STATE BANK (CORPORATISATION) ACT 1994

South Australian Current Acts

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STATE BANK (CORPORATISATION) ACT 1994 - SCHEDULE 2

Schedule 2—Superannuation

1—Definitions

In this Schedule—

age of retirement has the same meaning in relation to a State Scheme contributor as in the Superannuation Act 1988 ;

BFC Fund means the Beneficial Finance Corporation Limited Staff Superannuation Fund No. 2 constituted by the trust deed dated 30 July 1971 made between Beneficial Finance Corporation Limited and the then trustee of the Fund, as amended from time to time and in particular by the trust deed dated 29 May 1989 made by Beneficial Finance Corporation Limited;

BSAL Fund means the SBSA Fund as renamed by this Schedule the Bank of South Australia Superannuation Fund ;

complying superannuation fund means a complying superannuation fund within the meaning of Part IX of the Income Tax Assessment Act 1936 of the Commonwealth, as amended from time to time, other than the Fund under the Superannuation Act 1988 ;

date of retrenchment , in relation to an employee, means the date on which the employee's employment ceases on account of retrenchment;

employee includes officer;

fixed establishment officer has the same meaning as in Schedule 2 of the State Bank of South Australia Act 1983 ;

interim period means the period beginning on the appointed day and ending on 30 June 1999;

packaged officer means an officer of SBSA or BSAL (as the case may be) who has agreed as part of the terms and conditions of his or her employment to be remunerated by reference to a total remuneration package reflecting the cost to the employer of cash salary, nominated benefits and associated fringe benefits tax;

SAAMC Fund means the BFC Fund as renamed by this Schedule the South Australian Asset Management Corporation Superannuation Fund ;

salary of a contributor or employee means—

(a) in the case of a State Scheme contributor (except a contributor whose accrued superannuation benefits are preserved)—the contributor's salary for the purpose of calculating contributions under the Superannuation Act 1988 (expressed as an annual amount); or

(b) in any other case—the employee's salary for the purposes of the trust deed governing the BSAL Fund or the SAAMC Fund, whichever of those Funds is the Fund of which the employee is a member (expressed as an annual amount);

SBSA Fund means the State Bank Superannuation Fund constituted by the trust deed dated 15 December 1987 made by SBSA;

State Scheme means the Scheme within the meaning of the Superannuation Act 1988 ;

State Scheme contributor means a contributor within the meaning of the Superannuation Act 1988 ;

Superannuation Board means the South Australian Superannuation Board;

transferred means transferred under Part 5 or a corresponding law.

2—Bank of South Australia Superannuation Fund

(1) On and from the appointed day—

(a) the SBSA Fund is to have the name Bank of South Australia Superannuation Fund subject to any further change of name made by amendment of the trust deed governing the Fund; and

(b) BSAL replaces SBSA as the Employer for the purposes of the governing rules of the BSAL Fund and will perform all the obligations that would have fallen due for performance by SBSA under the governing rules on or after the appointed day; and

(2) Nothing done by or under this Act constitutes an event bringing about the operation of clause 15 of the governing rules of the BSAL Fund.

3—South Australian Asset Management Corporation Superannuation Fund

(1) On and from the appointed day—

(a) the BFC Fund is to have the name South Australian Asset Management Corporation Superannuation Fund subject to any further change of name made by amendment of the trust deed governing the Fund; and

(b) BSAL is taken to be an Associated Employer within the meaning of the trust deed governing the SAAMC Fund and the provisions of the trust deed apply as if BSAL had been duly admitted as an Associated Employer under clause 8.01 of the trust deed.

4—BSAL Fund members not transferred to BSAL

(1) On the appointed day, an employee who—

(a) is a member of the BSAL Fund; and

(b) is not transferred to a position in the employment of BSAL,

is taken to have become a member of the SAAMC Fund if not already a member of that Fund.

(2) As soon as practicable after the appointed day, the trustee of the BSAL Fund must transfer the interest of the employee referred to in subclause (1) in the BSAL Fund (as determined by the trustee) to the SAAMC Fund for the benefit of the employee.

(3) On the transfer of the interest under subclause (2)—

(a) the trustee of the BSAL Fund is discharged from its obligations as trustee of the BSAL Fund in respect of the employee concerned; and

(b) the employee ceases to have any entitlement to a benefit from the BSAL Fund.

5—SAAMC Fund members transferred to BSAL

(1) An employee who—

(a) is a member of the SAAMC Fund; and

(b) is transferred to a position in the employment of BSAL,

is, on a day fixed by the Treasurer by order in writing, taken to have become a member of the BSAL Fund if not already a member of that Fund.

(2) As soon as practicable after the day referred to in subclause (1), the trustee of the SAAMC Fund must transfer the value of the employee's accrued benefit in the SAAMC Fund (as determined by the trustee), together with such additional amount as may be determined by SBSA, to the BSAL Fund for the benefit of the employee.

(3) On the transfer of the amount or amounts under subclause (2)—

(a) the trustee of the SAAMC Fund is discharged from its obligations as trustee of the SAAMC Fund in respect of the employee concerned; and

(b) the employee ceases to have any entitlement to a benefit from the SAAMC Fund.

6—Fixed establishment officers

(1) As soon as practicable after the appointed day, SBSA must transfer the accrued entitlement under clause 10 of Schedule 2 of the State Bank of South Australia Act 1983 of an employee who—

(a) is a fixed establishment officer; and

(b) has not been transferred to a position in the employment of BSAL,

to the SAAMC Fund for the benefit of the employee.

(2) As soon as practicable after the transfer of an employee who is a fixed establishment officer to a position in the employment of BSAL, SBSA must transfer the accrued entitlement of the employee under clause 10 of Schedule 2 of the State Bank of South Australia Act 1983 to the BSAL Fund for the benefit of the employee.

(3) On the transfer of the entitlement under subclause (1) or (2)—

(a) SBSA is discharged from its obligations under clause 10 of Schedule 2 of the State Bank of South Australia Act 1983 in respect of the employee concerned; and

(b) the employee ceases to have any further entitlement under clause 10 of that Schedule.

7— Superannuation Act and State Scheme contributors

(1) An employee of BSAL who, immediately before becoming an employee of BSAL, was a State Scheme contributor, may continue as a State Scheme contributor during the interim period.

(2) The Treasurer must, by order in writing, specify arrangements under which the employees of BSAL may continue as State Scheme contributors during the interim period and the Treasurer may, at any time, with the agreement of BSAL, vary the order by further order in writing.

(3) An order under subclause (2) is taken to be an arrangement between the Superannuation Board and BSAL under section 5(1) of the Superannuation Act 1988 and, as such, may modify the provisions of that Act as authorised by section 5(1a) of that Act.

(4) The following provisions apply in relation to any arrangement under section 5(1) of the Superannuation Act 1988 between the Superannuation Board and SBSA or BSAL (including an order under subclause (2)):

(a) no such arrangement may have an effect that is inconsistent with the provisions of this Schedule;

(b) no variation of such an arrangement may have an effect that is inconsistent with the provisions of this Schedule;

(c) despite section 5(3) of the Superannuation Act 1988 , no declaration may be made under that provision that benefits will cease accruing to State Scheme contributors in respect of employment with SBSA or BSAL.

(5) At any time during the interim period, an employee of SBSA or BSAL who is a State Scheme contributor may elect, by notice in writing to the Superannuation Board, that benefits under the Superannuation Act 1988 cease accruing in respect of the State Scheme contributor and that either—

(a) his or her accrued superannuation benefits under the Superannuation Act 1988 will be preserved; or

(b) his or her accrued superannuation benefits under the Superannuation Act 1988 will be carried over to a complying superannuation fund nominated by him or her.

(6) On the making of an election under subclause (5)(a), the State Scheme contributor—

(a) is taken, for the purposes of the Superannuation Act 1988 (but for no other purpose), to have resigned from his or her employment and to have elected under section 28 or 39 of that Act (whichever may apply to the contributor) to preserve his or her accrued benefits; and

(b) if not already a member of the SAAMC Fund or BSAL Fund, is taken to have become—

(i) in the case of an employee of SBSA—a member of the SAAMC Fund; or

(ii) in the case of an employee of BSAL—a member of the BSAL Fund.

(7) On the making of an election under subclause (5)(b), a payment must be made as if it were a benefit under the Superannuation Act 1988 on behalf of the State Scheme contributor to a complying superannuation fund nominated by the contributor of an amount calculated in accordance with clause 8.

(8) On a payment being made under subclause (7), the State Scheme contributor—

(a) ceases to be a State Scheme contributor; and

(b) if not already a member of the SAAMC Fund or BSAL Fund, is taken to have become—

(i) in the case of an employee of SBSA—a member of the SAAMC Fund; or

(ii) in the case of an employee of BSAL—a member of the BSAL Fund; and

(9) Subject to subclause (10), at the end of the interim period, an employee referred to in subclause (5) who has not made an election under that subclause—

(a) ceases to accrue benefits under the Superannuation Act 1988 ; and

(b) is taken, for the purposes of the Superannuation Act 1988 (but for no other purpose), to have resigned from his or her employment and to have elected under section 28 or 39 of the Superannuation Act 1988 (whichever may apply to the contributor) to preserve his or her accrued benefits; and

(i) in the case of an employee of SBSA—a member of SAAMC Fund; or

(ii) in the case of an employee of BSAL—a member of the BSAL Fund.

(10) Where at the end of the interim period an employee referred to in subclause (5) who has not made an election under that subclause is receiving a disability pension under section 30 or 36 of the Superannuation Act 1988 , subclause (9) only applies to that employee on the day after the disability pension ceases, but does not apply at all where the disability pension ceases on or immediately before the termination of the employee's employment on the ground of invalidity.

8—Amount of payment on behalf of State Scheme contributor to complying superannuation fund

(1) The amount of the payment to be made on behalf of a State Scheme contributor under clause 7(7) as a result of an election under clause 7(5)(b) is to be calculated in accordance with this clause.

(2) Where the State Scheme contributor is a new scheme contributor under the Superannuation Act 1988 , the amount is equal to the greater of the following:

(a) the amount of the payment that would have been made had the contributor resigned at the date of his or her election under clause 7(5)(b) and had section 28(5) of the Superannuation Act 1988 applied;

(b) the amount calculated as the sum of—

(i) an employee component equivalent to the amount standing to the credit of the contributor's contribution account; and

(ii) the employer component calculated as follows:

Where—

ERN is the employer component

K is—

(a) where the election under clause 7(5)(b) is made on or before 31 December 1994—1.2;

(b) in any other case—1.0

EC is the employer component that would have been calculated in terms of section 28(4) of the Superannuation Act 1988 —

(a) had the contributor—

(i) resigned at the date of his or her election under clause 7(5)(b); and

(ii) elected to preserve his or her superannuation benefits under section 28 of the Superannuation Act 1988 ; and

(b) had a superannuation payment been made in accordance with section 28(2)(a) of the Superannuation Act 1988 at the date of the contributor's election under clause 7(5)(b) as if he or she had reached the age of 60 years at that date

DF is the amount of 1 discounted at the rate of 3 per cent per annum for the number of years (including any fraction of a year measured in days) in the period from—

(a) the date of the election under clause 7(5)(b);

(b) the date of the employee's sixtieth birthday

PSESS is the amount standing to the credit of the contributor's account under section 32A(6) of the Superannuation Act 1988 .

(3) Where the State Scheme contributor is an old scheme contributor under the Superannuation Act 1988 , the amount is equal to the greater of the following:

(a) the amount calculated as follows:

Where—

TV is the amount

K is—

(a) where the election under clause 7(5)(b) is made on or before 31 December 1994—1.2;

(b) in any other case—1.0

CF is—

(a) where the contributor's age of retirement is 60 years—10.5;

(b) where the contributor's age of retirement is 55 years—11.5

P is the amount of the pension (expressed as an amount per fortnight) that would have been payable—

(a) had the contributor—

(i) resigned at the date of his or her election under clause 7(5)(b); and

(ii) elected to preserve his or her accrued superannuation benefits under section 39(5) of the Superannuation Act 1988 assuming for this purpose (and for no other purpose) that the contribution period is more than 120 months; and

(b) had a retirement pension commenced being paid in accordance with section 39(5)(a) of the Superannuation Act 1988 from the date of the contributor's election under clause 7(5)(b) as if he or she had reached his or her age of retirement at that date

DF is the amount of 1 discounted at the rate of 3 per cent per annum for the number of years (including any fraction of a year measured in days) in the period from—

(a) the date of the election under clause 7(5)(b);

(b) the date on which the employee would reach his or her age of retirement;

(b) the amount that would have been calculated in accordance with section 39(3) and (4) of the Superannuation Act 1988 —

(i) had the contributor—

(A) resigned at the date of his or her election under clause 7(5)(b); and

(B) elected to preserve his or her accrued superannuation benefits under section 39(2) of the Superannuation Act 1988 assuming for this purpose (and for no other purpose) that the contribution period is less than 120 months; and

(ii) had a superannuation payment been made in accordance with section 39(2)(a) of the Superannuation Act 1988 at the date of his or her election under clause 7(5)(b) as if he or she had reached the age of 60 years at that date.

9—Supplementary contribution where State Scheme contributor elects prior to 31 December 1994

(1) Where a State Scheme contributor who is not a packaged officer makes an election under clause 7(5)(b) on or before 31 December 1994—

(a) in the case of an employee of SBSA—he or she is entitled to receive an additional credit in the SAAMC Fund equal to the amount of the supplementary contribution determined in accordance with subclause (2); or

(b) in the case of an employee of BSAL—BSAL must make a supplementary contribution to the BSAL Fund for his or her benefit of an amount determined in accordance with subclause (2).

(2) The amount of the supplementary contribution will be equal to 20 per cent of the contributor's salary as at the date of the election under clause 7(5)(b).

10—Retrenchment benefits for State Scheme contributors

(1) This clause applies to an employee of SBSA or BSAL—

(a) who, at any time after the commencement of this Act, is or was a State Scheme contributor; and

(b) whose employment is terminated by retrenchment on or before 30 June 1999.

(2) Neither section 29 nor 35 of the Superannuation Act 1988 applies to an employee to whom this clause applies.

(3) Where an employee to whom this clause applies—

(a) has not made an election under clause 7(5); and

(b) is a new scheme contributor under the Superannuation Act 1988 ,

the employee may elect, by notice in writing to the Superannuation Board—

(c) to preserve his or her accrued superannuation benefits under the State Scheme in accordance with section 28 of the Superannuation Act 1988 as if he or she had resigned from employment; or

(d) to receive—

(i) a lump sum as if it were a benefit under the Superannuation Act 1988 equal to the amount calculated in accordance with clause 8 that would have been payable in respect of the employee had the employee made an election under clause 7(5)(b) at the date of retrenchment; and

(ii) where the date of the retrenchment is on or before 31 December 1994, a supplementary payment—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL,

equal to the amount that would have been payable in accordance with clause 9 had the employee made an election under clause 7(5)(b) at the date of retrenchment.

(4) An employee referred to in subclause (3) who fails to make an election under that subclause (3) within three months after the date of retrenchment is taken to have made an election under subclause (3)(c).

(5) Where an employee to whom this clause applies—

(a) has not made an election under clause 7(5); and

(b) is an old scheme contributor under the Superannuation Act 1988 ; and

the employee may elect, by notice in writing to the Superannuation Board—

(d) to preserve his or her accrued superannuation benefits under the State Scheme in accordance with section 39 of the Superannuation Act 1988 as if he or she had resigned from employment; or

(e) to receive—

(ii) where the date of the retrenchment is on or before 31 December 1994, a supplementary payment—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL,

equal to the amount that would have been payable in accordance with clause 9 had the employee made an election under clause 7(5)(b) at the date of retrenchment.

(6) An employee referred to in subclause (5) who fails to make an election under that subclause within three months after the date of retrenchment is taken to have made an election under subclause (5)(d).

(7) Where an employee to whom this clause applies—

(a) has not made an election under clause 7(5); and

(b) is an old scheme contributor under the Superannuation Act 1988 ; and

the employee may elect, by notice in writing to the Superannuation Board—

(d) to receive a retrenchment pension in accordance with clause 11; or

(e) to—

(i) preserve his or her accrued superannuation benefits under the State Scheme in accordance with section 39 of the Superannuation Act 1988 as if he or she had resigned from employment (whether or not he or she is under 55 years of age); and

(ii) receive an additional retrenchment lump sum in accordance with clause 12—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL; or

(f) to receive—

(i) a lump sum as if it were a benefit under the Superannuation Act 1988 equal to the amount calculated in accordance with clause 8 that would have been payable on behalf of the employee had the employee made an election under clause 7(5)(b) at the date of retrenchment; and

(ii) where the date of the retrenchment is on or before 31 December 1994, a supplementary payment—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL,

equal to the amount that would have been payable in accordance with clause 9 had the employee made an election under clause 7(5)(b) at the date of retrenchment; and

(iii) an additional retrenchment lump sum in accordance with clause 12—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL.

(8) An employee referred to in subclause (7) who fails to make an election under that subclause within three months after the date of retrenchment is taken to have made an election under subclause (7)(e).

(9) Where an employee to whom this clause applies—

(a) has made an election under clause 7(5)(a); and

(b) is an old scheme contributor under the Superannuation Act 1988 ; and

the employee may elect, by notice in writing to the Superannuation Board—

(d) to forego his or her preserved benefits under the State Scheme and, in their place, to receive a retrenchment pension in accordance with clause 11; or

(e) to—

(i) retain his or her preserved superannuation benefits under the State Scheme; and

(ii) receive an additional retrenchment lump sum in accordance with clause 12—

(A) in the case of an employee of SBSA—from SBSA; or

(B) in the case of an employee of BSAL—from BSAL.

(10) An employee referred to in subclause (9) who fails to make an election under that subclause within three months after the date of retrenchment is taken to have made an election under subclause (9)(e).

(11) Where an employee to whom this clause applies—

(a) has made an election under clause 7(5)(b); and

(b) was prior to making that election an old scheme contributor under the Superannuation Act 1988 ; and

the employee is entitled to receive an additional retrenchment lump sum in accordance with clause 12—

(d) in the case of an employee of SBSA—from SBSA; or

(e) in the case of an employee of BSAL—from BSAL.

11—Retrenchment pension for old scheme State Scheme contributors

(1) This clause applies where a retrenchment pension is payable as a result of an election by a State Scheme contributor under clause 10(7)(d) or 10(9)(d).

(2) A retrenchment pension commences on a date determined by taking the date of retrenchment and adding to that date—

(a) the number of days in the period of any entitlement to recreation leave in lieu of which a lump sum is paid on retrenchment to the contributor; and

(b) the number of days in the period of notice in lieu of which a lump sum is paid on retrenchment to the contributor; and

(c) the number of days in the period in respect of which a lump sum is paid to the contributor under a redeployment or redundancy agreement.

(3) Where, before the retrenchment pension commences, the contributor—

(a) dies; or

(b) satisfies the Superannuation Board that he or she has become totally and permanently incapacitated for work,

the benefits payable will be the benefits that would have been payable had the retrenchment pension commenced immediately before the contributor died or became totally and permanently incapacitated for work.

(4) Where a retrenchment pension is payable as a result of an election under clause 10(7)(d), the amount of the retrenchment pension is the same as the amount of the pension that would have been payable—

(a) had the contributor—

(i) resigned at the date determined by taking the date of retrenchment and adding to that date the number of days in the period of any entitlement to recreation leave in lieu of which a lump sum is paid on retrenchment to the contributor; and

(b) had a retirement pension commenced being paid in accordance with section 39(5)(a) of the Superannuation Act 1988 from the date on which the retrenchment pension first became payable as if the contributor had reached his or her age of retirement at that date.

(5) Where a retrenchment pension is payable as a result of an election under clause 10(9)(d), the amount of the retrenchment pension is the same as the amount of the pension that would have been payable—

(a) had the preserved benefits under the State Scheme in accordance with clause 7(6) not been foregone as part of the election under clause 10(9)(d); and

(b) had those preserved benefits been provided under section 39(5) of the Superannuation Act 1988 assuming for this purpose (and for no other purpose) that the contribution period of the contributor is more than 120 months; and

(c) had a retirement pension commenced being paid in accordance with section 39(5)(a) of the Superannuation Act 1988 from the date on which the retrenchment pension first became payable as if the contributor had reached his or her age of retirement at that date.

(6) A retrenchment pension will be indexed.

(7) The Superannuation Act 1988 , apart from section 35, applies to a retrenchment pension as if it were payable under section 35 of that Act.

12—Additional retrenchment lump sum for old scheme State Scheme contributors

(1) This clause applies where—

(a) an additional retrenchment lump sum is payable as a result of an election by an employee under clause 10(7)(e), 10(7)(f) or 10(9)(e); or

(b) an additional retrenchment lump sum is payable under clause 10(11).

(2) The additional retrenchment lump sum is calculated as follows:

Where—

ALS is the additional retrenchment lump sum

n is the number of years (including any fraction of a year measured in days) in the period from—

(a) the date determined by taking the date of retrenchment and adding to that date—

(i) the number of days in the period of notice in lieu of which a lump sum is paid on retrenchment to the employee; and

(ii) the number of days in the period in respect of which a lump sum is paid to the employee under a redeployment or redundancy agreement;

(b) the date the employee would reach his or her age of retirement

FS is the employee's salary as at the date of retrenchment.

13—Extra lump sum payable on retrenchment of State Scheme contributors before 30 June 1997

(1) This clause applies to an employee of SBSA or BSAL—

(a) who, at any time after the commencement of this Act, is or was a State Scheme contributor; and

(b) whose employment is terminated by retrenchment on or before 30 June 1997.

(2) An employee to whom this clause applies is entitled to receive an extra retrenchment lump sum—

(a) in the case of an employee of SBSA—from SBSA; or

(b) in the case of an employee of BSAL—from BSAL,

calculated as follows:

Where—

ELS is the extra retrenchment lump sum

K is—

(a) where the date of retrenchment is on or before 30 June 1995—0.2;

(b) where the date of retrenchment is after 30 June 1995 but on or before 30 June 1996—0.15;

FSM is the employee's salary as at the date of retrenchment, subject to a maximum of $75 000.

14—Non-entitlement to receive immediate benefit

Neither—

(a) a transfer or re-transfer under Part 5 or a corresponding law; nor

(b) anything done under clauses 1 to 9 (inclusive) of this Schedule,

gives rise to an entitlement on the part of an employee to receive an immediate payment of a benefit under the BSAL Fund, the SAAMC Fund or the State Scheme or to receive payment of an entitlement under clause 10 of Schedule 2 of the State Bank of South Australia Act 1983 .

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