1. This Act may be cited as the Superannuation Legislation Amendment Act (No. 2) 1986.

Commencement

3. The Superannuation Act 1976¹ is in this Part referred to as the Principal Act.

Interpretation

6. Section 8 of the Principal Act is amended by adding at the end the following sub-section:

“(3) Where—

(a) a person ceases to be an eligible employee and, upon so ceasing, deferred benefits are applicable in relation to the person by virtue of Division 3 of Part IX;

(b) those deferred benefits ceased to be applicable in relation to the person upon a deferred benefit by way of invalidity pension becoming payable to the person; and

(c) the person again becomes an eligible employee and the person’s entitlement to deferred benefit is, upon the person’s so becoming an eligible employee, cancelled under sub-section 76 (1),

then, upon the person’s next ceasing to be an eligible employee, there shall be added to the period that, but for this sub-section, would be the person’s period of contributory service—

(d) the period that was the person’s period of contributory service upon the person’s previously ceasing to be an eligible employee and becoming a person in relation to whom deferred benefits are applicable; and

(e) if, during any period after the person’s previously so ceasing to be an eligible employee and before the person again becomes an eligible employee, the person was in receipt of deferred benefit by way of invalidity pension in accordance with section 67 or 68—any period in respect of which that pension was payable.”.

7. Section 13 of the Principal Act is amended—

(a) by omitting from sub-section (1) “, as from the date of the direction,”; and

(b) by adding at the end the following sub-section:

“(2) A direction under sub-section (1) in relation to a person who is employed under a contract has effect from—

(a) where the person has been employed under that contract for longer than one year—the day of the direction; or

(b) in any other case—the day specified in the direction, which may be a day earlier than the day on which the direction is given but not earlier than the day on which the person commenced to be employed under that contract.”.

8. Section 14 of the Principal Act is amended—

(a) by omitting from sub-section (1) “, as from the date of the direction,”; and

(b) by adding at the end the following sub-section:

“(4) A direction under sub-section (1) in relation to a person who is the holder of a statutory office has effect from—

(a) where the person has been holding that office for longer than one year—the day of the direction; or

(b) in any other case—the day specified in the direction, which may be a day earlier than the day on which the direction is given but not earlier than the day on which the person commenced to hold that office.”.

Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies, &c.

12. Section 23 of the Principal Act is amended—

(a) by inserting after paragraph (2) (a) the following paragraph:

“(aa) fails, without reasonable excuse, to comply with the Commissioner’s obligations under sub-section (3);”; and

(b) by adding at the end the following sub-sections:

“(3) The Commissioner shall give written notice to the Minister of all direct or indirect pecuniary interests that he or she has or acquires in any business or in any body corporate carrying on any business.

“(4) The reference in sub-section (3) to the Commissioner shall be read as including a person acting as Commissioner by virtue of an appointment under section 24.”.

14. Section 25 of the Principal Act is amended—

(a) by omitting from sub-section (1) “any of his powers under this Act or the superseded Act,” and substituting “all or any of the Commissioner’s powers under this Act, the superseded Act, regulations under this Act or regulations under the superseded Act,”; and

(b) by omitting from sub-section (2) “or the superseded Act,” and substituting “, the superseded Act, regulations under this Act or regulations under the superseded Act”.

Delegation by Trust

17. Section 44 of the Principal Act is amended by inserting after sub-section (2) the following sub-sections:

“(2a) The Auditor-General shall inspect and audit the accounts and records of financial transactions of the Trust and records relating to assets of, or in the custody of, the Trust and shall forthwith draw the attention of the Minister to any irregularity disclosed by the inspection and audit that is, in the opinion of the Auditor-General, of sufficient importance to justify so doing.

“(2b) The Auditor-General may, at the discretion of the Auditor-General, dispense with all or any part of the detailed inspection and audit of any accounts or records referred to in sub-section (1).

“(2c) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under sub-section (2a).”.

18. Section 51 of the Principal Act is amended by inserting in sub-section (3) “or permitted” after “required” (wherever occurring).

19. Section 51a of the Principal Act is amended by inserting in sub-section (2) “or permitted” after “required”.

20. After section 57 of the Principal Act the following section is inserted in Division 1 of Part V:

Age retirement pension on election under section 76 a

“57a. Where a person—

(a) makes an election under section 76a; and

(b) would, if he or she had retired otherwise than on the ground of invalidity, have been entitled to a standard age retirement pension under section 55,

then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to—

(c) standard age retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had retired otherwise than on the ground of invalidity; and

(d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional age retirement pension in accordance with sub-section 57 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.”.

21. Section 58 of the Principal Act is amended by inserting after paragraph (3) (a) the following paragraph:

“(aa) in the case of a person holding a Senior Executive Service office within the meaning of the Public Service Act—the person retires pursuant to section 76r of that Act;”.

22. After section 61 of the Principal Act the following section is inserted:

Early retirement pension on election under section 76 a

“61a. Where a person—

(a) makes an election under section 76a; and

(b) would, if he or she had resigned or had retired otherwise than on the ground of invalidity, have been entitled to a standard early retirement pension under section 59,

then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to—

(c) standard early retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had resigned or had retired otherwise than on the ground of invalidity; and

(d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional early retirement pension in accordance with sub-section 61 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.”.

Election for lump sum benefit in case of involuntary retirement

25. Section 67 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

Election where benefit not reduced on medical grounds

28. Section 70 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

Election where benefit reduced on medical grounds and period of contributory service not less than 8 years

31. Section 73 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section:

“(2) The lump sum benefit to which a person to whom this section applies is entitled is an amount equal to whichever is the greater of—

(a) the sum of—

(i) 3½ times the amount of the person’s accumulated basic contributions; and

(ii) the amount of the person’s accumulated supplementary contributions (if any); or

(b) the sum of—

(i) one-half of the amount that is the amount per annum of the person’s final annual rate of salary; and

(ii) the amount of the person’s accumulated supplementary contributions (if any).”.

32. After section 73 of the Principal Act the following section is inserted:

Reduction of invalidity pensions because of earnings

“73a. (1) In this section—

‘earnings rate’, in relation to an invalidity pensioner, means the amount per annum last estimated by the Commissioner under sub-section (3) as the annual rate of the personal earnings of the pensioner;

‘invalidity pensioner’ means a person to whom invalidity pension is payable and who has not attained the age of 65 years;

‘personal earnings’, in relation to an invalidity pensioner, means salary, wages, fees or other amounts received by the pensioner for services rendered, or work performed, by the pensioner, and includes—

(a) remuneration paid to the pensioner as the director of a company; and

(b) commission received by the pensioner for canvassing, collecting or similar activities;

‘prescribed maximum rate’ means—

(a) before the operation of sub-section (2)—$19,200 per annum increased by the relevant percentage of that rate; or

(b) after the operation of that sub-section—the rate that is the prescribed maximum rate by virtue of that sub-section;

‘prescribed percentage’, in relation to a prescribed year, means the prescribed percentage in relation to that year for the purposes of section 148;

‘prescribed year’ means a prescribed year within the meaning of 1 July 1988;Part X, other than a year commencing before

‘relevant maximum rate’, in relation to an invalidity pensioner, means—

(a) the prescribed maximum rate; or

(b) 75% of the amount per annum that the Commissioner, having regard to any changes in the rates of remuneration that have occurred since the pensioner ceased to be an eligible employee and any other matters that the Commissioner considers relevant, determines would have been the annual rate of salary of the pensioner if the pensioner had not ceased to be an eligible employee and had continued to occupy the position held immediately before so ceasing,

whichever is the greater;

‘relevant pension rate’, in relation to an invalidity pensioner, means—

(a) where the pensioner did not make an election under section 68 or 71—the annual rate of the invalidity pension of the pensioner; or

(b) where the pensioner made such an election—the rate that would have been the annual rate of that pension if the pensioner had not made the election;

‘relevant percentage’ means the percentage that represents A—B expressed as a percentage of B, where—

A is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the March quarter of 1987; and

B is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the June quarter of 1986.

“(2) Where rates at which invalidity pensions were payable immediately before the commencement of a prescribed year are increased in accordance with section 148, the rate that, immediately before that commencement, was (because of paragraph (a) of the definition of ‘prescribed maximum rate’ or the previous operation of this sub-section) the prescribed maximum rate is increased, with effect from that commencement, by the prescribed percentage, in relation to that prescribed year, of that rate.

“(3) Where an invalidity pensioner or a person acting on behalf of the pensioner gives the Commissioner particulars of the pensioner’s personal earnings and an estimate of those earnings for the next 12 months (whether in compliance with a notice under sub-section 74 (1) or otherwise), the Commissioner shall estimate the amount per annum that is the annual rate of the personal earnings of the pensioner.

“(4) Subject to sub-sections (5) and (6) but notwithstanding any other provision of this Act, during any period during which the sum of the relevant pension rate of an invalidity pensioner and the earnings rate of the pensioner exceeds the relevant maximum rate for the pensioner, then—

(a) where the lesser of the excess or of that earnings rate is less than the annual rate of the invalidity pension of the pensioner—the amount of the fortnightly instalments of that pension shall be ascertained as if the annual rate of the pension were reduced by the lesser of the excess or of that earnings rate; or

(b) where the lesser of the excess or of that earnings rate is equal to or exceeds the annual rate of that pension—the pension is suspended.

“(5) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has been, or is being, paid instalments of invalidity pension, that, by virtue of that sub-section, should not have been, or be, paid or the amount of which should have been, or be, lower, then, notwithstanding that sub-section, those instalments shall be taken to have been, or be, lawfully paid.

“(6) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has, because of a previous calculation for those purposes, not been paid instalments of invalidity pension that should have been paid or been paid instalments of invalidity

pension the amount of which should have been higher, that invalidity pensioner is not entitled to be paid, but may be paid, the amount of those instalments or of the balance of those instalments, as the case may be.

“(7) Where an invalidity pensioner—

(a) is, on the commencement of this section, in receipt of personal earnings; or

(b) begins, after the commencement of this section, to receive personal earnings,

the pensioner, or a person acting on behalf of the pensioner, shall give the Commissioner particulars in writing of these personal earnings and an estimate of the amount of the personal earnings that the pensioner expects to receive in the next 12 months.

“(8) Where—

(a) an estimate of the personal earnings of an invalidity pensioner has been given to the Commissioner under this Act; and

(b) the pensioner or a person acting on behalf of the pensioner revises that estimate,

the pensioner or the person acting on behalf of the pensioner shall give to the Commissioner particulars in writing of the personal earnings of the pensioner and an estimate of those earnings for the next 12 months.

“(9) In ascertaining, for the purposes of this Act or of the superseded Act, the annual rate of an invalidity pension or the rate at which an invalidity pension is payable, any reduction or suspension under this section shall be disregarded but nothing in this sub-section or in any other provision of this Act or in any provision of the superseded Act shall be taken to imply that a person is entitled to be paid an amount not paid because of such a reduction or suspension.”.

Power of the Commissioner to require invalidity pensioner to be medically examined, &c.

36. Section 80 of the Principal Act is amended—

(a) by omitting from paragraph (2) (f) all the words after “exceeds” and substituting the following:

“the difference between—

(i) the total of the amounts of invalidity pension at any time paid to the person in accordance with section 67 or 70 and the amounts of deferred benefit by way of invalidity pension at any time paid to the person in accordance with either of those sections (other than an amount, if any, taken into account in a previous application of this sub-section or sub-section (3) in relation to the person); and

(ii) what would have been that total if the person had made an election under sub-section 68 (1) or 71 (1) in respect of the invalidity pension or deferred benefit so paid—

the amount of that excess.”; and

(b) by omitting from paragraph (3) (h) all the words after “exceeds” and substituting the following:

“the difference between—

(i) the total of the amounts of invalidity pension at any time paid to the person in accordance with section 67 or 70 and the amounts of deferred benefit by way of invalidity pension at any time paid to the person in accordance with either of those sections (other than an amount, if any, taken into account in a previous application of this sub-section or sub-section (2) in relation to the person); and

(ii) what would have been that total if the person had made an election under sub-section 68 (1) or 71 (1) in respect of the invalidity pension or deferred benefit so paid—

the amount of that excess.”.

37. Section 81 of the Principal Act is amended—

(a) by omitting from paragraph (1) (c) “sub-section 84 (2) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 84 (3)” and substituting “that section”;

(b) by omitting from sub-paragraph (2) (d) (iii) “sub-section 87 (2) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 87 (3)” and substituting “that section”; and

(c) by omitting from paragraph (2) (e) “sub-section 88 (1) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 88 (2)” and substituting “section 88”.

38. Section 82 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

39. Section 83 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

40. Section 84 of the Principal Act is amended—

(a) by omitting from sub-section (1) “a lump sum benefit be paid in accordance with sub-section (2) of this section and, where the deceased eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section” and substituting “lump sum benefit be paid in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

(c) by omitting sub-section (3).

41. Section 85 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

42. Section 86 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

43. Section 87 of the Principal Act is amended—

(a) by omitting from sub-section (1) “lump sum benefit be paid in accordance with sub-section (2) of this section and, where the

deceased eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section” and substituting “lump sum benefit be paid in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

(c) by omitting sub-section (3).

44. Section 88 of the Principal Act is amended—

(a) by omitting from sub-section (1) “this sub-section” and substituting “this section”; and

(b) by omitting sub-section (2).

45. Section 92 of the Principal Act is amended—

(a) by omitting from sub-section (1) “payable to her”;

(b) by omitting from sub-section (2) “to commute her spouse’s additional pension”; and

(c) by adding at the end of sub-section (2) “to which the election relates”.

46. Section 97 of the Principal Act is amended by omitting from sub-section (3) “, payable out of the Fund,”.

47. Section 98 of the Principal Act is amended—

(a) by omitting from sub-section (3) “, payable out of the Fund,”; and

(b) by omitting from paragraph (5) (a) “out of the Fund”.

48. Section 99 of the Principal Act is amended—

(a) by omitting from sub-section (1) “lump sum benefit be payable in accordance with sub-section (2) of this section and, where the deceased eligible employee had paid supplementary contributions, an additional lump sum benefit be payable in accordance with sub-section (3) of this section” and substituting “lump sum benefit be payable in accordance with this section”; and

(b) by omitting sub-section (3).

49. Section 100 of the Principal Act is amended—

(a) by omitting from sub-section (3) “, payable out of the Fund,”; and

(b) by omitting from paragraph (5) (a) “out of the Fund”.

50. Section 101 of the Principal Act is amended—

(a) by omitting from sub-section (1) all the words from and including “to that child” (first occurring) and substituting “in respect of that child or those children in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

(c) by omitting sub-section (3).

51. Section 110 of the Principal Act is amended by omitting sub-section (10).

Payments into and out of Consolidated Revenue Fund

53. Section 119 of the Principal Act is amended by omitting the penalty set out at the foot of sub-section (7) and substituting the following penalty:

“Penalty—

(a) if the offender is a natural person—$100 or imprisonment for 10 days; or

(b) if the offender is a body corporate—$500.”.

54. Section 124 of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “, or his accumulated basic contributions have, under sub-section 112 (4),”; and

(b) by omitting from paragraph (1) (b) “or those accumulated basic contributions”.

55. Section 131 of the Principal Act is amended by omitting from paragraph (3) (b) “that section” and substituting “that sub-section”.

56. Section 132 of the Principal Act is amended by omitting from paragraph (1) (b) “Administration of a Territory” and substituting “Northern Territory, by the Administration of a Territory (including the Northern Territory)”.

Election that Division apply

58. Section 139 of the Principal Act is amended by omitting from sub-sections (2), (3) and (6) “of 60 years” (wherever occurring) and substituting “that would have been the person’s minimum retiring age for the purposes of this Act if the person had not ceased to be an eligible employee and had continued to occupy the position held by the person immediately before so ceasing.”.

59. After section 139 of the Principal Act the following section is inserted:

Election for transfer value by persons in relation to whom deferred benefits are applicable

“139a. (1) Where a person in relation to whom deferred benefits are applicable under sub-section 139 (1)—

(a) is or becomes employed in public employment; and

(b) is or becomes a member of an eligible superannuation scheme that is applicable to persons employed in that employment,

the person may elect, by notice in writing given to the Commissioner, that, in lieu of those deferred benefits, a transfer value in respect of the person be paid to the person administering that scheme.

“(2) Where a person to whom deferred benefits are applicable and who is or becomes a member of an eligible superannuation scheme makes an election under sub-section (1) for the payment of a transfer value in respect of the person in lieu of those deferred benefits, a transfer value in respect of the person is payable to the person administering that scheme.

“(3) Where a transfer value in respect of a person in lieu of deferred benefits applicable in relation to that person is paid under sub-section (2), those deferred benefits cease to be applicable in relation to that person.

“(4) Notwithstanding sub-section (2), a transfer value is not payable under that sub-section in respect of a person in lieu of deferred benefits that are applicable in relation to that person if at any time after those deferred benefits first became so applicable they have been payable to the person.

“(5) Notwithstanding sub-section (2), a transfer value in respect of a person is not payable under that sub-section to the person administering an eligible superannuation scheme unless the person administering the superannuation scheme agrees to accept the transfer value and, under the rules of the scheme, the first-mentioned person will become entitled to retirement benefits under the scheme based upon the transfer value.”.

60. Section 140 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-sections:

“(2) Where—

(a) a person referred to in sub-section 137 (1) has been paid—

(i) in a case where the person is a person to whom paragraph (a) of that sub-section applies—an amount by way of lump sum benefit to which the person has become entitled under section 80; or

(ii) in a case where the person is a person to whom paragraph (b) of that sub-section applies—an amount or amounts by way of pension or by way of pension and lump sum benefit to which the person has become entitled under section 59 or an amount by way of lump sum benefit to which the person has become entitled under section 62; and

(b) after that amount was, or those amounts were, paid, the person makes an election under section 137,

the election does not have effect unless an amount equal to that amount or to the aggregate of those amounts, as the case requires, is paid to the Commissioner within 7 days after the date of the election or within such further period as the Commissioner, in special circumstances, allows.

“(3) Where an amount is paid to the Commissioner by a person under sub-section (2), the Commissioner shall pay that amount into the Consolidated Revenue Fund and there shall thereupon be paid out of the Consolidated Revenue Fund (which is appropriated accordingly) into the Superannuation Fund—

(a) if the person is a person to whom paragraph 137 (1) (a) applies—an amount equal to the amount paid to the Commissioner; or

(b) if the person is a person to whom paragraph 137 (1) (b) applies—an amount equal to so much of the amount paid to the Commissioner as is equal to the amount that was paid to the Consolidated Revenue Fund in accordance with section 112 at the time that the person last ceased to be an eligible employee.”.

61. Section 141 of the Principal Act is amended by omitting paragraph (1) (b) and substituting the following paragraph:

“(b) within that prescribed period at a time when the person was employed in public employment, the person died or attained the age that would have been the person’s minimum retiring age for the purposes of this Act if the person had not ceased to be an eligible employee and had continued to occupy the position held immediately before so ceasing; or”.

62. Section 143 of the Principal Act is amended—

(a) by omitting paragraph (1) (a) and substituting the following paragraphs:

“(a) if the pension is suspended under sub-section 74 (3)—deferred benefits do not again become applicable in relation to the person because only of the suspension of the pension;

(aa) if the person’s entitlement to the pension is cancelled under section 74a—deferred benefits again become applicable in relation to the person; and”; and

(b) by omitting from paragraph (1) (b) “sub-section 75 (2)” and substituting “section 75”.

Special provisions affecting certain former contributors under certain superannuation schemes

64. Section 147 of the Principal Act is amended by omitting from sub-section (2) “6 State” and substituting “8”.

65. Section 148 of the Principal Act is amended—

(a) by omitting from sub-section (1) “6 State” (wherever occurring) and substituting “8”;

(b) by omitting from sub-section (1) “1975” and substituting “1985”;

(c) by omitting from sub-section (3) “6 State” (wherever occurring) and substituting “8”; and

(d) by omitting from sub-section (3) “1975” and substituting “1985”.

66. Section 154 of the Principal Act is amended by omitting from sub-section (5) “either personally or by post”.

General provisions applicable to elections under Act

70. Section 165 of the Principal Act is amended—

(a) by omitting from sub-section (1) “that deals with matters arising under this Act any of his powers under this Act,” and substituting “all or any of the Minister’s powers under this Act or regulations under this Act,”; and

(b) by inserting in sub-section (2) “or regulations under this Act, as the case requires” after “this Act”.

71. Section 167 of the Principal Act is amended—

(a) by omitting from paragraph (1) (a) “, either orally or in writing, a false or misleading statement” and substituting “a statement, either orally or in writing,”;

(b) by adding at the end of paragraph (1) (a) “that is, to the person’s knowledge, false or misleading in a material particular”;

(c) by omitting from paragraph (1) (c) “a false or misleading statement or by means of impersonation; or” and substituting “a statement,

whether made orally or in writing, that is, to the person’s knowledge, false or misleading in a material particular or by means of impersonation;”;

(d) by omitting from paragraph (1) (d) “or present”;

(e) by omitting from paragraph (1) (d) “or document that is” and substituting “, either orally or in writing, that is, to the person’s knowledge”;

(f) by adding after paragraph (1) (d) the following word and paragraph:

“; or (e) present (otherwise than pursuant to section 163a) to an officer exercising powers or performing functions in relation to this Act a document, that is, to the person’s knowledge, false or misleading in a material particular.”;

(g) by omitting the penalty set out at the foot of sub-section (1) and substituting the following penalty:

“Penalty—

(a) if the offender is a natural person—$2,000 or imprisonment for 12 months, or both; or

(b) if the offender is a body corporate—$10,000.”; and

(h) by inserting after sub-section (1) the following sub-section:

“(1a) An offence against sub-section (1) is punishable on summary conviction.”.

72. After section 167 of the Principal Act the following section is inserted:

Proceedings against corporations

“167aa. (1) Where, in proceedings for an offence against this Act in respect of any conduct engaged in by a body corporate, it is necessary to establish the state of mind of the body, it is sufficient to show that a director, servant or agent of the body, being a director, servant or agent by whom the conduct was engaged in within the scope of his or her actual or apparent authority, had that state of mind.

“(2) Any conduct engaged in on behalf of a body corporate—

(a) by a director, servant or agent of the body within the scope of his or her actual or apparent authority; or

(b) by any other person at the direction or with the consent or agreement (whether express or implied) of a director, servant or agent of the body, where the giving of such direction, consent or agreement is within the scope of the actual or apparent authority of the director, servant or agent,

shall be deemed, for the purposes of a provision of this Act that creates an offence, to have been engaged in by the body.

“(3) A reference in sub-section (1) to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose

of the person and the person’s reasons for the intention, opinion, belief or purpose.”.

73. Section 167a of the Principal Act is repealed and the following section is substituted:

Provision of superannuation under other laws, &c.

“167a. (1) Where a person holds an office or appointment, or is employed, under a relevant law, superannuation benefits for or in relation to the person shall not be provided under that law or under terms and conditions of employment determined under that law unless—

(a) the relevant law expressly provides for the provision of those benefits; or

(b) the relevant law allows the provision of those benefits and the Minister has, by writing signed by the Minister, approved the provision of those benefits.

“(2) Where a person holds an office or appointment in, or is employed by, a relevant body, that body shall not provide, or arrange for the provision of, superannuation benefits for or in relation to the person unless the body has power to provide those benefits and the Minister has, by writing signed by the Minister, approved the provision of those benefits.

“(3) An approval by the Minister for the purposes of this section of the provision of superannuation benefits may be approval of the provision under—

(a) a superannuation scheme that will provide benefits only for, or in relation to, persons to whom the approval applies; or

(b) an existing or proposed superannuation scheme specified in the approval that will also provide superannuation benefits for, or in relation to, persons other than persons to whom the approval applies.

“(4) Where the provision of superannuation benefits has been approved by the Minister under sub-section (1) or (2) and paragraph (3) (b) does not apply in relation to the benefits—

(a) a superannuation scheme for the provision of the benefits has no force or effect unless it is approved by the Minister by writing signed by the Minister; and

(b) an amendment of a superannuation scheme for the provision of the benefits has no force or effect unless it is approved by the Minister by writing signed by the Minister.

“(5) Sub-section (1) or (4) shall not be taken to prevent the provision of superannuation benefits under a superannuation scheme that was in existence on 23 April 1978.

“(6) Sub-section (2) or (4) shall not be taken to prevent the provision of superannuation benefits by, or arranged for by, a relevant body under a

superannuation scheme that was in existence immediately before the body became a relevant body.

“(7) An amendment of a superannuation scheme referred to in sub-section (5) or (6), other than a scheme that provides superannuation benefits for, or in relation to, persons other than persons of a kind referred to in sub-section (1) or (2), has no force or effect unless it is approved by the Minister by writing signed by the Minister.

“(8) In this section—

‘relevant body’ means—

(a) a company or other body corporate of a kind referred to in sub-paragraph (a) (iii) of the definition of ‘approved authority’ in sub-section 3 (1); or

(b) an authority or body of a kind referred to in sub-paragraph (a) (iv) of that definition (other than an authority or body established under an Act),

being a company, body or authority that is an approved authority or is declared by the Minister, by notice published in the Gazette, to be a relevant body for the purposes of this section;

‘relevant law’ means a law of the Commonwealth (including this Act) or of the Australian Capital Territory that is in force on the day on which this section comes into operation or that comes into force after that day;

‘superannuation benefits’ includes any benefits similar to the benefits provided under this Act;

‘superannuation scheme’ means a superannuation or retirement scheme, however established.

“(9) Where a person is a director of a company or other body corporate incorporated, whether before or after the commencement of this Act, under a law of a State or Territory, being a company or other body that is a relevant body, the person shall, for the purposes of this section, be deemed to be employed by the company or other body.”.

74. Section 168 of the Principal Act is amended—

(a) by omitting from sub-section (3) “Regulations made” and substituting “Subject to sub-section (5), regulations made”; and

(b) by adding at the end the following sub-sections:

“(4) Regulations made within the period of 12 months after the commencement of this sub-section by virtue of in relation to—section 14a

(a) persons who are deemed to have been re-appointed to the Australian Public Service in pursuance of section 87q of the Public Service Act; or

(b) persons who are, or are deemed to be, re-appointed (otherwise than to the Australian Public Service) or re-employed in circumstances similar to the circumstances in which a person could be re-appointed to the Australian Public Service under or 66b of the Public Service Act or could be deemed to be re-appointed to the Australian Public Service in accordance with section 87q of that Act,section 63f, 63g

may be expressed to have effect from a day not earlier than 15 March 1981.

“(5) Regulations made after the commencement of this sub-section for the purposes of the definition of ‘maximum retiring age’ or ‘minimum retiring age’ in sub-section 3 (1) may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the regulations.

“(6) Regulations made within a period of 2 years after the commencement of this sub-section by virtue of sub-section 126 (2) with respect to persons to whom paragraph (b) of the definition of ‘prescribed teacher’ in section 43P of the Commonwealth Teaching Service Act 1972 applies may be expressed to have taken effect from and including a day not earlier than 31 March 1977.

“(7) Regulations made after the commencement of this sub-section by virtue of sub-section 159 (3) may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the regulations.

“(8) Regulations made within a period of 2 years after the commencement of this sub-section by virtue of section 180 may be expressed to have taken effect from and including a day not earlier than the commencing day.”.

Existing invalidity pensioners

76. Section 184 of the Principal Act is amended—

(a) by omitting paragraphs (2) (a) and (b) and substituting the following paragraphs:

“(a) a person to whom this section applies who, immediately before the commencing day, was (otherwise than because of an election made under section 81 of the superseded Act) a contributor to the Provident Account—

(i) ceases to be an eligible employee because of death or retirement on the ground of invalidity; or

(ii) becomes entitled to partial invalidity pension under the Commissioner is satisfied can properly be regarded as attributable to physical or mental incapacity;section 78 because of a decrease in the annual rate of the person’s salary that

(b) at the time when the person so ceases to be an eligible employee or becomes entitled to partial invalidity pension, as the case requires, the person’s period of contributory service is less than 20 years and the person has not attained the person’s maximum retiring age; and”;

(b) by omitting from paragraph (2) (c) “or the incapacity which was the ground for the retirement of the person” and substituting “, the incapacity which was the ground for the retirement of the person or the incapacity to which the Commissioner was satisfied that the decrease in the annual rate of salary of the person could properly be regarded as attributable, as the case requires,”;

(c) by adding at the end of sub-section (2) “or immediately before the person became entitled to partial invalidity pension under section 78, as the case requires”;

(d) by omitting sub-section (5) and substituting the following sub-sections:

“(5) Where the Commissioner is satisfied, in respect of a person who is a relevant person—

(a) that, at or in connection with a medical examination that the person underwent for the purpose of the superseded Act, the person failed to give information that the person was required to give or gave false or misleading information; and

(b) that a physical or mental condition of the person or physical or mental conditions of the person (in this sub-section referred to as an ‘unrecorded condition’ or as ‘unrecorded conditions’) that was not or were not relevant for the purposes of the superseded Act, would have been relevant for the purposes of that Act if the person had not failed to give the information the person was required to give or had not given that false or misleading information,

the Commissioner shall—

(c) if there is a benefit classification certificate in force in respect of the relevant person—revoke that certificate and issue a new benefit classification certificate in respect of the person in which the unrecorded condition or the unrecorded conditions is or are specified either in addition to or in substitution for the physical or mental condition that was, or any or all of the physical or mental conditions that were, specified in the first-mentioned certificate;

(d) if there is no benefit classification certificate in force in respect of the person but a physical or mental condition of the person or physical or mental conditions of the person was or were relevant for the purposes of the superseded Act—issue a benefit classification certificate in respect of the person in which the unrecorded condition or the unrecorded conditions is or are specified either in addition to or in substitution for the physical or mental condition that was, or any or all of the physical or mental conditions that were, relevant for the purposes of the superseded Act; or

(e) if there is no benefit classification certificate in force in respect of the person and no physical or mental condition of the person was relevant for the purposes of the superseded Act—issue a benefit classification certificate in respect of the person in which the unrecorded condition is or the unrecorded conditions are specified.

“(5a) In sub-section (5), a reference to a relevant person shall be read as a reference to a person to whom this section applies

(whether or not the person was, immediately before the commencing day, a contributor to the Provident Account)—

(a) who is an eligible employee, has a period of contributory service of less than 20 years and has not attained his or her maximum retiring age;

(b) who is or was an eligible employee to whom partial invalidity pension is or was payable and who, at the time when partial invalidity pension became so payable, had a period of contributory service of less than 20 years; or

(c) who has ceased (whether before or after the commencement of this sub-section) to be an eligible employee because of invalidity or death and who, at the time when he or she so ceased, had a period of contributory service of less than 20 years and had not attained his or her maximum retiring age.

“(5b) Where the Commissioner, in pursuance of paragraph (5) (c), revokes a benefit classification certificate and issues a new benefit classification certificate in substitution for that certificate, the first-mentioned certificate shall be deemed never to have been issued and the certificate issued by the Commissioner in substitution for the first-mentioned certificate shall be deemed to have been issued under sub-section 16 (4) on the commencing day.

“(5c) Where the Commissioner, in pursuance of paragraph (5) (d) or (e), issues a benefit classification certificate, the certificate shall be deemed to have been issued under sub-section 16 (4) on the commencing day.”;

(e) by inserting in paragraph (7) (c) “, at the time when the person became, or last became, a contributor to the Provident Account” after “by reason of which”; and

(f) by omitting from paragraph (7) (c) all the words after sub-paragraph (c) (ii) and substituting “other than a physical or mental condition that, in the opinion of the Commissioner, the Superannuation Board was, as a result of a medical examination under sub-section 79 (2) of the superseded Act, satisfied no longer existed unless the Commissioner is satisfied that, but for the failure of the person to give any information required to be given by the person or the giving of false information at or in connection with that medical examination, the Board would not have been so satisfied.”.

77. The Superannuation Act 1922² is in this Part referred to as the Principal Act.

78. Section 4 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “eligible child” and substituting the following definition:

“ ‘eligible child’ means—

(a) in relation to a deceased contributor or deceased pensioner, a child of the contributor or pensioner who is—

(i) a child the 16th anniversary of whose birth has not occurred;

(ii) a child—

(a) the 16th anniversary of whose birth has occurred but the 21st anniversary of whose birth has not occurred; and

(B) who is receiving full-time education at a school, college or university; or

(iii) a child—

(a) the 21st anniversary of whose birth has occurred but the 25th anniversary of whose birth has not occurred;

(B) who is receiving full-time education at a school, college or university and is not ordinarily in employment or engaged in work on his or her own account;

(C) where the child was born before the death of the contributor or pensioner—who was living with, or, in the opinion of the Commissioner, was wholly or substantially dependent upon, the contributor or pensioner immediately before that death; and

(D) where the child was born after the death of the contributor or pensioner—who, in the opinion of the Commissioner, would have been living with, or wholly or substantially dependent upon the contributor or pensioner immediately before that death if the child had been born before that death; and

(b) in relation to a person, being the widow, widower, wife or husband of a deceased contributor or a deceased pensioner, a child of the person who is—

(i) a child of the kind referred to in sub-paragraph (a) (i);

(ii) a child of the kind referred to in sub-paragraph (a) (ii); or

(iii) a child—

(a) of the kind referred to in sub-sub-paragraphs (a) (iii) (A) and (B); and

(b) who was born before the death of the contributor or pensioner and, in the opinion of the Commissioner, was wholly or substantially dependent upon the contributor or pensioner immediately before that death;”;

(b) by omitting from sub-section (1) the definition of “The Commissioner for Superannuation” and substituting the following definition:

“ ‘The Commissioner’ or ‘the Commissioner for Superannuation’ means the Commissioner for Superannuation under the Superannuation Act 1976;”; and

(c) by adding at the end the following sub-sections:

“(10) A reference in the definition of ‘eligible child’ in sub-section. (1) to an anniversary of the birth of a person shall be read as a reference to the day on which the anniversary occurred or occurs.

“(11) Where a person was born on 29 February in any year, then, in any subsequent year that is not a leap year, the anniversary of the birth of the person shall, for the purposes of this Act, be deemed to occur on 1 March of that subsequent year.”.

79. Section 46 of the Principal Act is amended by omitting from sub-sections (3) and (4) “each child of the contributor or of the widow or widower who is an eligible child” and substituting “each eligible child of the contributor and each eligible child of the widow or widower”.

80. Section 47 of the Principal Act is amended by omitting from sub-sections (3) and (4) “each child of the pensioner or of the widow or widower who is an eligible child” and substituting “each eligible child of the pensioner and each eligible child of the widow or widower”.

81. Section 48 of the Principal Act is amended by omitting from sub-section (1) “each child of the contributor or pensioner or of the wife or husband of the contributor or pensioner who is an eligible child” and substituting “each eligible child of the contributor or pensioner and each eligible child of the wife or husband of the contributor or pensioner”.

82. Section 48ab of the Principal Act is amended by omitting sub-section (3) and substituting the following sub-section:

“(3) Where the deceased pensioner referred to in sub-section (1) died before 1 July 1976, the Commissioner shall not grant a pension under sub-section (1) of this section to a person who, if the Superannuation Act 1976 had come into force before that deceased pensioner had died, would, at the time of the deceased pensioner’s death, have been a spouse of the deceased pensioner for the purposes of that Act, unless the Commissioner, having regard to such matters (if any) as are prescribed and such other matters as the Commissioner considers relevant, is satisfied that the person is in necessitous circumstances or that the granting of the pension is otherwise warranted.”.

83. Section 59 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:

“(2) Where pension became payable in respect of a person because the person is the eligible child of another person, being a deceased contributor or deceased pensioner or the widow, widower, wife or husband of a deceased contributor or deceased pensioner, pension is payable only while the child is such an eligible child.”.

84. Section 119s of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-sections:

“(1) A reference in this Division to a transfer value payable in accordance with this Division in respect of a person who has ceased to be a contributor to the Fund or to the Provident Account is a reference—

(a) in the case of a person in respect of whom that transfer value has become payable by virtue of the operation of section 119v—

(i) unless sub-paragraph (ii) applies—to such amount as is determined by the Commissioner to be the value of the rights of the person under this Act as at the time immediately before the person ceased to be such a contributor; or

(ii) if the declaration under sub-section (1) of section 119r of the eligible superannuation scheme referred to in subparagraph 119v (1) (b) (ii) of which the person became a member—

(a) was made by instrument published in the Gazette after the commencement of this sub-section; and

(B) by virtue of the operation of sub-section (2) of Gazette,section 119r, came into operation on a day earlier than the day on which the instrument of declaration was published in the

to an amount equal to the sum of the amount that, but for this sub-paragraph, would be the amount of the transfer value and an amount of compound interest calculated thereon—

(C) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and

(d) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of ‘accumulated basic contributions’ in sub-section (1) of Superannuation Act 1976; orsection 3 of the

(b) in the case of a person in respect of whom that transfer value has become payable because of an election under section 119wc—to an amount equal to the sum of the amount that would be the amount of the transfer value payable in respect of that person if that transfer value had become payable in respect of the person because of the operation of section 119v and had been determined under sub-paragraph (1) (a) (i) of this section and an amount of compound interest calculated thereon—

(i) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and

(ii) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of ‘accumulated basic contributions’ in sub-section (1) of Superannuation Act 1976.section 3 of the

“(1a) If a payment was made under the Superannuation (Distribution of Surplus) Act 1974, or was or is made under section 176 of the Superannuation Act 1976, to a person referred to in sub-paragraph (1) (a) (ii) or paragraph (1) (b), the amount of compound interest referred to in that sub-paragraph or that paragraph, as the case requires, shall be reduced by such amount as the Commissioner determines to be appropriate having regard to the amount of that payment and the time at which that payment was or is made.”.

85. Section 119u of the Principal Act is amended by omitting from paragraph (6) (b) “the person leaves an eligible child or eligible children” and substituting “there is an eligible child of the person or an eligible child of the widow or widower”.

86. Section 119w of the Principal Act is amended—

(a) by omitting from sub-sections (2), (3) and (6) “age of sixty years” and substituting “person’s relevant retiring age”; and

(b) by adding at the end the following sub-section:

“(9) In this section, ‘relevant retiring age’, in relation to a person, means the age that would have been the person’s minimum retiring age for the purposes of the Superannuation Act 1976 if the person—

(a) had not ceased to be a contributor to the Fund or to the Provident Account;

(b) had become an eligible employee for the purposes of that Act on 1 July 1976 by virtue of paragraph (a) of the definition of ‘eligible employee’ in sub-section 3 (1) of that Act; and

(c) had continued to occupy the position held immediately before ceasing to be a contributor to the Fund or to the Provident Account.”.

87. After section 119w of the Principal Act the following sections are inserted:

Medical examination, &c., of persons to whom deferred benefits by way of pension are payable under section 119 w

“119wa. (1) The Commissioner may, by notice in writing given to a person to whom deferred benefits by way of pension are payable by virtue of paragraph (a) of sub-section (2) of section 119w, require that person—

(a) to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the person attains the age of 65 years, and place specified in the notice; or

(b) to give in writing to the Commissioner, within such period, being a period that ends before the person attains the age of 65 years, as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his or her own account) in which the person has been engaged during such period as is specified in the notice.

“(2) A notice under sub-section (1) shall set out the effect of sub-section (3).

“(3) Where a person fails to comply with a notice given to him or her under sub-section (1) and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner may by notice in

writing given to the person, suspend the person’s pension with effect from such day as the Commissioner determines, being a day not earlier than—

(a) in a case where the first-mentioned notice required the person to submit himself or herself for medical examination on a day specified in that notice—the day next following that day; or

(b) in a case where the first-mentioned notice required the person to give information within a period specified in the notice—the day next following the expiration of that period.

“(4) A notice to a person under sub-section (3) shall set out the effect of sub-sections (8), (10) and (11) and of section 119wb.

“(5) Subject to section 119wb, a suspension of a person’s pension under sub-section (3) continues in force, unless sooner revoked, until the person attains the age of 65 years.

“(6) Pension is not payable in respect of a period during which a suspension of the pension under sub-section (3) is in force.

“(7) Where—

(a) the pension of a person is suspended under sub-section (3); and

(b) the Commissioner, having regard to such matters as he or she considers relevant, is of the opinion that the suspension should be revoked,

the Commissioner may, by notice in writing given to the person or to the person and a person acting on the person’s behalf, as the case requires, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than the day on which the notice is given.

“(8) Without limiting sub-section (7), where the pension of a person (in this sub-section referred to as the ‘relevant person’) is suspended under sub-section (3), the relevant person, or another person acting on his or her behalf, may, by notice in writing given to the Commissioner, request the Commissioner to revoke the suspension, and where such a request is made, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be—

(a) if the pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the relevant person to submit himself or herself for medical examination—require the relevant person to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the relevant person attains the age of 65 years, and place specified in the second-mentioned notice; or

(b) if the pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the relevant person to give information to the Commissioner (in this paragraph referred to as ‘the original notice’)—require the relevant person to give in writing to the Commissioner, within such period as is specified in the second-mentioned notice, being a period that ends before the

relevant person attains the age of 65 years, such information as was required by the original notice to be given.

“(9) A notice given by the Commissioner under sub-section (8) shall set out the effect of sub-sections (10) and (11) and of section 119wb.

“(10) Where—

(a) because of a request having been made to revoke the suspension of the pension of a person (in this sub-section referred to as the ‘relevant person’), a notice under sub-section (8) is given to the relevant person or to the relevant person and another person; and

(b) either—

(i) the relevant person complies with the notice; or

(ii) the relevant person fails to comply with the notice but the Commissioner is satisfied that there was a reasonable excuse for the failure,

the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than—

(c) in a case to which sub-paragraph (i) of paragraph (b) applies—the day on which the relevant person so complied with the notice; or

(d) in a case to which sub-paragraph (ii) of paragraph (b) applies—the day on which the Commissioner became so satisfied.

“(11) Where—

(a) because of a request having been made to revoke the suspension of the pension of a person (in this sub-section referred to as the ‘relevant person’), a notice under sub-section (8) is given to the relevant person or to the relevant person and another person; and

(b) the relevant person fails to comply with the notice and the Commissioner is not satisfied that there was a reasonable excuse for the failure,

the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, refuse to revoke the suspension.

“(12) A notice under sub-section (11) shall set out the effect of section 119wb.

“(13) Where a person whose pension has been suspended under sub-section (3) dies before the pension again becomes payable, the person shall, for the purposes of sub-section 47 (1) or 48 (2), be deemed to have been in receipt of pension at the time of the person’s death and, for the purposes of sections 47 and 48, the pension shall be deemed to have been payable at the rate at which it would have been payable to the person if it had not been suspended.

“(14) Where pension again becomes payable to a person whose pension was suspended under sub-section (3), the person shall, for the purposes of the application of Part XI in relation to the pension, be deemed to have been in receipt of pension during the period of the suspension at the rate at which it would have been payable to the person if it had not been suspended.

“(15) The cost of any medical examination carried out for the purposes of this section shall be treated as part of the cost of the administration of this Act.

“(16) Where the Commissioner is required by this section to give a person a notice, the notice shall be taken to have been given to the person if—

(a) the notice is served on the person personally;

(b) the notice is sent to the person by pre-paid post as a letter and the person acknowledges receipt of the letter; or

(c) where the Commissioner has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre-paid post to—

(i) in a case where the Commissioner is satisfied that at least one reliable address of the person has been ascertained—that reliable address, or one of the reliable addresses, ascertained; or

(ii) in any other case—the last address of the person known to the Commissioner.

“(17) A reference in sub-section (16) to a reliable address of a person shall be read as a reference to an address where, if a letter were sent to the person by pre-paid post to the address, the person would probably receive the letter.

“(18) A reference in this section to a medical examination by a medical practitioner does not include a reference to a medical examination by a person other than a person registered or licensed as a medical practitioner under a law of a State or Territory that provides for the registration or licensing of medical practitioners unless—

(a) the medical examination is made in a place that is not in Australia or an external Territory; and

(b) the person is registered or licensed as a medical practitioner under a law of that place that provides for the registration or licensing of medical practitioners.

“(19) Nothing in this section shall be taken, by implication, to exclude or limit the application of Superannuation Act 1976 to decisions under this section that are reviewable decisions within the meaning of that section.section 154 of the

Cancellation of pension where pension suspended for 12 months, &c.

“119wb. Where—

(a) a person’s pension is suspended under sub-section 119wa (3);

(b) immediately before the suspension, the person had not attained the age of 64 years; and

(c) the suspension is not revoked—

(i) in a case where a request to revoke the suspension is made under before the expiration of a period of 12 months after the suspension came into force and the Commissioner does not make a decision under section 119wa in relation to that request within that period—upon the making of that decision; orsection 119wa

(ii) in any other case—for a period of 12 months,

the Commissioner may, by notice in writing given to the person, cancel the person’s entitlement to pension.

Election for transfer value by persons in relation to whom deferred benefits are applicable

“119wc. (1) Where a person in relation to whom deferred benefits are applicable under sub-section (1) of section 119w—

(a) is or becomes employed in public employment; and

(b) is or becomes a member of an eligible superannuation scheme that is applicable to persons employed in that employment,

the person may elect, by notice in writing given to the Commissioner, that, in lieu of those deferred benefits, a transfer value in respect of the person be paid to the person administering that scheme.

“(2) Where a person to whom deferred benefits are applicable and who is or becomes a member of an eligible superannuation scheme makes an election under sub-section (1) for the payment of a transfer value in respect of the person in lieu of those deferred benefits, a transfer value in respect of the person is payable to the person administering that scheme.

“(3) Where a transfer value in respect of a person in lieu of deferred benefits applicable in relation to that person is paid under sub-section (2), those deferred benefits cease to be applicable in relation to that person.

“(4) Notwithstanding sub-section (2), a transfer value is not payable under that sub-section in respect of a person in lieu of deferred benefits that are applicable in relation to that person if at any time after those deferred benefits first became so applicable they have been payable to the person.

“(5) Notwithstanding sub-section (2), a transfer value in respect of a person is not payable under that sub-section to the person administering an eligible superannuation scheme unless the person administering the superannuation scheme agrees to accept the transfer value and, under the rules of that scheme, the first-mentioned person will become entitled to retirement benefits under the scheme based upon the transfer value.

“(6) Nothing in this section shall be taken, by implication, to preclude a person to whom different deferred benefits are applicable by reason of the person’s having made more than one election under section 119u from making more than one election under sub-section (1).”.

88. Section 119y of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “age of sixty years” and substituting “persons relevant retiring age”; and

(b) by adding at the end the following sub-section:

“(3) In this section, ‘relevant retiring age’ has the same meaning as it has in section 119w.”.

89. Section 119za of the Principal Act is amended—

(a) by omitting paragraph (1) (a) and substituting the following paragraphs:

“(a) if the pension is suspended under section 119wa—deferred benefits are not applicable in relation to the person during the period of the suspension of the pension;

(aa) if the person’s entitlement to the pension is cancelled under section 119wb—deferred benefits again become applicable in relation to the person; and”; and

(b) by omitting from paragraph (1) (b) “section 65 does not apply in relation to the person but”.

90. Section 120 of the Principal Act is amended by omitting from sub-section (2) “6 State” and substituting “8”.

91. Section 121 of the Principal Act is amended—

(a) by omitting from sub-section (1) “6 State” (wherever occurring) and substituting “8”;

(b) by omitting from sub-section (1) “1974” and substituting “1985”;

(c) by omitting from sub-section (3) “6 State” (wherever occurring) and substituting “8”; and

(d) by omitting from sub-section (3) “1974” and substituting “1985”.

No. 31, 1976, as amended, For previous amendments, see No. 51, 1976; No. 80, 1977; Nos. 17, 134, 169 and 170, 1978; Nos. 52 and 155, 1979; No. 177, 1980; No. 92, 1981; No. 92, 1983; No. 165, 1984; and No. 80, 1986.

NOTES—continued

2. No. 33, 1922, as amended, For previous amendments, see No. 45, 1924; No. 22, 1930; No. 10, 1931; No. 45, 1934; No. 28, 1937; No. 53, 1942; No. 18, 1943; Nos. 15 and 30, 1945; No. 2, 1946; Nos. 1 and 35, 1947; No. 19, 1948; No. 76, 1950; Nos. 49 and 62, 1951; No. 92, 1952; No. 11, 1954; No. 27, 1955; Nos. 19 and 112, 1956; No. 94, 1957; No. 45, 1958; No. 102, 1959; No. 102, 1963; Nos. 97 and 154, 1965; Nos. 69 and 86, 1966; No. 52, 1967; Nos. 49 and 57, 1968; Nos. 14 and 26, 1969; No. 46, 1971; Nos. 46, 83 and 135, 1973; No. 216, 1973 (as amended by No. 20, 1974); No. 59, 1974; Nos. 32 and 37, 1976; No. 17, 1978; No. 92, 1981; No. 63, 1984; and No. 80, 1986.

[Minister’s second reading speech made in—

House of Representatives on 23 October 1986

Senate on 19 November 1986]