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Public Sector Superannuation Reform Act 1999
An Act to provide for the Tasmanian Accumulation Scheme and the incorporation of the funds under that Scheme into the Retirement Benefits Fund, to reform superannuation arrangements for certain persons employed, or appointed or elected to positions, in the public sector and for related purposes
[Royal Assent 14 May 1999]
Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:
PART 1 - Preliminary
This Act may be cited as the Public Sector Superannuation Reform Act 1999 .
(1) Section 18 and Schedule 2 commence on the transfer day.(2) The remaining provisions of this Act commence on the day after the day on which the Superannuation (Commonwealth Surcharge and Miscellaneous Amendments) Act 1999 receives the Royal Assent.
(1) In this Act –accumulation scheme means the Tasmanian Accumulation Scheme established under section 7 ;Agency means –(a) a Government department or an organisation specified in Column 1 of Schedule 1 to the State Service Act 2000 ; or(b) a prescribed authority that is not such an organisation; or(c) a State-owned company; or(d) another body or person carrying on an industry or undertaking for or on behalf of the State, unless the body or person is under the regulations exempt from the application of this Act;Agency manager means –(a) a Head of a State Service Agency; or(b) a chief executive officer within the meaning of the Government Business Enterprises Act 1995 ; or(c) a controlling authority of a prescribed authority that is not –(i) a Government department or organisation specified in Column 1 of Schedule 1 to the State Service Act 2000 ; or(ii) a Government Business Enterprise within the meaning of the Government Business Enterprises Act 1995 ; or(d) a chief executive officer, by whatever name called, of a State-owned company; or(e) a controlling authority of a body or person carrying on an industry or undertaking for or on behalf of the State;Board means the Retirement Benefits Fund Board continued in existence under section 7 of the Retirement Benefits Act 1993 ;commencement day means the day first referred to in section 2(2);complying superannuation scheme means a complying superannuation fund as provided by the law of the Commonwealth;compulsory preservation account has the same meaning as in the Principal Regulations;contributory scheme means the superannuation arrangements provided by Part 4 of the Principal Regulations;employee means a person, other than a person who is excluded from the application of the Principal Regulations, who is employed in any position or capacity –and includes a police officer;(a) as a State Service officer or State Service employee; or(b) by a prescribed authority; or(c) by a State-owned company; or(d) by another body or person carrying on an industry or undertaking for or on behalf of the State –non-contributory account means an account established under Part 5 of the Principal Regulations;non-contributory scheme means the superannuation arrangements provided by Part 5 of the Principal Regulations;police officer means a police officer, within the meaning of the Police Regulation Act 1898 , and includes the Commissioner of Police, the Deputy Commissioner of Police, an Assistant Commissioner of Police and a cadet appointed under section 28A of that Act;prescribed authority means an authority to which this Act applies under subsection (2) ;preservation age means the age of 55 years or, where the law of the Commonwealth relating to superannuation provides for another age as the preservation age, that other age;Principal Regulations means the Retirement Benefits Regulations 1994 ;salary or wages has the same meaning as in the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, as amended;State-owned company means a company incorporated under the Corporations Law which is controlled by the Crown, a Government Business Enterprise or a statutory authority or another company which is so controlled;transfer day means the day specified by the Minister under section 7(5) in a notice approving a Trust Deed as the day on which the Trust Deed is to take effect;transferring member means a person who, immediately before the transfer day, is a member of the non-contributory scheme;Trust Deed means the Trust Deed referred to in section 7 and includes that Deed as amended or substituted from time to time.(2) The Minister may, by notice published in the Gazette, declare that this Act applies to a joint authority under section 38 of the Local Government Act 1993 or any other specified authority.(3) For the purposes of the definition of "State-owned company" in subsection (1) , the provisions of the Corporations Law relating to control are taken to apply as if the Crown, Government Business Enterprise or statutory authority, as the case may be, were a corporation under that Law.
The objects of this Act are to provide a superannuation scheme for –(a) a person who after 1 July 1999 is first appointed as Governor; and(b) a person who after 1 July 1999 is elected as a member of Parliament and to whom neither the Parliamentary Superannuation Act 1973 nor the Parliamentary Retiring Benefits Act 1985 applies; and(c) a person who after 1 July 1999 is appointed as a judge or the Master of the Supreme Court; and(d) a person who after 1 July 1999 is appointed as the Solicitor-General or the Director of Public Prosecutions; and(e) persons employed by the State or State authorities; and(f) any other person for whom provision is made in any other Act to make contributions, or to transfer a lump sum benefit, to the accumulation scheme; and(g) in certain cases, the spouses and beneficiaries of any person referred to in paragraph (a) , (b) , (c) , (d) , (e) or (f) .
PART 2 - Closure of contributory scheme
4. Closure of contributory scheme
(1) The contributory scheme does not apply to an employee appointed or engaged on or after the commencement day.(2) A person who –may elect, in writing to the Board, to contribute to that scheme on and from the date of the election.(a) has been continuously employed in a permanent part-time capacity in an Agency before 1 July 1994; and(b) has not previously elected to contribute to the contributory scheme –(3) Regulation 21 of the Principal Regulations applies to a person who is a member of the non-contributory scheme immediately before the commencement day and continues to apply to that person on and after that day.(4) In the application of regulation 21 of the Principal Regulations to a person referred to in subsection (3) , the Board must not extend the time within which the person may elect to contribute to the contributory scheme under that regulation beyond 3 years after the commencement day.(5) A married female employee who –may elect, in accordance with regulation 23 of the Principal Regulations, to contribute to that scheme.(a) was employed in a permanent capacity in an Agency before 1 July 1982; and(b) has been continuously so employed since that date; and(c) is not contributing to the contributory scheme –(6) If, immediately before the commencement day, a person was an invalidity pensioner or an interim invalidity pensioner, within the meaning of the Principal Regulations, regulation 85(3) of those regulations continues to apply in respect of that person on and after that day.
5. Application of non-contributory scheme
(1) An employee appointed or engaged on or after the commencement day but before the transfer day is a member of the non-contributory scheme and is an eligible employee within the meaning of the Principal Regulations.(2) Notwithstanding subsection (1) , an employee appointed or engaged on or after the commencement day must pay contributions at the rate of 5 per cent of salary, unless he or she elects at any time to contribute at another rate that is a multiple of one per cent of salary or to make no contributions.(3) Contributions made in accordance with subsection (2) and interest on those contributions are to be credited to the employee's account.
PART 3 - Accumulation scheme
6. Election for scheme and payment into scheme
(1) An employee appointed or engaged on or after the transfer day is a member of the accumulation scheme unless he or she elects, after commencing employment, to become a member of another complying superannuation scheme.(2) Notwithstanding subsection (1) , an employee appointed or engaged on or after the transfer day may elect, before commencing employment, to become a member of another complying superannuation scheme.(3) If an employee has become a member of a complying superannuation scheme, other than the accumulation scheme, that employee may at any time elect to become a member of the accumulation scheme.(4) An election under this section is to be made in writing to the Agency in which the employee is to commence employment or is employed.(5) Where an employee elects to become a member of a complying superannuation scheme other than the accumulation scheme, the Agency manager on behalf of the Agency must, on being satisfied after making reasonable inquiries that the nominated scheme is a complying superannuation scheme, make employer superannuation contributions –(a) in accordance with subsection (7) ; and(b) in the manner required by the rules of that scheme and the requirements of the law of the Commonwealth.(5A) Notwithstanding subsection (5) , where an election is made under this section –(a) the Agency manager is not required to pay superannuation contributions into a complying superannuation scheme if that scheme does not accept payment by electronic funds transfer; and(b) employer contributions are to be calculated by reference to his or her salary as defined by the Trust Deed and in accordance with the rate of those contributions specified in that Deed.(5B) An employee appointed or engaged on or after the commencement of this subsection who elects to join a complying superannuation scheme other than the accumulation scheme must pay contributions at the rate of 5 per cent of salary, unless he or she elects at any time to contribute at another rate that is a multiple of one per cent of salary or to make no contributions.(6) Where an employee elects to become a member of the accumulation scheme, the Agency manager on behalf of the Agency must make employer superannuation contributions as provided by subsection (7) and in the manner required by the rules of that scheme.(7) The rate of employer superannuation contributions is to be the relevant rate specified in the following table:
Period
Rate as percentage of salary or wages
From the transfer day to 30 June 2000
7%
From 1 July 2000 to 30 June 2002
8%
From 1 July 2002 onwards
9%
(8) The Retirement Benefits Act 1993 and the Principal Regulations, other than Parts 4 and 5, apply in respect of an employee who becomes a member of the accumulation scheme, except to the extent of any inconsistency with the Trust Deed and this Act.
(1) Within 4 months after the commencement day or before such later day as the Minister may, in writing, approve, the Board must prepare and submit to the Minister for approval a draft of a Trust Deed to establish the Tasmanian Accumulation Scheme.(2) The Minister may approve or disapprove of the draft.(3) The Minister must not approve of the draft unless he or she –(a) has consulted with the Tasmanian Trades and Labor Council; and(b) is satisfied that it complies with, and is consistent with, this Act and the law of the Commonwealth.(4) The Minister must notify the Board, in writing, of his or her approval or disapproval of a draft submitted under subsection (1) and, in the event of disapproval, the Board must prepare and submit to the Minister a revised draft in accordance with this section and any requests made by the Minister.(5) If the Minister approves of a draft, the notice of that approval provided to the Board must specify the day on which the Trust Deed is to take effect.(6) After the Minister approves the Trust Deed –(a) the Minister and the Board must execute the Trust Deed; and(b) the Minister must cause to be published in the Gazette notice of –(i) the Minister's approval; and(ii) the execution of the Trust Deed; and(iii) the transfer day.(7) The Trust Deed takes effect on the transfer day.(8) The Trust Deed is binding on, and in respect of, all Agencies.
The Trust Deed applies to –unless that transferring member or employee has elected to cease to be a member of the accumulation scheme.(a) a transferring member; and(b) an employee who is a member of the accumulation scheme –
(1) The Trust Deed must provide that –(a) the employer superannuation contribution rate is the relevant rate specified in the table in section 6(7) ; and(b) subject to paragraph (c) , a member of the accumulation scheme must make contributions at the rate of 5 per cent of salary, unless he or she elects to contribute at another rate that is a multiple of one per cent of salary or to make no contributions; and(c) a member of the non-contributory scheme before the commencement day who becomes a member of the accumulation scheme after the transfer day is initially taken to have elected to maintain the same rate of contributions as in force immediately before the transfer day, but may elect at any time to vary that rate as provided in the Trust Deed; and(d) the accumulation scheme is to provide benefits and be administered by the Board in accordance with this Act and the requirements of the law of the Commonwealth; and(e) employer superannuation contributions to the accumulation scheme are to be fully funded at all times; and(f) the accumulation scheme is to provide for a basic level of death and disability cover for all members of the accumulation scheme under 60 years of age with the cost of that cover to be met from the members' accounts in accordance with the Trust Deed; and(g) the accumulation scheme is to provide an option for those members of a greater or lesser level of death and disability cover or an option to have no cover, with any cost of that cover to be met from the members' accounts in accordance with the Trust Deed; and(ga) the Board may accept an election from a member not to be covered for death and disability only if that member produces evidence to the satisfaction of the Board that he or she has adequate alternative death and disability cover; and(h) allocated pensions and lump sums are to be the only benefit options provided by the accumulation scheme; and(i) a member of the accumulation scheme is to be provided with a choice from a range of investment options, with one option, unless otherwise approved by the Minister, being investment in a portfolio consisting of government fixed interest securities; and(j) there are to be arrangements for appeals against decisions, determinations and orders of the Board in the course of its administration of the accumulation scheme; and(k) a member of the accumulation scheme may elect, at any time in writing to the Board, to cease to be such a member and to transfer his or her accumulated benefit to another complying superannuation scheme.(1A) Notwithstanding subsection (1)(h) , where on 14 May 1999 a person had the right to receive a pension under Part 5 of the Principal Regulations, the Trust Deed is to provide for that person to remain entitled to that right.(2) The Trust Deed may provide for all other matters necessary or expedient in order to give effect to the accumulation scheme.
(1) In this section,balance amount means the total notional balance of each non-contributory account relating to a transferring member immediately before the transfer day.(2) Subject to subsection (3) , on the transfer day –(a) Part 5 of the Principal Regulations ceases to apply to a transferring member; and(b) the provisions of this Act and the Trust Deed apply to the transferring member.(3) On the transfer day, regulation 48 of the Principal Regulations ceases to apply to a transferring member and he or she is entitled to have credited to his or her account in the accumulation scheme a benefit under that regulation calculated in accordance with the Trust Deed.(4) The Minister must, before the transfer day, make arrangements with the Board so as to ensure that the balance amount in respect of a transferring member is reduced for the purpose of reflecting any difference between the taxation of the non-contributory scheme and taxation of the accumulation scheme and is also fully funded on and from that day.(5) For the purposes of subsection (4) , a reduction in the balance amount in respect of each transferring member is to be determined by the Minister on the advice of the Board.(6) On the transfer day, the total balance of an account established in the accumulation scheme in respect of a transferring member is taken to be the balance amount in respect of that member, reduced in accordance with subsection (5) .
11. Amendment or substitution of Trust Deed
(1) The Trust Deed may be amended, or revoked and substituted, in accordance with the Trust Deed.(2) Section 7 , other than subsection (5) , applies, with any necessary modification, in respect of an amendment to, or a revocation and substitution of, the Trust Deed.(3) An amendment to, or a revocation and substitution of, the Trust Deed takes effect on the day on which the notice under section 7(6)(b) is published in the Gazette.(4) Notwithstanding subsections (1) , (2) and (3) , the Minister may amend the Trust Deed in accordance with subsections (5) , (6) and (7) .(5) The Minister must consult with the Board and the Tasmanian Trades and Labor Council with respect to any proposed amendment.(6) Where, following that consultation, the Minister resolves to amend the Trust Deed –(a) the Minister and the Board must execute the amendment; and(b) the Minister must cause to be published in the Gazette notice of –(i) the amendment; and(ii) the date when the amended Trust Deed takes effect.(7) The Trust Deed must not be amended so as to authorise any payment from the accumulation scheme to an Agency other than an expense incurred in the normal course of administration or a refund of overpaid contributions.
(1) The accumulation scheme forms part of the superannuation scheme referred to in section 5 of the Retirement Benefits Act 1993 .(2) The funds established under the Trust Deed in respect of the accumulation scheme –(a) form part of the Retirement Benefits Fund continued by section 11 of the Retirement Benefits Act 1993 ; and(b) are to be administered by the Board as subfunds of the Retirement Benefits Fund.
(1) Where an Agency is required to produce an annual report, that report is to include a certification by the relevant Agency manager that, if it is the case, the Agency has met its obligations under the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, as amended, in respect of any employee who is or becomes a member of a complying superannuation scheme to which the Agency contributes, other than the accumulation scheme or the contributory scheme.(2) An Agency is to include in its annual report such other information relating to superannuation schemes of which its employees are members as may be prescribed in the regulations.
PART 4 - Miscellaneous and supplemental
14. Application of Principal Regulations
(1) The Principal Regulations apply to the administration and operation of the accumulation scheme and the funds established under the Trust Deed with such modifications as may be necessary and in accordance with any prescribed modifications.(2) Subsection (1) does not operate so as to disturb the effect of any provision of this Act or the Trust Deed which is inconsistent with the Principal Regulations.
(1) The Governor may make regulations for the purposes of this Act.(2) Without limiting the generality of subsection (1) , the Governor may make regulations that contain provisions –(a) enabling a member of the contributory scheme to transfer from that scheme to the accumulation scheme or another complying superannuation scheme and providing for related matters; and(b) modifying the operation of the Principal Regulations in their application to the accumulation scheme; and(c) of a savings or transitional nature consequent on the enactment of this Act or the establishment, amendment or substitution of the Trust Deed, including but not limited to the transfer of assets and liabilities.(3) A regulation of a kind referred to in subsection (2) may take effect on and from the day on which this Act commences or the day on which the Trust Deed is established, amended or substituted, as the case requires, or on and from a later date.(4) Regulations made under this section –(a) may be made so as to apply differently according to matters, limitations or restrictions, whether as to time, circumstance or otherwise, specified in the regulations; and(b) may authorise any matter to be from time to time determined, applied or regulated by the Board; and(c) may adopt, either wholly or in part and with or without modification, and either specifically or by reference, any provisions of the Retirement Benefits Act 1993 , the Principal Regulations or the Trust Deed.
Until provision is made in relation to this Act by order under section 4 of the Administrative Arrangements Act 1990 –(a) the administration of this Act is assigned to the Treasurer; and(b) the department responsible to the Treasurer in relation to the administration of this Act is the Department of Treasury and Finance.
See Schedule 1 .
18. Retirement Benefits Regulations 1994 amended
(1) The Retirement Benefits Regulations 1994 are amended as specified in Schedule 2 .(2) The amendments made by Schedule 2 have effect, notwithstanding section 29 of the Retirement Benefits Act 1993.
SCHEDULE 1 - Consequential Amendments to various ActsThe amendments effected by Section 17 and this Schedule have been incorporated into authorised versions of the following Acts:
(a) Electricity Companies Act 1997 ;(b) Government Business Enterprises Act 1995 ;(c) Metro Tasmania (Transitional and Consequential Provisions) Act 1997 ;(d) Printing Authority of Tasmania Act 1994 ;(e) Retirement Benefits Act 1993 ;(f) TT-Line Arrangements Act 1993 .
SCHEDULE 2 - Amendments of Retirement Benefits Regulations 1994The amendments effected by Section 18 and this Schedule have been incorporated into the authorised version of the Retirement Benefits Regulations 1994 .