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This is a Bill, not an Act. For current law, see the Acts databases.
South Australia
Statutes Amendment (Transition to Retirement—State
Superannuation) Bill 2007
A BILL FOR
An Act to amend the Southern State Superannuation Act 1994 and
the Superannuation Act 1988.
Contents
Part 1—Preliminary
1 Short
title
2 Commencement
3 Amendment provisions
Part 2—Amendment of Southern State Superannuation
Act 1994
4 Amendment of
section 3—Interpretation
5 Amendment of section 26—Payments
by employers
6 Amendment of section 26D—Spouse members and spouse
accounts
7 Insertion of section 30A
30A Transition to
retirement
8 Amendment of section 35E—Effect on member's
entitlements
Part 3—Amendment of Superannuation
Act 1988
9 Amendment of
section 4—Interpretation
10 Insertion of section
26A
26A Transition to retirement
11 Amendment of
section 28A—Resignation pursuant to a voluntary separation
package
12 Insertion of section 33A
33A Transition to
retirement
13 Amendment of section 39A—Resignation or
retirement pursuant to a voluntary separation package
14 Insertion of section
40B
40B Interaction with judicial remuneration or pension
entitlements
15 Repeal of section 43A
16 Amendment of
section 43AF—Effect on contributor's entitlements
17 Insertion of
sections 47C and 47D
47C Portion of pension etc to be charged
against contribution account etc
47D Charge against
Fund if draw down benefit paid
Schedule 1—Transitional
provisions
1 Interpretation
2 Transitional provisions
The Parliament of South Australia enacts as
follows:
This Act may be cited as the Statutes Amendment (Transition to
Retirement—State Superannuation) Act 2007.
This Act 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 Southern State Superannuation
Act 1994
4—Amendment of
section 3—Interpretation
(1) Section 3(1)—after the definition of police
cadet insert:
preservation age has the same meaning as in Part 6 of
the Superannuation Industry (Supervision) Regulations 1994 of the
Commonwealth under the SIS Act;
(2) Section 3—after subsection (4a) insert:
(4b) Despite subsection (4a), if—
(a) a member is employed pursuant to a contract for a fixed term;
and
(b) the member is, within the period of 3 months after the end of the
term of the contract, employed under a new contract for a fixed term in the same
or similar employment,
then—
(c) the member will, for the purposes of Division 2 of Part 3,
be taken to have remained in the relevant employment; and
(d) if the member was making contributions under section 25
immediately before the end of the period of the first contract, the member will,
for the purposes of section 33A, be taken to have made contributions from
his or her salary under section 25 during the period between the
2 contracts.
5—Amendment of
section 26—Payments by employers
Section 26(2a)—after "section 14(10)" insert:
or (10a)
6—Amendment of
section 26D—Spouse members and spouse accounts
Section 26D(2)(b)—after "made by the" insert:
spouse member or
After section 30 insert:
30A—Transition to retirement
(1) For the purposes of this section, the basic threshold is
an amount prescribed by the regulations for the purposes of this
subsection.
(2) A member may apply to the Board for the benefit of this section
if—
(a) the member has reached—
(i) the age of 55 years; and
(ii) his or her preservation age; and
(b) the member has entered into an arrangement with his or her
employer—
(i) to reduce his or her hours of work; or
(ii) to alter his or her duties,
or both, with the effect that there is a reduction in the member's salary;
and
(c) the purpose for establishing the arrangement referred to in
paragraph (b) relates to the proposed retirement of the member in due
course (including by allowing the member to scale down his or her work in the
lead-up to retirement).
(3) The Board may require that an application under
subsection (2)—
(a) be made in such manner, and comply with such requirements, as the
Board thinks fit; and
(b) be accompanied by such information or other material specified by the
Board to assist the Board to be satisfied as to the matters set out in
paragraphs (b) and (c) of that subsection.
(4) If the Board is satisfied that a valid application has been made under
subsection (2), an entitlement will arise as follows:
(a) the Board will determine a benefit (a draw down benefit)
on the basis of the member's application and on the basis that the maximum draw
down benefit to which the member is entitled will be determined as
follows:
Where—
B is the maximum draw down benefit
SP is the amount that would be payable under section 31
if the member had retired from employment immediately before the date of the
determination
FS is the member's actual salary immediately before the
commencement of the arrangement envisaged by subsection (2)(b)
NS is the member's actual salary on the commencement of the
arrangement envisaged by subsection (2)(b);
(b) the Board will then, according to an election made by the member as
part of his or her application to the Board for the benefit of this section,
invest (on behalf of and in the name of the member) the draw down
benefit—
(i) with the Superannuation Funds Management Corporation of South
Australia; or
(ii) with another entity that will provide a non-commutable income stream
for the member while the member continues to be employed in the
workforce,
so that the member receives (and only receives) a payment in the form of a
pension or an annuity (a draw down payment) on account of the
benefit.
(5) Paragraph (a) of subsection (4) operates subject to the
qualification that if SP under that paragraph does not exceed the basic
threshold then the maximum draw down benefit will be equal to SP.
(6) The draw down benefit will be constituted by the components that would
apply under section 31 if the member had retired from employment
immediately before the date of the Board's determination, with each component
bearing the same proportion to the component that would apply under
section 31 as the draw down benefit bears to SP under
subsection (4)(a).
(7) The investment of a draw down benefit under subsection (4)(b)(i)
will be on terms and conditions determined by the Board.
(8) An entitlement to a draw down payment is not commutable.
(9) However—
(a) a member may, after commencing to receive a draw down payment and
before retiring from employment under this Act, take steps to bring the
investment to an end and pay the balance of the investment into a rollover
account under this Act as if the balance were being carried over from another
superannuation scheme to the Triple S scheme; and
(b) the value of an investment under subsection (4)(b)(i) may be
redeemed in due course under subsection (14).
(10) When the Board has determined a draw down benefit—
(a) the various accounts maintained by the Board under section 7 will
be immediately adjusted to take into account the payment of the draw down
benefit; and
(b) section 12(2) and (3) will apply with respect to the relevant
components constituting the draw down benefit, as applying under
subsection (6) of this section; and
(c) the contributions payable by the member under section 25 will
(despite any provision made by section 25 to the contrary)—
(i) be fixed on the basis of the member's salary under the arrangement
established with his or her employer (for so long as the arrangement continues);
and
(ii) as so fixed, be payable in respect of this salary from the first full
pay period after the Board's determination of the draw down benefit;
and
(d) the relevant employer contribution account will be immediately
adjusted to take into account the payment of the draw down benefit.
(11) If the employment arrangements of a member who is receiving a draw
down payment under this section alter so that there is an alteration in his or
her salary—
(a) in the case of a reduction in salary—the member may apply to the
Board for a further benefit in accordance with the provisions of this section
and this section will then apply to the application and with respect to the
relevant arrangement—
(i) as if FS under subsection (4)(a) is the member's actual salary
immediately before the relevant reduction in salary; and
(ii) as if NS is the member's actual salary immediately after the relevant
reduction in salary; and
(iii) by applying such other modifications as may be necessary for the
purpose or as may be prescribed; and
(b) in the case of an increase in salary—the draw down payment will
continue as if the increase had not occurred but the contributions payable by
the member must be adjusted to take into account the increase.
(12) When a member retires from employment (and is thus entitled to a
benefit under section 31), the member's entitlement under section 31
will be adjusted to take into account the draw down benefit provided under this
section (and that section will then have effect accordingly).
(13) If a member's employment is terminated on account of invalidity or by
the member's death, any entitlement under section 34 or 35 (as the case
requires) will be adjusted to take into account the draw down benefit provided
under this section (and the relevant section will then have effect
accordingly).
(14) When a member retires, has his or her employment terminated on
account of invalidity or dies (whichever first occurs), an investment being held
under subsection (4)(b)(i) may be redeemed (subject to any rules or
requirements applicable to the exercise of a power of redemption).
(15) Despite a preceding subsection, if the maximum draw down benefit
under subsection (4)(a) is not sufficient to be invested under
subsection (4)(b) in order to obtain a draw down payment—
(a) unless paragraph (b) applies—the draw down benefit must be
an amount equal to the minimum amount required to obtain a draw down payment
(and subsection (4)(a) will apply accordingly);
(b) if the minimum amount required to obtain a draw down payment is
greater than SP under subsection (4)(a), the Board must reject the
application under this section (and no entitlement will arise under
subsection (4)).
(16) The determination of a benefit under this section must take into
account the operation of any provision under Part 5A.
(17) The Governor may, by regulation, declare that any provision of this
section is modified in prescribed circumstances (and the regulation will have
effect according to its terms).
8—Amendment of
section 35E—Effect on member's entitlements
Section 35E—after subsection (4) insert:
(5) If a member has received a draw down benefit under
section 30A—
(a) the superannuation interest of the member will be taken to include the
balance of any draw down benefit that is being held under
section 30A(4)(b)(i); and
(b) any entitlement under section 30A will be adjusted to take into
account the effect of a payment split under this Part.
Part 3—Amendment
of Superannuation
Act 1988
9—Amendment of
section 4—Interpretation
(1) Section 4(1)—after the definition of new scheme
contributor insert:
non-monetary salary, in relation to a contributor who is not
employed pursuant to a TEC contract, means remuneration in any form resulting
from the sacrifice by the contributor of part of his or her salary;
(2) Section 4(1)—after the definition of pension
period insert:
preservation age has the same meaning as in Part 6 of
the Superannuation Industry (Supervision) Regulations 1994 of the
Commonwealth under the SIS Act;
(3) Section 4(1), second definition of salary—after
"all forms of remuneration" insert:
(including non-monetary salary)
(4) Section 4(1), second definition of salary,
(da)—delete paragraph (da)
(5) Section 4(2c) to (2f)—delete subsections (2c) to (2f)
(inclusive) and substitute:
(2c) For the purposes of determining the amount of salary received by a
contributor who is in receipt of non-monetary salary, the value of the
non-monetary salary will be taken to be amount of salary sacrificed by the
contributor in order to receive the non-monetary salary.
After section 26 insert:
26A—Transition to retirement
(1) A contributor may apply to the Board for the benefit of this section
if—
(a) the contributor has reached—
(i) the age of 55 years; and
(ii) his or her preservation age; and
(b) the contributor has entered into an arrangement with his or her
employer—
(i) to reduce his or her hours of work; or
(ii) to alter his or her duties,
or both, with the effect that there is a reduction in the contributor's
salary; and
(c) the purpose for establishing the arrangement referred to in
paragraph (b) relates to the proposed retirement of the contributor in due
course (including by allowing the contributor to scale down his or her work in
the lead-up to retirement).
(2) The Board may require that an application under
subsection (1)—
(a) be made in such manner as the Board thinks fit; and
(b) be accompanied by such information or other material specified by the
Board to assist the Board to be satisfied as to the matters set out in
paragraphs (b) and (c) of that subsection.
(3) If the Board is satisfied that a valid application has been made under
subsection (1), an entitlement will arise as follows:
(a) the Board will determine a benefit (a draw down benefit)
on the basis of the contributor's application and on the basis that the maximum
draw down benefit to which the contributor is entitled will be determined as
follows:
Where—
B is the maximum draw down benefit
SP is the amount that would be payable under section 27
and 47B if the contributor had retired from employment immediately before the
date of the determination
FS is the contributor's actual salary immediately before the
commencement of the arrangement envisaged by subsection (1)(b)
NS is the contributor's actual salary on the commencement of
the arrangement envisaged by subsection (1)(b);
(b) the Board will then, according to an election made by the contributor
as part of his or her application to the Board for the benefit of this section,
invest (on behalf of and in the name of the contributor) the draw down
benefit—
(i) with the Superannuation Funds Management Corporation of South
Australia; or
(ii) with another entity that will provide a non-commutable income stream
for the contributor while the contributor continues to be employed in the
workforce,
so that the contributor receives (and only receives) a payment in the form
of a pension or an annuity (a draw down payment) on account of the
benefit.
(4) The investment of a draw down benefit under subsection (3)(b)(i)
will be on terms and conditions determined by the Board.
(5) An entitlement to a draw down payment is not commutable.
(6) However—
(a) a contributor may, after commencing to receive a draw down payment and
before retiring from employment under this Act, take steps to bring the
investment to an end and pay the balance of the investment into a rollover
account (which may need to be established) in the name of the contributor as if
the balance were being carried over from another superannuation scheme into the
scheme pursuant to section 47B; and
(b) the value of an investment under subsection (3)(b)(i) may be
redeemed in due course under subsection (11).
(7) When the Board has determined a draw down benefit—
(a) the account maintained by the Board in the name of the contributor
under section 20A, and any account maintained for the purposes of
section 47B, will be immediately adjusted by a percentage equal to the
percentage that the draw down benefit bears to the total benefit that would have
been payable had the contributor retired from employment to take into account
the payment of the draw down benefit; and
(b) the contributions payable by the contributor under section 23
will (despite any provision made by section 23 to the
contrary)—
(i) be fixed on the basis of the contributor's salary under the
arrangement established with his or her employer (for so long as the arrangement
continues); and
(ii) as so fixed, be payable in respect of this salary from the first full
pay period after the Board's determination of the draw down benefit;
and
(iii) be at the contributor's standard contribution rate under that
section; and
(c) the contributor's contribution points will accrue, from the date of
the determination until the cessation of the relevant arrangement (unless the
contributor ceases to make the contributions envisaged by paragraph (b)),
at a rate for each contribution month determined as follows:
Where—
CP is a proportion of 1 contribution point
AS is the contributor's actual salary under the relevant
arrangement (as adjusted from time to time)
FSA is the contributor's actual salary immediately before the
commencement of the relevant arrangement, adjusted from time to time to take
into account any changes to the salary that would have occurred had the
contributor not entered into the relevant arrangement but rather continued to be
entitled to that salary.
(8) If the employment arrangements of a contributor who is receiving a
draw down payment under this section alter so that there is an alteration in his
or her salary—
(a) in the case of a reduction in salary—the contributor may apply
to the Board for a further benefit in accordance with the provisions of this
section and this section will then apply to the application and with respect to
the relevant arrangement—
(i) as if FS under subsection (3)(a) is the contributor's actual
salary immediately before the relevant reduction in salary; and
(ii) as if NS is the contributor's actual salary immediately after the
relevant reduction in salary; and
(iii) by applying such other modifications as may be necessary for the
purpose or as may be prescribed; and
(b) in the case of an increase in salary—the draw down payment will
continue as if the increase had not occurred and where the contributor makes
contributions to the scheme under this Act in respect of the increase in salary
the contributions payable by the contributor and the accrual of contribution
points must be adjusted to take into account the increase.
(9) When a contributor retires from employment (and is thus entitled to a
benefit under section 27), the contributor's entitlement under
section 27 will be adjusted in the manner prescribed by the regulations to
take into account the draw down benefit provided under this section (and that
section will then have effect accordingly).
(10) If a contributor's employment is terminated by the contributor's
death, any entitlement under section 32 will be adjusted in the manner
prescribed by the regulations to take into account the draw down benefit
provided under this section (and that section will then have effect
accordingly).
(11) When a contributor retires or dies (whichever first occurs), an
investment being held under subsection (3)(b)(i) may be redeemed (subject
to any rules or requirements applicable to the exercise of a power of
redemption).
(12) A contributor may, in conjunction with an application under
subsection (1), apply for any benefit that would be payable under
section 32A as if the contributor had resigned from employment and, in such
a case—
(a) the application will be taken to be an election under that section;
and
(b) the amount of entitlement payable under that section will be added to
the draw down benefit under subsection (3)(a) (and then invested under
subsection (3)(b)).
(13) Despite a preceding subsection, if the maximum draw down benefit
under subsection (3)(a) is not sufficient to be invested under
subsection (3)(b) to obtain a draw down payment—
(a) unless paragraph (b) applies—the draw down benefit must be
an amount equal to the minimum required to obtain a draw down payment (and
subsection (3)(a) will apply accordingly);
(b) if the minimum amount required to obtain a draw down payment is
greater than SP under subsection (3)(a), the Board must reject the
application under this section (and no entitlement will arise under
subsection (3)).
(14) The determination of a benefit under this section must take into
account the operation of any provision under Part 5A.
(15) The Governor may, by regulation, declare that any provision of this
section is modified in prescribed circumstances (and the regulation will have
effect according to its terms).
11—Amendment of
section 28A—Resignation pursuant to a voluntary separation
package
(1) Section 28A(1)—after "applies to a contributor"
insert:
if the contributor makes an election under subsection (1a) on the
basis that the contributor is a contributor
(2) Section 28A—after subsection (1) insert:
(1a) An election under subsection (1) must be made within
3 months after resignation.
(3) Section 28A(2)—after "applies" insert:
(but if an election is not made under subsection (1a) then
section 28 will be taken to apply to the contributor)
After section 33 insert:
33A—Transition to retirement
(1) A contributor may apply to the Board for the benefit of this section
if—
(a) the contributor has reached—
(i) the age of 55 years; and
(ii) his or her preservation age; and
(b) the contributor has entered into an arrangement with his or her
employer—
(i) to reduce his or her hours of work; or
(ii) to alter his or her duties,
or both, with the effect that there is a reduction in the contributor's
salary; and
(c) the purpose for establishing the arrangement referred to in
paragraph (b) relates to the proposed retirement of the contributor in due
course (including by allowing the contributor to scale down his or her work in
the lead-up to retirement).
(2) The Board may require that an application under
subsection (1)—
(a) be made in such manner as the Board thinks fit; and
(b) be accompanied by such information or other material specified by the
Board to assist the Board to be satisfied as to the matters set out in
paragraphs (b) and (c) of that subsection.
(3) If the Board is satisfied that a valid application has been made under
subsection (1), the contributor will be entitled to a pension (a draw
down benefit) on the basis of the contributor's application and on the
basis that the maximum draw down benefit to which the contributor is entitled
will be determined by the Board as follows:
Where—
B is the maximum draw down benefit (expressed as an amount
per fortnight)
RP is the amount that would be payable under section 34
if the contributor had retired from employment immediately before the date of
the determination (expressed as an amount per fortnight)
FS is the contributor's actual salary immediately before the
commencement of the arrangement envisaged by subsection (1)(b)
NS is the contributor's actual salary on the commencement of
the arrangement envisaged by subsection (1)(b).
(4) A draw down benefit may not be commuted until the contributor retires
from employment.
(5) If a contributor who has retired from employment applies for the
commutation of a draw down benefit within 6 months after the commencement
of the payment of the draw down benefit, the benefit may be commuted in
accordance with the regulations as if it were a pension.
(6) If a contributor who has retired from employment applies for the
commutation of a draw down benefit after the expiration of the period that
applies under subsection (5), the terms and conditions of the commutation
of the benefit will be as determined by the regulations.
(7) A draw down benefit will be indexed as if it were a pension under this
Act.
(8) When the Board has determined a draw down benefit—
(a) the contributions payable by the contributor under section 23
will (despite any provision made by section 23 to the
contrary)—
(i) be fixed on the basis of the contributor's salary under the
arrangement established with his or her employer (for so long as the arrangement
continues); and
(ii) as so fixed, be payable in respect of this salary from the first full
pay period after the Board's determination of the draw down benefit;
and
(iii) be at the contributor's standard contribution rate under that
section; and
(b) the contributor's contribution points will accrue, from the date of
the determination until the cessation of the relevant arrangement (unless the
contributor ceases to make the contributions envisaged by paragraph (a)),
at a rate for each contribution month determined as follows:
Where—
CP is a proportion of 1 contribution point
AS is the contributor's actual salary under the relevant
arrangement (as adjusted from time to time)
FSA is the contributor's actual salary immediately before the
commencement of the relevant arrangement, adjusted from time to time to take
into account any changes to the salary that would have occurred had the
contributor not entered into the relevant arrangement but rather continued to be
entitled to that salary.
(9) If the employment arrangements of a contributor who is receiving a
draw down benefit under this section alter so that there is an alteration in his
or her salary—
(a) in the case of a reduction in salary—the contributor may apply
to the Board for a further benefit in accordance with the provisions of this
section and this section will then apply to the application and with respect to
the relevant arrangement—
(i) as if FS under subsection (3) is the contributor's actual salary
immediately before the relevant reduction in salary; and
(ii) as if NS under subsection (3) is the contributor's actual salary
immediately after the relevant reduction in salary; and
(iii) by applying such other modifications as may be necessary for the
purpose or as may be prescribed; and
(b) in the case of an increase in salary—the draw down benefit will
continue as if the increase had not occurred, subject to any adjustments made on
account of the benefit, including as to contributions and the accrual of
contribution points, as may be prescribed by the regulations.
(10) When a contributor retires from employment (and is thus entitled to a
benefit under section 34), the contributor's entitlement under
section 34 will be adjusted in the manner prescribed by the regulations to
take into account the draw down benefit provided under this section (and that
section will then have effect accordingly).
(11) If a contributor's employment terminates on account of invalidity in
circumstances that give rise to an entitlement under section 37, the
entitlement under that section will be adjusted in the manner prescribed by the
regulations to take into account the fact that the contributor had elected to
receive a draw down benefit under this section (and that section will then have
effect accordingly).
(12) If a contributor's employment is terminated by the contributor's
death, any entitlement under section 38 will be adjusted in the manner
prescribed by the regulations to take into account the fact that the contributor
had elected to receive a draw down benefit under this section (and that section
will then have effect accordingly).
(13) The determination of a benefit under this section must take into
account the operation of any provision under Part 5A.
(14) Despite a preceding subsection, if a contributor who has been
receiving a draw down benefit returns to a level of employment that is at least
equal to the level that applied immediately before the contributor commenced the
arrangement referred to in subsection (1)(b) (the original level of
employment), the payment of the draw down benefit will be suspended for
so long as his or her level of employment is at least equal to the original
level of employment (and any adjustments in connection with the operation of
this section prescribed by the regulations will apply).
(15) A contributor who has a rollover account by virtue of the operation
of section 47B may, if authorised to do so under the regulations, in
conjunction with an application under subsection (1), apply for any benefit
that would be payable with respect to that account as if the contributor had
resigned from employment and, in such a case—
(a) the benefit must be invested in accordance with the regulations;
and
(b) the investment may be redeemed when the contributor retires from
employment under this Act.
(16) The Governor may, by regulation, declare that any provision of this
section is modified in prescribed circumstances (and the regulation will have
effect according to its terms).
13—Amendment of
section 39A—Resignation or retirement pursuant to a voluntary
separation package
Section 39A—after subsection (3g) insert:
(3h) An election under subsection (3)(b) must be made within
3 months after the date of resignation.
(3i) A pension under subsection (3g) will be indexed.
After section 40A insert:
40B—Interaction with judicial remuneration or
pension entitlements
(1) If a person would, but for this subsection, be entitled
to—
(a) the payment of a pension under this Act; and
(b) the payment of—
(i) salary as a Judge for judicial service; or
(ii) a judicial-related pension,
the right to the payment of a pension under this Act is
suspended.
(2) Subject to this section, the Board will, on the application of a
person whose pension is suspended under subsection (1), commute the
entitlement to the pension to a lump sum payment.
(3) An application for commutation must be made—
(a) in the case of a suspension under subparagraph (i) of
subsection (1)(b)—within 6 months after the pension is suspended
due to the circumstances applying under that subparagraph;
(b) in the case of a suspension under subparagraph (ii) of
subsection (1)(b)—within 3 months after the pension is
suspended due to the circumstances applying under that subparagraph.
(4) If—
(a) an application is not made under subsection (3)(a); and
(b) the person ceases to receive salary as a Judge for judicial service
without an entitlement to a judicial-related pension,
the suspension will cease.
(5) If an application is not made under subsection (3)(b) within the
period that applies under that provision, it will be taken that the person has
made the application in any event.
(6) In making the commutation, commutation factors promulgated by
regulation will be applied.
(7) In this section—
Judge has the same meaning as in the Judges' Pensions
Act 1971;
judicial-related pension means a pension under the Judges'
Pensions Act 1971;
judicial service has the same meaning as in the Judges'
Pensions Act 1971.
Section 43A—delete the section
16—Amendment of
section 43AF—Effect on contributor's
entitlements
Section 43AF—after subsection (5) insert:
(6) If a contributor has received a draw down benefit under
section 26A or 33A—
(a) the superannuation interest of the contributor will be taken to
include the balance of any draw down benefit that is being held under
section 26A(3)(b)(i) or entitlement under section 33A; and
(b) any entitlement under section 26A or 33A will be adjusted to take
into account the effect of a payment split under this Part.
17—Insertion of
sections 47C and 47D
After section 47B insert:
47C—Portion of pension etc to be charged against
contribution account etc
(1) A proportion of a pension or lump sum under Part 5 paid to, or in
relation to, a contributor will be charged against the contributor's
contribution account or, if the account has been closed, will be charged against
the relevant division of the Fund.
(2) The proportion for the purposes of subsection (1) will be
equivalent to the proportion of the future benefits payable under Part 5
that can, in the opinion of the Board, be met from the Fund.
(3) The opinion of the Board must be based on the most recent triennial
report under section 21(4).
47D—Charge against Fund if draw down benefit
paid
If a contributor becomes entitled to a draw down benefit under
section 26A or 33A—
(a) when the draw down benefit is paid under section 26A—there
will be a charge on the relevant division of the Fund equal to the amount
charged to the contributor's contribution account and, if relevant, any roll
over account, on account of the payment of the draw down benefit;
(b) when the draw down benefit is paid under section 33A—there
will be a charge on the relevant division of the Fund determined by applying the
same proportion that applies under section 47C(2) with respect to the
payment of a pension.
Schedule
1—Transitional provisions
In this Schedule—
principal Act means the Superannuation
Act 1988.
(1) A person—
(a) who has, before the commencement of this subclause, resigned from
employment in circumstances that fall within the ambit of subsection (1) of
section 28A of the principal Act (as in existence immediately before that
commencement); and
(b) who has not received any benefit under that section before the
commencement of this subclause,
will have 3 months from that commencement to make an election under
this subclause and if such an election is not made by the expiration of that
period then section 28 of the principal Act will apply to the person to the
exclusion of section 28A of the principal Act.
(2) A person to whom section 39A of the principal Act
applies—
(a) who resigned or retired from employment before the commencement of
this subclause; and
(b) who has not made an election under subsection (3)(b) of that
section before the commencement of this subclause,
will have 3 months from that commencement to make such election (so
that any election made after the expiration of that period by such a person will
have no effect).
(3) Section 40B of the principal Act, as enacted by this Act, applies only
to a person whose right to the payment of a pension under the principal Act
arises after the commencement of this subclause.