New Division 3A of Part IX
1 New Division 3A of Part IX
1.1 After section 144, insert:
"Division 3A Preservation of rights as delayed updated pension
"144A Delayed updated pension
"(1) The benefits applicable under this Division in respect of a former eligible employee are such benefits payable under this Act as the Commissioner considers to be benefits:
of the same nature; and
payable:
in the same circumstances and on the same conditions; and
on the death of the person - to the same persons (if any);
as the benefits that would have been payable to or in respect of the former eligible employee under this Act if he or she had not ceased to be an eligible employee and had not made the request under subregulation 15 (3) of the FEE Regulations, or the election under paragraph 15A (3) (d) of those Regulations, or a request under paragraph 15B (4) (b) of those Regulations, by virtue of which this Division became applicable.
"(2) Delayed updated pension is payable:
to a former eligible employee who has reached the age of 65; or
on request - to a former eligible employee on retirement if he or she is aged 55 or more; or
on request - to a former eligible employee on retirement on the grounds of invalidity; or
on request - to a spouse or child of a deceased former eligible employee, in accordance with Part VI.
"(3) In paragraph (2) (c), grounds of invalidity means total and permanent incapacity within the meaning of Part IVA that, to the satisfaction of the Commissioner, is due to invalidity or mental or physical incapacity.
"144B Benefits - age 65 retirement
"(1) A former eligible employee entitled to delayed updated pension who retires at or after the age of 65 is entitled to age retirement benefits in accordance with Division 1 of Part V:
that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
subject to adjustment (if any) under section 144H - as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
"(2) For the purposes of subsection (1), the reference in paragraph 57 (1) (a) to 'his last day of service' is taken to be a reference to the former eligible employee's last day of employment.
"144C Benefits - early retirement
"(1) A former eligible employee entitled to delayed updated pension who retires at or after the age of 55 but before the age of 65 is entitled to early retirement benefits in accordance with Division 2 of Part V (except sections 60 and 62):
that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
subject to adjustment (if any) under section 144H - as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
"(2) The annual rate of the early retirement pension that is payable to a former eligible employee entitled to delayed updated pension is the rate that would apply if the former eligible employee's age on his or her last day of service had been 65 years, reduced by:
for each year and partial year included in the period commencing on his or her 60th birthday or the day of retirement (whichever is the later) and ending on the day immediately preceding his or her 65th birthday - 2% of that rate; and
if the person retires before his or her 60th birthday, then for each year and partial year included in the period commencing on the day immediately following the day of retirement and ending on the day immediately preceding his or her 60th birthday - 31/3% of the rate ascertained under paragraph (a).
"(3) For the purposes of this section, the reference in subsection 61 (3) to 'his last day of service' is taken to be a reference to the former eligible employee's last day of employment.
"144D Benefits - invalidity retirement (no BCC in force)
"(1) A former eligible employee entitled to delayed updated pension:
who retires on the ground of invalidity; and
in respect of whom at the time of retirement, a benefit classification certificate is not in force or, under subsection 16 (5), is taken not to be in force;
is entitled to:
invalidity benefits in accordance with Division 4 of Part V and benefits referred to in section 61 or 64, as the case may be:
that relate to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
subject to adjustment (if any) under section 144H - as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
"(2) For the purpose of calculating the pension entitlement, the following modifications apply:
to section 3:
subsection 3 (1) (definition of period of prospective service - omit 'an eligible employee', substitute 'employed'; and
to section 67:
subsection 67 (2) - omit '70 per centum', substitute '50%';
paragraph 67 (3) (a) - omit '70', substitute '50';
paragraph 67 (3) (b) - omit 'columns 1 and 2', substitute 'columns 1 and 3';
paragraph 67 (4) (a) - omit ;'columns 1 and 2', substitute 'columns 1 and 3'; and
to section 79:
paragraph 79 (a) - omit 'eligible employee', substitute 'employee'; and
to Schedule 3:
Column 3 - omit 'section 68', substitute 'section 67 for the purposes of section 144E'; and
to Schedule 4:
Column 3 - omit 'section 68', substitute 'section 67 for the purposes of section 144E'.
"144E Benefits - invalidity retirement (BCC in force but irrelevant)
"If:
a former eligible employee who is entitled to delayed updated pension retires on the ground of invalidity; and
at the time of retirement:
a benefit classification certificate is in force in relation to him or her; and
paragraph 66 (2) (c) does not apply to him or her;
the former eligible employee is taken to be a former eligible employee to whom section 144D applies.
"144F Benefits - invalidity retirement (BCC in force)
"(1) A former eligible employee entitled to delayed updated pension who retires on the ground of invalidity is entitled to invalidity pension under this regulation if:
at the time of retirement - a benefit classification certificate is in force in respect of him or her; and
paragraph 66 (2) (c) applies to him or her.
"(2) The former eligible employee is entitled to invalidity pension in accordance with Division 4 of Part V and benefits referred to in section 61 or 64, as the case may be:
in relation to the period of contributory service that ended on the day he or she ceased to be an eligible employee; and
subject to adjustment (if any) under section 144H - as if his or her final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on retirement.
"(3) For the purpose of calculating the pension entitlement, the following modifications apply:
to section 3:
subsection 3 (1) (definition of period of prospective service - omit 'an eligible employee', substitute 'employed'; and
to section 71:
subsection 71 (1) - omit the subsection;
subsections 71 (2), (3) and (4) - omit 'a person makes an election under subsection (1) and';
subsections 71 (5) and (6) - omit the subsections; and
to subsections 72 and 73:
omit the subsections; and
to section 79:
paragraph 79 (a) - omit 'eligible employee', substitute 'employee'.
"144G Benefits - spouses and children
"A spouse or child of a deceased former eligible employee who was entitled to delayed updated pension is entitled to pension in accordance with Part VI:
in relation to the period of contributory service that ended on the day the former eligible employee ceased to be an eligible employee; and
in respect of the appropriate rate of pension ascertained under section 144B, 144C, 144D, 144E or 144F, as the case may be; and
subject to adjustment (if any) under section 144H - as if the former eligible employee's final annual rate of salary on ceasing to be an eligible employee is the final annual rate of salary on death or retirement, as the case may be.
This Act’s bill:Explanatory statement
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