State Authorities Non-contributory Superannuation Act 1987

This Act may be cited as the State Authorities Non-contributory Superannuation Act 1987.

This Act shall commence on 1 April 1988.

In this Act—

additional employer contributions account means an account established and maintained under section 10C.

additional employer contributions benefit means the additional employer contributions benefit referred to in section 22B.

appointed day means 1 April 1988.

approved deposit fund means an approved deposit fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

attributed salary, in relation to an employee at any time, means—

where the employee is a full-time employee at that time—the salary of the employee at that time, or

where the employee is a part-time employee at that time—the salary that would be payable to the employee at that time if employed as a full-time employee.

Aware Super Fund has the same meaning as Fund in the Aware Super Act 1992.

basic benefit means the basic benefit referred to in section 22.

benefit means a benefit payable under this Act.

Commonwealth co-contribution means a co-contribution made by the Commissioner of Taxation under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 of the Commonwealth.

Commonwealth co-contribution account means an account established and maintained under section 10B.

Commonwealth co-contribution benefit means the Commonwealth co-contribution benefit referred to in section 22A.

Commonwealth taxation law means a law of the Commonwealth that provides for the levying and collection of a tax.

contribution period means a named month or such other period as may be prescribed in relation to any class of persons or circumstances.

deferred annuity means a deferred annuity within the meaning of Part 5 of the Superannuation Industry (Supervision) Regulations of the Commonwealth.

employee means a person who is employed by an employer, but does not include an excluded person referred to in Schedule 2.

employer means—

the Crown, the Government or a Minister or other member of Parliament, or

an authority specified in Schedule 1,

and a reference to employment with an employer includes a reference to employment with successive employers.

executive officer means an employee who is—

a Public Service senior executive within the meaning of the Government Sector Employment Act 2013, or

an employee (not being a Public Service senior executive) of an employer specified in Schedule 1 and who holds an office designated by the Secretary of the Treasury as the office of an executive officer, or

a police executive officer, or

an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975.

(Repealed)

exit date, in relation to an employee, means the day on which the employee ceases employment with an employer, that cessation of employment being—

the only such cessation, or

where there has been more than one such cessation of employment of the employee—the later or latest of those cessations of employment.

family law superannuation legislation has the same meaning as it has in Part 4D.

family law superannuation payment has the same meaning as it has in Part 4D.

FTC means the FSS Trustee Corporation established under the Superannuation Administration Act 1996.

full-time employee means an employee whose salary ratio is 1.

irregular employee is an employee who is neither a full-time employee nor a part-time employee, and includes an employee who is deemed by section 7 to be an irregular employee.

non-employee spouse has the same meaning as it has in Part 4D.

part-time employee means an employee whose salary ratio is less than 1 but at least 0.1.

police executive officer means an executive officer within the meaning of Part 5 of the Police Act 1990.

relevant Commonwealth superannuation standard means a standard that would be applicable under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth if the Fund was a regulated superannuation fund under that Act.

resign, in relation to an employee, means cease to be employed by an employer before reaching the age of 55 years, otherwise than on account of—

death, or

invalidity, where STC is satisfied—

that the ceasing to be employed was due, directly or indirectly to the permanent physical or mental incapacity of the employee (not caused by any act or default of the employee intended to produce that incapacity), and

that the employee is permanently unable, by reason of that incapacity, to be engaged in, or to be employed in, any remunerative occupation in which, in the opinion of STC, it would otherwise be reasonable to expect the contributor to engage.

retire means cease (otherwise than by reason of death) in any manner to be employed by an employer on or after reaching the age of 55 years.

retrenchment, in relation to an employee, means the termination of the employment of the employee with an employer where the employment is expressed by the employer to be—

compulsorily terminated by the employer on the ground that—

the employer no longer requires the employee’s services and, on termination of the employee’s employment, does not propose to fill the employee’s position, or

the work that the employee was engaged to perform has been completed, or

the amount of work that the employer requires to be performed has diminished and, due to that fact, it has become necessary to reduce the number of employees employed by the employer, or

terminated as a result of the acceptance by the employee of an offer by the employer of terms of retrenchment made on a ground specified in paragraph (a).

salary, in relation to an employee, means salary of the employee, determined in accordance with section 4 or 4A and expressed as an annual rate.

salary ratio, in relation to an employee at any time during a contribution period, means the number ascertained by dividing the salary of the employee at the commencement of that contribution period by the attributed salary of the employee at that commencement.

section 16A employer contribution means a contribution made by an employer under section 16A.

spouse of a deceased employee or deceased former employee means the surviving spouse of the employee or former employee.

STC means the SAS Trustee Corporation continued under the Superannuation Administration Act 1996.

STC Act means any of the following Acts—

Police Regulation (Superannuation) Act 1906,

Superannuation Act 1916,

Local Government and Other Authorities (Superannuation) Act 1927,

Transport Employees Retirement Benefits Act 1967,

Police Association Employees (Superannuation) Act 1969,

New South Wales Retirement Benefits Act 1972,

Public Authorities Superannuation Act 1985,

State Public Service Superannuation Act 1985,

State Authorities Non-contributory Superannuation Act 1987,

State Authorities Superannuation Act 1987.

superannuation fund has the same meaning as it has in the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

superannuation scheme means a scheme, fund or arrangement (whether or not established by an Act) under which any superannuation or retirement benefits are provided by an employer.

Note.

The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.

A reference in this Act to an authority where used in or in connection with the definition of employer is a reference to an authority, organisation, corporation, person or other entity.

If the inclusion of an employer in Schedule 1 is expressed to be limited in any respect, this Act has effect in relation to the employer subject to the limitation.

Notes included in this Act do not form part of this Act.

For the purposes of this Act, salary, in relation to an employee (other than an executive officer) means the sum of—

the remuneration, salary or wages payable in money to the employee in the employee’s capacity as an employee, as reported to STC from time to time by the employee’s employer, including—

a loading in respect of any shift allowance, as determined in accordance with the regulations, and

other allowances payable in money that are of a kind included within the value of leave paid on termination of employment, and

weekly workers compensation paid to the employee as from a date determined by STC under subsection (1B),

but not including the excluded amounts or allowances referred to in subsection (2), and

if salary sacrifice contributions under an STC Act are made in respect of the employee, the cost of the contributions, and

if approved employment benefits are provided to the employee, the cost of providing the approved employment benefits, as determined by the Minister, with the concurrence of the Treasurer.

The weekly workers compensation to be treated as salary for the purposes of this Act does not include any amount by which the aggregate of—

the weekly workers compensation paid to an injured employee, and

the salary actually paid to the employee while partially incapacitated,

exceeds the salary that the employee would probably have been earning but for the injury (assuming the employee had continued to be employed in the same or some comparable employment).

STC may determine a date as from which weekly workers compensation paid to an employee is to be treated as salary for the purposes of this Act, being a date not earlier than—

1 April 1988 (the date of commencement of this Act), or

if the liability to pay weekly workers compensation in respect of the employee first arose on a date later than 1 April 1988—that later date.

Despite subsection (1), the regulations may provide that the salary of an employee or class of employees (other than an executive officer) for the purposes of this Act is to be determined in the manner prescribed by the regulations.

A regulation may be made under subsection (1C) only if the Minister and the Treasurer certify in writing that—

there has been a change in the basis on which the remuneration of the employee or class of employees is determined, and

the effect of that change is to change the basis of remuneration to an annualised one, and

the effect of the regulation is not to reduce the benefits that would have accrued under this Act to the employee or class of employees, had there been no change in the basis of remuneration, and

the making of the regulation and associated arrangements will not result in a greater financial cost to the Government than if the regulation and associated arrangements were not made.

The excluded amounts or allowances are—

an amount paid for overtime or as a bonus, or an allowance instead of overtime,

except to the extent determined in accordance with the regulations, as referred to in subsection (1) (a)—an amount paid as shift allowance,

except to the extent that this section otherwise provides—a relieving allowance,

an expense allowance or an allowance for travelling, subsistence or other expenses,

an equipment allowance,

in respect of any period during which the employee takes extended leave (or leave in the nature of extended leave) otherwise than on full pay, such part of the remuneration received by the employee as exceeds the salary (within the meaning of subsection (1)) that he or she would have received had he or she taken leave on full pay,

an amount paid for rent or as a residence, housing or quarters allowance, and

an amount of weekly workers compensation excluded by subsection (1A).

If an employee’s employer, or a person authorised to do so on behalf of the employer, certifies in writing to STC that a relieving allowance to be, or being, paid to the employee in the employee’s capacity as an employee is likely to be paid for a continuous period of 1 year (whether or not the period is partly before the date of the certificate), the allowance is, as from—

the date on which the certificate is lodged with STC, or

the date from which the allowance becomes payable,

whichever is the later, salary for the purposes of this Act.

If a relieving allowance has been paid to an employee in the employee’s capacity as an employee for a continuous period of 1 year that ends after the appointed day and, during that period, the allowance has not been treated as part of the employee’s salary in accordance with subsection (3), the allowance shall, as from the expiration of that period of 1 year, be treated as part of the employee’s salary while its payment to the employee continues.

For the purposes of subsection (4), a reference to a continuous period of 1 year in relation to a contributor who is employed in an educational institution is to be read as a reference to the academic year of the institution.

If an employee is on secondment to another employer, the salary of the employee for the purposes of this Act is the salary paid or payable to the employee by the other employer.

The Governor may, by order in writing, declare unconditionally, or subject to conditions, that subsection (7) applies—

to an employee specified in the order who is on secondment but not to another employer, and

generally during the period of that secondment, or during such period as is specified in the order, being, in either case, a period commencing before, on or after the date of the order.

During the period in which this subsection is declared pursuant to subsection (6) to apply to an employee on secondment, the employee’s salary shall, for the purposes of this Act, be that paid or payable in respect of the employment to which he or she is seconded.

In this section—

academic year, in relation to an educational institution, means a continuous period commencing on the first day of any academic term of the institution and ending on the day before the first day of the corresponding academic term in the following calendar year.

approved employment benefit means a benefit provided to an employee at the cost of the employee’s employer (being a benefit of a private nature) that is approved by the Minister, with the concurrence of the Treasurer, for the purposes of this section in relation to the employee or a class of employees of which the employee is a member.

shift allowance means an allowance paid to an employee in respect of shift work performed by the employee, and includes amounts paid as penalty rates.

weekly workers compensation, in relation to an employee, means weekly payments of compensation under the Workers Compensation Act 1987 (or the provisions of the Workers Compensation Act 1926 as applied by that Act) payable to the employee because the employee is partially incapacitated for work through injury.

Definition of salary For the purposes of this Act, the salary of an executive officer is the salary as last nominated or changed in accordance with this section.

Nomination of salary on initial and subsequent appointments An amount of salary for the purposes of this Act must be nominated to an executive officer’s employer by the officer, on, or as soon as practicable after, being appointed as an executive officer. An amount may also be nominated to the employer by the officer on, or as soon as practicable after, being reappointed, or appointed to another position, as an executive officer.

Amount of salary The amount nominated is to be not less than the monetary remuneration payable to the executive officer at the date of nomination and not more than the total value of the remuneration package paid to the officer (less the cost of providing employer’s contributions to superannuation, other than salary sacrifice contributions, under any STC Act and any performance-related incentive payment).

Failure to nominate salary If an executive officer fails to nominate an amount of salary within 28 days of first being appointed as an executive officer or within such further period as STC may allow, the officer is taken to have nominated an amount of salary that is equal to the monetary remuneration payable to the officer at the end of the applicable period.

Reduction in nominated salary An executive officer may, from time to time, by notice to the officer’s employer elect to reduce the amount of salary nominated under this section, but not so that the amount is less than the monetary remuneration payable to the officer at the date of the election.

Increase in nominated salary An executive officer may, from time to time, by notice to the officer’s employer elect to increase the amount of salary nominated under this section, but not so as to increase the amount nominated by a percentage of that amount that is more than the percentage by which the remuneration package of the officer has increased since the amount of salary was last nominated or changed.

Nominations and elections An employer must notify STC of a nomination or election under this section. Any such nomination or election takes effect on the date of notification to STC or on such other date as STC may determine with the consent of the executive officer concerned.

Effect of changes in packages Nothing in this section requires the nominated amount of salary to be increased if, because of a variation in the remuneration package of an executive officer or in the proportions of the remuneration package comprising monetary remuneration and employment benefits of the officer, the amount of salary as last nominated or changed for the purposes of this section is less than the monetary remuneration of the officer.

Transitional provision relating to nomination of salary by executive officers An executive officer may, within 3 months after the commencement of this subsection, nominate a new amount of salary in accordance with this section if, immediately before the commencement of this subsection, the officer was an executive officer.

Monetary remuneration In this section, the monetary remuneration payable to an executive officer is—

if the officer is a Public Service senior executive or a police executive officer, the monetary remuneration payable in accordance with the Government Sector Employment Act 2013 or the Police Act 1990, as the case requires, or

if the officer is an office holder nominated for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975, the remuneration payable to the officer as reduced under that section by the cost of employment benefits provided to the officer, or

in the case of any other executive officer, the monetary remuneration payable to the officer.

An employee of the Crown, the Government or a Minister or other member of Parliament shall, for the purposes of this Act, be deemed to be employed by such person or organisation as may be prescribed.

Members of the NSW Police Force are, for the purposes of this Act, to be taken to be employed in the NSW Police Force by the Crown.

(Repealed)

If an employer certifies in writing that the employer has reason to believe that an employee of the employer will not continue to be a full-time employee or part-time employee for at least 1 year from the date of the certificate, the employee shall, for the purposes of this Act, be deemed to be neither a full-time employee nor a part-time employee and to be an irregular employee.

Schedule 2 has effect.

STC may establish and maintain such funds, accounts and reserves as, in the opinion of STC, are necessary or convenient for the administration of this Act.

STC shall cause to be paid to any such fund—

contributions made by employers, and

income derived from investment of the fund, and any profit made from realisation of any investment of the fund, and

Commonwealth co-contributions paid to STC, and

money borrowed for the purposes of the fund, and

any fees paid to STC arising under the family law superannuation legislation or Part 4D.

STC shall cause to be paid from any such fund—

by transfer from the fund to the STC Administration Account maintained under the Superannuation Administration Act 1996 administration costs incurred by STC, including administration costs arising under the family law superannuation legislation or Part 4D, and

such amounts as are necessary to satisfy any liability of the fund with respect to tax payable under any Commonwealth taxation law, and

the benefits payable under this Act, and

other amounts payable by STC and arising under the family law superannuation legislation or Part 4D, and

any other amount payable from any such Fund under this or any other Act, and

any amount payable as a debt due to the Commonwealth under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 of the Commonwealth in respect of a Commonwealth co-contribution paid to STC.

If a loss is incurred in realising any investment forming part of the assets of a fund maintained under subsection (1), the fund is accordingly reduced by the amount of that loss.

STC shall, in relation to each employer specified in Part 1 of Schedule 1, establish and maintain within a fund managed by STC a separate employer reserve for the purposes of this Act.

STC shall, in relation to each of Parts 2 and 3 of Schedule 1, establish and maintain within a fund managed by STC a separate employer reserve for the purposes of this Act.

There shall be credited to such an employer reserve the contributions made by the employer or employers to whom the reserve relates and the Commonwealth co-contributions paid to STC in respect of an employee of an employer or employers to whom the reserve relates.

There shall be debited to such an employer reserve—

the amount of any benefit paid to, or in relation to, an employee who, immediately before the benefit became payable, was an employee of the employer or an employer to whom the reserve relates, and

administration costs incurred by STC under the Superannuation Administration Act 1996 in relation to the employer or an employer to whom the reserve relates, and

the whole or part (as determined by STC) of an amount arising under the family law superannuation legislation or Part 4D that is paid to, or in respect of, a spouse or former spouse of an employee or former employee who, immediately before the payment, was an employee or former employee of the employer or an employer to whom the reserve relates.

Despite any other provision of this Act, there is to be debited to the Crown employer reserve such amount of the administration costs incurred by STC in respect of the transfer of a preserved benefit under Part 4B as is approved by the Treasurer.

There may be debited to such an employer reserve—

the costs incurred by STC in relation to Commonwealth co-contributions paid in respect of an employee of an employer or employers to whom the reserve relates, and

any amount payable as a debt due to the Commonwealth under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 of the Commonwealth in respect of an employee of an employer or employers to whom the reserve relates.

If the amount standing to the credit of the employer reserve established for Part 3 of Schedule 1 is insufficient to meet the amounts payable from the reserve, the deficiency shall be recouped from the Consolidated Fund which is, to the necessary extent, appropriated accordingly.

STC may, with the concurrence of the Treasurer and after obtaining actuarial advice, adjust the amount credited to an employer reserve by crediting or debiting an amount, if it appears to STC appropriate to do so because of a change in the constitution or nature of an employer.

Subsection (6) does not apply to a change in the constitution or nature of an employer because of a Government privatisation initiative or other Government initiative.