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COAL AND OIL SHALE MINE WORKERS
(SUPERANNUATION) AMENDMENT BILL 1992
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to amend the Coal and Oil Shale Mine Workers
(Superannuation) Act 1941 in order to give effect to an agreement between
representatives of the owners of coal mines and representatives of mine workers. The
purpose of the agreement is to eliminate within 10 years the unfunded liabilities of the
Coal and Oil Shale Mine Workers Superannuation Fund ("the Fund").
Under the agreement, mine workers would cease contributing to the Fund and all
contributions to the Fund for lump sum benefits would be made by the owners.
Pensions would be funded from funds of the Joint Coal Board and the Bill provides
for a pensioner or prospective pensioner to commute the pension to a lump sum.
Proposed sections 2K (Schedule 2 (4)) and 19AA-19AC (Schedule 2 (10)) impose
penalties by reference to penalty units. The expression ``penalty unit" has its basis in
section 56 of the Interpretation Act 1987. At present, 1 penalty unit is equivalent to
$100.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the amendments set out in Schedule 1 to be taken to have
commenced on 1 July 1992. The other amendments are to commence on 3 January
1993, a date which has been selected by reference to pay periods.
Clause 3 amends the Coal and Oil Shale Mine Workers (Superannuation) Act 1941
as set out in Schedules 1-3.
Clause 4 amends the Coal and Oil Shale Mine Workers (superannuation) Regulation
1983 as set out in Schedule 4.
SCHEDULE 1--AMENDMENTS ESTABLISHING A PENSION ACCOUNT
Schedule 1 (1) inserts definitions of "Fund" and "Pension Account". The "Fund"
is the existing Coal and Oil Shale Mine Workers Superannuation Fund. The "Pension
Account" is an account kept of all money paid to the Fund by the Joint Coal Board.
Schedule 1 (2) adds to the Fund the money in the Pension Account.
Schedule 1 (3) inserts new section 18A which provides for the keeping of the
Pension Account and for arrangements to be made between the Tribunal and the Joint
Coal Board for operating the account. The Pension Account is to be debited with the
cost of pensions and commuted pensions.
SCHEDULE 2--AMENDMENTS ESTABLISHING NEW BENEFITS
Schedule 2
(1) abolishes contributions to the Fund by mine workers. It also applies
the amended Act to:
(a) a pension, and its commutation, even if it became payable before 3 January
1993 and whether or not it had commenced to be paid before that date; and
(b) a former mine worker who had resigned, or had been dismissed or retrenched,
before 3 January 1993 but had not applied for a benefit under the Act.
Schedule 2 (2) inserts new definitions, including definitions of "Accumulation
Fund", "CPI figure", "Dormant member", "Restructuring Agreement" and
"Retrenched".
The "Accumulation Fund" is the Fund referred to in the "Restructuring Agreement"
which is an agreement between:
(a) the New South Wales Coal Association (an association of mine owners); and
(b) Cumnock No. 1 Colliery Pty Ltd; and
(c) certain mining unions specified in the amendment proposed by Schedule 2
(14).
The Accumulation Fund is the main source of funds to finance benefits accruing in
the future.
The "CPI figure'' is the number published by the Australian Statistician as the
Consumer Price Index number referred to in the definition.
A "dormant member" is a former mine worker who ceased to be employed as a
mine worker because of retrenchment, resignation or dismissal but:
(a) has not taken any benefit from the Fund; or
(b) if re-employed as a mine worker would be entitled to be credited with past
service as a mine worker, or
(c) may become entitled to a payment from the Fund.
The meaning of "retrenched" is explained in full in the new subsection (1A) to be
inserted by Schedule 2 (2) (b).
Schedule 2 (3) makes an amendment consequential on that to be made by Schedule 2
(4).
Schedule 2 (4) requires a notice containing certain particulars to be given to the
Tribunal by a mine owner who proposes to employ a person other than a mine worker in
or about, or in connection with, the mine.
Schedule 2 (5) replaces the present section 4A which brings within the
superannuation scheme certain mine workers in Queensland. The
section 4A
applies to the relevant mine workers in Queensland the proposed new provisions of the
Act that give effect to the Restructuring Agreement.
Schedule 2 (6) makes an amendment consequential on that made by Schedule 2 (7).
Schedule 2 (7) enables the Tribunal to offer to a pensioner, or a prospective
pensioner, commutation of the pension to a lump sum.
Schedule 2 (8) inserts new Divisions 4 and 5 of Part 2.
Division 4:
Section 14I provides for the lump sum benefit payable:
* to a mine worker who retires after 2 January 1993 at the age of 55 or more;
and
* to a retrenched dormant member who attains the age of 55 or more after 2
January 1993.
Section 14J provides for the amount of the lump sum benefit payable to persons
identified in section 14K on the death of a mine worker or retrenched dormant
member after 2 January 1993.
Section 14K sets out the persons who are entitled to the lump sum benefit calculated
under section 14J on the death of a mine worker or retrenched dormant member after
2 January 1993.
Section 14L provides for the lump sum benefit payable to a mine worker who,
because of injury or illness, becomes incapable of working any longer in the coal or
oil shale mining industries.
Section 14M inserts a definition of "contributions" for the purposes of sections 14N
and 14O.
Section 14N provides for the refund (together with interest) of contributions to the
Fund made:
* by a mine worker who resigns after 2 January 1993 before reaching the age of
55 and is not entitled to a pension or lump sum benefic and
* by a dormant member who applies for the refund before reaching the age of
55 and whose last period of service ended on account of resignation or
dismissal.
Section 14O requires the Tribunal to pay to the appropriate person any amount by
which, after termination of a pension payable to or in respect of a
worker, the
total amount paid as pension is less than the amount of refund that would have been
payable under section 14N.
section 14P enables an election for the retrenchment benefit to b e made by:
* a mine worker who is retrenched after 2 January 1993 before attaining the age
of 55; and
* a dormant member who is under 55 years of age and whose latest period of
service as a mine worker was terminated by retrenchment.
Section 14Q provides for the exclusion of certain periods in calculating the period
during which a mine worker is taken to be engaged in the coal or oil shale mining
industries.
Section 14R gives effect to clause 10 of the Restructuring Agreement. That clause
enables the parties to the Agreement to review its operation and, if considered
necessary, to amend the Agreement. The text of clause 10 of the Agreement is to be
reproduced in Part 2 of Schedule 3 to the Act, as inserted by Schedule 2 (14) to this
Bill.
In Division 5:
Section 14S provides for the procedure to be followed in relation to an application
for a lump sum benefit.
Schedule 2 (9) inserts new section 16B enabling the Tribunal to enter into contracts
or arrangements with a person for the carrying out by the person of functions of the
Tribunal and the performance of services.
Schedule 2 (10) replaces the present section 19 and adds sections 19AA-19AC.
Section 19 provides for the rate of contributions to the Fund that owners are required
to make after 2 January 1993 in order to finance the benefits provided by the
amended Act. No contributions will be made by mine workers.
Section 19AA requires mine owners to keep certain records in relation to mine
workers employed by them.
Section 19AB requires mine owners to submit certain annual returns and to provide
weekly information required by the Tribunal.
Section 19AC requires mine owners to submit weekly returns containing information
reasonably required by the Tribunal.
Schedule 2 (11) enables the Tribunal to make investments of money to which the
Pension Account relates.
Schedule 2 (12) enables the Joint Coal Board to arrange for actuarial reviews of the
Pension Account.
Schedule 2 (13) enables the operation of the Act to be modified by regulation if the
parties to the Restructuring Agreement agree to the modification on the occurrence of
certain events that require the modification.
Schedule 2 (14) inserts 2 new Schedules in the Principal Act.
New Schedule 3 sets out the parties to the Restructuring Agreement and reproduces
the text of clause 10 of that Agreement. That clause of the Agreement enables the
terms of the Agreement to be renegotiated in certain circumstances and it is given
statutory effect by section 14R, as inserted by Schedule 2 (8) to the Bill.
New Schedule 4 provides for the manner of calculating interest on a refund of
contributions under section 14N.
SCHEDULE 3--AMENDMENTS PRESERVING CERTAIN BENEFITS
Items (1)-(16) of this Schedule make amendments consequential on the amendments
proposed by Schedule 2.
Item (17) of this Schedule has the effect of adding the proposed Act to the present
provision
the making of regulations of a savings or transitional nature. It
also continues (despite its repeal and replacement by Schedule 2 (5)) the present section
4A relating to
for certain mine workers in Queensland who, before the
commencement of the new scheme, had retired, had been disabled or had died.
SCHEDULE 4--AMENDMENT OF COAL AND OIL SHALE MINE
WORKERS (SUPERANNUATION) REGULATION 1983
This Schedule repeals certain provisions of the Coal and Oil Shale Mine Workers
(Superannuation) Regulation 1983 that are proposed for inclusion in the Act.