Minimum benefit
35A Minimum benefit
S. 35A(1) amended by No. 94/2005 s. 54(1).
Despite anything to the contrary in this Act or the regulations, the amount of the benefit paid or payable under this Act in respect of any member or former member must not in respect of the period during which the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth applies, be less than the sum of the superannuation guarantee amount and the amount contributed by the member or former member to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 35(1).
S. 35A(2) amended by No. 94/2005 s. 54(2).
Subject to this section, if the total amount of all the benefits paid or payable under this Act in respect of a member or former member is less than the sum of the superannuation guarantee amount and the amount contributed by the member or former member to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 35(1) up to the date that the member or former member first became entitled to a benefit under this Act other than a temporary pension under section 32, there is to be paid out of the Fund to the member or former member an amount determined by the Board in accordance with the formula—
P = A + I
where—
"P" means the amount to be paid;
"I" means interest as appropriate on "A" at the rate which is the prescribed rate under section 35(1) from the date "A" is calculated until the date that "A" is paid out of the Fund—
and where "A" is an amount determined by the Board in accordance with the formula—
SGC + MCI – B
where—
"SGC" means the superannuation guarantee amount;
"MCI" means the sum of the amount contributed by the member or former member to the State Superannuation Fund and the Fund and interest as appropriate on the amount contributed at the rate which is the prescribed rate under section 35(1) up to the date that the contributor or former contributor first became entitled to a benefit under this Act other than a temporary pension under section 32;
"B" means the total amount of all the benefits paid or payable in respect of the member or former member.
Unless subsection (4) applies, for the purposes of this section, the total amount of all the benefits paid or payable in respect of a member or former member is to be determined by the Board as at the date on which the member or former member first became entitled to a benefit under this Act, other than a temporary pension under section 32, irrespective of when the benefit is payable.
If a member or former member becomes entitled to another benefit under this Act other than a temporary pension under section 32 after having returned to work following a period as a pensioner under this Act, the total amount of all the benefits paid or payable in respect of the member or former member is to be determined by the Board as at the date on which the member or former member first became entitled to that other benefit under this Act.
If the amount of the benefit paid or payable under this Act consists of, or includes, a pension or deferred benefit, the amount of the benefit paid or payable under this Act for the purposes of this section is to be determined by the Board in accordance with a method determined by an actuary appointed by the Board.
Any part of the superannuation guarantee amount which is required to be preserved in accordance with the specified standards must be preserved.
For the purposes of this section, if a payment or transfer to a non-member spouse is made for the purposes of Part VIIIB of the Commonwealth Family Law Act 1975 whether under Part 7A or otherwise, the minimum benefit of the member spouse must be adjusted by the Board in accordance with a methodology approved by the Minister, on the advice of an actuary appointed by the Board.
In this section, "superannuation guarantee amount" means the amount determined by the Board after obtaining the advice of an actuary appointed by the Board to be the minimum amount necessary in respect of a member or former member to avoid a superannuation guarantee shortfall within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.
The amount determined by the Board for the purpose of subsection (8) is to be determined as if no election had been made under section 28(3A).
S. 36 amended by No. 46/1998 s. 7(Sch. 1).
This provision refers to the regulations (the regulations
, prescribed rate
). Made under this Act:
- Transport Superannuation Regulations 2018 · under section 52
This Act’s bill:Second reading speech
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