Superannuation Legislation Amendment Act 2019

Authorised by the Chief Parliamentary Counsel Authorised Version i Superannuation Legislation Amendment Act 2019 No. 36 of 2019 TABLE OF PROVISIONS Section Page Part 1—Preliminary 1 1 Purpose 1 2 Commencement 2 Part 2—Amendment of the Emergency Services Superannuation Act 1986 3 3 Amendment of section 4—Application of Act 3 4 Amendment of section 20A—Contributions 3 5 New section 20AA inserted—Additional contributions 5 6 Amendment of section 20B—Membership 6 7 Amendment of section 20C—Accrued benefits 6 8 Amendment of section 20E—Death of contributor or police recruit 7 9 New section 20MA inserted—Notional contribution rate during leave of absence 7 10 New section 20T inserted—Transition to retirement pension 8 11 Amendment of section 21A—ESSPLAN Scheme 9 12 Amendment of section 27A—Unpaid lump sum benefits 9 Part 3—Amendment of other Superannuation Acts 10 13 Amendment of section 74D—Payment of lump sum benefits 10 14 Amendment of section 89A—Payment of lump sum benefits 10 15 Amendment of section 50A—Payment of lump sum benefits 10 16 Amendment of the Parliamentary Salaries, Allowances and Superannuation Act 1968 11 Part 4—Repeal of this Act 15 17 Repeal of this Act 15 ═════════════ Endnotes 16 1 General information 16 -- 1 of 18 -- Section Page ii Authorised by the Chief Parliamentary Counsel -- 2 of 18 -- Authorised by the Chief Parliamentary Counsel Authorised Version 1 Superannuation Legislation Amendment Act 2019† No. 36 of 2019 [Assented to 22 October 2019] The Parliament of Victoria enacts: Part 1—Preliminary 1 Purpose The purpose of this Act is to amend the Emergency Services Superannuation Act 1986, the State Employees Retirement Benefits Act 1979, the State Superannuation Act 1988 and the Transport Superannuation Act 1988 to improve the operation of the superannuation schemes under those Acts and to amend the Parliamentary Salaries, Allowances and Victoria -- 3 of 18 -- Part 1—Preliminary Superannuation Legislation Amendment Act 2019 No. 36 of 2019 2 Authorised by the Chief Parliamentary Counsel Superannuation Act 1968 in relation to the Parliamentary Contributory Superannuation Fund. 2 Commencement (1) This Act (except sections 4(5) and 16) comes into operation on the day after the day on which it receives the Royal Assent. (2) Section 4(5) is deemed to have come into operation on 1 July 2019. (3) Section 16 is deemed to have come into operation on 16 September 2019. -- 4 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 3 Authorised by the Chief Parliamentary Counsel Part 2—Amendment of the Emergency Services Superannuation Act 1986 3 Amendment of section 4—Application of Act In section 4(1E)(d) of the Emergency Services Superannuation Act 1986, for "and the Board agrees that the reduction is not to be taken into account" substitute "on or after 1 July 2019 then, unless the contributor agrees in writing that the reduced salary applies". 4 Amendment of section 20A—Contributions (1) After section 20A(2) of the Emergency Services Superannuation Act 1986 insert— "(2AA) Subject to subsection (7A), from 1 July 2019 a contributor may also elect to make contributions at a rate of 9% or 10% of salary.". (2) In section 20A(2A) and (2B) of the Emergency Services Superannuation Act 1986, after "subsection (2)" insert "or (2AA)". (3) After section 20A(7) of the Emergency Services Superannuation Act 1986 insert— "(7A) A contributor is permitted to contribute at a rate of 9% or 10% of salary only if at the time of the first election under this section or at any subsequent date on which contributions may be varied, the contributor is an operational staff member whose average contribution rate is less than 7% of their salary over the whole of their period of membership as at the time of the election.". -- 5 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 4 Authorised by the Chief Parliamentary Counsel (4) In section 20A(8) of the Emergency Services Superannuation Act 1986, after "section 20C" insert "or if the contributor has elected to take a transition to retirement pension under section 20T, the reduced maximum under section 20T(4)". (5) After section 20A(12) of the Emergency Services Superannuation Act 1986 insert— "(13) Subject to subsection (16), for the purposes of making contributions, the salary upon which the contributor is to make contributions is to be fixed as at 1 July each year. (14) The employer must within the period of 2 months after 1 July each year notify the Board of any change in the salary of the contributor for the purpose of making contributions. (15) The salary as notified in accordance with subsection (14), or if there is no notification in accordance with subsection (14), the last salary notified, is the salary for the purposes of making contributions for the period commencing on 1 September each year and ending on 31 August in the following year. (16) If the contribution that a member is liable to make changes because of— (a) an election by the member under this section, the contributions are to be adjusted from the date on which the Board accepts the election; (b) a change in the time fraction basis of their employment, the contributions are to be adjusted from the date on which the change to the time fraction basis of their employment took effect.". -- 6 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 5 Authorised by the Chief Parliamentary Counsel 5 New section 20AA inserted—Additional contributions After section 20A of the Emergency Services Superannuation Act 1986 insert— "20AA Additional contributions (1) If the accrued benefit of a contributor has reached— (a) the maximum specified in section 20C(2); or (b) if the contributor has elected to take a transition to retirement pension under section 20T, the multiple of the salary of the contributor that applies under section 20T(4)— the employer of the contributor must pay additional contributions in respect of the contributor based on the contributor's actual current salary in accordance with the Table in subsection (2). (2) The Table referred to in subsection (1) is— Year Rate as a percentage of salary 2019-2020 3 2020-2021 3 2021-2022 6 2022-2023 6 2023-2024 8 2024-2025 9 2025-2026 11 2026-2027 12 ". -- 7 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 6 Authorised by the Chief Parliamentary Counsel 6 Amendment of section 20B—Membership In section 20B(4)(d) of the Emergency Services Superannuation Act 1986, for "or 20G" substitute ", 20G or 20T". 7 Amendment of section 20C—Accrued benefits (1) In section 20C(2AB) of the Emergency Services Superannuation Act 1986, for "the Table in subsection (2AC)" substitute "Table A in subsection (2AC) and, if section 20A(7A) applies, Table B in subsection (2ACA)". (2) In section 20C(2AC) of the Emergency Services Superannuation Act 1986, for "The Table" substitute "Table A". (3) After section 20C(2AC) of the Emergency Services Superannuation Act 1986 insert— "(2ACA) Table B referred to in subsection (2AB) is— Contribution rate by contributor as percentage of salary of the contributor Annual accrual rate for each year of membership after 1 July 2019 if benefits are taxed Annual accrual rate for each year of membership after 1 July 2019 if benefits are untaxed 9 32 36 10 35.5 40 ". (4) In section 20C(2AE)(a)(i) of the Emergency Services Superannuation Act 1986, after "contributor" insert ", or if the contributor's maximum untaxed benefit multiple of 8.4 has been reduced under section 20T(4), the amount that the Board determines for the purposes of this section, on the advice of the actuary appointed by the Board". -- 8 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 7 Authorised by the Chief Parliamentary Counsel (5) In section 20C(2AE)(b) of the Emergency Services Superannuation Act 1986, after "contributor" insert ", or if the contributor has elected to take a transition to retirement pension under section 20T, the multiple of the salary of the contributor that applies under section 20T(4)". 8 Amendment of section 20E—Death of contributor or police recruit (1) In section 20E(4)(b) of the Emergency Services Superannuation Act 1986, after "subsection (1)" insert ", or if the contributor's maximum multiple of 8.4 is reduced under section 20T(4), the difference between the reduced maximum multiple under section 20T(4) times the salary and the lump sum under subsection (1)". (2) In section 20E(6) of the Emergency Services Superannuation Act 1986, after "dependants" insert "or, if there are none, to the nominees". 9 New section 20MA inserted—Notional contribution rate during leave of absence After section 20M of the Emergency Services Superannuation Act 1986 insert— "20MA Notional contribution rate during leave of absence (1) A contributor who is on leave in accordance with section 20B(3)(b) or (ba), may apply to the Board in a form approved by the Board to choose a notional contribution rate for the purposes of section 20C for the period of the leave of absence. (2) The Board may determine whether the amount of the contributions unpaid during the period of leave and interest on that amount is to be recovered— -- 9 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 8 Authorised by the Chief Parliamentary Counsel (a) by the contributor making higher member contributions at a rate and for a period determined by the Board; or (b) by the Board reducing the accrued benefit of the contributor by an amount determined by an actuary appointed by the Board.". 10 New section 20T inserted—Transition to retirement pension After section 20S of the Emergency Services Superannuation Act 1986 insert— "20T Transition to retirement pension (1) A contributor who has attained preservation age may apply to the Board in a form approved by the Board to convert part of their accrued benefit into a transition to retirement pension. (2) The contributor must elect in the application under subsection (1) to convert a part of their accrued benefit into a transition to retirement pension which is equal to a percentage that is not less than 20% and not more than 50% of their accrued benefit. (3) If the Board approves the application under subsection (1), the Board must— (a) establish a transition to retirement pension account in the ESSPLAN Scheme for the contributor; and (b) reduce the contributor's accrued benefit multiple in accordance with a methodology approved by the Minister, on the advice of an actuary appointed by the Board. -- 10 of 18 -- Part 2—Amendment of the Emergency Services Superannuation Act 1986 Superannuation Legislation Amendment Act 2019 No. 36 of 2019 9 Authorised by the Chief Parliamentary Counsel (4) The Board must reduce the maximum of 8.40 times the salary of the contributor that would otherwise apply in respect of the accrued benefit of the contributor under section 20C(2) by the same reduction as the accrued benefit multiple is reduced under subsection (3)(b). (5) In this section, preservation age has the same meaning as it has in regulation 6.01(2) of the Superannuation Industry (Supervision) Regulations 1994 of the Commonwealth.". 11 Amendment of section 21A—ESSPLAN Scheme After section 21A(2)(ac) of the Emergency Services Superannuation Act 1986 insert— "(ad) contributions made by an employer in respect of a contributor in accordance with section 20AA;". 12 Amendment of section 27A—Unpaid lump sum benefits In section 27A of the Emergency Services Superannuation Act 1986— (a) for "within 14 days of the date of termination of service of a contributor" substitute "on the date on which a contributor becomes entitled to the lump sum benefit"; (b) for "of termination of service" (where secondly occurring) substitute "on which the contributor became entitled to the lump sum benefit". -- 11 of 18 -- Part 3—Amendment of other Superannuation Acts Superannuation Legislation Amendment Act 2019 No. 36 of 2019 10 Authorised by the Chief Parliamentary Counsel Part 3—Amendment of other Superannuation Acts 13 Amendment of section 74D—Payment of lump sum benefits In section 74D of the State Employees Retirement Benefits Act 1979, for "within 14 days of the person becoming entitled" substitute "on the date on which the person becomes entitled to the lump sum benefit". 14 Amendment of section 89A—Payment of lump sum benefits In section 89A of the State Superannuation Act 1988, for "within 14 days of the person becoming entitled" substitute "on the date on which the person becomes entitled to the lump sum benefit". 15 Amendment of section 50A—Payment of lump sum benefits In section 50A of the Transport Superannuation Act 1988, for "within 14 days of the person becoming entitled" substitute "on the date on which the person becomes entitled to the lump sum benefit". -- 12 of 18 -- Part 3—Amendment of other Superannuation Acts Superannuation Legislation Amendment Act 2019 No. 36 of 2019 11 Authorised by the Chief Parliamentary Counsel 16 Amendment of the Parliamentary Salaries, Allowances and Superannuation Act 1968 In the Parliamentary Salaries, Allowances and Superannuation Act 1968— (a) in section 10(1) insert the following definition— "additional salary means the amount of additional salary calculated in accordance with the Table in subsection (6);"; (b) after section 10(5) insert— "(6) For the purposes of the definition of additional salary, additional salary means the highest additional salary amount specified in the Table in respect of the offices held by the Member. Table Office Additional Salary % per annum of basic salary Premier 100 Deputy Premier 85 Any other responsible Minister of the Crown 75 Leader of the Opposition 75 President 65 Speaker 65 Deputy President 20 Deputy Speaker 20 Deputy Leader of the Opposition in the Assembly 32 Leader of the Opposition in the Council 32 -- 13 of 18 -- Part 3—Amendment of other Superannuation Acts Superannuation Legislation Amendment Act 2019 No. 36 of 2019 12 Authorised by the Chief Parliamentary Counsel Office Additional Salary % per annum of basic salary Leader of the Third Party (unless the Leader of the Third Party is also Leader or Deputy Leader of the Opposition or a Minister of the Crown) 32 Cabinet Secretary 32 Parliamentary Secretary to the Premier 20 Chairperson of the Public Accounts and Estimates Committee 20 Government Whip in the Assembly 18 Deputy Leader of the Opposition in the Council 18 Deputy Leader of the Third Party (unless the Deputy Leader of the Third Party is also Leader or Deputy Leader of the Opposition or a Minister of the Crown) 18 Parliamentary Secretaries 15 Chairperson of the Scrutiny of Acts and Regulations Committee 15 Chairperson of the Integrity and Oversight Committee 15 Government Whip in the Council 11 Opposition Whip in the Assembly 11 Opposition Whip in the Council 11 -- 14 of 18 -- Part 3—Amendment of other Superannuation Acts Superannuation Legislation Amendment Act 2019 No. 36 of 2019 13 Authorised by the Chief Parliamentary Counsel Office Additional Salary % per annum of basic salary Whip of the Third Party in the Assembly 11 Whip of the Third Party in the Council 11 Deputy Government Whip in the Assembly 10 Chairperson of a standing committee appointed under standing orders of the Assembly or the Council 10 Chairperson of a Joint Investigatory Committee within the meaning of the Parliamentary Committees Act 2003 which is not otherwise provided for in this Table 10 Chairperson of joint select committee where resolution establishing committee so provides that chairperson is entitled 5 Deputy chairperson of the Public Accounts and Estimates Committee 4 Deputy chairperson of the Scrutiny of Acts and Regulations Committee 4 Deputy chairperson of the Integrity and Oversight Committee 4 Secretary of the Party forming the Government 4 Secretary of the Opposition Party 4 -- 15 of 18 -- Part 3—Amendment of other Superannuation Acts Superannuation Legislation Amendment Act 2019 No. 36 of 2019 14 Authorised by the Chief Parliamentary Counsel Office Additional Salary % per annum of basic salary Secretary of the Third Party 4 "; (c) in section 14(1) for "the gross amount of the instalment" substitute "an instalment of the aggregate of basic salary and additional salary"; (d) in section 14(2) for "occupies an office specified in section 6(2)" substitute "is an office holder specified in the Table in section 10(6)"; (e) in section 14(2) omit "payable to that member by virtue of occupying an office specified in section 6(2)"; (f) for section 21A(4)(a) substitute— "(a) the following definitions apply— office means an office specified in the Table in section 10(6); office holder means the holder of an office specified in the Table in section 10(6); parliamentary allowance, in relation to a Member, means basic salary; salary, in relation to a Member who is an office holder, means additional salary;". -- 16 of 18 -- Part 4—Repeal of this Act Superannuation Legislation Amendment Act 2019 No. 36 of 2019 15 Authorised by the Chief Parliamentary Counsel Part 4—Repeal of this Act 17 Repeal of this Act This Act is repealed on the first anniversary of the day on which it receives the Royal Assent. Note The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the Interpretation of Legislation Act 1984). ═════════════ -- 17 of 18 -- Endnotes Superannuation Legislation Amendment Act 2019 No. 36 of 2019 16 Authorised by the Chief Parliamentary Counsel Endnotes 1 General information See www.legislation.vic.gov.au for Victorian Bills, Acts and current authorised versions of legislation and up-to-date legislative information. † Minister's second reading speech— Legislative Assembly: 5 June 2019 Legislative Council: 20 June 2019 The long title for the Bill for this Act was "A Bill for an Act to amend the Emergency Services Superannuation Act 1986 and certain other Superannuation Acts and for other purposes." -- 18 of 18 --