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This is a Bill, not an Act. For current law, see the Acts databases.
South Australia
Statutes Amendment (Members' Benefits)
Bill 2010
A BILL FOR
An Act to amend the Parliamentary
Remuneration Act 1990 and the Parliamentary
Superannuation Act 1974.
Contents
Part 1—Preliminary
1Short
title
2Commencement
3Amendment provisions
Part 2—Amendment of Parliamentary
Remuneration Act 1990
4Amendment of
section 3—Interpretation
5Amendment of section 4B—Salary
sacrifice for superannuation purposes
6Insertion of
section 5A
5AInvoluntary
retirement payment
Part 3—Amendment
of Parliamentary Superannuation Act 1974
7Amendment of
section 5—Interpretation
8Amendment of section 7F—Special
provisions relating to rollovers for PSS 1 and PSS 2
members
9Insertion of
section 7G
7GSpecial
provisions relating to salary sacrifice by members
10Amendment
of section 13—The Fund
11Amendment of
section 13AB—Rollover accounts
12Insertion of
section 13D
13DCo-contribution accounts
13Amendment of
section 14B—Contributions by members of PSS 3
14Amendment of
section 14C—Government contributions
15Amendment of
section 14D—Government contribution accounts
16Amendment
of section 21AC—Interpretation
17Amendment of section
23—Pension paid for limited period
18Insertion
of section 36
36Additional
invalidity/death insurance
Schedule 1—Transitional
provisions
1Member contributions—Parliamentary
Superannuation Act 1974
2Increased Government
contribution—Parliamentary Superannuation Act 1974
The Parliament of South Australia enacts as
follows:
This Act may be cited as the Statutes Amendment (Members' Benefits)
Act 2010.
(1) Subject to
subsections (2)
and
(3), this Act will come
into operation on the day on which it is assented to by the Governor.
(2)
Section 14(1)
and
(2) will be taken to
have come into operation on 20 March 2010.
(3)
Section 18 will
come into operation on a day to be fixed by proclamation.
In this Act, a provision under a heading referring to the amendment of a
specified Act amends the Act so specified.
Part 2—Amendment
of Parliamentary Remuneration
Act 1990
4—Amendment
of section 3—Interpretation
Section 3—after the definition of Commonwealth basic
salary insert:
non-participating member means a member of either House of
Parliament who has made an election under section 7E of the
Parliamentary
Superannuation Act 1974;
PSS 3 means the scheme of superannuation known as
PSS 3 under the
Parliamentary
Superannuation Act 1974.
5—Amendment
of section 4B—Salary sacrifice for superannuation
purposes
(1) Section 4B(1), definitions of eligible member,
non-participating member, PSS 3 and
PSS 3 member—delete the definitions
(2) Section 4B(2)—delete "An eligible member" and
substitute:
A member of Parliament
(3) Section 4B(2)(a) and (b)—delete paragraphs (a)
and (b) and substitute:
(a) in the case of a non-participating member—to the complying fund
that applies in relation to the member under section 7E of the Parliamentary
Superannuation Act 1974; and
(b) in any other case—to PSS 3,
(4) Section 4B(7)(b)(i) and (ii)—delete
subparagraphs (i) and (ii) and substitute:
(i) in the case of a non-participating member—to the complying fund
that applies in relation to the member under section 7E of the Parliamentary
Superannuation Act 1974; and
(ii) in any other case—in accordance with section 14C(2) of the
Parliamentary
Superannuation Act 1974.
After section 5 insert:
5A—Involuntary retirement
payment
(1) An eligible
member who retires involuntarily following the commencement of this section is
entitled to an involuntary retirement payment equal to 12 weeks of basic
salary (which will be taken to be remuneration for the purposes of
section 6).
(2) A former member will be taken to have retired involuntarily for the
purposes of
subsection (1) if,
and only if, the former member is taken to have retired involuntarily for the
purposes of the Parliamentary
Superannuation Act 1974.
(3) However, a former member who is taken to have retired involuntarily
for the purposes of the Parliamentary
Superannuation Act 1974 on the basis that, following the expiration
of the member's term of office or his or her resignation, the member sought to
be and was elected at an election for the Parliament of another State or the
Commonwealth will not be taken to have retired involuntarily for the purposes of
subsection (1).
(4) In this section—
eligible member means—
(a) a PSS 3 member; or
(b) a non-participating member;
PSS 3 member means a member of PSS 3 under the
Parliamentary
Superannuation Act 1974, other than—
(a) a person who is only a member of PSS 3 in order to
establish—
(i) a rollover account under section 7F of that Act; or
(ii) a Government contribution account under section 7G of that
Act,
(or both); or
(b) a person who is also a member pensioner (within the meaning of that
Act).
Part 3—Amendment
of Parliamentary Superannuation
Act 1974
7—Amendment
of section 5—Interpretation
Section 5(1)—after the definition of child benefit
insert:
co-contribution means a payment made to the Board in respect
of a person by the Commissioner of Taxation pursuant to the requirements of the
Superannuation (Government Co-contribution for Low Income Earners)
Act 2003 of the Commonwealth;
co-contribution account means an account established and
maintained by the Board as a co-contribution account in accordance with the
requirements of this Act;
8—Amendment
of section 7F—Special provisions relating to rollovers for PSS 1
and PSS 2 members
(1) Section 7F—after subsection (1) insert:
(1a) If a PSS 1 or PSS 2 member for whom a rollover account has
been established is, before the establishment of the account, a member of
PSS 3 by virtue of section 7G, the member will, on the establishment
of the account for the member, be taken for the purposes of this Act to be a
member of PSS 3 by virtue of both this section and
section 7G.
(2) Section 7F(2)(b)—after "by virtue" insert:
only
(3) Section 7F(2)(c)—after "by virtue" insert:
only
After section 7F insert:
7G—Special provisions relating to salary sacrifice
by members
(1) The Board must,
on application under this section, permit a PSS 1 or PSS 2 member who
has elected to make a superannuation salary sacrifice to become a PSS 3
member in order to establish a Government contribution account for the member
under this Act.
(2) If a PSS 1 or PSS 2 member who has elected to make a
superannuation salary sacrifice is, before making the election, a member of
PSS 3 by virtue of section 7F, the member will be taken for the
purposes of this Act to be a member of PSS 3 by virtue of both
section 7F and this section.
(3) The following
provisions apply in connection with the operation of
subsection (1):
(a) Part 3 Division 3 and section 14C(1) will not apply to
a PSS 1 or PSS 2 member who is a PSS 3 member by virtue of this
section;
(b) a PSS 1 or PSS 2 member who is a PSS 3 member by virtue
of this section will not be entitled to either of the following under
Part 4 Division 2A:
(i) a member-funded component of benefits;
(ii) an invalidity/death insurance benefit;
(c) the Governor may,
by regulation, make any other provision as the Governor thinks fit, including by
providing that other provisions of this Act do not apply to a PSS 1 or
PSS 2 member who is a PSS 3 member by virtue of this section, or apply
to such a member subject to any modifications prescribed by the
regulations.
10—Amendment
of section 13—The Fund
(1) Section 13(3a)—delete "a distinct part of the Fund under
the name PSS 3—Government Contributions Division" and
substitute:
—
(a) a distinct part of the Fund under the name
PSS 3—Government Contributions Division; and
(b) a distinct part of the Fund proportioned to the aggregate balance of
co-contribution accounts.
(2) Section 13(4)(d)—after "under section" insert:
7G and
(3) Section 13(4)—after paragraph (d) insert:
(da) any co-contribution paid to the Board on behalf of a member (but
received by the Treasurer on behalf of the Board) (to be paid into the part of
the Fund proportioned to the aggregate of co-contribution accounts);
and
11—Amendment
of section 13AB—Rollover accounts
Section 13AB(1)(a)—after "who has made application under
section 7F" insert:
or is a PSS 3 member by virtue of section 7G
After section 13C insert:
13D—Co-contribution accounts
(1) The Board must—
(a) establish a co-contribution account in the name of a member in respect
of whom a co-contribution has been paid to the Board; and
(b) credit the account with the amount of any co-contribution paid to the
Board in respect of the member.
(2) The Board is to determine the terms and conditions on which the
balance of a member's co-contribution account is, subject to
subsection (3),
payable to—
(a) the member; or
(b) if the member dies before the payment is made—
(i) the member's spouse; or
(ii) if the member does not have a spouse—the member's
estate.
(3) A person is
entitled to payment of an amount standing to the credit of a co-contribution
account only to the extent that the payment can be made in accordance with the
SIS Act.
13—Amendment
of section 14B—Contributions by members of
PSS 3
Section 14B(1)—delete subsection (1) and
substitute:
(1) Subject to this Act, a PSS 3 member may elect to make
contributions to the Treasurer at a whole number percentage of the combined
value of the basic salary and additional salary (if any) payable to the member
and such contributions must be deducted by the Treasurer when paying salary to
the member.
14—Amendment
of section 14C—Government contributions
(1) Section 14C(1),
formula—delete the formula and substitute:
(2) Section 14C(1),
definition of CP—delete the definition
(3) Section 14C(2)—delete subsection (2) and
substitute:
(2) In addition, if a PSS 3 member (including a person who is a
member of PSS 3 by virtue of section 7G) has elected to make a
superannuation salary sacrifice that applies in relation to a period in respect
of which salary is paid to the member, the Treasurer must, within 7 days
after payment of that salary to the member, pay into the
PSS 3—Government Contributions Division of the Fund the amount so
sacrificed.
15—Amendment
of section 14D—Government contribution accounts
Section 14D(1)—after "all PSS 3 members" insert:
(including PSS 1 and PSS 2 members who are members of PSS 3
by virtue of section 7G)
16—Amendment
of section 21AC—Interpretation
(1) Section 21AC, definition of Government-funded
component—after "by virtue" insert:
only
(2) Section 21AC, definition of member-funded
component—after "section 7F" insert:
or 7G
17—Amendment
of section 23—Pension paid for limited period
(1) Section 23(1)(b)(ii)—after "spouse" insert:
or an eligible child (or both)
(2) Section 23(1)(b)(iii)—after "spouse" insert:
or an eligible child (or both)
(3) Section 23(1)(b)(iv)—after "spouse" insert:
or an eligible child (or both)
(4) Section 23(1)—after "in accordance with subsection (2)"
insert:
or (2a) (as the case requires)
(5) Section 23(2)—after subsection (2) insert:
(2a) However, if a pension was paid to 1 or more eligible children
but not to a spouse, the amount referred to in subsection (1) is the amount
of the pension or pensions that would have been payable to, or in relation to,
the former member during the period referred to in subsection (1)(c)
if—
(a) a pension had been payable to a spouse of the former member during
that period (in addition to any pension payable to the former member or an
eligible child); and
(b) the pension or pensions had not ceased,
reduced by—
(c) the amount of the lump sum, or the aggregate of the lump sums, (if
any) paid on commutation of the pension or pensions; and
(d) the amount of the pension or pensions actually paid to, or in relation
to, the former member.
Before section 36A insert:
36—Additional invalidity/death
insurance
(1) A member of
Parliament who is a PSS 3 member (other than solely by virtue of
section 7F) may elect, in a manner and form determined by the Board, to
take out voluntary invalidity/death insurance provided under the Southern
State Superannuation Act 2009.
(2) Premiums payable in respect of such insurance are to be paid, and
credited to the Triple S scheme, in accordance with the
regulations.
(3) The regulations may make further provision with respect to the taking
out of voluntary invalidity/death insurance in connection with elections under
subsection (1).
(4) The provision of voluntary invalidity/death insurance under the Southern
State Superannuation Act 2009 to a member who makes an election
under
subsection (1) is to
be subject to terms and conditions prescribed by regulations made under that
Act.
(5) If a member who elects to take out voluntary invalidity/death
insurance provided under the Southern
State Superannuation Act 2009 is not a member of the Triple S
scheme at the time of making the election—
(a) he or she becomes a member of the Triple S scheme on making the
election; but
(b) his or her membership is subject to terms and conditions prescribed by
regulations made under the Southern
State Superannuation Act 2009.
(6) In this section—
Triple S scheme means the Southern State Superannuation
Scheme continued in existence by the
Southern
State Superannuation Act 2009.
Schedule 1—Transitional
provisions
1—Member
contributions—Parliamentary Superannuation
Act 1974
(1) If a member of Parliament was, immediately before the commencement of
section 13, making
contributions to the Treasurer at a rate of 4.5% of salary on the basis of an
election made by the member under section 14B(1) or (2) of the Parliamentary
Superannuation Act 1974—
(a) the member will be taken to have made an election under
section 14B(2) of that Act, on the day of that commencement, to vary the
rate of contribution to 4% of salary; and
(b) the variation will operate on and from the first day of the month
following the month in which that commencement occurs.
(2) In this clause—
salary, in relation to a member, means the combined value of
the basic and additional salary (if any) payable to the member.
2—Increased
Government contribution—Parliamentary
Superannuation Act 1974
(1) Within
14 days after the relevant day—
(a) the Treasurer must pay the relevant amount into the
PSS 3—Government Contributions Division of the Parliamentary
Superannuation Fund; and
(b) a PSS 3
member's Government contribution account must be credited with an amount
equivalent to the component of the relevant amount attributable to the salary
paid to the member in the relevant period.
(2) No interest is to be taken to have accrued in relation to an amount
referred to in
subclause (1)
before the day on which the relevant amount is paid into the
PSS 3—Government Contributions Division of the Parliamentary
Superannuation Fund.
(3) For the purposes of determining the amount payable by the Treasurer
under the Parliamentary
Superannuation Act 1974 in respect of a prescribed PSS 3
member following the election for the Parliament of this State that took place
on 20 March 2010, section 14C of the Parliamentary
Superannuation Act 1974 is to be taken to have operated as if it
had not been amended by
section 14(1)
and
(2) of this
Act.
(4) In this clause—
prescribed PSS 3 member means a PSS 3 member who
sought to be, but was not, elected at the election for the Parliament of this
State that took place on 20 March 2010;
PSS 3 means the scheme of superannuation known as
PSS 3 under the
Parliamentary
Superannuation Act 1974;
PSS 3 member means a member of PSS 3 under the
Parliamentary
Superannuation Act 1974, other than a person who is only a member
of PSS 3 in order to establish—
(a) a rollover account under section 7F of that Act; or
(b) a Government contribution account under section 7G of that
Act,
(or both);
relevant amount means the amount of the difference
between—
(a) the amount paid by the Treasurer into the PSS 3—Government
Contributions Division of the Parliamentary Superannuation Fund under
section 14C of the Parliamentary
Superannuation Act 1974 in respect of the relevant period before
the relevant day; and
(b) the total amount payable by the Treasurer into the
PSS 3—Government Contributions Division of the Parliamentary
Superannuation Fund under section 14C of the Parliamentary
Superannuation Act 1974 in respect of the relevant period as a
consequence of the amendments to that section made by
section 14(1)
and
(2) of this
Act;
relevant day means the last day of the month in which this
Act is assented to by the Governor;
relevant period means the period commencing on
20 March 2010 and ending on the relevant day;
salary means basic salary and additional salary (if any)
(within the meaning of the
Parliamentary
Superannuation Act 1974).