Superannuation Act 1916

Whenever—

a benefit under this Act becomes payable to a contributor (other than a benefit under Division 3A of Part 4), or

a contributor elects to take the benefit of that Division, or

if a contributor has died without having received a benefit under this Act—the benefit becomes payable to another person in consequence of that death,

For the purposes of subsection (1)—

the portion of the benefit payable to or in respect of a contributor from the contributors’ reserve is an amount equal to the lesser of the amount calculated according to subsection (4) and the relevant amount, and

the portion of the benefit payable to or in respect of the contributor from the appropriate employer reserve is equal to the relevant amount, less the amount ascertained under paragraph (a).

When an amount under the family law superannuation legislation or Part 4A becomes payable to or in respect of a non-contributor spouse, STC must, in accordance with the regulations, determine the portion of the payment that is payable from the contributors’ reserve and the portion that is payable from the appropriate employer reserve.

For the purposes of subsection (2), the relevant amount is—

if a lump sum benefit (other than a commutation of pension) is to be paid to or in respect of the contributor—the amount of the benefit payable to or in respect of the contributor, or

if a pension or a commutation of a pension is to be paid to or in respect of the contributor—the amount calculated by STC as the capitalised value of the benefits payable to or in respect of the contributor.

For the purposes of subsection (2), the amount to be calculated is—

the amount that would have been payable if the contributor had elected to take the benefit of section 38, and

interest—

compounded on 30 June in each year in respect of the period beginning with the day on which the contributor first became liable to make contributions under this Act and ending with the day on which the contributor ceased to be employed by an employer, and

calculated at the prescribed rate on the amount ascertained by applying the formula set out in subsection (5).

For the purposes of subsection (4) (b), the formula is as follows—

For the purposes of this section, prescribed rate means—

in respect of any relevant period ending before 1 July 1972—3.5 per cent per year, and

in respect of any relevant period beginning on or after 1 July 1972—the rate as fixed by STC from time to time, having regard to the earnings of the Fund and such other matters as STC considers relevant.