 2002
Explanatory note
Firefighters death and incapacity benefits
Item [1] inserts proposed Part 4A (proposed sections 20A-20C) which provides for the
amendment of the trust deed and the making of rules to give effect to the provisions of
specified industrial awards under which firefighters are entitled to death or incapacity
benefits as a result of death or injury arising out of work as firefighters. The trust deed
and rules may contain provisions that apply or reduce benefits under the Principal Act
in cases where a death or incapacity benefit is payable to or in respect of firefighters or
former firefighters who are or were members of the First State Superannuation Fund.
This, and other regulation-making powers relating to the payment of benefits, will
enable the benefits so applied or reduced to be offset against the death or incapacity
benefit. Provision may also be able to be made as to the effect on existing coverage
under the Principal Act for a death or invalidity benefit if a member or former member
is covered for a death or incapacity benefit under a firefighters award.
Transfer of deferred or preserved benefits
Under proposed Part 5B of the State Authorities Superannuation Act 1987 (as inserted
by Schedule 4) a former contributor to the State Authorities Superannuation Fund who
has reached the retirement age may elect to have, or have, a deferred or preserved
benefit transferred to the First State Superannuation Fund.
Page 6
Superannuation Legislation Further Amendment Bill 2002
Amendment of First State Superannuation Act 1992 No 100 Schedule 1
Items [2]-[6] make a person whose deferred or preserved benefits are transferred to
the First State Superannuation Fund under the proposed Part a member of the Fund
and enable rules to be made as to the account of any such person in the Fund, as well
as inserting a savings provision.
Savings and transitional provisions
Item [7] enables the making of savings and transitional regulations consequential on
the proposed Act.
Page 7
Superannuation Legislation Further Amendment Bill 2002
Schedule 2 Amendment of Police Regulation (Superannuation) Act 1906 No 28
Schedule 2 Amendment of Police Regulation
(Superannuation) Act 1906 No 28
(Section 3)
[1] Section 8A Disengagement benefit for members aged between
45-55
Omit "50" from section 8A (2) (a). Insert instead "45".
[2] Section 8A (2) (b)
Omit "30". Insert instead "20".
[3] Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 2002
Explanatory note
Disengagement benefits
Currently, under the Police Superannuation Scheme established under the Police
Regulation (Superannuation) Act 1906 a disengagement benefit may be offered by the
Commissioner of Police to a police officer or class of police officers who are aged
between 50-55 years and have at least the equivalent of 30 years full-time service.
Items [1] and [2] enable a disengagement benefit to be offered to police officers or a
class of police officers who are aged between 45-55 years and have at least the
equivalent of 20 years full-time service.
Savings and transitional provisions
Item [3] enables the making of savings and transitional regulations consequential on
the proposed Act.
Page 8
Superannuation Legislation Further Amendment Bill 2002
Amendment of State Authorities Non-contributory Superannuation Act 1987 Schedule 3
No 212
Schedule 3 Amendment of State Authorities Non-
contributory Superannuation Act 1987
No 212
(Section 3)
[1] Section 27AD Transfer of eligible preserved benefits and
associated preserved benefits
Insert in alphabetical order in section 27AD (1):
associated preserved benefit means a benefit (other than an
eligible preserved benefit) preserved by or on behalf of a
person whose benefit is transferred under Part 5B of the State
Authorities Superannuation Act 1987.
[2] Section 27AD (2A)
Insert after section 27AD (2):
(2A) STC must, on the transfer of an eligible deferred benefit to the
First State Superannuation Fund under Part 5B of the State
Authorities Superannuation Act 1987, transfer the amount of
any associated preserved benefit to FTC for crediting to the
First State Superannuation Fund.
[3] Section 27AD (3)
Insert "or an associated preserved benefit" after "eligible preserved
benefit".
[4] Part 4C
Insert after Part 4B:
Part 4C Death or incapacity benefits for
firefighters
27AE Definitions
In this Part:
death or incapacity benefit means a benefit payable to or in
respect of a firefighter under a firefighters award (whether
provided for in that award or by or under any Act, law or
instrument) if:
Page 9
Superannuation Legislation Further Amendment Bill 2002
Schedule 3 Amendment of State Authorities Non-contributory Superannuation Act 1987
No 212
(a) the firefighter dies, or
(b) the firefighter suffers total and permanent incapacity or
partial and permanent incapacity.
firefighter means:
(a) a member of the permanent fire brigade, or
(b) a member of a volunteer fire brigade,
under the Fire Brigades Act 1989.
firefighters award means a State industrial instrument
applying to firefighters and prescribed by the regulations for
the purposes of this definition.
27AF Application of Part
This Part has effect despite any other provision of this Act or
the regulations.
27AG Provision to be made with respect to death or incapacity
benefits for firefighters
(1) The regulations may make provision for or with respect to the
following:
(a) the payment of amounts from a fund in respect of death
or incapacity benefits payable to or in respect of an
employee or former employee who is or was a
firefighter,
(b) the benefits payable to or in respect of an employee or
former employee who is or was a firefighter and who is
covered for a death or incapacity benefit, including the
reduction or application of any benefit otherwise
payable to or in respect of the employee or former
employee under this Act,
(c) the payment of benefits payable to or in respect of an
employee or former employee who is or was a
firefighter and who is covered for a death or incapacity
benefit,
(d) any other matter that is necessary or convenient for the
purposes of complying with or giving effect to a
firefighters award or this Part.
Page 10
Superannuation Legislation Further Amendment Bill 2002
Amendment of State Authorities Non-contributory Superannuation Act 1987 Schedule 3
No 212
(2) A regulation made under subsection (1) may apply:
(a) to a benefit that was payable (but unpaid) before the
commencement of this section, and
(b) to a benefit that was preserved before that
commencement.
(3) Without limiting section 27AF, regulations may be made
under this Part that are inconsistent with Part 3, 4 or 5, or any
regulations made under those Parts, but only to the extent that
the inconsistency with any of those provisions is necessary for
the purpose of compliance with or giving effect to a
firefighters award.
[5] Schedule 5 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 2002
Explanatory note
Transfer of deferred or preserved benefit
Under proposed Part 5B of the State Authorities Superannuation Act 1987 (as inserted
by Schedule 4) a former contributor to the State Authorities Superannuation Fund who
has reached the retirement age may elect to have, or have, a deferred or preserved
benefit transferred to the First State Superannuation Fund.
Items [1]-[3] provide for the transfer to that Fund of benefits preserved under the State
Authorities Non-contributory Superannuation Act 1987 by or on behalf of a person
whose benefit is transferred to that Fund from the State Authorities Superannuation
Scheme.
Firefighters death and incapacity benefits
Item [4] inserts proposed Part 4C (proposed sections 27AE-27AG) which provides for
the making of regulations to give effect to the provisions of specified industrial awards
under which firefighters are entitled to death or incapacity benefits as a result of death
or injury arising out of work as firefighters. Regulations may be made to apply or reduce
benefits under the Principal Act in cases where a death or incapacity benefit is payable
to or in respect of firefighters or former firefighters who are or were employees under
the Principal Act. This, and other regulation-making powers relating to the payment of
benefits, will enable the benefits so applied or reduced to be offset against the death or
incapacity benefit.
Savings and transitional provisions
Item [5] enables the making of savings and transitional regulations consequential on
the proposed Act.
Page 11
Superannuation Legislation Further Amendment Bill 2002
Schedule 4 Amendment of State Authorities Superannuation Act 1987 No 211
Schedule 4 Amendment of State Authorities
Superannuation Act 1987 No 211
(Section 3)
[1] Section 14 Reserves for employers
Insert after section 14 (4):
(4A) Despite any other provision of this Act, there is to be debited
to the Crown employer reserve such amount of the
administration costs incurred by STC in respect of the transfer
of an eligible deferred benefit under Part 5B as is approved by
the Treasurer.
[2] Section 15 Other accounts and reserves and assets portfolios
Insert at the end of the section:
(2) Without limiting subsection (1), STC may establish separate
asset portfolios, comprising assets of the Fund allocated by
STC, for the purposes of the Fund.
(3) A contributor or former contributor may at any time lodge
with STC an election to have the contributor or former
contributor's account, or part of the account, treated, for the
purpose of allocating Fund earnings, as being invested as part
of one or more particular asset portfolios nominated by STC
to the contributor or former contributor. The contributor or
former contributor may elect to revoke or vary any such
election.
(4) STC may determine that a contributor's or former
contributor's account, or part of an account, is to be treated,
for the purpose only of allocating the income of the Fund, as
being invested as part of one or more particular asset
portfolios if the contributor or former contributor does not
make an election or revokes an election without making
another election.
(5) STC may treat an account (other than a contributor's or
former contributor's account) or a reserve, or part of an
account or reserve, for the purpose only of allocating Fund
income, as being invested as part of one or more particular
asset portfolios.
Page 12
Superannuation Legislation Further Amendment Bill 2002
Amendment of State Authorities Superannuation Act 1987 No 211 Schedule 4
[3] Section 16 Adjustment of accounts and reserves for interest etc
Insert "and the earnings, as determined by STC, of any asset portfolio or
portfolios in which the accounts or reserves or parts of them are treated as
being invested" after "Fund" in section 16 (1).
[4] Section 16 (2)
Insert "or former contributor's" after "contributor's".
[5] Section 16 (3) and (4)
Insert after section 16 (2):
(3) In adjusting accounts or reserves under this section, STC may
fix different rates for accounts or reserves, or parts of
accounts or reserves, that are treated as being invested in
different asset portfolios.
(4) For the purpose of adjusting accounts and reserves, STC may
allocate any income of the Fund, or any losses, as being
attributable to a particular asset portfolio or portfolios, as it
thinks fit.
[6] Section 45 Interest
Insert at the end of section 45:
(2) In paying interest under this section, STC may have regard to
the treatment under section 16 of an account or reserve, or any
part of an account or reserve, from which any part of the
benefit is paid.
[7] Part 5B
Insert after Part 5A:
Part 5B Transfer of eligible deferred benefits
46AE Transfer of eligible deferred benefits
(1) In this section:
eligible deferred benefit means a benefit deferred or
preserved under this Act by or on behalf of an eligible person.
Page 13
Superannuation Legislation Further Amendment Bill 2002
Schedule 4 Amendment of State Authorities Superannuation Act 1987 No 211
eligible person means a person who has deferred or preserved
a benefit under this Act who:
(a) has reached the retirement age, and
(b) is not a contributor.
FTC means the FSS Trustee Corporation established under
the Superannuation Administration Act 1996.
retirement age means the earliest age at which a benefit is
payable merely because the person has reached a specified
age.
(2) An eligible person must after reaching the retirement age, and
within the election period approved by STC for the purposes
of this section, apply for payment of an eligible deferred
benefit or elect to transfer the benefit to the First State
Superannuation Fund.
(3) STC must, on the written election of an eligible person,
transfer the amount of any eligible deferred benefit to FTC for
crediting to the First State Superannuation Fund.
(4) If an eligible person fails to make an application for payment
or an election within the approved period, STC must transfer
the amount of any eligible deferred benefit to FTC for
crediting to the First State Superannuation Fund.
(5) On the transfer of an eligible deferred benefit, the person by
or on behalf of whom the benefit was deferred or preserved
ceases to be entitled to payment of the benefit under this Act.
[8] Part 5C
Insert after Part 5B:
Part 5C Death or incapacity benefits for
firefighters
46AF Definitions
In this Part:
death or incapacity benefit means a benefit payable to or in
respect of a firefighter under a firefighters award (whether
provided for in that award or by or under any Act, law or
instrument) if:
Page 14
Superannuation Legislation Further Amendment Bill 2002
Amendment of State Authorities Superannuation Act 1987 No 211 Schedule 4
(a) the firefighter dies, or
(b) the firefighter suffers total and permanent incapacity or
partial and permanent incapacity.
firefighter means:
(a) a member of the permanent fire brigade, or
(b) a member of a volunteer fire brigade,
under the Fire Brigades Act 1989.
firefighters award means a State industrial instrument
applying to firefighters and prescribed by the regulations for
the purposes of this definition.
46AG Application of Part
This Part has effect despite any other provision of this Act or
the regulations.
46AH Provision to be made with respect to death or incapacity
benefits for firefighters
(1) The regulations may make provision for or with respect to the
following:
(a) the payment of amounts from the Fund in respect of
death or incapacity benefits payable to or in respect of
a contributor or former contributor who is or was a
firefighter,
(b) the benefits payable to or in respect of a contributor or
former contributor who is or was a firefighter and who
is covered for a death or incapacity benefit, including
the reduction or application of any benefit otherwise
payable to or in respect of the contributor or former
contributor under this Act,
(c) the payment of benefits payable to or in respect of a
contributor or former contributor who is or was a
firefighter and who is covered for a death or incapacity
benefit,
(d) the effect on coverage under this Act for an additional
benefit, and liability to pay the additional benefit levy,
of a contributor or former contributor who is or was a
firefighter and who is covered for a death or incapacity
benefit,
Page 15
Superannuation Legislation Further Amendment Bill 2002
Schedule 4 Amendment of State Authorities Superannuation Act 1987 No 211
(e) any other matter that is necessary or convenient for the
purposes of complying with or giving effect to a
firefighters award or this Part.
(2) A regulation made under subsection (1) may apply:
(a) to a benefit that was payable (but unpaid) before the
commencement of this section, and
(b) to a benefit that was preserved or deferred before that
commencement.
(3) Without limiting section 46AG, regulations may be made
under this Part that are inconsistent with Part 3, 4, 5 or 6, or
any regulations made under those Parts, but only to the extent
that the inconsistency with any of those provisions is
necessary for the purpose of compliance with or giving effect
to a firefighters award.
[9] Schedule 6 Savings and transitional provisions
Insert at the end of clause 1 (1):
Superannuation Legislation Further Amendment Act 2002
Explanatory note
Investment in different asset portfolios
Item [2] enables the SAS Trustee Corporation (STC), the trustee of the State
Authorities Superannuation Scheme, to establish separate asset portfolios for
investment of accounts and reserves, or parts of accounts and reserves, under that
Scheme and to treat those accounts and reserves, or parts, as being invested in
particular investment portfolios. Contributors or former contributors may elect to have
their accounts, or part of them, treated as being invested as part of a particular
investment portfolio.
Items [3]-[5] enable accounts and reserves treated as being invested in different asset
portfolios to be adjusted differently for different earnings.
Item [6] enables STC to have regard to the adjustments made to different accounts, or
parts of accounts or reserves, when exercising its discretion to pay interest when
paying a benefit under the State Authorities Superannuation Scheme.
Transfer of deferred or preserved benefits to First State Superannuation Fund
Item [7] inserts proposed Part 5B (proposed section 46AE) which requires a person
who has a deferred or preserved benefit in the State Authorities Superannuation
Scheme, and who has reached the earliest age at which a benefit can be paid merely
because an age has been reached, to apply for payment of the benefit or elect to have
the benefit transferred to the First State Superannuation Fund within a specified period
after reaching that age. In a case where no application or election is made, the benefit
concerned is to be transferred to the First State Superannuation Fund. Schedule 1
contains amendments relating to the treatment of transferred benefits and members.
Item [1] enables the costs of the transfer to be debited from the Crown employer
reserve, if approved by the Treasurer.
Page 16
Superannuation Legislation Further Amendment Bill 2002
Amendment of State Authorities Superannuation Act 1987 No 211 Schedule 4
Firefighters death and incapacity benefits
Item [8] inserts proposed Part 5C (proposed sections 46AF-46AH) which provides for
the making of regulations to give effect to the provisions of specified industrial awards
under which firefighters are entitled to death or incapacity benefits as a result of death
or injury arising out of work as firefighters. Regulations may be made to apply or reduce
benefits under the Principal Act in cases where a death or incapacity benefit is payable
to or in respect of firefighters or former firefighters who are or were contributors to the
State Authorities Superannuation Scheme. This, and other regulation-making powers
relating to the payment of benefits, will enable the benefits so applied or reduced to be
offset against the death or incapacity benefit. Regulations may also be able to be made
as to the effect on existing coverage under the Principal Act for a death or invalidity
benefit, and liability to pay the additional benefit levy, if a contributor or former
contributor is covered for a death or incapacity benefit under a firefighters award.
Savings and transitional provisions
Item [9] enables the making of savings and transitional regulations consequential on
the proposed Act.
Page 17
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