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This Regulation may be cited as the State Authorities Superannuation (Transitional Provisions) Regulation 1988.
This Regulation shall take effect on 1 April 1988.
In this Regulation—
Board means the SAS Trustee Corporation established under the Superannuation Administration Act 1996.
current Act means the State Authorities Superannuation Act 1987.
earlier Act means the Public Authorities Superannuation Act 1985.
earlier Fund means the Public Authorities Superannuation Fund established in accordance with the earlier Act.
final average salary and final salary have the same meanings as they have in section 36 of the current Act.
new Fund means the State Authorities Superannuation Fund established by the Board in accordance with the Superannuation Administration Act 1987.
pension means a pension payable under this Regulation.
superannuation year means the period that commenced or commences on 1 April in any calendar year and ended or ends on 31 March in the next ensuing calendar year.
In this Part, Part 6 (clause 46 excepted) and Part 7—
transferred contributor means a person who has become a contributor by virtue of clause 3 of Schedule 3 to the current Act (savings and transitional provisions).
If, immediately before 1 April 1988, a transferred contributor was, in accordance with section 12 of the earlier Act (additional benefit), covered for the additional benefit, that contributor—
shall be taken to be covered for the additional benefit under the current Act, and
shall pay the additional benefit levy as required by section 22 (2) of that Act (approval of application) as if that contributor had lodged with the Board an application under section 20 of that Act (additional benefit) which had been approved by the Board.
If, immediately before 1 April 1988, any allowances or other kinds of remuneration were treated as salary for the purposes of the earlier Act in relation to a transferred contributor, they shall continue to be treated as salary for the purposes of the current Act, but only as regards that contributor.
The contributor’s account that is established under section 12 (1) of the current Act (contributors’ accounts) in respect of a transferred contributor shall be so established with a credit balance equal to the balance at credit on 31 March 1988 in the account that had been established under section 9 (1) of the earlier Act (certain accounts and reserves to be established) in respect of that contributor.
For the purpose of applying the definition of accrued benefit points in section 36 of the current Act (definitions) to a transferred contributor, that definition shall be construed as if the reference in it to contributed points figures included a reference to the total of the contributed points figures calculated in relation to that contributor under the earlier Act on 31 March 1988 but multiplied by 0.72.
For the purposes of applying the current Act to a transferred contributor, such a contributor’s entry date shall be taken to be the date that was regarded as the entry date applicable to the transferred contributor under the earlier Act.
For the purpose of applying the definition of contributed points figure in section 36 of the current Act to a transferred contributor, that definition shall be construed as if the reference in that definition to applicable contribution periods included a reference to applicable months as defined by section 24 of the earlier Act, but with the result derived from the formula for those months multiplied by 0.72.
In applying the calculation of prospective benefit points in section 36 of the current Act to a transferred contributor, that calculation shall be subject to a minimum value of 0.7 multiplied by the number of prospective benefit points that would have been calculated under that Act if the early retirement age had been 60 years.
This clause applies to a transferred contributor in respect of whom an order has been in force under the New South Wales Retirement Benefits Regulation 1983 at any time with respect to one or more periods of employment of that contributor which occurred before 1 July 1985.
If a transferred contributor to whom this clause applies has received an allowance with respect to a period of employment to which an order under the New South wales Retirement Benefits Regulation 1983 has been in force, the employer-financed benefit payable under the current Act to or in respect of the transferred contributor shall be reduced by the following amount in respect of each such period—
where—
J represents the amount by which the employer-financed benefit is to be reduced,
S represents the amount of the transferred contributor’s salary, as used in the calculation of the benefit payable to or in respect of the transferred contributor under the current Act,
A represents the amount of the allowance received by the transferred contributor, and
W represents the annual wages of the transferred contributor, as determined by the Board, immediately before the allowance became payable to the transferred contributor.
In this clause, allowance, in relation to a transferred contributor, means such part of the amount of a benefit that has been paid to the transferred contributor from a superannuation scheme as, in the opinion of the Board, represents the employer-financed component of the benefit.
In this Part—
applicable month has the meaning that that expression had under section 24 of the earlier Act (interpretation).
former Act means the Local Government and Other Authorities (Superannuation) Act 1927.
former Fund means the Local Government Pension Fund established under the former Act.
guaranteed pension points, in relation to a transferred contributor, means a number of points which is the greater of 0 and the number determined by the formula—
where—
S represents the number of guaranteed pension points to be calculated,
P represents the number of prospective benefit points which would have been calculated under the current Act if the age for early retirement had been 65 years,
A represents the number of accrued benefit points calculated as if 1 April 1988 were the transferred contributor’s exit date under the current Act,
B represents the number of accrued benefit points at the transferred contributor’s exit date under the current Act, and
R represents the number of prospective benefit points calculated in respect of the transferred contributor in accordance with section 36 of the current Act (definitions) as modified by clause 6 (4).
notional accumulation, in relation to a transferred contributor who became a contributor to the former Fund under section 15AO, 15AP or 15AQ of the former Act, means an amount equal to the sum of—
the amount credited to the general reserve or the special reserve of the former Fund under section 15AO (3), 15AP (9) or 15AQ (10) of the former Act in respect of that contributor,
in respect of each superannuation year during the period beginning with the date on which that contributor became a contributor to the former Fund and ending with 30 June 1985, an amount equal to—
5.25 per cent of the salary of that contributor, based on the rate of salary determined under section 15AV of the former Act in respect of that superannuation year, or
1.5 times the contributions paid or payable by that contributor in that superannuation year under the former Act,
whichever is the less,
in respect of each applicable month in relation to that contributor under the earlier Act, an amount equal to—
5.25 per cent of the salary of that contributor, multiplied by the salary ratio of that contributor in respect of that month as determined by the Board, based on the rate of salary determined under section 6 of the earlier Act (salary) in respect of that month, or
1.5 times the contributions paid or payable by that contributor in that month under the earlier Act,
whichever is the less, and
in respect of each applicable contribution period since 1 April 1988, an amount equal to—
5.25 per cent of the salary of that contributor, multiplied by the salary ratio of that contributor in respect of that period, based on the rate of salary determined under section 26 of the current Act (salary basis for contributions) in respect of that period, or
1.5 times the contributions paid or payable by that contributor under the current Act,
whichever is the less, together with interest at a rate or rates determined by the Board, but reduced by an amount or amounts calculated in such manner as the Board may determine in respect of the costs of administering the scheme and such other charges as may be determined by the Board.
transferred contributor means a person who has become a contributor by virtue of clause 3 of Schedule 3 to the current Act (savings and transitional provisions) after having become a contributor to the earlier Fund by virtue of the operation of Schedule 6 to the earlier Act (transitional provisions—Local Government Pension Fund).
For the purpose of applying section 36 of the current Act (definitions) to a transferred contributor, that contributor’s average contribution rate per cent referred to in the definition of prospective benefit points in that section shall be construed in such a way as to exclude from calculation any period which occurred before the date when the transferred contributor last became a contributor under Part 3D of the former Act (pension fund provisions).
This clause applies to a transferred contributor who, in the opinion of the Board, has received, or will receive—
in the case of a transferred contributor whose service was terminated, or who died, before 1 July 1993—a gratuity under section 97 of the Local Government Act 1919, or
in the case of a transferred contributor whose service is terminated, or who dies, on or after that date—a similar gratuity, being a gratuity paid or to be paid by the council as an act of grace on the death or termination of service of an employee of the council and calculated by reference to the period of the employee’s service with the council.
Where the employer-financed benefit payable in respect of a transferred contributor to whom this clause applies is determined without reference to the notional accumulation of that contributor, the amount determined in accordance with subclause (3) shall—
be deducted from the employer-financed benefit otherwise payable under the current Act, and
be paid by the Board to the employer who employed that contributor on that contributor’s exit date.
For the purposes of subclause (2), the amount is—
0, or
an amount calculated in accordance with the formula set out in subclause (4),
whichever is the greater.
The formula referred to in subclause (3) is as follows—
where—
A represents the amount to be calculated,
G represents the amount referred to in subclause (1) as the gratuity payable under the Local Government Act 1919,
E represents the employer-financed benefit that would be payable but for this clause, and
M represents the employer-financed benefit that would have been payable to the transferred contributor concerned if the employer-financed benefit had been based on the maximum benefit points for that contributor.
Editorial note—
Clause 10 (4) was amended by Gazette No 18 of 14.2.1997, p 552, Sch 1.1 [3]. The text of the amendment reads as follows—
[3] Clause 10 (4)
Omit “under section 97 of the Local Government Act 1919”.
Insert instead “to or in respect of the transferred contributor”.
Where the employer-financed benefit payable in respect of the transferred contributor is determined by reference to the notional accumulation of that contributor, the Board shall pay to the employer who employed that contributor on that contributor’s exit date an amount equal to—
0, or
an amount calculated in accordance with the formula set out in subclause (6),
whichever is the greater.
The formula referred to in subclause (5) is as follows—
where—
A represent the amount to be determined,
E represents the employer-financed benefit that would have been payable under the current Act but for this subclause, and
N represents the notional accumulation of the transferred contributor concerned.
An amount payable to an employer under subclause (2) or (5) shall be paid from the appropriate reserve established by the Board.
If the employer-financed benefit payable is reduced by the operation of subclause (2), the number of accrued benefit points for the transferred contributor shall be taken to have been reduced in proportion to the amount by which the benefit was reduced.
This clause applies to a transferred contributor who—
becomes covered for the additional benefit under the current Act, or
by virtue of clause 4 (transferred contributors), is taken to be covered for that additional benefit.
If—
a benefit becomes payable under section 38 of the current Act (benefit on death before early retirement age) or section 39 of that Act (benefit on total and permanent invalidity before early retirement age) to or in respect of a transferred contributor to whom this clause applies, or
a benefit is paid under section 37 of that Act (benefit at or after early retirement or on death at or after early retirement age) and the Board is satisfied that a benefit would have been payable under section 38 or 39 of that Act if the early retirement age had been 60 years,
the lump sum benefit calculated in accordance with the formula specified in subclause (3) is payable to or in respect of that contributor.
The formula referred to in subclause (2) is as follows—
where—
L represents the amount to be calculated,
S represents the transferred contributor’s final salary,
P represents the number of prospective benefit points which would have been calculated under clause 6 (4) if the early retirement age had been 65 years, and
R represents the number of prospective benefit points which would have been calculated under clause 6 (4).
If, in applying the formula specified in subclause (3), P is not more than R, no lump sum is payable.
In this clause, a reference to an employer-financed benefit includes a lump sum benefit payable under clause 11 (additional benefit for qualified transferred contributors).
This clause applies to a transferred contributor who—
becomes covered for the additional benefit under the current Act, or
by virtue of clause 4 (transferred contributors), is taken to be covered for that additional benefit,
and who in either case became a contributor to the former Fund under section 15AO, 15AP or 15AQ of the former Act.
If—
a benefit becomes payable under section 38 of the current Act (benefit on death before early retirement age) or section 39 of that Act (benefit on total and permanent invalidity before early retirement age) to or in respect of a transferred contributor to whom this clause applies and no election is made under clause 16 (1) or 17 (1), or
a benefit is paid under section 37 of that Act (benefit at or after early retirement or on death at or after early retirement age) and the Board is satisfied that a benefit would have been payable under section 38 or 39 of that Act if the early retirement age had been 60 years,
the employer-financed benefit in respect of that contributor shall be not less than the amount determined in accordance with subclause (4).
For the purposes of subclause (3), the amount referred to in that subclause is the sum of—
the notional accumulation, and
the amount calculated in accordance with the following formula—
where—
A represents the amount to be calculated,
M represents the number under the heading “Multiplier of salary” in Schedule 1 opposite the age specified in years in that Schedule that was the age of the transferred contributor at that contributor’s exit date, and
S represents—
if the transferred contributor contributed to the new Fund at the rate of 1 per cent of salary—two-sevenths of that contributor’s final salary,
if the transferred contributor contributed to the new Fund at the rate of 2 per cent of salary—four-sevenths of that contributor’s final salary,
if the transferred contributor contributed to the new Fund at the rate of 3 per cent of salary—six-sevenths of that contributor’s final salary, or
if the transferred contributor contributed to the new Fund at a rate exceeding 3 per cent of salary—that contributor’s final salary.
In subclause (4), a reference to a rate, in relation to a transferred contributor, is a reference to the rate at which the contributor last elected or is taken to have last elected to contribute immediately before the benefit became payable.
If a benefit becomes payable to a transferred contributor to whom this clause applies under section 40 of the current Act (benefit on partial and permanent invalidity before early retirement age), the employer-financed benefit in respect of that contributor shall be not less than the notional accumulation.
If—
a benefit becomes payable under section 37 of the current Act to or in respect of a transferred contributor to whom this clause applies,
no election is made under clause 15 (pension rights—exit after age 60), and
the employer-financed benefit would, but for the operation of this subclause, be reduced by the operation of clause 10 (benefit to be adjusted in certain circumstances),
the employer-financed benefit in respect of the person shall be not less than the notional accumulation.