Superannuation Acts (Beneficiary Choice) Act 2000

i Superannuation Acts (Beneficiary Choice) Act 2000 Act No. 95/2000 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 2 PART 2—AMENDMENT OF STATE SUPERANNUATION ACT 1988 3 3. Establishment of Beneficiary Choice Scheme 3 PART 3A—BENEFICIARY CHOICE SCHEME 3 23A. Establishment of Scheme 3 23B. Membership of Scheme 3 23C. Entitlements of member 4 23D. Transfer of assets to Scheme 4 23E. Payments from Scheme 4 23F. Winding up of Scheme 4 23G. No stamp duty or other tax payable 4 4. Beneficiary Choice Program 5 PART 9—BENEFICIARY CHOICE PROGRAM 5 102. Definitions 5 103. Declaration in relation to Commonwealth funded pensioners 7 104. Application to participate 7 105. Commutation—eligible beneficiaries 8 106. Commutation—eligible pensioners 9 5. New Schedule 2 inserted 9 6. Amendments relating to future commutation entitlements 11 7. Re-instatement of certain disability pensioners 16 77B. Re-instatement of certain disability pensioners 16 -- 1 of 48 -- Section Page ii PART 3—AMENDMENT OF EMERGENCY SERVICES SUPERANNUATION ACT 1986 19 8. Spouse Accounts 19 21JA. Spouse Accounts 19 9. Amendments consequential on section 8 21 PART 4—AMENDMENT OF GOVERNMENT SUPERANNUATION ACT 1999 22 10. Specified standards 22 46A. Commencement of specified standards Order 22 11. Repeal of spent provisions 22 PART 5—AMENDMENT OF POLICE REGULATION ACT 1958 23 12. Beneficiary Choice Program 23 Division 5—Beneficiary Choice Program 23 67C. Definitions 23 67D. Application to participate 24 67E. Commutation 24 PART 6—AMENDMENT OF STATE EMPLOYEES RETIREMENT BENEFITS ACT 1979 26 13. Beneficiary Choice Program 26 PART VI—BENEFICIARY CHOICE PROGRAM 26 79. Definitions 26 80. Declaration in relation to Commonwealth funded pensioners 27 81. Application to participate 28 82. Commutation—eligible beneficiaries 28 83. Commutation—eligible pensioners 29 14. Consequential 30 15. New Schedule inserted 30 16. Amendments relating to future commutation entitlements 30 PART 7—AMENDMENT OF SUPERANNUATION (PORTABILITY) ACT 1989 33 17. Beneficiary Choice Program 33 5A. Beneficiary Choice Program 33 18. Amendments relating to future commutation entitlements 35 PART 8—AMENDMENT OF THE CONSTITUTION ACT AMENDMENT ACT 1958 37 -- 2 of 48 -- Section Page iii 19. Privileges of certain former members 37 PART 9—AMENDMENT OF TRANSPORT SUPERANNUATION ACT 1988 40 20. Beneficiary Choice Program 40 PART 9—BENEFICIARY CHOICE PROGRAM 40 54. Definitions 40 55. Application to participate 41 56. Commutation—eligible beneficiaries 42 57. Commutation—eligible pensioners 42 21. Amendments relating to future commutation entitlements 43 ═══════════════ ENDNOTES 45 -- 3 of 48 -- 1 Superannuation Acts (Beneficiary Choice) Act 2000† [Assented to 5 December 2000] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purpose The purpose of this Act is to amend certain Superannuation Acts— (a) to provide for greater choice by way of a one-off election and future options to commute pension and deferred benefit entitlements; and Victoria No. 95 of 2000 -- 4 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 2 (b) to improve the administration of certain superannuation schemes. 2. Commencement (1) This Act, except sections 3, 6, 10, 16, 18, 19 and 21, comes into operation on the day after the day on which it receives the Royal Assent. (2) Section 19(1) is deemed to have come into operation on 23 January 1980. (3) Section 19(2) is deemed to have come into operation on 1 January 1987. (4) Section 19(3) is deemed to have come into operation on 1 July 1988. (5) Section 10 is deemed to have come into operation on 1 July 1999. (6) Sections 3, 6, 16, 18 and 21 come into operation on 1 July 2001. _______________ s. 2 -- 5 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 3 PART 2—AMENDMENT OF STATE SUPERANNUATION ACT 1988 3. Establishment of Beneficiary Choice Scheme After Part 3 of the State Superannuation Act 1988 insert— "PART 3A—BENEFICIARY CHOICE SCHEME 23A. Establishment of Scheme (1) There is established a Scheme within the Fund called the Beneficiary Choice Scheme. (2) The rules of the Beneficiary Choice Scheme are the rules as specified in relation to pensions in regulation 1.06 of the Commonwealth Superannuation Industry (Supervision) Regulations 1994. 23B. Membership of Scheme The following are members of the Beneficiary Choice Scheme— (a) an eligible pensioner whose application is accepted under section 104; (b) an eligible pensioner whose application is accepted under section 67D of the Police Regulation Act 1958; (c) an eligible pensioner whose application is accepted under section 81 of the State Employees Retirement Benefits Act 1979; (d) an eligible pensioner whose application is accepted under section 55 of the Transport Superannuation Act 1988. s. 3 -- 6 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 4 23C. Entitlements of member A member is entitled to a complying pension from the Beneficiary Choice Scheme. 23D. Transfer of assets to Scheme (1) The Emergency Services Superannuation Board must transfer to the Beneficiary Choice Scheme assets of the Emergency Services Superannuation Scheme equal to the entitlements of a member of the Beneficiary Choice Scheme whose pension entitlements were administered under section 22 or 22A of the Emergency Services Superannuation Act 1986 as determined by an actuary appointed by the Minister. (2) As soon as the assets have been transferred, the assets form part of the Fund. 23E. Payments from Scheme (1) The Board must commute a member's complying pension into a lump sum payable out of the Beneficiary Choice Scheme. (2) The method of calculating the commutation benefit of a member under sub-section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board. (3) The payment under this section releases the Board from any liability to make any further payments to, or in respect of, any entitlements of the member under the Beneficiary Choice Scheme. 23F. Winding up of Scheme If there are no members left in the Beneficiary Choice Scheme, the Board must close the Beneficiary Choice Scheme. 23G. No stamp duty or other tax payable s. 3 -- 7 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 5 No stamp duty or other tax is payable under any Act in respect of anything done under this Part.". 4. Beneficiary Choice Program After Part 8 of the State Superannuation Act 1988 insert— 'PART 9—BENEFICIARY CHOICE PROGRAM 102. Definitions (1) In this Part— "Beneficiary Choice Scheme" means the Beneficiary Choice Scheme established under Part 3A; "Commonwealth funded pensioner" means a person receiving a pension specified in the definition of "eligible pensioner"— (a) any part of which relates to a period of employment with an employer specified in Schedule 2; and (b) which is partly or wholly funded by the Government of the Commonwealth of Australia; "eligible beneficiary" means a person who at any time during the election period— (a) is entitled, or becomes entitled, to a deferred pension under section 44(1)(b), 44(2), 45, 46(1)(a), 46(1)(b), 61A(1), 69(4)(a), 94 or 101; or (b) is entitled, or becomes entitled, to a deferred benefit under section s. 4 -- 8 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 6 58(1), 61A(2), 69(4)(b), 69B(3)(b), 94 or 101; or (c) is entitled to a deferred pension under section 61(2) or a reduced deferred pension under section 61(2A) and is not eligible to make contributions under section 50; or (d) is entitled to a deferred pension under section 61(5) or a reduced deferred pension under section 61(5)(b) and is not eligible to make contributions under section 28 of the Transport Superannuation Act 1988; "eligible pensioner" means a person who at any time during the election period is receiving, or becomes entitled to receive— (a) a pension under section 31(1), 94 or 101; or (b) a pension as a spouse under section 36 or 37; or (c) a pension under section 31(2), 54 or 65(b) and has attained 55 years of age; or (d) a pension under section 31(2), 54 or 65(b) and has not attained the age of 55 years, at the discretion of the Board; or (e) a pension under section 80— s. 4 -- 9 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 7 but does not include a Commonwealth funded pensioner unless a declaration is made under section 103; "election period" means the period— (a) specified by the Minister in a notice published in the Government Gazette in respect of all or particular classes of eligible beneficiaries and eligible pensioners; and (b) if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette. (2) In this Part, a reference to the Board in relation to an eligible pensioner whose pension entitlements are administered under section 22 of the Emergency Services Superannuation Act 1986 is to be construed as a reference to the ESS Board. 103. Declaration in relation to Commonwealth funded pensioners (1) This section applies if an agreement in respect of this Part is entered into between the Government of Victoria and the Government of the Commonwealth of Australia in relation to Commonwealth funded pensioners. (2) If this section applies, the Minister must publish a declaration in the Government Gazette. 104. Application to participate s. 4 -- 10 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 8 (1) An eligible beneficiary or eligible pensioner may during the relevant election period apply in writing to the Board to participate in the beneficiary choice program in the form approved by the Board. (2) An eligible beneficiary must elect to commute the whole of his or her deferred pension entitlement or deferred benefit entitlement. (3) An eligible pensioner must elect to convert the whole or 50 per cent of his or her pension entitlement. (4) If an eligible pensioner has a spouse, the eligible pensioner must also elect to convert the same percentage of his or her spouse's pension entitlement. (5) An application under this section— (a) can not be withdrawn after it has been accepted by the Board; (b) ceases to have any effect if the applicant dies before the application is accepted by the Board. 105. Commutation—eligible beneficiaries (1) If the Board accepts an application by an eligible beneficiary under section 104, the eligible beneficiary is entitled to a commutation benefit equal to a lump sum determined by the Board. (2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board. s. 4 -- 11 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 9 (3) As soon as the commutation benefit is transferred to a complying superannuation fund nominated by the eligible beneficiary— (a) the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 104; and (b) the eligible beneficiary ceases to be a member of the Fund. 106. Commutation—eligible pensioners (1) If the Board accepts an application by an eligible pensioner under section 104, the Board must commute the pension entitlement specified in the application into a complying pension under the Beneficiary Choice Scheme. (2) The method of calculating the commutation benefit of an eligible pensioner under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board having regard to the commutation factors specified in Schedule 1. (3) The Board is released from any liability in respect of the entitlements of an eligible pensioner and of any spouse specified in the application under section 104 as soon as the eligible pensioner becomes entitled to a complying pension under the Beneficiary Choice Scheme.'. 5. New Schedule 2 inserted s. 4 s. 5 -- 12 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 10 After Schedule 1 of the State Superannuation Act 1988 insert— "SCHEDULE 2 BALLARAT INSTITUTE BENDIGO COLLEGE BENDIGO INSTITUTE CHISHOLM INSTITUTE CHISHOLM INSTITUTE—FRANKSTON DEAKIN UNIVERSITY DEAKIN UNIVERSITY—WARRNAMBOOL FOOTSCRAY INSTITUTE GIPPSLAND INSTITUTE HAWTHORN INSTITUTE INSTITUTE OF CATHOLIC EDUCATION INSTITUTE OF CATHOLIC EDUCATION—ASCOT VALE INSTITUTE OF CATHOLIC EDUCATION—OAKLEIGH LATROBE UNIVERSITY LINCOLN INSTITUTE MELBOURNE COLLEGE MELBOURNE UNIVERSITY MONASH UNIVERSITY—GIPPSLAND PHILLIP INSTITUTE PHILLIP INSTITUTE—COBURG ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY STATE COLLEGE OF VICTORIA—BALLARAT STATE COLLEGE OF VICTORIA—BENDIGO STATE COLLEGE OF VICTORIA—GEELONG STATE COLLEGE OF VICTORIA—HAWTHORN SWINBURNE UNIVERSITY OF TECHNOLOGY -- 13 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 11 UNIVERSITY OF BALLARAT VICTORIA COLLEGE VICTORIA COLLEGE—RUSDEN VICTORIA COLLEGE OF THE ARTS VICTORIAN COLLEGE VICTORIA UNIVERSITY WARRNAMBOOL INSTITUTE WESTERN INSTITUTE". 6. Amendments relating to future commutation entitlements (1) In sections 39(1) and 39(3) of the State Superannuation Act 1988 after "convert" insert "the whole of or". (2) In section 39(3) of the State Superannuation Act 1988 omit "or a greater amount of pension as may be prescribed". (3) In section 40(1) of the State Superannuation Act 1988 after "convert" insert "the whole of or". (4) For section 40(2) of the State Superannuation Act 1988 substitute— "(2) A person must elect under sub-section (1) to convert to an equivalent lump sum payment an amount— (a) equal to the whole; or (b) not greater than 50 per cent— of his or her fortnightly pension entitlement.". s. 6 -- 14 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 12 (5) After section 47(9) of the State Superannuation Act 1988 insert— "(10) A revised scheme member who is entitled to a deferred pension under section 44(1)(b), 44(2), 45, 46(1)(a) or 46(1)(b) may elect in writing to the Board to— (a) convert the entitlement to a lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the revised scheme member. (11) The method of calculating the conversion under sub-section (10) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (6) After section 58(3) of the State Superannuation Act 1988 insert— "(4) A new scheme member who is entitled under sub-section (1) to a deferred benefit on resignation may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the new scheme member. (5) The method of calculating the conversion under sub-section (4) is to be determined by the Minister on the advice of an actuary appointed by the Board.". s. 6 -- 15 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 13 (7) After section 61(6) of the State Superannuation Act 1988 insert— "(7) Sub-section (8) applies to a person who— (a) is entitled to a deferred pension under section 61(2) or a reduced deferred pension under section 61(2A) and is not eligible to make contributions under section 50; or (b) is entitled to a deferred pension under section 61(5) or a reduced deferred pension under section 61(5)(b) and is not eligible to make contributions under section 28 of the Transport Superannuation Act 1988. (8) A former revised scheme member referred to in sub-section (7) may elect in writing to the Board to— (a) convert the entitlement to a lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the former revised scheme member. (8A) The method of calculating the conversion under sub-section (8) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (8) After section 61A(3) of the State Superannuation Act 1988 insert— "(4) A revised scheme member who is entitled to a deferred pension under sub-section (1) may elect in writing to the Board to— (a) convert the entitlement to a lump sum; and s. 6 -- 16 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 14 (b) have the lump sum transferred to a complying superannuation fund nominated by the revised scheme member. (5) A new scheme member who is entitled to a deferred benefit under sub-section (2) may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the new scheme member. (6) The method of calculating the conversion under sub-section (4) or (5) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (9) After section 69(4) of the State Superannuation Act 1988 insert— "(4A) A contributor who is entitled to a deferred retirement benefit under sub-section (4) may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the contributor. (4B) The method of calculating the conversion under sub-section (4) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (10) In section 69B(4) of the State Superannuation Act 1988 after "section 61A(3)" insert ", 61A(4) or 61A(5)". s. 6 -- 17 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 15 (11) After section 94(1D) of the State Superannuation Act 1988 insert— "(1E) Without derogating from sub-sections (1A) and (1B), a transferred member who is entitled to a deferred benefit under section 94 or 95 may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. (1F) The method of calculating the conversion under sub-section (1E) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (12) After section 101(4) of the State Superannuation Act 1988 insert— "(5) Without derogating from sub-sections (1) and (2), a transferred beneficiary who is entitled to a deferred benefit under this section may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the beneficiary. (6) The method of calculating the conversion under sub-section (5) is to be determined by the Minister on the advice of an actuary appointed by the Board.". s. 6 -- 18 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 16 7. Re-instatement of certain disability pensioners After section 77A of the State Superannuation Act 1988 insert— '77B. Re-instatement of certain disability pensioners (1) This section applies if the Board is satisfied that the application of a former disability pensioner to retire on the grounds of ill health and receive a payment under section 77A was materially influenced by an offer, or the prospect of an offer, of employment by the Department of Education, Employment and Training under the New Start Program or any other program which the Board determines to be similar to the New Start Program. (2) An application for re-instatement under this section must be made— (a) within the period of 6 months after the commencement of section 7 of the Superannuation Acts (Beneficiary Choice) Act 2000; or (b) within such further period of time as the Board may determine. (3) If this section applies, subject to sub-section (4), the Board must re-instate the former disability pensioner as an officer entitled to a disability pension with the same rights and entitlements that he or she would have had if he or she had not retired on the grounds of ill health and sections 75, 76 and 77 apply accordingly. (4) It is a condition of any re-instatement under this section that the former disability pensioner must immediately repay to the s. 7 -- 19 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 17 Board an amount determined by the Board on the advice of an actuary appointed by the Board. (5) The advice of the actuary should take into account— (a) the amount received under section 77A(2); (b) interest at the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983 on the amount received under section 77A(2); (c) any amount received in the course of gainful employment within the meaning of section 77(2) during the relevant period; (d) an amount determined by the Board on the advice of the actuary to be equal to the present value of the disability pension that the former disability pensioner would have received during the relevant period had he or she remained a disability pensioner; (e) any other amount which the Board determines to be relevant. (6) In sub-section (5), "relevant period" means the period beginning on the date of retirement under section 77A and ending on the proposed date of re-instatement. (7) For the purposes of sub-section (4)— (a) the Board may require the former disability pensioner to provide to the Board within 45 days any returns and information which the Board specifies; and s. 7 -- 20 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 18 (b) the determination of the Board has effect as at the date of re-instatement. (8) If in the opinion of the Board the former disability pensioner is willing but financially unable to immediately repay the amount determined by the Board under sub-section (4), the Board may re-instate the former disability pensioner if he or she enters an agreement with the Board to accept a reduction in his or her pension entitlement of an amount and for a period as is determined by the Board so as to recover the amount determined under sub-section (4) and interest on that amount at the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983 for that period. (9) An agreement under sub-section (8) must contain a condition that if the person or a dependent, spouse or other beneficiary of that person becomes entitled to a pension or benefit under this Act and any amount is still owing under the agreement, the pension or benefit is to be reduced by that amount. (10) The Board may deduct from any money payable out of the Fund to any person referred to in sub-section (9) in respect of any pension or benefit under this Act any money owing under an agreement under this section.'. _______________ s. 7 -- 21 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 19 PART 3—AMENDMENT OF EMERGENCY SERVICES SUPERANNUATION ACT 1986 8. Spouse Accounts After section 21J of the Emergency Services Superannuation Act 1986 insert— "21JA. Spouse Accounts (1) The Board may establish upon the request of an eligible spouse a special arrangement called a spouse account. (2) The Board may accept for payment into a spouse account any amount in respect of an eligible spouse in accordance with section 159TC of the Commonwealth Income Tax Assessment Act 1936. (3) The Board must credit to a spouse's account— (a) any eligible spouse contribution made in respect of that spouse; and (b) any eligible spouse contribution made by the spouse; and (c) any net earnings calculated on the basis of section 21L; and (d) any other amount payable to the spouse's account, including any amount transferred from a complying superannuation fund. (4) The Board must debit to a spouse's account— (a) an amount determined by the Board in respect of management and administration costs incurred by the Board; and s. 8 -- 22 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 20 (b) any net loss calculated on the basis of section 21L; and (c) any amounts transferred to another complying superannuation fund; and (d) any other amount payable by the spouse. (5) The Board must not accept any contributions by or in respect of a spouse after the date of termination of service of a member or contributor. (6) Section 23AA applies in respect of any payment out of a spouse account under sub- section (7) or (8) as if the payment were a benefit under this Act. (7) The balance of a spouse account is payable— (a) to the spouse on the request of the spouse, in a form approved by the Board; or (b) in the case of the death of the spouse, to such one or more of the spouse's dependants and legal personal representatives and in such proportions of the whole of the balance as the Board in its absolute discretion determines. (8) If a spouse ceases to be an eligible spouse or the member, contributor or former contributor dies, the spouse may elect to— (a) maintain the account in an investment fund in accordance with section 21K; or (b) transfer the account balance to another complying superannuation fund; or s. 8 -- 23 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 21 (c) receive the whole of the account balance.". 9. Amendments consequential on section 8 (1) In section 21 of the Emergency Services Superannuation Act 1986— (a) after the definition of "child" insert— ' "eligible spouse" in relation to a member, contributor or former contributor, has the same meaning as in section 159TC of the Commonwealth Income Tax Assessment Act 1936;'; (b) after the definition of "participating employer" insert— ' "spouse account" means a spouse's account established and maintained by the Board for an eligible spouse under section 21JA.'. (2) In the Emergency Services Superannuation Act 1986— (a) in sections 21K(2) and 21K(3) for "or member" (wherever occurring) substitute ", member or spouse"; (b) in sections 21K(2), 21K(3), 21K(4), 21L(1) and 21L(2), for "or member's account" (wherever occurring) substitute ", member's or spouse's account". _______________ s. 9 -- 24 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 22 PART 4—AMENDMENT OF GOVERNMENT SUPERANNUATION ACT 1999 10. Specified standards After section 46 of the Government Superannuation Act 1999 insert— "46A. Commencement of specified standards Order (1) This section applies to the Order in Council cited as Specified Standards for the Preservation of Superannuation Benefits which was— (a) made on 16 June 1999; and (b) published in the Government Gazette on 20 July 2000. (2) Notwithstanding anything to the contrary in any Act under which the Order in Council was made or the failure to publish the Order in Council on or before 1 July 1999, the Order in Council is deemed— (a) to have come into operation on 1 July 1999 as specified in the Order in Council; and (b) to have full force and effect from 1 July 1999.". 11. Repeal of spent provisions Part 6 of the Government Superannuation Act 1999 is repealed. _______________ s. 10 -- 25 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 23 PART 5—AMENDMENT OF POLICE REGULATION ACT 1958 12. Beneficiary Choice Program In Part III of the Police Regulation Act 1958, after Division 4 insert— 'Division 5—Beneficiary Choice Program 67C. Definitions In this Division— "Beneficiary Choice Scheme" means the Beneficiary Choice Scheme established under Part 3A of the State Superannuation Act 1988; "eligible pensioner" means a person who at any time during the election period is receiving, or becomes entitled to receive— (a) a pension under section 42; or (b) a pension as a spouse under section 44; or (c) a pension or a gratuity under section 43 and has attained 55 years of age; or (d) a pension or a gratuity under section 43 and has not attained the age of 55 years, at the discretion of the ESS Board; "election period" means the period— (a) specified by the Minister in a notice published in the Government Gazette in respect of s. 12 -- 26 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 24 all or particular classes of eligible pensioners; and (b) if the Minister on the advice of the ESS Board so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette. 67D. Application to participate (1) An eligible pensioner may during the relevant election period apply in writing to the ESS Board to participate in the beneficiary choice program in the form approved by the ESS Board. (2) An eligible pensioner must elect to convert the whole or 50 per cent of his or her pension or gratuity entitlement. (3) If an eligible pensioner has a spouse, the eligible pensioner must also elect to convert the same percentage of his or her spouse's pension entitlement. (4) An application under this section— (a) can not be withdrawn after it has been accepted by the ESS Board; (b) ceases to have any effect if the applicant dies before the application is accepted by the ESS Board. 67E. Commutation (1) If the ESS Board accepts an application under section 67D, the ESS Board must commute the pension entitlement specified in the application into a complying pension under the Beneficiary Choice Scheme. s. 12 -- 27 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 25 (2) The method of calculating the commutation benefit of an eligible pensioner under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the ESS Board. (3) The ESS Board is released from any liability in respect of the entitlements of an eligible pensioner and of any spouse specified in the application under section 67D as soon as the eligible pensioner becomes entitled to a complying pension under the Beneficiary Choice Scheme.'. _______________ s. 12 -- 28 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 26 PART 6—AMENDMENT OF STATE EMPLOYEES RETIREMENT BENEFITS ACT 1979 13. Beneficiary Choice Program After Part V of the State Employees Retirement Benefits Act 1979 insert— 'PART VI—BENEFICIARY CHOICE PROGRAM 79. Definitions In this Part— "Beneficiary Choice Scheme" means the Beneficiary Choice Scheme established under Part 3A of the State Superannuation Act 1988; "Commonwealth funded pensioner" means a person receiving a pension specified in the definition of "eligible pensioner"— (a) any part of which relates to a period of employment with an employer specified in Schedule 2; and (b) which is partly or wholly funded by the Government of the Commonwealth of Australia; "eligible beneficiary" means a person who at any time during the election period is entitled, or becomes entitled, to a deferred retirement benefit under section 22A, 34A, 34AB, 37 or 38; "eligible pensioner" means a person who at any time during the election period is s. 13 -- 29 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 27 receiving, or becomes entitled to receive— (a) a pension under section 39, 40 or 75; or (b) a pension as a spouse under section 38(3), 44, 45 or 57; or (c) a pension under section 55 and has attained 55 years of age; or (d) a pension under section 55 and has not attained the age of 55 years, at the discretion of the Board— but does not include a Commonwealth funded pensioner unless a declaration is made under section 80; "election period" means the period— (a) specified by the Minister in a notice published in the Government Gazette in respect of all or particular classes of eligible beneficiaries and eligible pensioners; and (b) if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette. 80. Declaration in relation to Commonwealth funded pensioners (1) This section applies if an agreement is entered into between the Government of Victoria and the Government of the s. 13 -- 30 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 28 Commonwealth of Australia in relation to Commonwealth funded pensioners. (2) If this section applies, the Minister must publish a declaration in the Government Gazette. 81. Application to participate (1) An eligible beneficiary or eligible pensioner may during the relevant election period apply in writing to the Board to participate in the beneficiary choice program in the form approved by the Board. (2) An eligible beneficiary must elect to commute the whole of his or her deferred retirement benefit entitlement. (3) An eligible pensioner must elect to convert the whole or 50 per cent of his or her pension entitlement. (4) If an eligible pensioner has a spouse, the eligible pensioner must also elect to convert the same percentage of his or her spouse's pension entitlement. (5) An application under this section— (a) can not be withdrawn after it has been accepted by the Board; (b) ceases to have any effect if the applicant dies before the application is accepted by the Board. 82. Commutation—eligible beneficiaries (1) If the Board accepts an application by an eligible beneficiary under section 81, the eligible beneficiary is entitled to a commutation benefit equal to a lump sum determined by the Board. s. 13 -- 31 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 29 (2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board. (3) As soon as the commutation benefit is transferred to a complying superannuation fund nominated by the eligible beneficiary— (a) the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 81; and (b) the eligible beneficiary ceases to be a member of the Fund. 83. Commutation—eligible pensioners (1) If the Board accepts an application by an eligible pensioner under section 81, the Board must commute the pension entitlement specified in the application into a complying pension under the Beneficiary Choice Scheme. (2) The method of calculating the commutation benefit of an eligible pensioner under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board having regard to the commutation factors specified in Schedule 1. (3) The Board is released from any liability in respect of the entitlements of an eligible pensioner and of any spouse specified in the application under section 81 as soon as the eligible pensioner becomes entitled to a complying pension under the Beneficiary Choice Scheme.'. s. 13 -- 32 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 30 14. Consequential In the State Employees Retirement Benefits Act 1979— (a) in section 40(1A) for "the Schedule" (wherever occurring) substitute "Schedule 1"; (b) in the Schedule after "SCHEDULE" insert "1". 15. New Schedule inserted After Schedule 1 of the State Employees Retirement Benefits Act 1979 insert— "SCHEDULE 2 DEAKIN UNIVERSITY LATROBE UNIVERSITY—BENDIGO MELBOURNE UNIVERSITY MONASH UNIVERSITY RMIT—(FORMERLY PHILLIP INSTITUTE) RMIT—HIGHER EDUCATION SWINBURNE UNIVERSITY UNIVERSITY OF BALLARAT UNIVERSITY OF MELBOURNE—VICTORIAN COLLEGE OF AGRICULTURE AND HORTICULTURE VICTORIA UNIVERSITY". 16. Amendments relating to future commutation entitlements (1) After section 34AB(2) of the State Employees Retirement Benefits Act 1979 insert— "(3) A member who is entitled to a deferred retirement benefit under sub-section (1) may elect in writing to the Board to— s. 14 -- 33 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 31 (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. (4) The method of calculating the conversion under sub-section (3) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (2) After section 37(1A) of the State Employees Retirement Benefits Act 1979 insert— "(1B) A member who is entitled to a deferred retirement benefit under sub-section (1)(b) may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. (1C) The method of calculating the conversion under sub-section (1B) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (3) After section 38(2) of the State Employees Retirement Benefits Act 1979 insert— "(2A) A member who is entitled to a deferred retirement benefit under sub-section (1) may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. s. 16 -- 34 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 32 (2B) The method of calculating the conversion under sub-section (2A) is to be determined by the Minister on the advice of an actuary appointed by the Board.". _______________ s. 16 -- 35 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 33 PART 7—AMENDMENT OF SUPERANNUATION (PORTABILITY) ACT 1989 17. Beneficiary Choice Program After section 5 of the Superannuation (Portability) Act 1989 insert— '5A. Beneficiary Choice Program (1) In this section— "Beneficiary Choice Scheme" means the Beneficiary Choice Scheme established under Part 3A of the State Superannuation Act 1988; "eligible beneficiary" means a person who at any time during the election period is entitled, or becomes entitled, to a deferred retirement benefit by the operation of section 5; "election period" means the period— (a) specified by the Minister in a notice published in the Government Gazette in respect of all or particular classes of eligible beneficiaries; and (b) if the Minister so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette. (2) An eligible beneficiary may during the relevant election period apply in writing to the administrator to participate in the beneficiary choice program in the form approved by the administrator. s. 17 -- 36 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 34 (3) An eligible beneficiary must elect to commute the whole of his or her deferred retirement benefit entitlement. (4) An application under this section— (a) can not be withdrawn after it has been accepted by the administrator; (b) ceases to have any effect if the applicant dies before the application is accepted by the administrator. (5) If the administrator accepts an application under sub-section (2), the eligible beneficiary is entitled to a commutation benefit of a lump sum determined by the administrator. (6) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (5) is to be determined by the Minister on the advice of an actuary appointed by the administrator. (7) As soon as the commutation benefit is transferred to a complying superannuation fund nominated by the eligible beneficiary— (a) the administrator is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under sub-section (3); and (b) the eligible beneficiary ceases to be a member of the statutory superannuation scheme to which their deferred benefit relates.'. s. 17 -- 37 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 35 18. Amendments relating to future commutation entitlements (1) After section 5(2) of the Superannuation (Portability) Act 1989 insert— "(2A) A member who is entitled to a deferred retirement benefit by the operation of this section may elect in writing to the administrators to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. (2B) The method of calculating the conversion under sub-section (2A) is to be determined by the Minister on the advice of an actuary appointed by the administrators.". (2) After section 7(7) of the Superannuation (Portability) Act 1989 insert— "(7A) A person who is entitled under sub-section (7) to a deferred retirement benefit by the operation of section 5 may elect in writing to the administrators to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the person. (7B) The method of calculating the conversion under sub-section (7A) is to be determined by the Minister on the advice of an actuary appointed by the administrators.". s. 18 -- 38 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 36 _______________ -- 39 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 37 PART 8—AMENDMENT OF THE CONSTITUTION ACT AMENDMENT ACT 1958 19. Privileges of certain former members (1) After section 30(2)(ba) of The Constitution Act Amendment Act 1958 insert— "(bb) if immediately before he or she so ceased to be employed, he or she was a contributor under the State Employees Retirement Benefits Act 1979, he or she becomes a contributor under that Act if, on being re- employed in the service, he or she pays into the Fund under that Act an amount equal to the sum paid to him or her out of that Fund when he or she so ceased to be employed together with an additional amount equal to the contributions he or she would have been required to make under the State Employees Retirement Benefits Act 1979 if he or she had remained in the service during the period from so ceasing to be employed until re- employment in the service and on payment of that amount into the Fund he or she is to be treated for the purposes of the State Employees Retirement Benefits Act 1979 as if he or she had continued to be a contributor under that Act during that period;". (2) After section 30(2)(bb) of The Constitution Act Amendment Act 1958 insert— "(bc) if immediately before he or she so ceased to be employed, he or she was a contributor under the Emergency Services Superannuation Act 1986, he or she becomes a contributor under that Act if, on being re-employed in the service, he or she s. 19 -- 40 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 38 pays into the Scheme under that Act an amount equal to the sum paid to him or her out of that Scheme when he or she so ceased to be employed together with an additional amount equal to the contributions he or she would have been required to make under the Emergency Services Superannuation Act 1986 if he or she had remained in the service during the period from so ceasing to be employed until re-employment in the service and on payment of that amount into the Fund he or she is to be treated for the purposes of the Emergency Services Superannuation Act 1986 as if he or she had continued to be a contributor under that Act during that period;". (3) After section 30(2)(bc) of The Constitution Act Amendment Act 1958 insert— "(bd) if immediately before he or she so ceased to be employed, he or she was a member under the Transport Superannuation Act 1988, he or she becomes a member under that Act if, on being re-employed in the service, he or she pays into the Fund under that Act an amount equal to the sum paid to him or her out of that Fund when he or she so ceased to be employed together with an additional amount equal to the contributions he or she would have been required to make under the Transport Superannuation Act 1988 if he or she had remained in the service during the period from so ceasing to be employed until re-employment in the service and on payment of that amount into the Fund he or she is to be treated for the purposes of the Transport Superannuation Act 1988 as if he or she had continued to be a member under that Act during that period;". s. 19 s. 19 -- 41 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 39 _______________ -- 42 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 40 PART 9—AMENDMENT OF TRANSPORT SUPERANNUATION ACT 1988 20. Beneficiary Choice Program After Part 8 of the Transport Superannuation Act 1988 insert— 'PART 9—BENEFICIARY CHOICE PROGRAM 54. Definitions In this Part— "Beneficiary Choice Scheme" means the Beneficiary Choice Scheme established under Part 3A of the State Superannuation Act 1988; "eligible beneficiary" means a person who at any time during the election period is entitled, or becomes entitled, to a deferred benefit under section 34A or 35; "eligible pensioner" means a person who at any time during the election period is receiving, or becomes entitled to receive— (a) a pension under section 48; or (b) a pension under section 31 and has attained 55 years of age; or (c) a pension under section 31 and has not attained the age of 55 years, at the discretion of the Board; "election period" means the period— (a) specified by the Minister in a notice published in the s. 20 -- 43 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 41 Government Gazette in respect of all or particular classes of eligible beneficiaries and eligible pensioners; and (b) if the Minister on the advice of the Board so decides, as extended to a later date as is specified by the Minister in a further notice published in the Government Gazette. 55. Application to participate (1) An eligible beneficiary or eligible pensioner may during the relevant election period apply in writing to the Board to participate in the beneficiary choice program in the form approved by the Board. (2) An eligible beneficiary must elect to commute the whole of his or her deferred pension entitlement or deferred benefit entitlement. (3) An eligible pensioner must elect to convert the whole or 50 per cent of his or her pension entitlement. (4) If an eligible pensioner has a spouse, the eligible pensioner must also elect to convert the same percentage of his or her spouse's pension entitlement. (5) An application under this section— (a) can not be withdrawn after it has been accepted by the Board; (b) ceases to have any effect if the applicant dies before the application is accepted by the Board. s. 20 -- 44 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 42 56. Commutation—eligible beneficiaries (1) If the Board accepts an application by an eligible beneficiary under section 55, the eligible beneficiary is entitled to a commutation benefit equal to a lump sum determined by the Board. (2) The method of calculating the commutation benefit of an eligible beneficiary under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board. (3) As soon as the commutation benefit is transferred to a complying superannuation fund nominated by the eligible beneficiary— (a) the Board is released from any liability in respect of the entitlements of the eligible beneficiary specified in the application under section 55; and (b) the eligible beneficiary ceases to be a member of the Fund. 57. Commutation—eligible pensioners (1) If the Board accepts an application by an eligible pensioner under section 55, the Board must commute the pension entitlement specified in the application into a complying pension under the Beneficiary Choice Scheme. (2) The method of calculating the commutation benefit of an eligible pensioner under sub- section (1) is to be determined by the Minister on the advice of an actuary appointed by the Board. s. 20 -- 45 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 43 (3) The Board is released from any liability in respect of the entitlements of an eligible pensioner and of any spouse specified in the application under section 55 as soon as the eligible pensioner becomes entitled to a complying pension under the Beneficiary Choice Scheme.'. 21. Amendments relating to future commutation entitlements (1) After section 34A(2) of the Transport Superannuation Act 1988 insert— "(3) A member who is entitled to a deferred benefit may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. (4) The method of calculating the conversion under sub-section (3) is to be determined by the Minister on the advice of an actuary appointed by the Board.". (2) After section 35(4) of the Transport Superannuation Act 1988 insert— "(4A) A member who is entitled to a deferred benefit may elect in writing to the Board to— (a) convert the entitlement to a present lump sum; and (b) have the lump sum transferred to a complying superannuation fund nominated by the member. s. 21 -- 46 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 44 (4B) The method of calculating the conversion under sub-section (4A) is to be determined by the Minister on the advice of an actuary appointed by the Board.". ═══════════════ s. 21 -- 47 of 48 -- Act No. 95/2000 Superannuation Acts (Beneficiary Choice) Act 2000 45 ENDNOTES † Minister's second reading speech— Legislative Assembly: 2 November 2000 Legislative Council: 23 November 2000 The long title for the Bill for this Act was "to enable the commutation of certain pension entitlements and deferred benefit entitlements under the State Superannuation Act 1988, the Police Regulation Act 1958, the State Employees Retirement Benefits Act 1979, the Superannuation (Portability) Act 1989 and the Transport Superannuation Act 1988, to make miscellaneous amendments to certain Superannuation Acts and for other purposes." Endnotes -- 48 of 48 --