Superannuation (PSSAP) Trust Deed

as amended

made under section 10 of the

Superannuation Act 2005

Compilation start date:  1 July 2014

Includes amendments up to: Tenth Amendment of the Superannuation (PSSAP) Trust Deed

About this compilation

This compilation

This is a compilation of the Superannuation (PSSAP) Trust Deed as in force on 1 July 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 12 August 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

TABLE OF PROVISIONS

Clause Item

1. Interpretation

2. Establishment of the Public Sector Superannuation Accumulation Plan (PSSAP) and the PSSAP Fund

3. Functions and Powers of CSC in relation to PSSAP

5. Operation of the PSSAP Fund

6. Investment of the PSSAP Fund

7. Requests by Minister for Information

8. Delegation by CSC

9. Delegations by the Minister for Finance and Administration

TRUST DEED

THIS DEED, to be known as the Superannuation (PSSAP) Trust Deed, is made on 29 June 2005 by the COMMONWEALTH OF AUSTRALIA.

WHEREAS section 10 of the Superannuation Act 2005 (in this Deed called the “Act”) provides that before 1 July 2005, the Minister must, for and on behalf of the Commonwealth, by deed:

(a)                establish a superannuation scheme that:

(i)                 is to be known as the Public Sector Superannuation Accumulation Plan;

(ii)               may also be known as PSSAP; and

(iii)            is for the benefit of persons who will be members of PSSAP; and

(b) establish and vest in the Australian Reward Investment Alliance (formerly known at the PSS Board) established under section 20 of the Superannuation Act 1990 (the “Board”), a fund for the purposes of the PSSAP; and

(c) set out the functions and powers of CSC in relation to PSSAP and the PSSAP Fund;

AND WHEREAS section 12 of the Act provides that the Rules for the administration of PSSAP set out in the Schedule to the Deed referred to in section 10 of the Act (in this Deed called the Rules):

(a)               may provide that, when a splitting agreement or splitting order is received by CSC in respect of a superannuation interest under the Act;

(i) the non-member spouse is entitled to benefits determined in accordance with the Rules; and

(ii) the benefits of the member spouse are reduced in accordance with the Rules; and

(b)               may include any other provision that is related to, or consequential on, provisions referred to in paragraph (a) concerning a splitting agreement or splitting order;

NOW THIS DEED WITNESSES AS FOLLOWS:

1.1 In this Deed, where the context requires or admits, a reference to the Deed shall include a reference to the Rules, as set out in the Schedule, and the Rules shall form part of the Deed.  In the case of an inconsistency between the Deed and the Rules, the Deed shall prevail.

1.2 In this Deed, where the context requires or admits, words and expressions defined in the Act have the same meanings when used in the Deed.  The headings in this Deed are for the convenience of reference only and shall not affect its interpretation.

1.4 In this Deed, “Minister” means:

(a) the Commonwealth Minister of State for Finance and Administration;

(b) if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or

(c) a member of the Executive Council acting for the time being for and on behalf of any of those Ministers; or

(d) a person, as defined in clause 9, to whom the Minister for Finance and Administration has delegated his powers.

1.5 In this Deed, “APS employee” has the same meaning as in the Public Service Act 1999.

1.7 In this Deed, “PSSAP member” means a person who is a member of PSSAP due to the operation of Part 3 of the Act.

Subclauses 1.3, 1.6 and 1.8 deleted in the 5th amending deed.

2.1 There is hereby established from 1 July 2005 a superannuation scheme (to be known as the “Public Sector Superannuation Accumulation Plan” or “PSSAP”) for the benefit of members of PSSAP and non-member spouses entitled to benefits, to be administered in accordance with the Deed:

(a) in relation to the period from 1 July 2005 to immediately before the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Australian Reward Investment Alliance (which, in this Deed, is called “the Board”); and

(b) in relation to the period immediately following the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Commonwealth Superannuation Corporation (CSC) as defined in the Governance of Australian Government Superannuation Schemes Act 2011 (in this Deed called “CSC”).

2.2 There is hereby established from 1 July 2005, and vested in CSC (formerly referred to as “the Board”), a fund for the purposes of PSSAP (to be known as the PSSAP Fund”).

3.1 The functions of CSC in relation to PSSAP and the PSSAP Fund are to administer PSSAP and to manage and invest the PSSAP Fund in accordance with the provisions of the Act and this Deed including, without limiting the generality of the foregoing, the following functions:

(a)              to receive payments from designated employers as provided for in the Act and other superannuation entities in accordance with this Deed;

(b)              to pay benefits to the persons entitled to receive benefits from PSSAP in accordance with the Act and this Deed;

(c) to provide information about benefits or potential benefits, and available options, to:

(i) PSSAP members;

(ii) non-member spouses; and

(iii) potential PSSAP members;

(d) to provide advice to the Minister on proposed changes to the Act and the Deed; and

(e) to determine interest rates for the purposes of PSSAP.

3.2 CSC has power in Australia and elsewhere to do all things necessary or convenient to be done for, or in connection with, the performance of its functions and, in particular, may:

(a) give guarantees;

(b) underwrite or sub-underwrite any form of investment including the underwriting or sub-underwriting of the issue of shares, debentures or units in a unit trust;

(c) borrow moneys and give security over the whole or any part of the assets of the PSSAP Fund;

(d) appoint agents and attorneys;

(e) act as agent for other persons;

(f) engage consultants and investment managers;

(g) engage a panel of persons to assist it in determining whether a person is to be retired on the grounds of invalidity;

(h) establish a Reconsideration Advisory Committee or Committees to examine and report on decisions of CSC and its delegates under the Rules relating to entitlements to benefits of PSSAP members and non-member spouses entitled to benefits;

(i) effect policies with insurers in CSC’s name to provide death and invalidity cover and income protection cover for members in accordance with the Rules;

(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the PSSAP Fund, or to enhance or protect, the return on any such investment;

(k) arrange for the purchase of income products, including retirement income products, by members, non-members and beneficiaries as provided for in the Rules;

(l) establish a trust for the purpose of investing the PSSAP Fund and manage and administer the trust; and

(m) charge reasonable fees in relation to the administration of the PSSAP Fund, including arrangements connected with PSSAP members and non-member spouses choosing particular investment strategies and arrangements connected with splitting of superannuation interests under the Family Law Act 1975.

3.3 In exercising its functions and powers, CSC shall comply with the requirements of the Superannuation Industry (Supervision) Act 1993 and Regulations made under that Act, and have regard to the interests of PSSAP members, their employers and non-member spouses entitled to benefits.

3.4 CSC must cause proper records to be kept in respect of:

(a) contributions paid into the PSSAP Fund; and

(b) benefits paid under the Act and this Deed.

Notes:

5.1 All contributions and other moneys paid to CSC for the purposes of PSSAP, or as directed by CSC, shall be held in trust by CSC in the PSSAP Fund.  The PSSAP Fund shall be managed and invested by CSC in accordance with the Act and the Deed.

5.2 The PSSAP Fund shall comprise:

(a) contributions made by members;

(b) contributions made by employers pursuant to the Act and the Deed;

(c) any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;

(d) the income arising or derived from investments held within the PSSAP Fund; and

(e) any accretions to or profits on realisation of investments held within the PSSAP Fund.

5.3 CSC must pay benefits to or in re of PSSAP members and the costs, taxes and expenses relating to PSSAP and the PSSAP Fund from the PSSAP Fund in accordance with section 34 of the Act.

Subclauses 5.4 and 5.5 deleted in the 5th amending deed.

6.1 For the purposes of this clause:

(a) “invest” means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and

(b) “profit” includes capital profit.

6.2 Moneys standing to the credit of the PSSAP Fund which are, in the opinion of CSC, moneys that are not for the time being required for the purpose of making payments out of the PSSAP Fund under the Act and the Deed shall, so far as is practicable, be invested by CSC in accordance with the Act and the Deed, but CSC shall so manage the PSSAP Fund that moneys that are from time to time required to pay benefits that are payable out of the PSSAP Fund are available for that purpose.

6.3 Moneys that, by virtue of subclause 6.2, are required to be invested by CSC may be invested in any manner and, without limiting the generality of the foregoing, may be invested by CSC jointly with another person or other persons.

6.4 CSC must determine an investment strategy and policy of the PSSAP Fund as soon as possible after 1 July 2005 and thereafter regularly review such a strategy and policy, and, where it considers it necessary or desirable, change its existing investment strategy or policy.  In determining and reviewing its investment strategy and policy, CSC shall consult with such persons or bodies as it thinks fit.

6.5 CSC shall invest moneys standing to the credit of the PSSAP Fund that are available for investment only through an investment manager or managers who undertake to invest, and manage the investment of those funds on behalf of CSC.

6.6 CSC shall ensure that any investment manager engaged by CSC in relation to the PSSAP Fund:

(a) operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and

(b) reports to CSC on the state of CSC’s investments and the investment market at such times and in such manner as CSC determines.

7.1 CSC shall furnish to the Minister such information relating to the general administration and operation of PSSAP and the PSSAP Fund as the Minister may from time to time require.

8.1 Subject to subclause 8.2, CSC may by an instrument under its seal delegate to:

(a) a member of CSC; or

(b) the CEO of ComSuper; or

(c) a member of staff of ComSuper assisting the CEO in the performance of the CEO’s function; or

(d) an APS employee in the Department referred to in subclause 1.4; or

(e) an officer or employee of the person who is responsible for investing money forming part of a superannuation fund vested in or managed by CSC; or

(f) any other person who performs duties in connection with the operation of the Deed; or

(g) a committee consisting of 2 or more persons each of whom is a person referred to in any of the above paragraphs; or

(h) any other person;

all or any of its powers under the Deed other than its power to reconsider its own decisions or decisions made by its delegates.

8.2 CSC may by an instrument under its seal delegate to a Reconsideration Advisory Committee established under the Rules CSC’s power to reconsider its own decision or a decision made by its delegate in relation to PSSAP or the PSSAP Fund and to determine the matter by:

(a) affirming the decision under reconsideration; or

(b) varying the decision; or

(c) substituting another decision; or

(d) setting the decision aside;

and, at its discretion, refunding any fee paid.

8.3 If CSC delegates a power under subclause 8.1, other than paragraph (h), the delegate may, by writing, sub-delegate the power:

(a) if the delegate is a member of CSC — to:

(i) another member of CSC; or

(ii) a person referred to in paragraph 8.1(b), (c), (d), (e) or (f); or

(b) if the delegate is the CEO of ComSuper — to a person referred to in paragraph 8.1(c), (d), (e) or (f); or

(c) if the delegate is a person referred to in paragraph 8.1(c), (d), (e) or (f) — to:

(i) another person referred to in the same paragraph; or

(ii) a person referred to in another of those paragraphs.

8.4 Section 34AA and paragraphs 34AB(a), (b) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub-delegation in a corresponding way to the way in which they apply to a delegation.

8.5 Section 34A and paragraphs 34AB(c) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub-delegation as if it were a delegation.

9.1 The Minister may by signed instrument delegate all or any of his or her powers under the Deed, other than this power of delegation, to:

(a) CSC; or

(b) an APS employee in the Department referred to in subclause 1.4; or

(c) the CEO of ComSuper or a member of staff of ComSuper assisting the CEO in the performance of the CEO’s function.

THE SCHEDULE

RULES FOR THE ADMINISTRATION OF THE PUBLIC SECTOR
SUPERANNUATION ACCUMULATION PLAN (PSSAP) (THE RULES)

TABLE OF PROVISIONS

1.1.1 These Rules are divided into 7 Parts, each dealing with a major aspect of the operation of PSSAP.  The Parts and a general guide to each Part are set out below.

1.1.2 Each Part is further divided into Divisions addressing unique groupings within the Part and each Division is made up of Rules containing specific provisions.  Rules do not necessarily have their own Rule headings.

1.1.3 The Rules have been numbered so that the first number refers to the Part, the second number refers to the Division number within that Part and the third to the Rule number within that Division.  For example, Rule 2.3.1 is the first Rule in Division 3 of Part 2 of the Rules.

1.1.4 There are several notes within the Rules to help readers understand the more complicated superannuation concepts or to inform them of the need to refer to another area of the Rules.  However, these aids (including Part, Division and Rule headings) do not form part of the Rules.

1.2.1              Because some words and phrases have a special meaning when used in the Rules they have been explained below or in the Trust Deed.  They appear throughout the Rules in bold print to remind the reader that they have a special meaning.

2.1.1 A person may be an ordinary employer-sponsored member in respect of two or more concurrent employments.

2.1.2 Where an ordinary employer-sponsored member, who is employed by two or more designated employers at the same time, ceases to be an employee of one or more but not all of those designated employers, the person will not cease to be an ordinary employer-sponsored member.  Also, where an ordinary employer-sponsored member ceases to be employed by one designated employer but immediately afterwards becomes an employee of another designated employer, the person does not cease to be an ordinary employer-sponsored member.

2.1.3 Where a person is an ordinary employer-sponsored member in respect of two or more concurrent employments, CSC may maintain one personal accumulation account for the member.

2.1.4 A person may be a current government scheme member in respect of two or more concurrent employments.

2.1.5 Where a current government scheme member, who is employed by two or more designated employers at the same time, ceases to be an employee of one or more but not all of those designated employers, the person will not cease to be a current government scheme member. Also, where a current government scheme member ceases to be employed by one designated employer but immediately afterwards becomes an employee of another designated employer, the person does not cease to be a current government scheme member.

2.1.6 Where a person is a current government scheme member in respect of two or more concurrent employments, CSC may maintain one personal accumulation account for the member.

2.1.7 A person may have concurrent PSSAP memberships as an ordinary employer-sponsored member and as a government scheme member.

2.1.8 Where a person is concurrently an ordinary employer-sponsored member and a government scheme member, CSC may maintain one personal accumulation account for the member.

MySuper product

MySuper product – general characteristics

2.1A.1 CSC must ensure that:

(a) amounts held as a MySuper product, in respect of PSSAP members and non-member spouses, are invested in accordance with a single diversified investment strategy; and

(b) all PSSAP members and non-member spouses who hold a MySuper product are entitled access to the same options, benefits and facilities in relation to their MySuper product; and

(c) amounts credited to the personal accumulation account or non-member spouse interest account in respect of a MySuper product under Division 2 of Part 5, or Division 3 of Part 7 of the Rules must not stream gains or losses to only some of those members, except to the extent permitted under Rule 2.1A.2; and

(d) the process used to credit and debit amounts to a personal accumulation account or a non-member spouse interest account in respect of a MySuper product must be the same for each member; and

(e) SIS Act requirements for the provision of a MySuper product are complied with in relation to persons holding a MySuper product or in relation to amounts held as a MySuper product.

2.1A.2 CSC may, for the purposes of Rule 2.1A.1, choose to adopt a single diversified investment strategy that allows gains and losses from different classes of assets of the PSSAP Fund to be streamed to different subclasses of the members of the fund who hold a MySuper product, in respect of their MySuper product, on the basis of the age of those members or some other basis which is permitted as a lifecycle exception within the meaning of the SIS Act.

MySuper product – fees

2.1A.3 CSC must ensure that any fees deducted from a personal accumulation account or a non-member spouse interest account in respect of a MySuper product comply with requirements under the SIS Act for the provision of a MySuper product.

MySuper product – insurance

2.1A.4 If required by the SIS Act, CSC must provide basic death and invalidity cover, in accordance with Division 1 of Part 4, to all PSSAP members and non-member spouses who hold a MySuper product, in respect of their MySuper product.

2.1A.5 CSC must ensure that the basic death and invalidity cover provided in respect of a MySuper product under Division 1 of Part 4 of the Rules complies with requirements under the SIS Act for the provision of a MySuper product.

2.2.1 Each pay day the designated employer of an ordinary employer-sponsored member must pay as contributions to CSC an amount equal to 15.4% of the superannuation salary of the member on that day.  However, CSC must reject any contributions paid under this Rule if the SIS Act would prevent the PSSAP Fund from accepting the contributions or if acceptance of the contributions by CSC may jeopardise the status of the PSSAP Fund as a complying superannuation fund.

2.2.2 The superannuation salary of an ordinary employer-sponsored member is:

(a) where the circumstances referred to in Rule 2.2.3 apply — the ordinary time earnings of the person; and

(b) in all other cases the amount that would have been the person’s “fortnightly contribution salary” if they were a PSS member.

2.2.3 The superannuation salary of an ordinary employer-sponsored member will be the person’s ordinary time earnings if this is specified in:

(a) a workplace agreement that applies to the ordinary employer-sponsored member;

(b)  a pre-reform certified agreement that applies to the ordinary employer sponsored member;

(c) a pre-reform AWA that applies to the ordinary employer-sponsored member;

(d)  an AWA that applies to the ordinary employer-sponsored member;

(e) a remuneration determination that applies to the ordinary employer-sponsored member; or

(f) an enterprise agreement that applies to the ordinary employer-sponsored member; or

(g) a workplace determination that applies to the ordinary employer-sponsored member; or

(h) an agreement in writing between the ordinary employer-sponsored member and their designated employer in the case of an ordinary employer-sponsored member not covered by a workplace agreement, a pre-reform certified agreement, a pre-reform AWA, an AWA, a remuneration determination, an enterprise agreement, or a workplace determination.

2.2.4 In addition to the amounts required to be paid by the designated employer under Rule 2.2.1, the designated employer of an ordinary employer-sponsored member may pay additional contributions to CSC in respect of that member.  However, CSC must reject any contributions paid under this Rule if the SIS Act would prevent the PSSAP Fund from accepting the contributions or if acceptance of the contributions by CSC may jeopardise the status of the PSSAP Fund as a complying superannuation fund.

Additional employer contributions – salary sacrifice contributions for current government scheme members

2.2.4A Subject to Rule 2.2.4B, the designated employer of a current government scheme member may pay salary sacrifice contributions to CSC in respect of that member:

(a) where the current government scheme member has elected a particular investment strategy; and

(b) where CSC has accepted the election made by the current government scheme member to choose a particular investment strategy.

2.2.4B CSC must reject any contributions paid under Rule 2.2.4A if the SIS Act would prevent the PSSAP Fund from accepting the contributions or if acceptance of the contributions by CSC may jeopardise the status of the PSSAP Fund as a complying superannuation fund.

2.2.5 CSC may from time to time determine the way in which basic employer contributions and additional employer contributions must be paid to CSC.

2.2.6 The designated employer of an ordinary employer-sponsored member must pay basic employer contributions and any additional employer contributions in accordance with any determination of CSC under Rule 2.2.5.

2.2.6A The designated employer of a current government scheme member must pay any additional employer contributions in accordance with any determination of CSC under Rule 2.2.5.

2.2.7 CSC must pay any basic employer contributions and any additional employer contributions into the PSSAP Fund.

2.2.8 Each designated employer, in respect of an ordinary employer-sponsored member to whom Rule 2.2.2(a) applies, must inform the member in writing, at least quarterly, of the amount of basic employer contributions and additional employer contributions paid to the PSSAP Fund.

2.2.9 Within one month of the end of each quarter, each designated employer must, in respect of an ordinary employer-sponsored member to whom Rule 2.2.2(b) applies or has applied at any time during the quarter, inform the member and CSC in writing of the total amount of basic employer contributions and additional employer contributions paid to the PSSAP Fund in the quarter expressed:

(a) in dollars and cents; and

(b) as a percentage of the ordinary time earnings of the ordinary employer-sponsored member for the quarter.

2.2.10 If the percentage reported under Rule 2.2.9(b) is less than the relevant charge percentage for the quarter, as specified in the table at subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992, the designated employer is required to notify in writing the ordinary employer-sponsored member and CSC of an employer contribution shortfall. The amount of the employer contribution shortfall to be notified is the amount, expressed in dollars and cents, by which the reported amount falls short of the relevant charge percentage multiplied by the ordinary time earnings of the ordinary employer-sponsored member.

2.2.11 For the purposes of Rules 2.2.8 and 2.2.9 an ordinary employer-sponsored member is taken to have been informed in writing if the information is included in a pay advice document issued to the member.

2.3.1 An ordinary employer-sponsored member may pay contributions to CSC at any time and in any amount:

(a) except that CSC must reject any contributions paid under this Rule if the SIS Act would prevent the PSSAP Fund from accepting the contributions or if acceptance of the contributions by CSC may jeopardise the status of the PSSAP Fund as a complying superannuation fund; and

(b) where the method of payment complies with any CSC determination under Rule 2.3.5.

2.3.2 An ordinary employer-sponsored member is not required to make employee contributions.

2.3.3 A PSSAP member who is not an ordinary employer-sponsored member may not make employee contributions to the PSSAP Fund.

2.3.4 Eligible spouse contributions may be made on behalf of an ordinary employer-sponsored member at any time and in any amount:

(a) except that CSC must reject any contributions paid under this Rule if the SIS Act would prevent the PSSAP Fund from accepting the contributions or if acceptance of the contributions by CSC may jeopardise the status of the PSSAP Fund as a complying superannuation fund; and

(b) where the method of payment complies with any CSC determination under Rule 2.3.5.

2.3.5 CSC may determine the way in which employee contributions and eligible spouse contributions must be paid to CSC.

2.3.6 CSC must pay any employee contributions and eligible spouse contributions into the PSSAP Fund.

2.4.1 Subject to the SIS Act, an ordinary employer-sponsored member may transfer or
roll-over any or all of the following amounts to CSC as a transfer amount:

(a) a roll-over superannuation benefit;

(b) a directed termination payment;

(c) an amount of shortfall component payable to, or in respect of, the person in accordance with the Superannuation Guarantee (Administration) Act 1992; and

(d) an amount payable in respect of the person under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003,

provided the method of payment complies with Rule 2.4.2.

2.4.1A Subject to the SIS Act, a PSSAP member may transfer or roll-over an amount payable in respect of the person under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 to CSC as a transfer amount where the amount, in total or part, relates to a period where the person was an ordinary employer-sponsored member, provided the method of payment complies with Rule 2.4.2.

2.4.1B Subject to the SIS Act, a current government scheme member may transfer or roll-over a roll-over superannuation benefit to CSC as a transfer amount where the member has elected a particular investment strategy and CSC has accepted the election.

2.4.1C Subject to the SIS Act, a former government scheme member may roll-over to CSC as a transfer amount their:

(a) PSS accumulated transfer amount paid under PSS Rule 11.2.4A; or

(b) PSS Accumulated Additional Contributions paid under PSS Rule 11.4.10A,   

where the member has elected a particular investment strategy and CSC has accepted the election.

2.4.1D Subject to the SIS Act, a PSSAP member may transfer or roll-over a roll-over superannuation benefit to CSC as a transfer amount where:

(a) the roll-over superannuation benefit is a benefit paid from the PSS or CSS;

(b) the member has elected a particular investment strategy and CSC has accepted the election; and

(c) the member has made an application for benefits to be cashed as an account-based pension under paragraph 3.1.1(g), using the amount of the roll-over superannuation benefit under paragraph (a).

2.4.2 CSC may determine the way in which transfer amounts must be paid to CSC.

2.4.3 CSC must pay any transfer amount into the PSSAP Fund.

2.5.1 CSC must determine fees to be paid from the personal accumulation account of a person who is a government scheme member in relation to the costs of administering their personal accumulation account.

3.1.1 A benefit application may be made to CSC by:

(a) an ordinary employer-sponsored member who:

(i) paragraph deleted in the 2nd Amending Deed;

(ii) has applied for approval of their invalidity retirement under Rule 3.3.1;

(iii) is applying for income protection benefits under Rule 3.4.1;

(iv) is a transitional member who is applying for an amount of benefits
to be cashed as an income product which may be a transition to retirement income stream, a non-commutable allocated annuity, a non-commutable allocated pension, a non-commutable annuity or a non-commutable pension;

(b) a PSSAP member other than in the capacity of an ordinary employer-sponsored member applying under paragraph (a);

(c) a PSSAP member who is applying for the payment of benefits on compassionate grounds or due to severe financial hardship;

(d) the legal personal representative of a PSSAP member;

(e) a person claiming to be entitled to the benefit of a deceased PSSAP member;

(f) a PSSAP member or the Commissioner of Taxation, applying for the payment of a benefit pursuant to a release authority;

(g) a PSSAP member who is applying for an amount of benefits to be cashed as an account-based pension; or

(h) a PSSAP pensioner or reversionary beneficiary who is applying to commute all or part of the balance of their pension account.

3.1.2 A benefit application must be made in a form acceptable to CSC and must include any supporting evidence of entitlement to the benefit required by CSC.

Payment of benefits to a PSSAP member who has ceased to be an ordinary employer-sponsored member

3.1.4 On receiving a benefit application from or on behalf of a PSSAP member pursuant to Rule 3.1.1(b), CSC must pay to or in respect of the member a lump sum amount of such part of their total benefit as requested in the benefit application, subject to the SIS Act.

Payment of benefits to a PSSAP member on compassionate and financial hardship grounds

3.1.6 If CSC receives a benefit application from a PSSAP member pursuant to Rule 3.1.1(c), CSC may pay the person such part of their total benefit as requested in the benefit application, subject to the SIS Act:

(a) on a compassionate ground in accordance with a determination of the Australian Prudential Regulatory Authority under the SIS Act; or

(b) on grounds of severe financial hardship in accordance with the SIS Act.

3.1.7 If CSC receives or is taken to have received a benefit application from or on behalf of an ordinary employer-sponsored member pursuant to Rule 3.1.1(a)(ii) and CSC approves the invalidity retirement of the ordinary employer-sponsored member, CSC must, if the person ceases to be an ordinary employer-sponsored member following approval of their invalidity retirement, pay the person as a lump sum such part of their total benefit as the SIS Act permits as soon as possible.

3.1.8 If CSC receives a benefit application from or on behalf of an ordinary employer-sponsored member pursuant to Rule  3.1.1(a)(iii), the member, subject to Rules 3.4.2 and 3.4.5, is entitled to income protection benefits in accordance with Rule 3.4.3.

3.1.9 If CSC receives a benefit application from a transitional member pursuant to Rule 3.1.1(a)(iv) and CSC has in place arrangements for members to purchase the income product requested in the application, CSC, in accordance with Rule 3.5.1, must, on behalf of the transitional member, arrange for the purchase by the member of an income product of the type so requested costing an amount equal to the total benefit set out in the benefit application.

3.1.10 On receiving a benefit application from the legal personal representative of a PSSAP member under Rule 3.1.1(d), CSC may pay to the legal personal representative such part of the total benefit as the SIS Act permits if CSC is satisfied that:

(a) the PSSAP member is under a legal disability; and

(b) the PSSAP member is entitled to the payment of a benefit under the Rules.

3.1.11 When CSC:

(a) receives an application for benefits from a person claiming to be entitled to the benefit of a person who is a deceased PSSAP member; or

(b) otherwise becomes aware that a PSSAP member has died;

CSC must determine who is entitled to be paid the death benefits in accordance with Division 2 of this Part and pay the total benefit to the person or persons so entitled in such shares as CSC determines.

3.1.11A Subject to the SIS Act, where CSC receives a release authority, CSC must pay a lump sum benefit in respect of the PSSAP member equal to the lesser of:

(a) the amount (if any) requested by the PSSAP member or Commissioner of Taxation;

(b) the amount specified for release in the release authority; or

(c) the total benefit.

3.1.12 Where a part of the total benefit is paid to or in respect of a PSSAP member under this Division, the remainder of the benefit is retained in the personal accumulation account of the PSSAP member unless a roll-over application or benefit application is made in relation to the remainder of the benefit.

3.1.13 A roll-over application may be made to CSC, in accordance with the SIS Act, by:

(a) a PSSAP member, or in respect of a PSSAP member, other than in their capacity as a transitional member applying under paragraph (b); or

(b) a transitional member who is applying for an amount of benefits to be cashed as an income product, which may be a transition to retirement income stream, a non-commutable allocated annuity, a non-commutable allocated pension, a non-commutable annuity or a non-commutable pension.

3.1.14 Subject to the SIS Act, a roll-over application must be made in a form acceptable to CSC and must include any supporting evidence of entitlement to the benefit required by CSC.

3.1.15 Subject to the SIS Act, if CSC receives a roll-over application from a PSSAP member under Rule 3.1.13(a), CSC, where required by the SIS Act, must, and, where not so required, may roll-over or transfer so much of the person’s total benefit as is requested in the roll-over application to a superannuation entity, RSA or life insurance company.

3.1.18 If CSC receives a roll-over application from a transitional member under Rule 3.1.13(b), CSC must, subject to the SIS Act, roll-over or transfer such part of the person’s total benefit as is requested in the roll-over application to a superannuation entity or life insurance company.

3.1.19 If no benefit application or roll-over application is received upon a PSSAP member ceasing to be an ordinary employer-sponsored member and Rule 3.1.20 does not apply, the total benefit is retained in the personal accumulation account of the PSSAP member.

3.1.20 Subject to the SIS Act, CSC may pay a benefit to an eligible roll-over fund if CSC is unable to locate a PSSAP member.

3.2.1 If, upon the death of a PSSAP member, CSC is in receipt of a current valid binding member nomination in relation to the deceased PSSAP member, then the member’s total benefit will be paid by CSC to the person or persons specified in the binding member nomination.

3.2.2 Subject to Rule 3.2.1, in the event of the death of a PSSAP member, CSC must pay or apply the deceased member’s total benefit to or for the benefit of one or more, as determined by CSC, of the following:

(a) one or more dependants of the deceased PSSAP member;

(b) the legal personal representative of the deceased PSSAP member.

3.2.3 If, after making reasonable enquiries, CSC upon the death of a PSSAP member has not found either a legal personal representative or a dependant of the deceased PSSAP member, CSC will pay or apply the deceased member’s total benefit to or for the benefit of such one or more individuals as determined by CSC.

3.3.1 An application for approval of the invalidity retirement of an ordinary employer-sponsored member may be made to CSC by:

(a) the ordinary employer-sponsored member; or

(b) the designated employer of the ordinary employer-sponsored member.

3.3.2 An ordinary employer-sponsored member in respect of whom an application under Rule 3.3.1 is made is taken to have also made a benefit application.

3.3.3 Following receipt of an application to approve the invalidity retirement of an ordinary employer-sponsored member, CSC may approve the person’s invalidity retirement if it is satisfied that the person has a permanent incapacity.

3.3.4 CSC may determine the process it will follow before approving the invalidity retirement of an ordinary employer-sponsored member.

3.3.5 CSC must advise its decision under Rule 3.3.3 to the ordinary employer-sponsored member and the designated employer of the ordinary employer-sponsored member.  The advice is to include a statement of the reasons for the decision.

3.4.1 An ordinary employer-sponsored member may apply to CSC for income protection benefits if the ordinary employer-sponsored member:

(a) is unable to work due to a temporary incapacity; and

(b) holds income protection cover.

3.4.2 Following receipt of an application for income protection benefits that meets the requirements of Rule 3.4.1 CSC must make a claim against the policy or policies providing the income protection cover.

3.4.3 Subject to the SIS Act, any amount paid by an insurance company in response to a claim against a policy providing income protection cover:

(a) must be paid into the PSSAP Fund and paid from the PSSAP Fund to the ordinary employer-sponsored member as a non-commutable income stream; or

(b) must be paid directly to the ordinary employer-sponsored member as a non-commutable income stream.

3.4.4 Any amount paid into the PSSAP Fund or directly to an ordinary employer-sponsored member under Rule 3.4.3 does not form part of the personal accumulation account of the ordinary employer-sponsored member.

3.4.5 Nothing in this Deed requires CSC to pay income protection benefits where:

(a) an ordinary employer-sponsored member does not hold income protection cover; or

(b) an insurance company does not pay any amount in response to a claim by CSC.

3.5.1 CSC may enter into arrangements with a provider of products and services other than the Commonwealth to offer income products, including retirement income products, for purchase by persons in receipt of benefits under the Rules.

3.5.2 A person in receipt of benefit under Division 1 of this Part may use the benefits to purchase income products arranged by CSC, subject to the SIS Act.

3.6.1 If CSC receives a benefit application from a PSSAP member pursuant to Rule 3.1.1(g), CSC may, subject to the SIS Act and the person satisfying any requirements determined under Rule 3.6.2, provide one or more account-based pensions to the person.

3.6.2 CSC may, subject to the SIS Act and this Division, determine terms and conditions for the provision of an account-based pension, including the amount and manner of payments from the account.

3.6.3 If CSC provides an account-based pension under Rule 3.6.1, the following conditions, in addition to any terms and conditions determined by CSC under Rule 3.6.2, shall apply to the pension:

(a) the pension shall be paid from the pension account;

(b) payment of the pension shall be made at least annually until the earlier of the member’s death or the date that the pension account balance is exhausted;

(c) the amount of any pension payment cannot be greater than balance of the pension account at the time of the payment;

(d) the amount of the pension shall be subject to the minimum and maximum limits specified by the SIS Act;

(e) once the pension is commenced, no amounts can be added to by way of contribution or roll-over to the pension account;

(f) the pension is transferable to another person only on the death of the PSSAP pensioner or reversionary beneficiary or as otherwise permitted under the SIS Act;

(g) the capital value of the pension and income from the pension cannot be used by a person as security for a borrowing; and

(h) the pension is to be commuted in whole or part to a lump sum only if permitted or required by the SIS Act.

3.6.4 Where CSC provides one or more account-based pensions to a PSSAP member under Rule 3.6.1, CSC shall establish and maintain a separate pension account for each pension.

3.6.5 At any particular time, the balance of the pension account of a PSSAP pensioner is equal to the total of the amounts credited to the pension account of the PSSAP pensioner under Rule 3.6.6 less the total of the amounts debited to the pension account under Rule 3.6.7.

3.6.6 The following amounts are to be credited to a pension account:

(a) the amount transferred from the personal accumulation account or non-member spouse interest account of the PSSAP pensioner, as requested by the PSSAP pensioner;

(b) the interest (if any) in respect of fund earnings on the pension account as determined by CSC;

(c) the amount (if any) of roll-over superannuation benefit transferred or rolled-over under Rule 2.4.1D, unless that amount is credited to the PSSAP member’s personal accumulation account; and

(d) such other amounts as CSC determines from time to time.

3.6.7 The following amounts are to be debited to a pension account:

(a) any pension payments made to or in respect of the PSSAP pensioner or a reversionary beneficiary;

(b) the interest (if any) in respect of fund losses on the pension account as determined by CSC;

(c) any fees, costs and expenses paid or deducted from the pension account under Rule 3.6.9;

(d) any amounts commuted under Rule 3.6.8; and

(e) such other amounts as CSC determines from time to time.

3.6.8 If CSC receives a benefit application from a PSSAP pensioner or reversionary beneficiary pursuant to Rule 3.1.1(h), CSC may, subject to the SIS Act:

(a) roll-over or transfer to a superannuation entity or life assurance company;

(b) pay to the person (as a lump sum);

(c) if the application is from a PSSAP member, credit the person’s personal accumulation account;

(d) if the application is from a non-member spouse, credit the person’s non-member spouse interest account;

such part of the person’s pension account as is requested in the application.

3.6.9 Fees, costs and expenses incurred in relation to a pension account are to be determined by CSC and deducted from that pension account.

3.6.10 If CSC is satisfied that a PSSAP pensioner or reversionary beneficiary has died, CSC may, pending payment of the person’s benefit, switch the investment options in which the person’s benefit was then invested to an investment option that CSC selects.

3.6.11 A reference in Rule 3.1.1(c), Rule 3.1.1(d) Rule 3.1.1(e), Rule 3.1.1(f), Rule 3.1.6, Rule 3.1.10, Rule 3.1.11A, and Rule 3.1.20 to a PSSAP member is taken to include a PSSAP pensioner or reversionary beneficiary.

3.6.12 A reference in Rule 3.1.6, Rule 3.1.10, and Rule 3.1.11A to total benefit is taken to include the balance of the person’s pension account.

3.6.13 A PSSAP pensioner may, before their account-based pension commences to be paid or at such other times as CSC may allow, nominate one or more dependants as a beneficiary.

3.6.14 On the death of a PSSAP pensioner:

(a) if there is a valid nomination of a beneficiary under Rule 3.6.13 at the date of the death of the PSSAP pensioner, CSC must continue payment of the pension to the nominated beneficiary if the SIS Act permits it to do so; or

(b) if the pensioner has not nominated a beneficiary under Rule 3.6.13, but has made a valid binding member nomination, CSC must deal with payment of that balance in accordance with that binding member nomination subject to the SIS Act; or

(c) where paragraphs (a) and (b) do not apply, CSC may pay the pension account balance in such manner and in such proportions as it determines, as permitted or required by the SIS Act.

3.6.15 On the death of a reversionary beneficiary, any remaining pension account balance will be paid as determined by CSC, subject to the SIS Act.

4.1.1 CSC must take out a policy or policies with an insurance company or companies in its name to provide basic death and invalidity cover for ordinary employer‑sponsored members.  Basic death and invalidity cover is to be on the terms and conditions, including the circumstances, agreed between CSC and the relevant insurance company or companies.

4.1.1A CSC may take out a policy or policies with an insurance company or companies in its name to provide basic death and invalidity cover for some or all PSSAP members and non-member spouses (other than ordinary employer-sponsored members). Basic death and invalidity cover is to be on the terms and conditions, including the circumstances, agreed between CSC and the relevant insurance company or companies.

4.1.2 An ordinary employer-sponsored member will be provided with basic death and invalidity cover on and subject to the terms and conditions of the policy taken out pursuant to Rule 4.1.1, unless the insurance company does not provide cover in respect of the member under that policy.

4.1.2A Subject to the SIS Act, CSC may offer basic death and invalidity cover to some or all PSSAP members and non-member spouses, except ordinary employer-sponsored members, subject to the terms and conditions of the policy taken out pursuant to Rule 4.1.1A, unless the insurance company does not provide cover in respect of the person under that policy.

4.1.2B Subject to the SIS Act, CSC may determine the terms and conditions of any basic death and invalidity cover provided to persons under Rule 4.1.2A.

4.1.3 Where an ordinary employer-sponsored member dies or an application for approval of their invalidity retirement is made under Rule 3.3.1, CSC must make a claim against the policy providing the basic death and invalidity cover, unless the insurance company does not provide cover in respect of the member under that policy.

4.1.3A Where a PSSAP member or non-member spouse who has been provided with basic death and invalidity cover under Rule 4.1.2A dies, or makes an application for a claim against their invalidity cover, CSC must make a claim against the policy providing the basic death and invalidity cover.

4.1.3B Any amount paid by a insurance company to CSC in response to a claim under Rule 4.1.3A against a policy providing basic death and invalidity cover must be paid into the PSSAP Fund and is credited to the personal accumulation account of the PSSAP member or non-member spouse interest account of the non-member spouse.

4.1.4 Any amount paid by an insurance company to CSC in response to a claim under Rule 4.1.3 against a policy providing basic death and invalidity cover must be paid into the PSSAP Fund and is credited to the personal accumulation account of the ordinary employer-sponsored member.

4.1.5 All premiums for basic death and invalidity cover provided under Rule 4.1.1 and Rule 4.1.1A are to be paid by CSC from the PSSAP Fund.

4.1.6 Subject to Rule 4.1.7, the premium for basic death and invalidity cover provided in respect a PSSAP member or non-member spouse is the amount determined by CSC, being the same amount as the amount of premium specified in the basic death and invalidity cover policy, and must be deducted from the personal accumulation account or non-member spouse interest account of the person.

4.1.7 Where a premium payable for basic death and invalidity cover is more than the amount in the personal accumulation account or non-member spouse interest account of the PSSAP member or non-member spouse, Rule 4.1.6 shall not apply.

4.1.8 The basic death and invalidity cover of an ordinary employer-sponsored member ceases on the earliest of:

(a) the day, or a day after the day, that the ordinary employer-sponsored member ceases to be an ordinary employer-sponsored member, that is specified in the basic death and invalidity cover policy for the purpose of this paragraph;

(b) the death or invalidity retirement of the ordinary employer-sponsored member;

(c) where, under Rule 4.1.7, a premium payable for basic death and invalidity cover has not been paid on the day on which the premium became payable and the terms of the basic death and invalidity cover policy provide for cover to end if the premiums cease, the day after the day on which the cover ends due to non-payment of the premiums; and

(d) the date the insurer ceases to provide basic death and invalidity cover in respect of the ordinary employer-sponsored member; and

(e) the date the ordinary employer-sponsored member elects to cease basic death and invalidity cover, subject to Rule 4.1.9.

4.1.9 Subject to the SIS Act, an ordinary employer-sponsored member may elect to cease their basic death and invalidity cover, in accordance with terms and conditions determined by CSC, which may include the amount of notice that must be given, and whether the member may elect to cease cover.

4.2.1 Subject to the requirements of the SIS Act, CSC may take out a policy or policies with an insurance company or companies in its name to provide supplementary death and invalidity cover for ordinary employer-sponsored members.  A supplementary death and invalidity cover policy is to be on the terms and conditions, including the circumstances, agreed between CSC and the relevant insurance company.

4.2.2 An ordinary employer-sponsored member may apply to CSC for supplementary death and invalidity cover at any time.

4.2.3 CSC may allow the ordinary employer-sponsored member to choose the policy providing the supplementary death and invalidity cover if CSC has taken out more than one policy.

4.2.4 An ordinary employer-sponsored member who applies for supplementary death and invalidity cover must provide any information and undergo any medical examinations the relevant insurance company requires for it to determine whether it is prepared to provide the supplementary death and invalidity cover.

4.2.5 If an ordinary employer-sponsored member applies to CSC for supplementary death and invalidity cover, or applies to vary existing cover, CSC must ask the relevant insurance company:

(a) whether it is prepared to provide the cover for that ordinary employer-sponsored member; and

(b) if so, the cost of the premium, including any extra cost where the ordinary employer-sponsored member was assessed as not being a standard risk, on:

(i) the date the cover commenced; and

(ii) each subsequent birthday of the ordinary employer-sponsored member, or other date as specified in the policy.

CSC must provide the responses to the questions in paragraphs (a) and (b) from the insurance company to the ordinary employer-sponsored member.

4.2.6 An ordinary employer-sponsored member may vary the amount of supplementary death and invalidity cover at any time before the cover ceases to be applicable, provided the relevant insurance company is prepared to provide the varied cover.

4.2.7 Variations in the amount of supplementary death and invalidity cover take effect from:

(a) the date specified in the policy; or

(b) otherwise, the date determined by CSC.

4.2.8 The supplementary death and invalidity cover of an ordinary employer-sponsored member ceases on the earliest of:

(a) the day, or a day after the day, that the ordinary employer-sponsored member ceases to be an ordinary employer-sponsored member, that is specified in the supplementary death and invalidity cover policy for the purpose of this paragraph;

(b) the date the ordinary employer-sponsored member notifies CSC that they no longer wish to have supplementary death and invalidity cover;

(c) the death or invalidity retirement of the ordinary employer-sponsored member;

(d) where, under Rule 4.2.13, a premium payable for supplementary death and invalidity cover has not been paid on the day on which the premium became payable and the terms of the supplementary death and invalidity cover policy provide for cover to end if the premiums cease, the day after the day on which the cover ends due to non-payment of premiums; and

(e) the date the insurer ceases to provide supplementary death and invalidity cover in respect of the ordinary employer-sponsored member.

4.2.9 Where an ordinary employer-sponsored member with supplementary death and invalidity cover dies or an application for approval of their invalidity retirement is made under Rule 3.3.1, CSC must make a claim against the policy providing the supplementary death and invalidity cover.

4.2.10 Any amount paid by an insurance company to CSC in response to a claim against a policy providing supplementary death and invalidity cover must be paid into the PSSAP Fund and is credited to the person’s personal accumulation account.

4.2.11 All premiums for supplementary death and invalidity cover are to be paid by CSC from the PSSAP Fund.

4.2.12 Subject to Rule 4.2.13, the cost of the premium for supplementary death and invalidity cover provided in respect of an ordinary employer-sponsored member must be deducted from the personal accumulation account of the ordinary employer-sponsored member.

4.2.13 Where a premium payable for supplementary death and invalidity cover is more than the amount in the personal accumulation account of an ordinary employer-sponsored member, Rule 4.2.12 shall not apply.

4.3.1 CSC must take out a policy or policies with an insurance company or companies in its name to provide basic income protection cover for ordinary employer-sponsored members.  A basic income protection cover policy is to be on the terms and conditions, including the circumstances, agreed between CSC and the relevant insurance company but subject to the requirements of the SIS Act.

4.3.2 Subject to the terms of the basic income protection cover policy taken out pursuant to Rule 4.3.1, ordinary employer-sponsored members will be provided with basic income protection cover in accordance with arrangements made under Rule 4.3.1 unless:

(a) the ordinary employer-sponsored member has notified CSC in writing that they do not wish to be provided with basic income protection cover; or

(b) in accordance with the policy between CSC and the insurance company, the company refuses to provide cover in respect of the ordinary employer-sponsored member.

4.3.3 The basic income protection cover of an ordinary employer-sponsored member ceases on the earliest of:

(a) the day, or a day after the day, that the ordinary employer-sponsored member ceases to be an ordinary employer-sponsored member, that is specified in the basic income protection cover policy for the purpose of this paragraph;

(b) the date the ordinary employer-sponsored member notifies CSC that they no longer wish to have basic income protection cover;

(c) the death or invalidity retirement of the ordinary employer-sponsored member;

(d) where, under Rule 4.3.6, a premium payable for basic income protection cover has not been paid on the day on which the premium became payable and the terms of the basic income protection cover policy provide for cover to end when premiums cease, the day after the day on which the cover ends due to non-payment of premiums; and

(e) the date the insurer ceases to provide basic income protection cover in respect of the ordinary employer-sponsored member.

4.3.4 All premiums for basic income protection cover are to be paid by CSC from the PSSAP Fund.

4.3.5 Subject to Rule 4.3.6, the premium for basic income protection cover provided in respect of an ordinary employer-sponsored member is the amount determined by CSC, being the same amount as the amount of premium specified in the basic income protection cover policy, and must be deducted from the personal accumulation account of the ordinary employer-sponsored member.

4.3.6 Where a premium payable for basic income protection cover is more than the amount in the personal accumulation account of the ordinary employer-sponsored member, Rule 4.3.5 shall not apply.

4.4.1 CSC may take out a policy or policies with an insurance company or companies in its name to provide supplementary income protection cover for ordinary employer-sponsored members.  A supplementary income protection cover policy is to be on the terms and conditions, including the circumstances, agreed between CSC and the relevant insurance company but subject to the requirements of the SIS Act.

4.4.2 An ordinary employer-sponsored member may apply to CSC for supplementary income protection cover at any time.

4.4.3 CSC may allow the ordinary employer-sponsored member to choose the policy providing the supplementary income protection cover if CSC has taken out more than one policy.

4.4.4 An ordinary employer-sponsored member who applies for supplementary income protection cover must provide any information and undergo any medical examinations the relevant insurance company requires for it to determine whether it is prepared to provide the supplementary income protection cover.

4.4.5 If an ordinary employer-sponsored member applies to CSC for supplementary income protection cover, or applies to vary existing cover, CSC must ask the relevant insurance company:

(a) whether it is prepared to provide the cover for that ordinary employer-sponsored member; and

(b) if so, the cost of the premium, including any extra cost where the ordinary employer-sponsored member was assessed as not being a standard risk, on:

(i) the date the cover commenced; and

(ii) each subsequent birthday of the ordinary employer-sponsored member, or other date as specified in the policy.

CSC must provide the responses to the questions in paragraphs (a) and (b) from the insurance company to the ordinary employer-sponsored member.

4.4.6 The ordinary employer-sponsored member may vary the amount of supplementary income protection cover at any time before the cover ceases to be applicable, provided the relevant insurance company is prepared to provide the varied cover.

4.4.7 Variations in the amount of supplementary income protection cover take effect from:

(a) the date specified in the policy; or

(b) otherwise, the date determined by CSC.

4.4.8 The supplementary income protection cover of an ordinary employer-sponsored member ceases on the earliest of:

(a) the day, or a day after the day, that the ordinary employer-sponsored member ceases to be an ordinary employer-sponsored member, that is specified in the supplementary income protection cover policy for the purpose of this paragraph;