CPI update of final salary
144H CPI update of final salary
"(1) For paragraphs 144B (1) (b) and 144C (1) (b), subparagraph 144D (1) (c) (ii) and paragraphs 144F (2) (b) and 144G (c), the final annual rate of salary of a former eligible employee on ceasing to be an eligible employee is taken to be:
where:
CPI1 is the CPI published for the last complete quarter that ends on or before the day when the person ceased to be an eligible employee.
CPI2 is the highest CPI in the published series that starts with CPI1 and ends with the last published CPI on or before the day when the person ceases employment.
S is the actual final annual rate of salary of the former eligible employee.
"(2) Subject to subsection (3), if at any time after a benefit becomes payable under this Division, the Australian Statistician has published or publishes in respect of a particular quarter a CPI in substitution for a CPI previously published in respect of that quarter, the publication of the later CPI is to be disregarded for the purposes of this section.
"(3) If, at any time, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took or takes place, regard is to be had only to index numbers published in terms of the new reference base.
"(4) In this section:
CPI means the all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician.
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.
"144J Employees under superseded Act
"(1) In relation to a former eligible employee to whom modifications of the Act effected by the Superannuation (Former Contributors for Units of Pension) Regulations apply, a reference in this Division to a provision in any other part of the Act is taken to be a reference to that provision:
as modified by those Regulations in relation to that person; and
if that provision is affected by another provision in the Schedule to those Regulations - as affected by the other provision in those Regulations in relation to that person.
"(2) In relation to a former eligible employee to whom modifications of the Act effected by the Superannuation (Former Provident Account Contributors) Regulations apply, a reference in this Division to a provision in any other part of the Act is taken to be a reference to that provision:
as modified by those Regulations in relation to that person; and
if that provision is affected by another provision in the Schedule to those Regulations - as affected by the other provision in those Regulations in relation to that person.".
Schedule 11A Modifications - former employees of nominated facilities retrenched within 3 years of transfer day
(subregulation 15A (5))
1 Section 58:
After subsection 58 (3A), insert:
"(3AA) A person to whom subregulation 15A (5) of the FEE Regulations applies (in this Division called a subregulation 15A (5) person) is taken, for the purposes of this Act, to have retired involuntarily.".
2 Section 60:
After subsection 60 (1), insert:
"(2) In relation to a subregulation 15A (5) person, a reference in this section to the person's last day of service is taken to be a reference to the day of the person's retrenchment.".
3 Section 61:
Omit subsection (4), substitute:
"(4) In this section:
last day of service, in relation to a subregulation 15A (5) person, means the day of the person's retrenchment.
notional final annual rate of salary, in relation to a subregulation 15A (5) person, means the final annual rate of salary ascertained in accordance with section 61AA.".
4 New section 61AA:
61AA. CPI update of final salary
"(1) For subsections 56 (4) and 61 (4), the final annual rate of salary of a subregulation 15A (5) person is taken to be:
where:
CPI1 is the CPI published for the last complete quarter that ends on or before the day when the person ceased to be an eligible employee.
CPI2 is the highest CPI in the published series that starts with CPI1 and ends with the last published CPI on or before the day when the person ceases employment.
S is the actual final annual rate of salary of the person as an eligible employee.
"(2) Subject to subsection (3), if at any time after a benefit becomes payable under this Division, the Australian Statistician has published or publishes in respect of a particular quarter a CPI in substitution for a CPI previously published in respect of that quarter, the publication of the later CPI is to be disregarded for the purposes of this section.
"(3) If, at any time, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took or takes place, regard is to be had only to index numbers published in terms of the new reference base.
"(4) In this section:
CPI means the all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician.
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.".
5 Section 62:
After subsection 62 (1), insert:
"(1A) A subregulation 15A (5) person may, not later than 3 months after the day of the person's retrenchment, elect, by notice in writing to CSC, that, in lieu of pension and lump sum benefit being payable under section 55 or 59, benefit be paid under this section.".
6 Paragraph 110R (1) (a):
Add at the end:
"(iv) has attained the age of 55 years and is taken, under subsection 58 (3B) to have retired involuntarily; or".
7 Paragraph 110R (4) (b):
Omit the paragraph.
Schedule 12 Modifications - employees of services etc sold, privatised etc who cease to be eligible employees before 1 July 1995
(subregulation 16 (1))
This Act’s bill:Explanatory statement
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