AustLII Tasmanian Numbered Regulations

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RETIREMENT BENEFITS REGULATIONS 2005 (S.R. 2005, NO. 77) - REG 79

PART 7 - Pensions Conversion of lump sum benefits to pensions

(1)  Except as provided in subregulation (15) , a person who is entitled to receive a lump sum benefit under –
(a) Part 5 or Part 6 ; or
(b) the accumulation scheme and complies with the requirements of Schedule 2 of the Trust Deed –
may, subject to subregulation (2) , elect to convert the whole or a part of the lump sum into a pension, as provided by this regulation.
(2)  Where a contributor retires on the grounds of total and permanent incapacity and his or her lump sum benefit under regulation 50 or 51 is greater than $50 000, the Board must convert his or her benefit entitlement to a pension as provided in this regulation.
(3)  A contributor to whom subregulation (2) applies may before his or her pension commences under that subregulation elect, in writing to the Board, to commute any part of his or her pension under subregulation (2) to –
(a) a lump sum benefit not exceeding $50 000; and
(b) if the Board approves, an additional lump sum benefit not exceeding $30 000.
(4)  A payment under subregulation (3) is not payable and interest does not accrue before the date of the Board's final decision determined in accordance with regulation 126 .
(5)  The Minister may, by notice published in the Gazette , amend the amounts specified in subregulation (2) and (3) by substituting another amount for an amount specified in that subregulation with effect from a date specified in the notice.
(6)  The Board may determine that subregulation (2) does not apply if at least 2 medical practitioners appointed or employed by the Board certify that the contributor has a terminal illness from which death is likely to occur within a period of 12 months.
(7)  A person who is entitled to receive more than one lump sum benefit under these regulations is to make an election with respect to each benefit separately.
(8)  An election under subregulation (1) is to be made in writing to the Board –
(a) with respect to a contributor, on or before the event on which the lump sum benefit becomes payable or within a period of 3 months after that event or any extended period that the Board allows; or
(b) with respect to the surviving partner of a contributor, within a period of 6 months immediately following the date of death of the contributor.
(9)  Where a contributor or surviving partner of a contributor fails to make an election as mentioned in subregulation (8) , the benefit entitlement is to be transferred to an account in his or her name in the accumulation scheme.
(10)  Where an election is made under subregulation (1) , the person entitled is to be paid out of the Fund a pension equal to the amount of the relevant lump sum entitlement foregone divided by the conversion factor that is applicable under regulation 80 to that person on the date on which the election becomes effective.
(11)  In the case of a surviving partner of a contributor, the effective date for the purposes of subregulation (10) is the day immediately following the day on which the election is received by the Board.
(12)  Where the election has been made under subregulation (1) by a person for the conversion of the whole or part of his or her lump sum entitlement into a pension, the lump sum entitlement is to be reduced by the Board in accordance with the election and any remaining balance is to be transferred to an account in his or her name in the accumulation scheme.
(13)  Notwithstanding subregulation (1) , an existing contributor or an amalgamated contributor may, on ceasing to be a contributor, or on attaining the age of 55 years having ceased to be a contributor as a result of a prescribed arrangement, elect in writing to the Board to substitute the benefit payable under Part 5 with the benefit payable as appropriate under Schedule 3 .
(14)  An election by a contributor under subregulation (13) with respect to a lump sum benefit determined under regulation 50 is to be an election to convert the whole of that lump sum into a pension.
(15)  A benefit payable under regulation 130(1)(b) or (c) is not to be converted to a pension.



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