Superannuation Act 1976

Where:

a person who becomes an eligible employee was, at any time before becoming an eligible employee, a member of:

a superannuation scheme conducted in accordance with the system established in the United Kingdom of Great Britain and Northern Ireland and known as the Federated Superannuation System for Universities; or

a superannuation scheme that was an approved superannuation scheme for the purposes of this section at the time when the person became an eligible employee;

by virtue of subsection 127(3) a transfer value is to be deemed for the purposes of Division 2 to have become payable in respect of the person after 25 May 1971 under that superannuation scheme because the person was the owner of a life policy or policies of a kind referred to in that subsection, or because the person was entitled to have the rights of the owner of such a policy or policies assigned to him or her; and

the person has elected in accordance with paragraph 128(1)(a) to pay to CSC an amount equal to the amount of that transfer value;

The person may, within the period within which he or she was entitled to make an election under paragraph 128(1)(a), elect that this section shall have effect in relation to him or her and, where an election is so made, section 128 has effect as if the amount referred to in paragraph 128(1)(b), or, if part only of that amount relates to the transfer value referred to in subsection (1) of this section that part of that amount, had been paid to CSC in accordance with that paragraph and CSC had made the payments referred to in paragraphs 128(2)(a) and 128(2)(b) in relation to that amount or that part of that amount, as the case may be.

An election under subsection (2) does not have effect unless the person who made the election, within the period referred to in that subsection, causes the life policy or life policies referred to in paragraph (1)(b) to be assigned to CSC, free from any mortgages, charges or other encumbrances.

If:

the annual rate of salary of the person upon his or her becoming an eligible employee was greater than the annual remuneration that was payable to him or her in respect of the last employment in which he or she was employed and to which a superannuation scheme referred to in subsection (1) related; or

after the person became an eligible employee his or her salary is increased;

So much of any premium payable in respect of any life policy assigned to CSC in accordance with subsection (3) or issued in accordance with subsection (4) as relates to a period during which the person is an eligible employee shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.

Where the person is an eligible employee and the amount of the basic contributions payable by him or her at any time is less than the amount that is the prescribed amount in relation to him or her at that time, he or she is liable to pay to CSC an amount equal to the difference and any amount so paid to CSC shall be paid by CSC to the Commonwealth.

Where a person (in this subsection referred to as the former contributor) makes an election under subsection 137(1) and, within 3 months, he or she becomes employed in employment in respect of which a superannuation scheme referred to in paragraph (1)(a) of this section is applicable and becomes a member of that scheme, then:

subject to paragraph (c) of this subsection, Division 3 has effect in relation to him or her as if that employment were public employment and that superannuation scheme were an eligible superannuation scheme;

CSC shall assign to the person administering that superannuation scheme the life policies assigned by the former contributor to CSC in accordance with subsection (3) of this section or issued in relation to the former contributor in accordance with subsection (4) of this section;

the assignment of those life policies in accordance with paragraph (b) of this subsection shall be deemed to constitute the payment of a transfer value in respect of the former contributor in accordance with section 139 to the person administering that scheme;

CSC shall:

if the amount of any basic contribution paid by the former contributor to CSC exceeded the amount that was the prescribed amount in relation to him or her at the time of the payment—pay to him or her out of the Superannuation Fund an amount equal to the amount of the excess and the amount of any interest on that excess;

pay to him or her out of the Superannuation Fund an amount equal to his or her accumulated supplementary contributions; and

pay out of the Superannuation Fund and to the Commonwealth an amount equal to the amount that, but for this Part, would have been payable to the former contributor under section 80 less any amounts paid to him or her under subparagraphs (i) and (ii) of this paragraph; and

section 112 does not apply in relation to the former contributor.

An amount paid under subparagraph (7)(d)(i) in respect of a particular excess must not be less than the amount of the excess.

If the life policy or life policies assigned by the person to CSC in accordance with subsection (3) or issued in relation to him or her in accordance with subsection (4) becomes or become payable at or before the time when he or she ceases to be an eligible employee:

CSC shall, out of the amount paid to him or her under the policy or policies:

pay into the Superannuation Fund an amount equal to the amount (the principal amount) that, but for subsection (2), would have been paid by CSC into the Superannuation Fund and the amount of any interest on the principal amount;

in the case of a policy or policies assigned by the person to CSC in accordance with subsection (3) of this section—pay to the person, or, if he or she is dead, to his or her legal personal representative or, if no legal personal representative can be found, to any individual or individuals that CSC determines, an amount equal to so much of any premiums paid by the person in respect of the policy or policies as related to, or to any part of, the period that commenced on the date on which the transfer value referred to in paragraph (1)(b) of this section is to be deemed for the purposes of Division 2 to have become payable in respect of him or her and ended on the date on which he or she became an eligible employee; and

pay the balance to the Commonwealth; and

a lump sum benefit of an amount equal to the sum of any amounts paid by the person to CSC under subsection (6) is payable to the person, or, if he or she is dead, to his or her legal personal representative or, if no legal personal representative can be found, to any individual or individuals that CSC determines.

An amount paid into the Superannuation Fund under subparagraph (8)(a)(i) in respect of a particular principal amount must not be less than the principal amount.

Where the person attains his or her minimum retiring age while he or she is an eligible employee or ceases to be such an eligible employee before he or she attains that age, and neither subsection (7) nor subsection (8) applies in relation to him or her, then, if the election made by the person under subsection (2) has not been revoked in accordance with subsection (10):

CSC shall surrender the life policy or life policies assigned by him or her to CSC in accordance with subsection (3) or issued in relation to him or her in accordance with subsection (4) and, out of the proceeds of the surrender, shall:

pay into the Superannuation Fund an amount equal to the amount (the principal amount) that, but for subsection (2), would have been paid by CSC into the Superannuation Fund and the amount of any interest on the principal amount;

in the case of a policy or policies assigned by the person to CSC in accordance with subsection (3) of this section pay to the person an amount equal to so much of any premiums paid by the person in respect of the policy or policies as related to, or to any part of, the period that commenced on the date on which the transfer value referred to in paragraph (1)(b) of this section is to be deemed for the purposes of Division 2 to have become payable in respect of him or her and ended on the date on which he or she became an eligible employee; and

pay the balance to the Commonwealth; and

a lump sum benefit of an amount equal to the sum of any amounts paid to CSC under subsection (6) shall be paid to the person out of the Consolidated Revenue Fund, which is appropriated accordingly.

An amount paid into the Superannuation Fund under subparagraph (9)(a)(i) in respect of a particular principal amount must not be less than the principal amount.

A person who has made an election under subsection (2) may, if:

he or she has not attained his or her minimum retiring age;

he or she has not ceased to be an eligible employee; and

the life policy or life policies assigned by him or her to CSC in accordance with subsection (3) or issued in relation to him or her in accordance with subsection (4) has not or have not become payable;

The Minister and CSC may agree that a particular superannuation scheme that:

provides for benefits by means of life policies; and

is an eligible superannuation scheme for the purposes of Division 3;

The Minister and CSC may at any time terminate an agreement made under subsection (11).

An agreement made under subsection (11) may be expressed to have taken effect on a day earlier than the day on which the agreement is made but not earlier than 1 July 1976.

CSC must cause notice of the making of an agreement under subsection (11), or of the termination of such an agreement, to be published in the Gazette.

A superannuation scheme is taken, for the purposes of this section, to have been an approved superannuation scheme at a particular time if:

in respect of a time before 1 July 1994—a declaration in respect of the scheme made by CSC under subsection 145(11) of the Superannuation Act 1976 was, or is taken to have been, in force at that time; or

in respect of a time on or after that date—an agreement under subsection (11) in respect of the scheme was in force at that time.

In this section, the prescribed amount, in relation to a person at any time, is an amount ascertained in accordance with the formula: