Military Superannuation and Benefits Trust Deed Amendment 2011 (No. 1)1
Military Superannuation and Benefits Act 1991
I, WARREN SNOWDON, Minister for Defence Science and Personnel, make this instrument under subsection 5 (1) of the Military Superannuation and Benefits Act 1991.
Dated 23 June 2011
WARREN SNOWDON
1 Name of instrument
This instrument is the Military Superannuation and Benefits Trust Deed Amendment 2011 (No. 1).
2 Commencement
This instrument commences on the commencement of the Governance of Australian Government Superannuation Schemes Act 2011.
3 Amendment of Military Superannuation and Benefits Trust Deed
(1) Schedule 1 amends the Military Superannuation and Benefits Trust Deed.
(2) The amendments made by Schedule 1 do not apply in the period starting on commencement of this instrument and ending on the day the instrument is registered to the extent that:
(a) the rights of a person (other than the Commonwealth or an authority of the Commonwealth) as at the date of registration would be affected so as to disadvantage that person; or
(b) liabilities would be imposed on a person (other than the Commonwealth or an authority of the Commonwealth) in respect of anything done or omitted to be done before the date of registration.
Schedule 1 Amendments
(clause 3)
[1] Trust Deed, clauses 1 to 12
substitute
(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 (in this Deed called the Rules), and the Rules shall form part of the Deed. In the case of an inconsistency between the provisions of the Deed and the Rules, the provisions of the Deed shall prevail.
(2) In this Deed, where the context requires or admits, words and expressions defined in the Act or the Rules have the same meanings when used in the Deed. The headings in this Deed and the Rules are for the convenience of reference only and shall not affect their interpretation.
(3) In this Deed Minister means:
(a) the Commonwealth Minister of State for Defence;
(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.
2 Establishment of the Superannuation Scheme and the Fund
(1) An occupational superannuation scheme, known as the Military Superannuation and Benefits Scheme (in this Deed called the Superannuation Scheme), in force on 1 October 1991, has been established for the benefit of:
(a) members of the Permanent Forces; and
(b) members of the Reserves rendering continuous full-time service;
and, from 1 July 2011, is to be administered in accordance with the Deed by CSC.
(2) A fund, known as the Military Superannuation and Benefits Fund No. 1 (in this Deed called the Fund), has been established for the purposes of the Superannuation Scheme and, from 1 July 2011, vested in CSC.
(1) The functions of CSC are to administer the Superannuation Scheme and to manage and invest the 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 pay benefits to or in respect of members, and to make payments to and receive payments from the Commonwealth, as provided for in the Act;
(b) to provide advice to the Minister on proposed changes to the Act and the Deed;
(c) to determine interest rates for the purposes of the Superannuation Scheme;
(d) to determine, from time to time, the issue price and withdrawal price of a unit in an Investment Division of the Fund.
(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 do any of the following:
(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 Fund;
(d) appoint agents and attorneys;
(e) act as agent for other persons;
(f) engage consultants and investment managers;
(g) establish an Incapacity Classification Committee to determine members’ incapacity classifications under the Rules;
(h) establish one or more Reconsideration Committees:
(i) to examine and report on decisions of CSC and its delegates under the Rules relating to members’ entitlements to benefits; and
(ii) to reconsider decisions of CSC and its delegates under the Rules relating to members’ entitlements and benefits;
(i) establish one or more other committees to assist CSC on any matter within the CSC’s functions and powers, including in relation to the investment of the Fund;
(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the Fund, or to enhance or protect, the return on any such investment.
(3) Subject to the SIS Act, in exercising its functions and powers CSC must have regard to:
(a) the interests of members and the Commonwealth; and
(b) any statement of policy of the Commonwealth Government on any matter that is relevant to the performance of the functions, duties and powers of CSC by the Minister with a request that CSC consider that policy.
(1) All contributions and other moneys paid to CSC, or as directed by CSC, shall be held in trust by CSC in the Fund. The Fund shall be managed and invested by CSC in accordance with the Act and the Deed.
(2) The Fund shall comprise:
(a) contributions made by members;
(b) contributions made by the Commonwealth 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 from investments; and
(e) any accretions to or profits on realisation of investments.
(3) The Fund shall be used by CSC to pay benefits to or in respect of members, to make payments to the Commonwealth in respect of members’ benefits as provided for in the Act and to pay the costs and expenses of the management and investment of the Fund.
(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.
(2) Moneys standing to the credit of the Fund which CSC, after consultation with its investment manager, is of the opinion are moneys that are not for the time being required for the purpose of making payments out of the 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 Fund that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.
(3) Moneys that, by virtue of subclause (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.
(4) CSC must:
(a) establish at least one Investment Division of the Fund as the means of investing the Fund; and
(b) establish an investment strategy for each Investment Division; and
(c) regularly review the effectiveness of each Investment Division and investment strategy; and
(d) maintain records to identify the assets, liabilities and income of each Investment Division; and
(e) maintain records to identify payments made from each Investment Division.
(4A) CSC may:
(a) create an Investment Division; or
(b) refuse to issue further units for an Investment Division; or
(c) wind up an Investment Division; or
(d) merge 2 or more Investment Divisions; or
(e) divide an Investment Division into 2 or more Investment Divisions;
if CSC decides that it is necessary or desirable to do so.
(4B) In acting under subclause (4A), CSC may consult any person or body.
(4C) If CSC decides to act under subclause (4A), CSC must give the unitised members who would be affected by the action reasonable notice of the action before the action takes effect.
(5) CSC shall invest moneys standing to the credit of the 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) CSC shall ensure that any investment manager:
(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.
10A Unitisation of Investment Divisions
CSC must:
(a) divide each Investment Division of the Fund into units; and
(b) issue units to each unitised member that represent the member’s beneficial interest in the fund; and
(c) record the issue, withdrawal and transfer of the units of each member in a unit record system maintained by CSC for the Fund.
11 Requests by Minister for Information
CSC shall furnish to the Minister such information relating to the general administration and operation of the Superannuation Scheme and the Fund as the Minister may from time to time require.
CSC may by instrument under its seal delegate all or any of its powers under the Deed to a person or committee mentioned in subsection 36 (1) of the Governance of Australian Government Superannuation Schemes Act 2011, other than its powers under Part 9 of the Rules and this power of delegation.
[2] The Schedule
substitute
Schedule Military Superannuation and Benefits Rules
(clause 1)
1 Citation
These Rules may be cited as the Military Superannuation and Benefits Rules.
2 Definitions and interpretation
(1) The following expressions are defined or interpreted, for the purposes of these Rules, in the Glossary in Schedule 1. Unless otherwise stated, the expressions are in Part 1 of the Schedule.
1948 Act
1973 Act
1973 Scheme
1973 Scheme (deferred benefit) re‑entrant
1973 Scheme (invalidity pay) re‑entrant
1973 Scheme re‑entrant
1973 Scheme (refunded contributions) re‑entrant
1973 Scheme (retirement pay) re‑entrant
1973 Scheme retirement pensioner
1991 Scheme
1991 Scheme re‑entrant
Actuary
aggregated service
allocation
allowance
ancillary
ancillary benefit
associate
associate A benefit
associate B benefit
associate pension
bank
Board
calendar month
carry over value
child
classification
Committee
contribution
contributory service
CSC
default Investment Division
Department
DFRDB member
eligible child
eligible service
employer benefit
employer funded account
final average salary
financial year
flying allowance
foreign service member
Fund
funded employer benefit
higher duties allowance
invalidity
invalidity pension
invalidity pensioner
invalidity retiree
Investment Division
investment nomination
issue price
lump sum maximum benefit limit
marital or couple relationship (see Part 1A)
MBL member
member
member benefit
member funded account
member unfunded account
membership
month
net asset value
Parliamentary Candidates Act
pension
pension maximum benefit limit
Permanent Forces
prescribed fee
prescribed half‑year
prescribed year
preservation age
previous contributions
previous legislation
regulated superannuation fund
relevant percentage
relevant period
relevant provision
Reserves
resign to contest an election (see Part 2)
retirement (see Part 3)
retirement on completion of limited tenure employment (see Part 3A)
retirement pensioner
retiring age (see Part 4)
salary (see Part 10)
Scheme
service
service allowance
service offence
SIS preservation threshold amount
SIS Regulations
special action forces allowance
specialist operations allowance
spouse who survives a deceased person (see Part 5)
spouse’s pension
Statistician
submarine service allowance
surcharge debt account
surcharge deduction amount
total benefit
trainee allowance
transfer
transfer application
transferred person
transferred (former recipient) person
transferred (refunded contributions) person
transfer value
unfunded preserved benefit
unitised member
unit value
withdrawal price
(2) Interpretations of the following matters, for the purposes of these Rules, are provided in Parts 6 to 9 of Schedule 1:
Part 6 Parts of speech and grammatical forms
Part 7 Number
Part 8 Reckoning of time
Part 9 Attainment of particular age.
3 Contributions by members
(1) A member is required to pay a contribution each fortnight in accordance with this Division.
(2) Where contributions by a member fall due during a period when he or she is on leave without pay, the member, or a person acting on his or her behalf, is to pay those contributions:
(a) each fortnight; or
(b) in such instalments and at such times as CSC approves; or
(c) with the approval of CSC, in a lump sum.
(1) Subject to subrule (2), the amount of the contribution payable by a member in a fortnight is an amount equal to the relevant percentage of the amount of the salary paid to the member in that fortnight.
(2) Where a member elects under subrule (10) to vary the amount of the contribution payable by him or her, that election has effect in relation to the first salary fortnight in relation to which it can be applied in the ordinary course of business.
(3) Where a member makes an election under subrule (10), the member is not entitled to make a further election until the expiration of a period of three months after the day on which the earlier election was made.
(4) For the purposes of subrule (1), salary is taken not to be paid to a member in respect of a day included in a period that, in accordance with Schedule 2, is a prescribed period.
(5) Where:
(a) the salary of a member in respect of a period is forfeited, in whole or in part, under regulations made under the Defence Act 1903; and
(b) the period does not exceed 21 consecutive days;
the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.
(6) Subject to subrule (7), where a member who is granted:
(a) long service leave on half pay; or
(b) leave without pay for a period not exceeding 21 days;
the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.
(7) In a case to which paragraph (6) (b) applies, the member’s salary for the purpose of calculating the contribution payable by the member is taken not to include an allowance unless:
(a) the allowance was payable to the member on the day immediately preceding the commencement of the period; and
(b) an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, the allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave.
(8) In calculating the amount of a contribution payable by a member, the calculation is to be made as if no deductions were made from the member’s salary.
(9) Where the amount of a contribution payable by a member includes a fraction of a cent:
(a) if the fraction is less than one‑half of a cent — the contribution is taken to be reduced by the amount of the fraction; or
(b) if the fraction is one‑half of a cent or more — the contribution is taken to be increased by treating the fraction as one cent.
(10) In this rule:
relevant percentage, in relation to a member, means:
(a) the percentage, being a whole number that is not less than 5 and not more than 10, elected by the member; or
(b) if the member has not made an election — 5 per centum.
5 Cessation of contributions on reaching maximum benefit limit
(1) A member is not entitled to pay contributions after he or she has been notified that his or her total benefit has equalled or exceeded his or her pension maximum benefit limit.
(2) At any time after a member is notified that his or her total benefit has equalled or exceeded his or her lump sum maximum benefit limit, he or she may elect to cease paying contributions.
(3) This rule applies in spite of anything in this Part.
(4) This rule does not apply to benefits payable under Part 12 or Part 13 or contributions made under Part 14.
6 Contributions while on leave without pay in connection with birth of child etc
A member who is on leave without pay for a period exceeding 21 days which was granted to him or her in connection with:
(a) the birth of a child of the member; or
(b) other termination of the pregnancy of the member; or
(c) the adoption of a child by the member;
may, before the expiration of the period of leave without pay, elect to pay contributions, calculated as if the member were on full pay, in respect of so much of that period, not exceeding 9 months, as is specified in the election.
7 Contributions while on other leave without pay
(1) This rule does not apply to a period of leave without pay to which rule 6 applies.
(2) Where a member who is on leave without pay for a period exceeding 21 days which was granted to him or her:
(a) for the purpose of the member:
(i) engaging, with the approval of the appropriate authority of the Defence Force, in full time employment; or
(ii) undertaking further education; or
(iii) undergoing training; or
(iv) engaging in some other activity;
and, in the case of subparagraph (ii), (iii) or (iv), an appropriate authority of the Defence Force has notified CSC that the education, training or other activity is relevant to the requirements of the Defence Force; or
(b) because the member was for the time being physically or mentally incapable of performing his or her duties;
the member may, with the approval of CSC, before the expiration of the period of leave without pay, elect to pay contributions, calculated as if the member were on full pay, in respect of so much of the period as is specified in the election.
(2A) If a member is granted, on compassionate grounds, leave without pay for a period exceeding 21 days, the member may, with the approval of CSC, before the end of the period of leave without pay, elect to pay contributions, calculated as if the member were on full pay, in respect of so much of the period, not exceeding 2 years, as is specified in the election.
(3) Where:
(a) leave without pay is granted to a member (in this subrule called the inactive member) whose spouse (in this subrule called the active member):
(i) is also a member; or
(ii) is an eligible member of the Defence Force within the meaning of the 1973 Act; and
(b) the active member is posted to a locality to which the inactive member is unable to obtain a posting; and
(c) the inactive member is granted the leave without pay in order not to be separated from the active member;
the inactive member may elect to pay contributions, calculated as if the member were on full pay, in respect of so much of that period, not exceeding 2 years, as is specified in the election.
(3A) An election under subrule (3) must be made before the expiration of the period specified in the election.
8 General conditions applicable to contributions under rules 6 and 7
(1) The provisions of rule 4 apply to an election made under rule 6 or 7 as if:
(a) the reference in that rule to the amount of salary paid to the member in a fortnight were a reference to the amount of salary that would have been paid to the member in that fortnight if the member had been on full pay; and
(b) the salary so assumed to be paid did not include an allowance unless:
(i) the allowance was payable to the member on the day immediately before the commencement of the period; and
(ii) an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, the allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave.
(2) A member who has made an election under rule 6 or 7 may revoke the election at any time after the expiration of a period of 3 months after the election was made.
(3) A revocation under subrule (2) has effect in relation to the first salary fortnight in relation to which it can be applied in the ordinary course of business.
9 Member contributions to be paid to CSC
Contributions payable by a member are to be paid to CSC by or on behalf of the member.
10 Liability of Department to pay employer contributions
(1) The Department must, on each salary pay‑day on which a member pays contributions, pay to CSC an employer contribution in relation to the member.
(1AA) To avoid doubt, the Department’s obligation to pay an employer contribution in relation to a member continues even if:
(a) the member has not provided his or her tax file number to CSC; or
(b) CSC returns a contribution of the member under rule 11QA.
(1A) Subrule (1) does not apply in relation to a contribution made under Part 14.
(2) In spite of a member paying contributions during a period of leave without pay to which rule 7 applies, subrule (1) does not apply:
(a) in the case of any part of a period of leave without pay referred to in subparagraph 7 (2) (a) (i) in respect of which no amount is paid under a prescribed arrangement; or
(aa) in the case of a period of leave without pay referred to in subparagraph 7 (2) (a) (ii), (iii) or (iv) or paragraph 7 (2) (b) that exceeds 12 months — to any part of the excess period; or
(ab) in the case of a period of leave without pay referred to in subrule 7 (2A); or
(b) in the case of a period of leave without pay referred to in subrule 7 (3).
(3) The amount of an employer contribution payable by the Department in relation to a member is an amount that is 3 per centum of the amount of the salary payable to the member in respect of the relevant fortnight.
(4) In this rule:
member’s employer, in relation to a member who is engaged in employment referred to in subparagraph 7 (2) (a) (i), means the person who is the employer of the member in respect of that employment.
prescribed arrangement, in relation to a member who is engaged in employment referred to in subparagraph 7 (2) (a) (i), means an arrangement between the Commonwealth and the member’s employer under which the employer agrees to pay to the Commonwealth, in relation to a member, a contribution:
(a) in respect of each salary fortnight:
(i) in the period of that employment; or
(ii) in a specified part of that period;
as the case may be, in respect of which the member pays a contribution under this Part; and
(b) of an amount equivalent to the amount that would be payable by the Commonwealth, as employer, in respect of the period referred to in subparagraph (a) (i) or (a) (ii), as the case may be, if the Scheme were fully funded within the meaning of that expression in Division 9.5 of the SIS Regulations.
11 Payment of contributions into Fund
CSC must pay all member and employer contributions received by it into the Fund.
Part 2B Administration of unitised Fund
Division 1 Arrangements for Investment Divisions
11C Investment Divisions — general
(1) CSC may establish an Investment Division of the Fund at any time.
(2) CSC may, at any time:
(a) refuse to issue further units for an Investment Division; or
(b) wind up an Investment Division; or
(c) merge 2 or more Investment Divisions; or
(d) divide an Investment Division into 2 or more Investment Divisions.
(3) CSC:
(a) must name each Investment Division that it establishes (including an Investment Division established after a merger or division); and
(b) may change the name of an Investment Division.
(4) There must be at least one Investment Division in existence at all times.
11D Default Investment Division
(1) If the Fund has a single Investment Division in existence, that Division is the default Investment Division.
(2) If the Fund has more than one Investment Division, CSC must designate one of them as the default Investment Division.
(3) CSC may, at a later time, designate another Investment Division as the default Investment Division.
11E Winding up of Investment Division
(1) This rule applies if CSC decides to wind up an Investment Division.
(2) Before winding up the Investment Division, CSC must:
(a) decide on the how units in the Investment Division held in accounts of a unitised member will be transferred to other Investment Divisions in the absence of a transfer application from the member; and
(b) give each unitised member notice under rule 11ZB; and
(c) if no transfer application is received by the member before the Investment Division is wound up, transfer the units in accordance with the decision under paragraph (a).
(3) CSC must:
(a) sell the assets of the Investment Division, make the necessary deductions from the proceeds of the sale to pay the debts of the Investment Division and transfer the remainder of the proceeds to another Investment Division; or
(b) reallocate the assets of the Investment Division to another Investment Division in accordance with Division 4.
(1) The net asset value of an Investment Division is the amount determined by CSC to be the total value of the assets of the Investment Division, less any amount representing liabilities of the Investment Division.
(2) CSC may include in the assessment of net asset value an amount representing CSC’s assessment of:
(a) actual or anticipated income tax liability; or
(b) an actual or anticipated benefit.
(3) CSC may determine a net asset value from time to time, including more than once on a particular day.
(4) CSC may require an asset of an Investment Division to be valued at any time, including more than once on a particular day.
Division 2 Unitisation procedure
11G Unitisation of an Investment Division
(1) CSC must determine the net asset value of an Investment Division that is established.
(2) CSC may determine, from time to time, the method of determining the net asset value of a Fund Investment Division.
(3) CSC must:
(a) divide the beneficial interest in the assets of an Investment Division into a number of units in the Division; and
(b) work out, for each day, the price of the units in accordance with rules 11J and 11K.
(4) A unit does not confer an interest in any particular part of:
(a) the beneficial interest in the net assets of the Investment Division; or
(b) the assets of the Investment Division; or
(c) the Investment Division.
(5) Subject to the terms on which the units are issued to a unitised member, each unit in a class of units of an Investment Division is of equal rank within the class.
(6) CSC must make and keep unit records for each Investment Division, including:
(a) the name and contact details of each unitised member who has a unit in the Investment Division; and
(b) the number of units in the Investment Division held by each unitised member; and
(c) the aggregate value of those units.
(1) CSC may divide the units in an Investment Division into 2 or more classes.
(2) The unit value of units in one class may be different from the unit value of units in another class.
(1) Subject to these Rules, the unit value of a unit in a class of units held in an Investment Division in relation to member funded accounts and employer funded accounts for a particular day (the valuation day) that is a working day is the amount worked out using the formula:
where:
net asset value for the class means the net asset value of the Investment Division attributed to the class as at the end of the valuation day.
total number of units in the class means the total number of units in the class held in relation to member funded accounts and employer funded accounts.
(2) However, if the valuation day is not a working day, the unit value of the unit is the unit value for the last working day before the valuation day unless CSC calculates the net asset value for the valuation day.
(3) The unit value of a unit in the class of units held in the Investment Division in relation to a member unfunded account for a particular day is the same as the unit value for a unit mentioned in subrule (1) for that day.
(4) In this rule:
working day means a day on which the Australian Stock Exchange is open for business.
(1) Subject to subrule (2), the issue price of a unit for a particular day is the amount worked out using the formula:
where:
unit value means the unit value for the day.
estimate of acquisition costs means CSC’s estimate of the costs associated with the acquisition of the assets underlying the unit that will be incurred by CSC on that day.
(2) CSC may, if it is satisfied that it is reasonable in the circumstances, set the issue price of a unit for a transaction as the unit value for the day.
(1) Subject to subrule (2), the withdrawal price of a unit for a particular day is the amount worked out using the formula:
where:
unit value means the unit value of the unit for the day.
estimate of disposal costs means CSC’s estimate of the costs associated with the disposal of the assets underlying the unit that will be incurred by CSC on that day.
(2) CSC may, if it is satisfied that it is reasonable in the circumstances, set the withdrawal price of a unit for a transaction as the unit value for the day.
11L Division or consolidation of units
(1) CSC may decide to divide or consolidate the units in an Investment Division.
(2) If CSC decides to divide or consolidate units, CSC must:
(a) give each unitised member with units in the Investment Division notice of the division or consolidation; and
(b) ensure that the member’s member funded account, member unfunded account and employer funded account are amended as appropriate to reflect the consolidation or division.
Division 3 Arrangements for unitised members
11M Establishment and operation of unitised accounts
(1) CSC must establish and maintain the following accounts for each person who becomes a unitised member:
(a) a member funded account;
(b) an employer funded account.
(2) CSC must also establish and maintain a member unfunded account for each of those persons who is a transferred person on 1 July 2002.
(3) An account established under subrule (1) or (2) is an account of units in Investment Divisions of the Fund that are held for the member.
(4) CSC must credit a unitised member’s member funded account with units representing the contributions made by the member after 30 June 2002, allocated to Investment Divisions in accordance with any current investment nomination by the member.
(5) CSC must credit a unitised member’s employer funded account with units representing the contributions made by the Department after 30 June 2002, allocated to Investment Divisions in accordance with rule 11P.
(6) CSC may debit a unitised member’s member funded account or employer funded account to pay amounts owed to CSC or the Commissioner of Taxation.
As soon as practicable after the end of a financial year, CSC must give to each unitised member, to each ancillary and to each associate a statement of the beneficial interest that the member, ancillary or associate holds in the Fund, including:
(a) the number of units held in each Investment Division as at the date on which the statement was issued; and
(b) the aggregate value of those units as at that date.
Division 4 Allocation of contributions to Investment Divisions
11O How contributions are allocated to an Investment Division
For these Rules, a reference to the allocation of contributions to an Investment Division is a reference to the issue of units in the Investment Division to the value of the contribution at the issue price of the Investment Division on the day of issue.
11P Allocation of employer contributions
(1) CSC must allocate contributions made by the Department to a unitised member’s employer funded account to the default Investment Division.
(2) Subject to rule 11R, a contribution to be allocated in accordance with this rule must be allocated as at the day that the contribution is received.
11Q Allocation of member contributions
(1) If the Fund has, or will have, more than one Investment Division, a unitised member may nominate to CSC the Investment Division or Investment Divisions to which contributions by the member should be allocated, from the day specified in the nomination.
Note An investment nomination received under expired subrule 112 (3) and in force immediately before Part 15 expired continues in force as if the nomination had been made under this subrule.
(3) Subject to rule 11QA, CSC must, as far as possible, comply with a unitised member’s investment nomination.
(4) A unitised member may change an investment nomination at any time.
(5) If CSC:
(a) has not received an investment nomination from a unitised member; or
(b) cannot comply with an investment nomination in relation to all or part of a member’s contribution because the nomination is defective, or because one or more of the Investment Divisions have changed;
CSC must allocate the member’s contributions, or the part of the member’s contributions, to the default Investment Division.
(6) Subject to rule 11R, a contribution to be allocated to an Investment Division in accordance with this rule must be allocated to the Investment Division as at the day that the contribution is received.
11QA Treatment of contributions where no tax file number has been provided
(1) Subject to subrule (2), if CSC receives a contribution from, or on behalf of, a member in a manner that is inconsistent with subregulation 7.04 (2) of the Superannuation Industry (Supervision) Regulations 1994, CSC:
(a) must allocate the contribution to the Investment Division or Investment Divisions nominated by the member; but
(b) must not allocate the contribution to the member’s account.
(2) If, within 30 days after CSC receives the contribution, the member’s tax file number is provided to CSC, CSC must allocate the contribution to the member’s account with effect from the day the tax file number is provided to CSC.
(3) If, at the end of 30 days after CSC receives the contribution, the member’s tax file number has not been provided to CSC, CSC must return the contribution to the member or, if the contribution was paid to CSC by another person on behalf of the member, to that person for the benefit of the member.
(1) CSC may suspend the allocation to an Investment Division of contributions made to the Fund for a period if, during the period:
(a) because of an event that is beyond the control of CSC, CSC is unable to calculate the unit value for the Investment Division; or
(b) CSC is satisfied on reasonable grounds that it is in the interests of members to suspend the allocation.
(2) If CSC suspends the allocation of contributions for a period under subrule (1), CSC must allocate the contributions on the first day after the period ends.
Division 5 Transferring units from one Investment Division to another
11S How units are transferred from one Investment Division to another
For these Rules, a reference to a transfer of units from one Investment Division to a second Investment Division on a day is a reference to:
(a) the withdrawal of the units from the first Investment Division, at the withdrawal price for the Investment Division on the day; and
(b) the issue of units to the same value from the second Investment Division, at the issue price for the second Investment Division on the day.
11T Transfer of units in employer accounts on change of default Investment Division
If there is a change in the default Investment Division, CSC must transfer the units in each member’s employer funded account from the default Investment Division before the change to the default Investment Division after the change.
11U Unitised member may apply for transfer of units
(1) A unitised member may apply to CSC to transfer some or all of the units in the member’s member funded account or member unfunded account to another Investment Division or Investment Divisions (in this Division called the new Investment Division).
(2) For these Rules, the application is a transfer application.
11V Transfer applications — day of transfer
(1) This rule applies if a unitised member makes a transfer application.
(2) If CSC approves a transfer application, CSC must effect the transfer on:
(a) if the application is complete — the day on which CSC receives the application, or a later day specified in the application; and
(b) if the application is incomplete — the day on which CSC receives the information from the member that is necessary to make the application complete, or a later day specified in the application.
11W Limits applicable to transfers
(1) CSC may limit the number of times a unitised member may make transfer applications.
(2) CSC may determine a minimum withdrawal amount and a minimum investment amount for a transfer application.
11X Grounds for refusing transfer application
CSC may refuse to approve a transfer application if:
(a) the aggregate value of the units that would otherwise be issued in the new Investment Division in accordance with rule 11V is less than the minimum investment amount; or
(b) the aggregate value of the units that would otherwise be withdrawn from the old Investment Division in accordance with that rule is less than the minimum withdrawal amount.
(1) CSC may suspend transfers of units from one Investment Division to a second Investment Division for a period if, during the period:
(a) because of an event that is beyond the control of CSC, CSC is unable to calculate the unit value for either Investment Division; or
(b) CSC is satisfied on reasonable grounds that it is in the interests of members to suspend the withdrawal of units of the first Investment Division or the issue of units of the second Investment Division.
(2) If CSC suspends the transfer of units for a period under subrule (1), CSC must effect any approved transfers on the first day after the period ends.
(3) A transfer application may be withdrawn during the suspension period.
(1) CSC may charge a fee for transferring a unitised member’s beneficial interest under this Division.
(2) CSC must not approve a transfer application unless CSC is satisfied that:
(a) the member is aware that a fee may be charged for the transfer; and
(b) the member has agreed to pay the fee.
11ZA Closed or wound up Investment Division
(1) CSC may refuse to approve a transfer application if, before the application is processed, CSC decides:
(a) to merge an Investment Division nominated by the member with another Investment Division; or
(b) to refuse to issue further units for the Investment Division; or
(c) to wind up the Investment Division.
(2) If CSC refuses to approve the transfer application, CSC must ask the member to nominate another Investment Division, or Investment Divisions, to which his or her beneficial interest may be allocated.
(3) CSC may temporarily transfer the units to an Investment Division determined by CSC until CSC is able to transfer the units to an Investment Division nominated by the member.
Division 6 Notice of proposed changes to Investment Divisions
11ZB Members to be informed about proposed changes to Investment Divisions
(1) If it is proposed to make a change to the Investment Divisions of the Fund under subrule 11C (2) or rule 11E or 11L, CSC must, not less than one month before the day of the proposed change, give each unitised member a notice that includes:
(a) general information; and
(b) information about the proposed change; and
(c) information about the effect of the change on the unitised member.
(2) The general information for paragraph (1) (a) is information about:
(a) the unitisation of the Fund and Investment Divisions; and
(b) the range of investment options available to unitised members; and
(c) the terms on which investments may be made; and
(d) the operation of the default Investment Division; and
(e) how to make an investment nomination under this Division; and
(f) how to make a transfer application; and
(g) the operation of Division 5.
(3) The information about the proposed changes for paragraph (1) (b) is information about:
(a) the Investment Divisions and their investment strategies before and after the change; and
(b) when the change will be made; and
(c) how the change will operate by dividing, merging, creating or winding up Investment Divisions, or closing Investment Divisions to further contributions; and
(d) if the change includes a change in the default Investment Division, how that will affect unitised members.
(4) The information about the effect of the change on the unitised member for paragraph (1) (c) is information about:
(a) any units held in an account of the member that are affected by the change; and
(b) how the units will be dealt with by CSC after the change if CSC does not receive a transfer application in relation to them; and
(c) any current investment nomination by the member that is affected by the change; and
(d) how CSC will allocate contributions of the member if CSC does not receive a new investment nomination.
Division 7 Withdrawal of beneficial interest
(1) This rule applies if a person requests CSC to withdraw some or all of the units that are held in an Investment Division, or Investment Divisions, for the benefit of the person to make a payment of a benefit that is payable under these Rules in relation to the person.
(2) The withdrawal price of the units is:
(a) if the request is received by CSC after the day on which the person ceases to be a member — the withdrawal price of the units for the day when CSC receives the application; and
(b) if the request is received by CSC before the end of the day on which the person ceases to be a member — the withdrawal price of the units for the day after the person ceases to be a member.
(3) However, CSC may:
(a) refuse the request if it would be contrary to a law of the Commonwealth, a State or a Territory to act in accordance with the request; or
(b) suspend the withdrawal of units in accordance with rule 11ZD.
11ZD Suspension of withdrawals
(1) CSC may suspend withdrawals of units for rule 11Y that include withdrawals from a particular Investment Division for a period if, during the period:
(a) because of an event that is beyond the control of CSC, CSC is unable to calculate the unit value for the Investment Division; or
(b) CSC is satisfied on reasonable grounds that it is in the interests of members to suspend the withdrawal of units from the Investment Division.
(2) If CSC suspends the withdrawal of units for a period under subrule (1), CSC must effect the withdrawals on the first day after the period ends.
Note The amount of a member’s benefits may have been affected by a family law superannuation payment split under Part 13.
Division 1 Benefits other than Invalidity Benefits
(1) This rule applies to a member who retires:
(a) in the case of a member whose retiring age is less than 55 years — before reaching his or her retiring age; or
(b) in any other case — before reaching the age of 55 years;
not being a member who is:
(c) retired on the ground of redundancy or retrenchment; or
(d) entitled to an invalidity pension.
(2) Subject to Part 10, in the case of a person to whom this rule applies:
(a) his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and
(b) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.
(3) A person who is entitled to be paid a member benefit under paragraph (2) (a) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the member benefit and if he or she so elects:
(a) the member benefit is not payable to him or her as a lump sum; and
(b) there is applicable to him or her a preserved benefit of that amount.
(4) If a person who is entitled to be paid a member benefit under paragraph 2 (a):
(a) does not request that the benefit be paid to him or her as a lump sum; and
(b) does not make an election under subrule (3);
within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.
(1) Where a member is retired on the ground of redundancy or retrenchment or on completion of a limited tenure appointment and he or she is not entitled to an invalidity pension:
(a) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and
(b) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.
(2) Where a member retires and, on that retirement:
(a) he or she has reached his or her retiring age; and
(b) that retiring age is less than 55 years; and
(c) he or she is not entitled to an invalidity pension;
then:
(d) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and
(e) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.
(3) A person who is entitled to be paid a member benefit under paragraph (1) (a) or (2) (d) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the member benefit and if he or she so elects:
(a) the member benefit is not payable to him or her as a lump sum; and
(b) there is applicable to him or her a preserved benefit of that amount.
(4) A person to whom a preserved benefit is applicable under paragraph (1) (b) or (2) (e) may elect that, instead of that benefit being so preserved, it be converted into a pension payable to him or her and if he or she so elects:
(a) a preserved benefit of the amount of the benefit is not applicable to him or her; and
(b) subject to Part 10, the benefit is converted into a pension payable to him or her.
(5) Where:
(a) a member retired and, on that retirement, subrule (2) applied to him or her; and
(b) he or she again became a member and again retires; and
(c) on the last‑mentioned retirement the member is not entitled to an invalidity pension;
then, for the purposes of these Rules, the person is taken to be a person to whom subrule (2) applies.
(6) If a person who is entitled to be paid a member benefit under paragraph 1 (a) or 2 (d):
(a) does not request that the benefit be paid to him or her as a lump sum; and
(b) does not make an election under subrule (3);
within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.
14 Benefits on retirement on or after attaining age of 55 years
(1) If a member:
(a) retires on or after turning 55; and
(b) is not entitled to an invalidity pension;
the following benefits are payable to him or her as a lump sum, in accordance with Part 11:
(c) subject to Part 10, his or her member benefit; and
(d) subject to Part 10, his or her employer benefit.
(2) A person who is entitled to be paid a member benefit under subrule (1) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the member benefit and if he or she so elects:
(a) the member benefit is not payable to him or her as a lump sum; and
(b) there is applicable to him or her a preserved benefit of that amount.
(3) If a person is entitled to be paid an employer benefit under subrule (1):
(a) the person may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the employer benefit and, if he or she so elects:
(i) the employer benefit is not payable to him or her as a lump sum; and
(ii) there is applicable to him or her a preserved benefit of that amount; or
(b) the person may elect that, instead of his or her employer benefit being paid to him or her, it be converted into a pension payable to him or her and, subject to Part 10, if he or she so elects, that benefit is so converted; or
(c) the person may elect that, instead of his or her employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her and, subject to Part 10, if he or she so elects:
(i) that part of the employer benefit is so converted; and
(ii) the balance of the employer benefit is payable to him or her as a lump sum.
(4) Paragraphs (3) (b) and (c) do not apply to a person whose employer benefit is less than the amount prescribed in rule 65B.
(5) If a person who is entitled to be paid a member benefit under subrule (1):
(a) does not request that the benefit be paid to him or her as a lump sum; and
(b) does not make an election under subrule (2);
within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.
Division 2 Invalidity Benefits
Subdivision A Incapacity Classification
17 Incapacity Classification Committee
An Incapacity Classification Committee established under paragraph 3 (2) (g) of the Trust Deed is constituted under, has the functions set out in, and must operate in accordance with, this Division.
(1) The Committee comprises such number of persons as CSC determines.
(2) The qualifications or other requirement, which are or is a prerequisite to the appointment of each member of the Committee, are such as CSC determines.
(3) If a member of the Committee ceases to hold the relevant qualifications or to comply with the relevant requirement, applicable under subrule (2), his or her membership of the Committee is thereupon taken to be terminated.
(1) The functions of the Committee are to exercise, at the request of CSC and subject to any directions given by CSC, the powers and functions under rules 22, 22A, 23, 32, 33 and 34.
(2) When determining the classification of, or reclassifying, an invalidity retiree, the Committee:
(a) must take into account any evidence relating to that retiree that is made available or submitted to it; and
(b) may take steps to obtain any other evidence that it considers necessary to properly determine the classification.
(3) CSC must make available to the Committee any medical or other evidence that it has concerning the invalidity retiree whose classification or reclassification is being considered and that is relevant to his or her classification.
Subject to any directions given by CSC, the Committee may regulate its proceedings as the Committee thinks fit.
The Committee must notify CSC of its decision as to the classification or reclassification of an invalidity retiree, giving reasons for its decision.
22 Classification in respect of incapacity
(1) Subject to rule 22A, where a member is, or is about to be, retired on the ground of invalidity, CSC or the Committee must determine the percentage of incapacity in relation to civil employment of the invalidity retiree and must classify the retiree according to the percentage of incapacity as follows.
Percentage of incapacity | Class |
60% or more | A |
30% or more but less than 60% | B |
Less than 30% | C |
(2) In determining, for the purposes of subrule (1), the percentage of incapacity in relation to civil employment of an invalidity retiree, CSC or the Committee must have regard to the following matters only:
(a) the vocational, trade and professional skills, qualifications and experience of the retiree;
(b) the kinds of civil employment which a person with the skills, qualifications and experience referred to in paragraph (a) might reasonably undertake;
(c) the degree to which the physical or mental impairment of the retiree that is the cause of the invalidity by reason of which he or she has been, or is to be, retired has diminished his or her capacity to undertake the kinds of civil employment referred to in paragraph (b).
(3) The death of a person after he or she has been retired on the ground of invalidity does not prevent the classifying of the person under subrule (1).
(4) This rule does not apply to a person who, by reason of rule 32, 33 or 34, is not entitled to invalidity benefits.
(1) Where a member is, or is about to be, retired on the ground of invalidity and CSC or the Committee:
(a) is satisfied that the percentage of incapacity in relation to civil employment of the invalidity retiree is not less than 30%; and
(b) requires further information in order to determine whether the person is to be classified as Class A or Class B;
CSC or the Committee may make an interim classification of the person as Class B.
(2) Where an invalidity retiree has an interim classification, CSC or the Committee must review the classification not later than 3 months after the classification was made or the classification was last reviewed, whichever is the later.
(3) When CSC or the Committee is satisfied that it has received sufficient information to enable it to classify under rule 22 an invalidity retiree who has an interim classification, it must cancel the interim classification and classify the person under that rule.
(4) This rule does not apply to a person who, by reason of rule 32, 33 or 34, is not entitled to invalidity benefits.
23 Reclassification in respect of incapacity
(1) Where CSC or the Committee, at any time, is satisfied that there has been such a change in the percentage of incapacity in relation to civil employment of an invalidity pensioner that his or her classification should be altered, CSC or the Committee may reclassify him or her in the appropriate classification set out in rule 22 according to the percentage of his or her incapacity in relation to civil employment.
(2) Where an invalidity pensioner has attained the age of 55 years and the invalidity pensioner is classified:
(a) as Class A — subrule (1) does not apply to him or her; or
(b) as Class B — subrule (1) is taken not to empower CSC to reclassify him or her as Class C.
(3) In determining, for the purposes of subrule (1), the percentage of incapacity in relation to civil employment of an invalidity pensioner, CSC or the Committee must have regard to the following matters only:
(a) the vocational, trade and professional skills, qualifications and experience of the pensioner;
(b) the kinds of civil employment which a person with skills, qualifications and experience referred to in paragraph (a) might reasonably undertake;
(c) the degree to which any physical or mental impairment of the pensioner, being a prescribed physical or mental impairment, has diminished his or her capacity to undertake the kinds of civil employment referred to in paragraph (b).
(4) Where CSC or the Committee reclassifies a person under this rule, CSC or the Committee must specify the date from which the reclassification has effect and, on and after that date, the person is, for the purposes of these Rules, taken to be classified under rule 22 accordingly.
(5) Where CSC or the Committee reclassifies a person under this rule, the date specified by CSC or the Committee as the date from which the reclassification has effect is not to be a date earlier than the date on which CSC or the Committee reclassifies the member unless:
(a) the person is reclassified as Class A or, having been classified as Class C, is reclassified as Class B; and
(b) CSC or the Committee is satisfied that special circumstances exist that justify an earlier date being so specified.
(6) Where a person who was retired otherwise than on the ground of invalidity is, by virtue of rule 30, treated as if he or she had been retired on the ground of invalidity, CSC or the Committee may, despite subrule (5), on the same day on which it classifies him or her under rule 22, reclassify him or her under this rule with effect from a date after the date of his or her retirement but before the date on which CSC or the Committee makes the reclassification.
(7) The death of a person after he or she has been classified under rule 22 or reclassified under this rule does not prevent the reclassifying of the person under subrule (1).
(8) For the purposes of this rule, a person who:
(a) is classified as Class C; and
(b) immediately before being so classified was an invalidity pensioner other than an invalidity pensioner who had an interim classification made under rule 22A;
is taken to be an invalidity pensioner.
(8A) This rule does not apply to a person who:
(a) is classified as Class C; and
(b) immediately before being so classified was an invalidity pensioner;
and who either:
(c) has, under paragraph 51 (1) (c), (d), (e) or (f), been paid the whole of the employer benefit included in his or her preserved benefit; or
(d) has attained the age of 55 years and:
(i) has been paid the employer benefit included in his or her preserved benefit; or
(ii) has elected to have all or part of that employer benefit converted into a pension and has been paid the balance (if any) of the employer benefit.
(9) This rule does not apply to a person who has attained the age of 65 years.
(10) In this rule:
prescribed physical or mental impairment, in relation to an invalidity pensioner or a deceased person who was, immediately before his or her death, an invalidity pensioner, means:
(a) a physical or mental impairment of the pensioner that was the cause, or one of the causes, of the invalidity by reason of which he or she was retired, whether or not that impairment changed, for better or worse, after that retirement; or
(b) any other physical or mental impairment of the pensioner causally connected with a physical or mental impairment referred to in paragraph (a).
24 Decision as to classification or reclassification to be notified to invalidity retiree
CSC must notify an invalidity retiree in writing of any decision under rule 22, 22A or 23 as to the classification or reclassification of the retiree and the reasons for that decision.
25 Power of CSC to require persons to be medically examined etc
(1) CSC may, by notice in writing given to a person in receipt of an invalidity pension, require him or her:
(a) to submit himself or herself for medical examination by a legally qualified medical practitioner at a time and place specified in the notice; or
(b) to furnish in writing to CSC, within such period as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his or her own account) in which he or she has been engaged during such period as is specified in the notice.
(2) A notice under subrule (1) must set out the effect of subrule (3).
(3) Where a person fails to comply with a notice given under subrule (1) and CSC is not satisfied that there was a reasonable excuse for the failure, CSC may, by notice in writing given to the person, suspend the person’s invalidity pension with effect from a day determined by CSC, being a day not earlier than:
(a) in a case where the first‑mentioned notice required the person to submit to a medical examination on a day specified in the notice — the day next following that day; or
(b) in a case where the first‑mentioned notice required the person to furnish information within a period specified in the notice — the day next following the end of that period.
(4) A notice to a person under subrule (3) must set out the effect of subrules (7), (9) and (10).
(5) An invalidity pension is not payable in respect of a period during which a suspension under subrule (3) is in force.
(6) Where:
(a) the invalidity pension of a person is suspended under subrule (3); and
(b) CSC, having regard to such matters as it considers relevant, is of the opinion that the suspension should be revoked;
CSC may, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than the day on which the notice is given.
(7) Without limiting subrule (6), where the invalidity pension of a person is suspended under subrule (3), the person may, by notice in writing given to CSC, request CSC to revoke the suspension and, where such a request is made, CSC must, by notice in writing given to the person:
(a) if the invalidity pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the person to submit to a medical examination — require the person to submit to a medical examination by a medical practitioner at a time and place specified in the second‑mentioned notice; or
(b) if the invalidity pension has been suspended by virtue of the person’s having failed to comply with a notice requiring the person to give information to CSC (in this paragraph called the original notice) — require the person to give in writing to CSC, within such period as is specified in the second‑mentioned notice, such information as was required by the original notice to be given.
(8) A notice given by CSC under subrule (7) must set out the effect of subrules (9) and (10).
(9) Where:
(a) because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person; and
(b) either:
(i) the person complies with the notice; or
(ii) the person fails to comply with the notice but CSC is satisfied that there was a reasonable excuse for the failure;
CSC must, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than:
(c) in a case to which subparagraph (b) (i) applies — the day on which the person so complied with the notice; or
(d) in a case to which subparagraph (b) (ii) applies:
(i) the day on which CSC became so satisfied; or
(ii) if CSC is satisfied that it would be equitable in the circumstances of the case for the revocation to have effect from an earlier day — from that earlier day.
(10) Where:
(a) because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person; and
(b) the person fails to comply with the notice and CSC is not satisfied that there was a reasonable excuse for the failure;
CSC must, by notice in writing given to the person, refuse to revoke the suspension.
(11) A notice required or permitted to be given:
(a) to a person by CSC under subrule (6), (7), (9) or (10) may be given to a person acting on his or her behalf; or
(b) to CSC by a person under this rule may be given by a person acting on his or her behalf.
(12) Where CSC is required by this rule to give a person a notice, the notice is taken to have been given to the person if:
(a) the notice is served on the person personally; or
(b) the notice is sent to the person by pre‑paid post as a letter and the person acknowledges receipt of the letter; or
(c) where CSC has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre‑paid post to:
(i) in a case where CSC is satisfied that at least one reliable address of the person has been ascertained — that address or one of those addresses; or
(ii) in any other case — the last address of the person known to CSC.
(13) A reference in subrule (12) to a reliable address of a person is a reference to an address where, if a letter were sent to the person by pre‑paid post to the address, the person would probably receive the letter.
Subdivision B Invalidity Benefits
26 Entitlement to invalidity benefits
A person who is classified as Class A or Class B under rule 22 (whether on his or her retirement or by reason of his or her having been reclassified under rule 23) or has an interim classification made under rule 22A is entitled to invalidity benefits in accordance with this Division.
26A Splitting of invalidity benefits after reclassification
Invalidity benefits that are payable under this Subdivision after a reclassification under rule 23 are subject to adjustment where there is a family law superannuation payment split under Part 13.
27 Invalidity benefits for person classified as Class A
(1) Where a person who is entitled to invalidity benefits is classified as Class A:
(a) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and
(b) subject to Part 10, his or her employer benefit is converted into a pension payable to him or her.
(2) A person who is entitled to be paid a member benefit under subrule (1) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the benefit and if he or she so elects:
(a) the member benefit is not payable to him or her as a lump sum; and
(b) there is applicable to him or her a preserved benefit of that amount.
(3) If a person who is entitled to be paid a member benefit under subrule (1):
(a) does not request that the benefit be paid to him or her as a lump sum; and
(b) does not make an election under subrule (2);
within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.
28 Invalidity benefits for person classified as Class B
(1) Where a person who is entitled to invalidity benefits is classified as Class B:
(a) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and
(b) subject to Part 10, a pension is payable to him or her at an annual rate equal to:
(i) half the rate of the pension which would have been payable to him or her if he or she had been classified as Class A; or
(ii) the rate of the pension which would have been payable to him or her if he or she:
(A) had been retired otherwise than on the ground of invalidity; and
(B) were entitled to elect to convert his or her employer benefit into a pension and had elected to do so;
whichever is the greater.
(2) A person who is entitled to be paid a member benefit under subrule (1) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the benefit and if he or she so elects:
(a) the member benefit is not payable to him or her as a lump sum; and
(b) there is applicable to him or her a preserved benefit of that amount.
(3) If a person who is entitled to be paid a member benefit under subrule (1):
(a) does not request that the benefit be paid to him or her as a lump sum; and
(b) does not make an election under subrule (2);
within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.
29 Effect of change of invalidity classification on pension and preserved benefit
(1) Where a person who is classified as Class A or Class B is reclassified as Class C:
(a) the pension payable to him or her under rule 27 or 28 is cancelled; and
(b) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.
(2) If a person referred to in subrule (1) is subsequently reclassified as Class A or Class B:
(a) the preserved benefit referred to in that subrule ceases to be applicable to him or her; and
(b) a pension is payable to him or her in accordance with rule 27 or 28, as the case may be, from the date specified under rule 23 by CSC or the Committee, as the case may be, as the date from which the classification has effect.
(3) Where a person referred to in subrule (2) was, while classified as Class C, paid, under paragraph 51 (1) (e) or (f), part of the employer benefit included in his or her preserved benefit, the rate of pension payable to the person in accordance with that subrule is reduced in such manner as CSC approves, having regard to the amount of employer benefit so paid to the person.
30 Person may be treated as having been retired on ground of invalidity
(1) Where a person has been retired otherwise than on the ground of invalidity but, after his or her retirement, CSC is satisfied that, at the time the person was retired, grounds existed on which he or she could have been retired on the ground of invalidity, CSC may, for the purposes of these Rules, treat the person as if he or she had been retired on the last‑mentioned ground.
(2) Where, because of action taken under subrule (1), a person is classified as Class A or Class B under rule 22 or has an interim classification made under rule 22A:
(a) so much of the preserved benefit applicable to him or her under rule 12, 13 or 14 as consists of employer benefit ceases to be applicable to him or her; and
(b) a pension is payable to him or her in accordance with rule 27 or 28, as the case may be.
(3) This rule does not apply to a person to whom a preserved employer benefit is not applicable.
Subdivision C Invalidity Benefits not Payable
31 Person classified as Class C
A person who is classified as Class C is not entitled to invalidity benefits under this Division.
(1) Where:
(a) a member is, or is about to be, retired on the ground of invalidity within a period of 2 years after becoming a member; and
(b) CSC or the Committee is satisfied that:
(i) the invalidity was caused, or was substantially contributed to, by a physical or mental condition that existed at the time when he or she became a member; and
(ii) the condition was not materially aggravated by his or her service after becoming a member;
the person is not entitled to invalidity benefits under this Division.
(2) Where:
(a) a person who has retired again becomes a member after a break in the continuity of his or her service; and
(b) he or she is not a person who again became a member pursuant to the Parliamentary Candidates Act; and
(c) he or she is subsequently retired on the ground of invalidity;
the person is, for the purposes of subrule (1), treated as if he or she had first become a member at the time when he or she again became a member.
33 Invalidity due to intentional act
(1) Where:
(a) a member is, or is about to be, retired on the ground of invalidity; and
(b) CSC or the Committee is satisfied that the invalidity was due to an intentional act on his or her part for the purpose of obtaining invalidity benefits under this Division;
he or she is not entitled to invalidity benefits under this Division.
(2) Subrule (1) does not apply in a case where CSC or the Committee is of the opinion:
(a) that the condition which formed the ground on which the person is, or is about to be, retired was not wholly due to the intentional act of the person; or
(b) that the action of the person was caused by his or her physical or mental condition.
34 Invalidity arising during absence without leave exceeding 21 days
(1) Where:
(a) a member is, or is about to be, retired on the ground of invalidity; and
(b) CSC or the Committee is satisfied that the invalidity was caused, or was substantially contributed to, by an occurrence that happened at a time when he or she was absent without leave and had been so absent for a period exceeding 21 consecutive days; and
(c) the salary of the member in respect of the period was forfeited under regulations made under the Defence Act 1903, and an amount equal to the amount of the salary so forfeited was not subsequently paid, and is not payable, under those regulations to him or her;
he or she is not entitled to invalidity benefits under this Division.
(2) This rule does not apply in a case where CSC or the Committee is satisfied that the absence of the member was due to sufficiently mitigating circumstances.
Division 3 Person rejoining the scheme
35 Suspension of pension of retirement pensioner other than invalidity retiree
Where a person who is in receipt of a pension under Division 1 or rule 52 again becomes a member, the pension is suspended for the duration of his or her membership and is not payable while it is suspended.
36 Cancellation of pension etc of invalidity retiree
Where a person, who was a member and was retired on the ground of invalidity, again becomes a member:
(a) any determination of his or her incapacity in relation to civil employment and consequent classification or reclassification, under rule 22 or 23, is cancelled; and
(b) if he or she was, immediately before again becoming a member, a person to whom an invalidity pension was payable, his or her entitlement to that pension is cancelled and there is applicable to him or her a preserved benefit of the amount of his or her employer benefit; and
(c) when the person again retires, he or she is not treated as having been retired on the ground of invalidity only by reason of his or her retirement on that ground from his or her earlier period of service.
37 Continuation of previous election to cease paying contributions
Where:
(a) immediately before a person ceased to be a member, the person was, in consequence of an election made by him or her under subrule 5 (2), not paying contributions; and
(b) the person again becomes a member;
that election is taken to be again in force in relation to the member as if it had been made after the member again became a member.
Part 4 Spouses’ and children’s benefits
Where a member dies and is survived by a spouse or spouses or an eligible child or children, benefits are payable in accordance with this Division.
39 Payment of deceased member’s member benefit
Subject to Part 10, a deceased member’s member benefit is payable as a lump sum as follows:
(a) if the deceased member is survived by a spouse or spouses, the benefit is payable to the spouse or spouses;
(b) if the deceased member is not survived by a spouse or spouses but is survived by an eligible child or children, the benefit is payable to, or for the benefit of, the child or children;
(c) if the deceased member is not survived by a spouse or spouses, or an eligible child, and he or she had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the benefit is payable to, or for the benefit of, the person or persons;
(d) in any other case the benefit is payable to the deceased member’s personal representative.
40 Payment of deceased member’s employer benefit
(1) Subject to Part 10, a deceased member’s employer benefit or a pension is payable as follows:
(a) if the deceased member is survived by a spouse with or without an eligible child or children, the employer benefit is payable to the spouse as a lump sum;
(b) if the deceased member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased member’s notional invalidity pension;
(c) if the deceased member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the employer benefit is payable to, or for the benefit of, the person or persons as a lump sum;
(d) in any other case the employer benefit is payable to the deceased member’s personal representative as a lump sum.
(2) A spouse who is entitled to be paid an employer benefit under paragraph (1) (a) may elect that:
(a) instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional invalidity pension and if he or she so elects the benefit is so converted; or
(b) instead of that employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional invalidity pension and if he or she so elects:
(i) that part of the benefit is so converted; and
(ii) the balance of the benefit is payable to him or her as a lump sum.
(3) An employer benefits payable under subrule (1) is calculated as if, on the date of the death of the deceased member, he or she had become entitled to invalidity benefits under Division 2 of Part 3 and had been classified as Class A under rule 22.
(4) Subrule (3) does not apply where:
(a) a member dies and, at the time of his or her death, he or she was absent without leave and had been so absent for a period that exceeds 21 consecutive days; and
(b) the salary of the deceased member in respect of the period of absence without leave was forfeited under regulations made under the Defence Act 1903, and an amount equal to the amount of the salary forfeited was not subsequently paid, and is not payable, under those regulations to the deceased member’s personal representative;
unless CSC is satisfied that the absence of the member was due to sufficiently mitigating circumstances.
(5) In this rule:
notional invalidity pension, in relation to a deceased member, means the invalidity pension that would have been payable to the deceased member if, on the date of his or her death, he or she had become entitled to invalidity benefits under Division 2 of Part 3 and had been classified as Class A under rule 22.
reduced notional invalidity pension, in relation to a deceased member, means the invalidity pension that would have been payable to the deceased member if, on the date of his or her death:
(a) he or she had become entitled to invalidity benefits under Division 2 of Part 3; and
(b) he or she had been classified as Class A under rule 22; and
(c) the amount of his or her employer benefit were the amount which his or her spouse elected under paragraph (2) (b) to convert into a pension.
Division 2 Death of retirement pensioner
Where a retirement pensioner dies and is survived by a spouse or spouses or an eligible child or children, benefits are payable in accordance with this Division.
(1) Where a deceased retirement pensioner is survived by a spouse with or without eligible children, a pension is payable to the spouse at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased retirement pensioner’s pension.
(2) In spite of subrule (1), on each of the 7 pension paydays immediately following the death of a retirement pensioner referred to in that subrule, the rate at which pension is payable to the spouse of the deceased retirement pensioner is the rate at which pension would have been payable to the deceased retirement pensioner on that day if he or she had not died.
(3) Where a deceased retirement pensioner is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased retirement pensioner’s pension.
(4) In this rule:
deceased retirement pensioner’s pension, in relation to a deceased retirement pensioner, means the pension that was payable to the deceased retirement pensioner immediately before his or her death.
43 Final benefit payable in relation to deceased retirement pensioner
(1) Where a retirement pensioner dies not later than 10 years after his or her pension became payable to him or her and he or she is not survived by a spouse or eligible child to whom, or for the benefit of whom, benefits are payable under this Division, an amount equal to:
(a) where the deceased retirement pensioner was an invalidity pensioner immediately before the pensioner’s death:
(i) the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the amount of pension paid to the deceased invalidity pensioner since he or she last ceased to be a member; or
(ii) the amount of pension which would have been paid to the invalidity pensioner (if he or she had not died) from the date of his or her death until the expiration of a period of 10 years after the invalidity pensioner’s pension became payable to him or her;
whichever is the less; or
(b) in any other case — the amount (if any) by which the deceased retirement pensioner’s funded employer benefit exceeds the amount of pension paid to the deceased retirement pensioner since he or she last ceased to be a member;
is payable as a lump sum as follows:
(c) if the deceased member had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the lump sum is payable to, or for the benefit of, the person or persons;
(d) in any other case the lump sum is payable to the deceased member’s personal representative.
(2) Where a retirement pensioner dies; and
(a) he or she is survived by a spouse to whom a pension is payable under this Division; and
(b) the spouse dies not later than 10 years after the retirement pensioner’s pension became payable to him or her and is not survived by an eligible child;
there is payable to the deceased spouse’s personal representative as a lump sum an amount equal to:
(c) where the deceased retirement pensioner was an invalidity pensioner — the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the total of the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; or
(d) in any other case — the amount (if any) by which the deceased retirement pensioner’s funded employer benefit exceeds the total of the amounts of pension paid to the deceased retirement pensioner and his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member.
(3) In calculating for the purposes of this rule the period after a pension became payable to a person, any period during which the pension was not payable to the person is disregarded.
(4) This rule does not apply in relation to a deceased retirement pensioner who elected under rule 65A not to have his or her funded employer benefit included in the employer benefit that was converted into his or her pension.
44 Death in certain cases due to retirement disabilities
(a) a person:
(i) is classified as Class B; or
(ii) has an interim classification made under rule 22A; or
(iii) is classified as Class C as a result of a reclassification under rule 23; and
(b) the person dies; and
(c) CSC is satisfied that his or her death was due to:
(i) the physical or mental condition that was the cause of his or her retirement on the ground of invalidity; or
(ii) a physical or mental condition that was causally connected with that condition;
he or she is taken, for the purposes of this Division, to have been, immediately before his or her death, an invalidity pensioner classified as Class A and in receipt of pension at a rate calculated accordingly.
45 Effect of death of invalidity pensioner while pension suspended
Where a person whose invalidity pension has been suspended under rule 25 dies before the invalidity pension again becomes payable, he or she is taken, for the purposes of this Division, to have been an invalidity pensioner in receipt of pension immediately before his or her death.
46 Child’s benefit upon death of spouse
(1) Where a spouse of a deceased member, being a spouse who:
(a) is in receipt of a spouse’s pension; and
(b) has an eligible child or children;
dies, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 of Schedule 4 of the deceased person’s notional pension.
(2) In this rule:
deceased person has the same meaning as in Part 5 of Schedule 1.
deceased person’s notional pension means:
(a) where the spouse was in receipt of a pension under subrule 40 (2) — the deceased person’s notional invalidity pension, or reduced notional invalidity pension on the date of the member’s death; or
(b) where the spouse was in receipt of a pension under subrule 42 (1) — the deceased person’s pension on the date of the member’s death;
as if the rate of that pension had been increased from time to time in accordance with Division 2 of Part 6.
notional invalidity pension and reduced notional invalidity pension have the same respective meanings as in rule 40.
47 Entitlements where more than one spouse
(1) In spite of anything in this Part, where a deceased member or retirement pensioner is survived by more than one spouse, the amount of member benefit (if any) and the amount of employer benefit payable to a spouse is to be determined by CSC.
(2) The total amount of member benefit (if any) and the total amount of employer benefit determined under subrule (1) is not to exceed the amount of the deceased person’s member benefit (if any) or employer benefit, respectively.
(3) Where, under a provision of this Part, a spouse is entitled to make an election in relation to a benefit, then, in a case where a deceased person is survived by more than one spouse, each spouse is entitled to make an election in relation to so much of the benefit as is applicable to him or her.
(4) Subrule (3) does not apply to a spouse whose applicable employer benefit is less than the amount prescribed in rule 65B.
48 Payment of balance of benefit where pension becomes payable to child in certain cases
(1) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased member under paragraph 40 (1) (b) or a deceased former member under paragraph 54 (2) (b), an amount equal to the amount (if any) by which the employer benefit of the deceased member or deceased former member (as the case may be) exceeds the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children is payable in accordance with subrule (4).
(1A) Where:
(a) a pension becomes payable to, or for the benefit of, an eligible child of a deceased member or deceased former member under rule 46; and
(b) the deceased spouse’s pension was payable under paragraph 40 (1) (a) or 54 (2) (a); and
(c) the employer benefit converted into that pension included all or part of the funded employer benefit;
an amount equal to the amount (if any) by which the funded employer benefit of the deceased member or deceased former member (as the case may be) exceeds an amount equal to the sum of:
(d) the amounts of pension paid to the spouse of the deceased member or deceased former member and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and
(e) the amount of the funded employer benefit (if any) paid to the deceased spouse as a lump sum; and
(f) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;
is payable to the deceased spouse’s personal representative.
(2) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased retirement pensioner (other than an invalidity pensioner) under subrule 42 (3), an amount equal to the amount (if any) by which the funded employer benefit of the deceased retirement pensioner exceeds an amount equal to the sum of:
(a) the amounts of pension paid to the deceased retirement pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and
(b) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;
is payable in accordance with subrule (4).
(2A) Where:
(a) a pension becomes payable to, or for the benefit of, an eligible child of a deceased retirement pensioner (other than an invalidity pensioner) under rule 46; and
(b) the deceased spouse’s pension was payable under subrule 42 (1); and
(c) the employer benefit converted into the deceased retirement pensioner’s pension included all or part of the funded employer benefit;
an amount equal to the amount (if any) by which the funded employer benefit of the deceased retirement pensioner exceeds an amount equal to the sum of:
(d) the amounts of pension paid to the deceased retirement pensioner, to his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and
(e) the amount of the funded employer benefit (if any) paid to the deceased retirement pensioner as a lump sum; and
(f) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;
is payable to the deceased spouse’s personal representative.
(3) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased invalidity pensioner under subrule 42 (3), an amount equal to the amount (if any) by which the employer benefit of the deceased pensioner exceeds an amount equal to the sum of:
(a) the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and
(b) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;
is payable in accordance with subrule (4).
(3A) Where a pension becomes payable to, or for the benefit of, an eligible child of a deceased invalidity pensioner under rule 46, an amount equal to the amount (if any) by which the employer benefit of the deceased invalidity pensioner exceeds an amount equal to the sum of:
(a) the amounts of pension paid to the deceased invalidity pensioner, to his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and
(b) the amount that CSC determines to be the capital value of the pension to be payable to, or for the benefit of, the child or children;
is payable to the deceased spouses’s personal representative.
(4) Where an amount is payable under subrule (1), (2) or (3):
(a) if the deceased person had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the amount is payable to, or for the benefit of the person or persons as a lump sum; or
(b) in any other case, the amount is payable to the deceased person’s personal representative as a lump sum.
(5) In determining the capital value of a pension under this rule, CSC must obtain, and have regard to, the advice of an actuary.
Part 5 Payment of preserved benefits
48A Preserved benefits subject to family law payment split
This Part does not apply to benefits that are subject to a payment split under Part 13 until after the payment split has been given effect.
49 Drawing on member benefit included in preserved benefit
(1) Subject to subrule (2) and Part 10, where a preserved benefit is applicable to a person and the preserved benefit includes an amount of member benefit, he or she may, at any time, elect to have the whole or a part of that member benefit paid to him or her as a lump sum, in accordance with Part 11 and:
(a) if he or she elects to have the whole of the member benefit paid — the whole of the member benefit is payable to him or her; or
(b) if he or she elects to have part of the member benefit paid — the amount specified in the election is payable to him or her;
and the amount of the preserved benefit applicable to the person is reduced by a corresponding amount.
(2) Where a person elects under this rule to have part of the member benefit paid:
(a) that part must be an amount of $10 000 or a whole number multiple of that amount; and
(b) he or she is not permitted, except with the approval of CSC, to make another election under this rule until 6 months has elapsed since the last election made by him or her.
50 Fee for payment of part of person’s member benefit
(1) Where a person elects under rule 49 to have part of his or her member benefit paid to him or her, there is payable to CSC by the person a fee determined by CSC but not exceeding the administrative costs incurred by CSC in relation to that payment.
(2) A fee is not payable in respect of the first payment of part of a person’s member benefit.
51 Certain benefits included in preserved benefits
(1) Subject to Part 10, if, in relation to a person:
(a) to whom a preserved benefit applies; and
(b) who has not attained the age of 55 years;
one of the following paragraphs applies, the employer benefit and member benefit included in that preserved benefit becomes payable to him or her as a lump sum on the date specified in that paragraph:
(c) CSC decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining — the date on which CSC so decides;
(d) the person notifies CSC before 1 July 1998 that he or she intends to leave Australia permanently before 1 July 1998 and CSC is satisfied that that intention will be carried out — the date on which CSC became so satisfied;
(e) the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A (2) of the SIS Regulations — the date CSC approves payment;
(f) CSC is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the SIS Regulations — the date when CSC became so satisfied.
(1A) An amount that becomes payable under paragraph (1) (e) or (f) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or are necessary to alleviate financial hardship.
(1B) If only part of a benefit payable under subrule (1) is payable because of subrule (1A), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if CSC considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.
(2) Where a person who is entitled to be paid an employer benefit under subrule (1) is a person to whom paragraph (1) (c) applies, the person may:
(a) instead of the employer benefit included in the preserved benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects:
(i) the employer benefit is so converted; and
(ii) the member benefit (if any) included in the preserved benefit is payable to the person as a lump sum; or
(b) instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one‑half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects:
(i) that part of the employer benefit is so converted; and
(ii) the balance of the preserved benefit is payable to him or her as a lump sum.
(3) Subrule (2) does not apply to a person whose employer benefit is less than the amount prescribed in rule 65B.
(1) Subject to subrules (2) and (3) and Part 10, if employer benefit is included in a preserved benefit that applies to a person aged 55 years or more, the person may, at any time:
(a) elect to have that employer benefit paid to him or her as a lump sum in accordance with Part 11 and if the person:
(i) makes the election; and
(ii) provides CSC with information that CSC requires in order to pay the benefit;
the employer benefit is payable to the person from the day CSC receives both the election and the information; or
(b) instead of the employer benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects the benefit is so converted; or
(c) in the case of a person to whom subrule 51 (1A) does not apply — instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one‑half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects:
(i) that part of the employer benefit is so converted; and
(ii) the balance of the employer benefit is payable to him or her as a lump sum in accordance with Part 11; or
(d) in the case of a person to whom subrule 51 (1A) applies — instead of the residual employer benefit being paid in full to him or her, elect that a specified part of the residual employer benefit , being:
(i) if the residual employer benefit does not exceed the notional employer benefit — not less than one‑half of the notional employer benefit; or
(ii) if the residual employer benefit exceeds the notional employer benefit — not less than one‑half of an amount calculated to be the sum of the amount of the residual employer benefit and the amount of benefit that was paid to the person under subrule 51 (1A);
be converted into a pension payable to him or her, and if he or she so elects:
(iii) that part of the residual employer benefit is so converted; and
(iv) the balance of the residual employer benefit is payable to him or her as a lump sum in accordance with Part 11.
(2) Paragraphs (1) (b) and (c) do not apply to a person whose employer benefit is less than the amount prescribed in rule 65B.
(3) Paragraphs (1) (b) and (d) do not apply to a person:
(a) whose residual employer benefit is less than one‑half of his or her notional employer benefit; or
(b) whose notional employer benefit is less than the amount prescribed in rule 65B.
(4) In this rule:
employer benefit, in the case of a person to whom subrule 51 (1A) applies, means the residual employer benefit applicable to the person.
notional employer benefit means the benefit applicable to a person calculated, in accordance with Schedule 4A, at the date of the person’s election to convert his or her residual employer benefit into a pension under paragraph (1) (b) or (d).
residual employer benefit means the part of the employer benefit included in a preserved benefit applicable to a person that, at the date of the person’s election under paragraph (1) (a), (b) or (d), has not been paid as a lump sum under subrule 51 (1A).
53 Compulsory payment of preserved benefit
(1) Subject to Part 10, if a person in relation to whom a preserved benefit is applicable does not make an election under paragraph 52 (1) (b) or (c) on or before attaining the age of 65 years, the preserved benefit is payable to the person as a lump sum.
(2) Subject to Part 10, if:
(a) a preserved benefit is applicable to a person; and
(b) the preserved benefit consists wholly of a member benefit and is an amount that is less than the SIS preservation threshold amount;
the preserved benefit is payable to the person as a lump sum.
53A Payment of deceased retirement pensioner’s member benefit included in preserved benefit
Where a retirement pensioner dies and, immediately before his or her death, a member benefit was included in a preserved benefit which was applicable to him or her, the member benefit is payable as follows:
(a) if the deceased pensioner is survived by a spouse, the benefit is payable to the spouse;
(b) if the deceased pensioner is not survived by a spouse but is survived by an eligible child or children, the benefit is payable to, or for the benefit of, the child or children;
(c) if the deceased pensioner is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the benefit is payable to, or for the benefit of, the person or persons;
(d) in any other case the benefit is payable to the deceased pensioner’s personal representative.
54 Payment of deceased former member’s preserved benefit
(1) Upon the death of a person who had been a member but at the time of his or her death was not a member or a retirement pensioner (in this rule called a deceased former member), his or her preserved benefit or a pension is payable in accordance with this rule.
(2) Subject to Part 10, a deceased former member’s preserved benefit or a pension is payable as follows:
(a) if the deceased former member is survived by a spouse, the preserved benefit is payable to the spouse as a lump sum;
(b) if the deceased former member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased former member’s notional pension;
(c) if the deceased former member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the preserved benefit is payable to, or for the benefit of, the person or persons as a lump sum;
(d) in any other case, the preserved benefit is payable to the deceased member’s personal representatives as a lump sum.
(3) Subject to Part 10, if a pension becomes payable under paragraph (2) (b), the member benefit (if any) included in the preserved benefit is payable, as a lump sum, to, or for the benefit of, the eligible child or children.
(4) Subject to Part 10, a spouse who is entitled to be paid an employer benefit under paragraph (2) (a) may elect that:
(a) instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional pension and if he or she so elects the benefit is so converted; or
(b) instead of that employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional pension and if he or she so elects:
(i) that part of the employer benefit is so converted; and
(ii) the balance of the preserved benefit is payable to him or her as a lump sum.
(5) Subrule (4) does not apply to a spouse whose employer benefit, or part employer benefit that is to be converted, is less than the amount prescribed in rule 65B.
(6) In this rule:
notional pension, in relation to a deceased former member, means the pension that would have been payable to the deceased former member if, on the date of his or her death, he or she had become entitled, under Division 1 of Part 3, to elect to have his or her employer benefit converted into a pension and had elected to do so.
reduced notional pension, in relation to a deceased former member, means the pension that would have been payable to the deceased former member if, on the date of his or her death, he or she:
(a) had become entitled, under Division 1 of Part 3, to elect to have part of his or her employer benefit converted into a pension; and
(b) had elected to convert into a pension the same amount of his or her employer benefit as his or her spouse elected under paragraph (4) (b) to convert into a pension.
(1) Where, under a provision of these Rules:
(a) an employer benefit which is not included in a preserved benefit becomes payable to a person; and
(b) there is applicable to that person a preserved benefit which includes an employer benefit;
then, for the purposes of these Rules, those employer benefits are aggregated.
(2) Where, under these Rules, a preserved benefit becomes applicable to a person to whom a preserved benefit is, or preserved benefits are, already applicable, then, for the purposes of these Rules:
(a) those preserved benefits are aggregated; and
(b) if there is more than one member benefit, those member benefits are aggregated; and
(c) if there is more than one employer benefit, those employer benefits are aggregated.
Part 6 Increases in maximum benefit limits, pensions and certain unfunded preserved benefits
Division 1 Increases in maximum benefit limits
55 Increases in maximum benefit limits
(1) This rule is to have effect, on 1 July 1991 and each subsequent 1 July, as if there were substituted for:
(aa) each amount referred to in paragraph 2 (a) or 4 (a) of Schedule 3; and
(a) each amount referred to in the definition of lump sum maximum benefit multiple in Schedule 3; and
(b) each amount referred to in the definition of pension maximum benefit multiple in Schedule 3;
or for the amount last substituted for that amount under this rule (in this rule referred to as the base amount) a new amount calculated by:
(c) multiplying the base amount by the index number for the March quarter immediately preceding that 1 July; and
(d) dividing the product by the index number for the previous March quarter.
(2) Subject to subrule (3), if at any time, whether before or after the commencement of these Rules, the Statistician publishes an index number in respect of a particular March quarter in substitution for an index number previously published, that later index number is to be disregarded for the purposes of this rule.
(3) If any time the Statistician changes the reference base for the index numbers, regard is to be had, for the purposes of the operation of this rule after the change took place, only to index numbers published in terms of the new reference base.
(4) Where an amount to be substituted under this rule is not a whole number multiple of $10, it is to be increased to the nearest whole number multiple of $10.
(5) In this rule:
index number, in relation to a quarter, means the amount of the full‑time adult average weekly ordinary time earnings first published by the Statistician for the middle month of that quarter.
Division 2 Increases in pensions and associate pensions
56 Increases in pensions and associate pensions
(1) Subject to this Division, if the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of the half‑year immediately preceding a prescribed half‑year exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of any earlier half‑year, not being a half‑year earlier than the half‑year that commenced on 1 July 1989, then a person (in this rule called the pensioner) who was in receipt of a pension or an associate pension immediately before the commencement of that prescribed half‑year is entitled to an increase in the rate at which the pension or associate pension was payable immediately before the commencement of that prescribed half‑year.
(2) The increase provided for by subrule (1) in the rate at which a pension or associate pension was payable to a person immediately before the commencement of a prescribed half‑year, is the percentage of that rate or amount that represents A B expressed as a percentage of B, where:
A is the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of the half‑year immediately preceding the prescribed half‑year; and
B is the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of any half‑year earlier than the half‑year immediately preceding the prescribed half‑year but not being earlier than the half‑year that commenced on 1 July 1990.
(3) Where, by reason of the death on 30 June or 31 December in the year immediately preceding a prescribed half‑year of a person in receipt of a pension, a pension becomes payable on the following day to another person, that other person is entitled to such an increase in the rate of that pension as he or she would have been entitled to had the pension become payable to him or her on that 30 June or 31 December.
57 Application of increase to suspended pension
Where a pension would, but for its suspension under rule 25 or 35, be payable to a person immediately before the commencement of a prescribed half‑year, that pension is, for the purposes of this Division, taken to have been payable to that person immediately before the commencement of that prescribed half‑year but any increase in the rate of that pension by virtue of this Division does not take effect until the day on which the pension again becomes payable.
58 Proportionate increase for part of a year
(1) This rule applies to a pension or associate pension if:
(a) the person to whom the pension or associate pension is payable would, but for this rule, be entitled to an increase, in accordance with rule 56, in the rate at which the pension or associate pension was payable to him or her immediately before the commencement of the prescribed half‑year; and
(b) the person is:
(i) a retirement pensioner and the pension became payable to him or her during the preceding half‑year; or
(ii) the spouse of, or eligible child in relation to, a deceased person who was a member immediately before his or her death and the pension became payable to the spouse or child, as the case may be, during the preceding half‑year; or
(iii) the spouse of, or eligible child in relation to, a deceased person who was a retirement pensioner immediately before his or her death and the deceased person’s pension became payable to the deceased person during the preceding half‑year; or
(iv) a person who receives an associate pension in relation to a member spouse’s pension or associate pension and the member spouse’s pension or associate pension became payable to the member spouse during the preceding half‑year.
(2) If:
(a) the pension; or
(b) where subparagraph (1) (b) (iii) applies — the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child; or
(c) where subparagraph (1) (b) (iv) applies — the pension or associate pension that was payable to the member spouse;
became payable after 16 June or 16 December in the preceding half‑year, the person is not entitled to the increase.
(3) If:
(a) the pension or associate pension; or
(b) where subparagraph (1) (b) (iii) applies — the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child; or
(c) where subparagraph (1) (b) (iv) applies — the pension or associate pension that was payable to the member spouse;
became payable on or before 16 June or 16 December in the preceding half‑year, the amount of the increase is worked out using the formula:
where:
full increase means the amount of the increase that would have been applicable but for this subrule.
number of months in period means the number of months in the period that began on the day on which the pension or associate pension referred to in paragraph (a), (b) or (c) of this subrule became payable and ended on 30 June or 31 December in the preceding half‑year.
(4) If the period referred to in subrule (3) is less than one month, that period is treated as one month.
(5) If the period referred to in subrule (3) consists of a number of whole months and a part of a month:
(a) where the number of days in that part of that month is less than one‑half of the number of days in that month — that part is disregarded; and
(b) where the number of days in that part of that month is more than one‑half of the number of days in that month — that part is treated as a whole month.
(7) In this rule:
preceding half‑year, in relation to a pension or associate pension to which this rule applies, means the half‑year immediately preceding the prescribed half‑year.
59 Adjustment in connection with invalidity reclassification
(1) Where:
(a) a person to whom an invalidity pension is payable is reclassified from Class A to Class B or vice versa under rule 23 during a prescribed half‑year; and
(b) the person became entitled at the beginning of that half‑year to an increase under this Division in the rate at which that invalidity pension was payable to him or her immediately before the beginning of that half‑year;
the rate at which the pension is payable to him or her on and after the date from which the reclassification has effect is the rate at which the pension would have been payable to him or her at the beginning of the half‑year if his or her classification, on and after the date on which he or she became entitled to the pension, had been in accordance with the reclassification.
(2) Where:
(a) a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and
(b) in consequence of a further reclassification under that rule he or she again becomes entitled to an invalidity pension;
the rate at which the pension is payable to him or her on and after the date from which the latter reclassification has effect is the rate at which the pension would have been payable to him or her if:
(c) he or she had not ceased to be entitled to an invalidity pension in consequence of the first mentioned reclassification; and
(d) his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification.
(3) Where:
(a) a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and
(b) in consequence of a further reclassification under that rule after his or her death he or she would, had he or she not died, have again become entitled to an invalidity pension;
then, for the purpose of calculating benefits for any surviving spouse or eligible child of the invalidity pensioner, the invalidity pensioner is to be taken to have been, immediately before his or her death, in receipt of an invalidity pension at the rate at which that pension would have been payable to him or her if:
(c) he or she had not ceased to be entitled to invalidity pension in consequence of the first‑mentioned reclassification; and
(d) his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification.
An increase by virtue of this Division in the rate of a pension or associate pension that:
(a) was payable; or
(b) under subrule 56 (3) is treated as having been payable;
to a person on 30 June or 31 December in a half‑year applies in relation to the instalment of pension or associate pension falling due on the first pension or associate pension pay‑day occurring after that day and in relation to all subsequent instalments.
(1) Subject to subrule (2), if at any time, whether before or after the commencement of these Rules, the Statistician has published or publishes in respect of a particular March quarter or September quarter an all groups consumer price index number for the weighted average of the 8 capital cities in substitution for an index number previously published by him or her in respect of that quarter, the publication of the later index number is disregarded for the purposes of this Division.
(2) If at any time, whether before or after the commencement of these Rules, the Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Division after the change took place or takes place, regard is to be had only to index numbers published in terms of the new reference base.
(3) If the percentage for the purposes of rule 56 is or includes a fraction of one tenth of one per centum:
(a) where that fraction is less than one half of one tenth — that fraction is to be disregarded; and
(b) where that fraction is not less than one half of one tenth — that fraction is to be treated as one tenth.
Division 3 Increases in certain unfunded preserved benefits
61A Increases in certain unfunded preserved benefits
(1) Subject to this Division, if the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of the year immediately preceding a prescribed year exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of any earlier year, not being a year earlier than the year that commenced on 1 July 1989, then where, immediately before the commencement of that prescribed year, a preserved benefit is applicable to a person, or has become payable in respect of a deceased person but has not been paid, the amount of the unfunded preserved benefit in relation to that person immediately before the commencement of that year is increased.
(2) The increase provided for by subrule (1) in the amount of the unfunded preserved benefit in relation to a person, immediately before the commencement of a prescribed year (in this rule called a relevant prescribed year), is the percentage of that rate or amount that represents A B expressed as a percentage of B, where:
A is the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of the year immediately preceding the prescribed year; and
B is the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of the later of:
(a) the year preceding the prescribed year; and
(b) the year that commenced on 1 July 1990.
61B Proportionate increase for part of a year
Where a preserved benefit:
(a) became applicable to a person; or
(b) became payable or was converted into a pension;
during the most recent prescribed year, that part of the preserved benefit that is an unfunded employer benefit is increased to the extent determined by CSC, consistent with the principle of subrule 61A (2).
61C Adjustment in connection with invalidity reclassification
Upon a preserved benefit becoming applicable to a person under subrule 29 (1), the unfunded employer benefit included in that preserved benefit is increased as if:
(a) that preserved benefit had become applicable to the person on the person’s retirement; and
(b) this Division had applied, since that retirement, to the unfunded employer benefit included in the preserved benefit.
61D Date of effect of increase
An increase by virtue of this Division in the amount of an unfunded preserved benefit applies with effect from:
(a) in the case of an increase under rule 61B — the date on which the preserved benefit became payable; or
(b) in any other case — 1 July of the prescribed year.
(1) Subject to subrule (2), if at any time, whether before or after the commencement of these Rules, the Statistician has published or publishes in respect of a particular March quarter an all groups consumer price index number for the weighted average of the 8 capital cities in substitution for an index number previously published by him or her in respect of that quarter, the publication of the later index number is disregarded for the purposes of this Division.
(2) If at any time, whether before or after the commencement of these Rules, the Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Part after the change took place or takes place, regard is to be had only to index numbers published in terms of the new reference base.
(3) If the percentage for the purposes of rule 61A is or includes a fraction of one tenth of one per centum:
(a) where that fraction is less than one half of one tenth — that fraction is to be disregarded; and
(b) where that fraction is not less than one half of one tenth — that fraction is to be treated as one tenth.
Part 7 Candidates at parliamentary elections
62 Re‑instated member
(1) Where a person who resigned to contest an election:
(a) again becomes a member; and
(b) is a person referred to in a relevant provision of the Parliamentary Candidates Act; and
(c) repays to CSC, before the expiration of 60 days after the day on which he or she again became a member, the amount of any benefit paid to him or her under these Rules upon him or her resigning to contest the election;
the person is taken for the purposes of these Rules:
(d) to have been a member; and
(e) despite the operation of the relevant provision, not to have been absent on leave without pay;
during the relevant period.
(2) Where subrule (1) applies to a person:
(a) any benefit that became payable to him or her under these Rules upon him or her ceasing to be a member is taken not to have been payable; and
(b) the fortnightly contributions that the person is required to make in respect of the relevant period are in accordance with the election by him or her that was in force immediately before the beginning of that period.
63 Death or physical or mental incapacity of person
When a person who resigned to contest an election:
(a) dies; or
(b) in the opinion of CSC, becomes physically or mentally incapacitated to the extent that he or she would have been retired on the ground of invalidity if he or she had remained a member;
he or she is, where considered appropriate by CSC, taken not to have ceased to be a member but to have died or retired on the ground of invalidity while a member at a time determined by CSC.
Part 8 General provisions applicable to contributions and benefits
64 Provisions applicable to elections under the Rules
(1) An election under these Rules is to be in writing.
(2) Where a person is about to become, or has become, entitled:
(a) to benefits under Part 3 or Part 5; and
(b) to make an election in relation to the nature of those benefits;
he or she may make that election not earlier than 3 months before he or she is due to become entitled to the benefits and not later than 3 months after becoming entitled to the benefits.
(2A) If a person is allowed to make an election under Part 10, he or she may make the election in the same way as an election mentioned in subrule (2).
(3) Where an election under these Rules is made by a person after the expiration of the period allowed for the making of the election and CSC is satisfied that, in all the circumstances of the case, it is desirable that the election be recognised, CSC may direct that the election be allowed and if it does so these Rules have effect as if the election had been made within the period allowed.
(4) Where a person who is entitled to make an election under these Rules is, by reason of physical or mental incapacity, unable to make that election, CSC may allow such other person as it thinks appropriate to make the election within such period as CSC allows and if it does so and the other person so makes the election these Rules have effect as if the election had been made by the first‑mentioned person within the period allowed.
(5) Where:
(a) an election under Part 3,4 or 5 is made by the person entitled to make the election or, in accordance with subrule (3), by another person on behalf of the first‑mentioned person; and
(b) the person who made the election makes an application to CSC not later than 3 months after the day on which the election is made or within such further period as CSC, in special circumstances, allows requesting that CSC cancel the election; and
(c) CSC, having regard to such matters as it considers relevant, is satisfied that the election should be cancelled;
CSC may direct that the election is cancelled and if it does so these Rules have effect as if the election had not been made.
(6) Where a person who is, or has been, a member is entitled to make an election under Part 3 or 5 and dies without making such an election:
(a) if the person is survived by a spouse — the spouse may make the election within 3 months after the person’s death; or
(b) if the person is not survived by a spouse, or is survived by a spouse but the spouse dies without making such an election, but the person is survived by an eligible child — the election may be made within that period by such person as CSC permits;
and if the spouse, or the person permitted by CSC, does so, these Rules have effect as if the election had been made by the first‑mentioned person.
65 Rate of pension where lump sum converted into pension
Where a person is entitled under these Rules to have an amount of his or her employer benefit converted into a pension, the annual rate of that pension is calculated in accordance with Schedule 5.
Where, under these Rules, a person elects to have a part of his or her employer benefit converted into a pension payable to him or her, the employer benefit so converted includes the funded employer benefit unless the person elects otherwise.
65B Prescribed minimum amount for conversion of lump sum to pension
For the purposes of subrules 14 (4), 47 (4), 51 (3), 52 (2) and (3) and 54 (5), the prescribed amount is an amount equal to 25 times the SIS preservation threshold amount.
66 Benefits in unusual or exceptional circumstances
Where, in a particular case, CSC is of the opinion that:
(a) the operation of these Rules, other than this rule, with regard to a point at issue produces a result in relation to a person that is not in the spirit of the Rules; and
(b) the relevant circumstances of the case are unusual or exceptional;
CSC may, in relation to that case, having regard to the circumstances of the case, the principles in these Rules and the need to maintain equity between members, determine the point at issue in favour of that person.
67 Instalments of pensions and associate pensions
(1) Pensions and associate pensions are to be paid in fortnightly instalments on pension pay‑days.
(2) The amount of a fortnightly instalment of pension or associate pension is an amount ascertained by dividing the amount per annum of the pension or associate pension by 26.
(3) Where the amount of a fortnightly instalment of pension or associate pension includes a fraction of a cent:
(a) if the fraction is less than one‑half of a cent — the amount of the instalment is taken to be reduced by the amount of the fraction; or
(b) if the fraction is one‑half of a cent or more — the amount of the instalment is taken to be increased by treating the fraction as one cent.
(4) The amount of pension payable in respect of a day is one‑fourteenth of the amount of the fortnightly instalment of the pension or associate pension.
68 Set off against pension in certain cases
Where:
(a) the spouse of a deceased pensioner to whom retirement pension or invalidity pension (in this rule called the primary pension) was payable is entitled to spouse’s pension in accordance with subrule 42 (2); and
(b) an amount, purporting to be an instalment of primary pension payable to the pensioner in respect of a period in respect of which spouse’s pension is payable in accordance with that subrule, is paid into an account with a bank; and
(c) the bank pays, out of that account, to the spouse of the deceased pensioner an amount not exceeding the amount so paid into the account;
CSC may make arrangements under which the amount so paid to the spouse may be offset against any amount of pension payable to the spouse in accordance with subrule 42 (2).
69 Interest payable where payment of benefit delayed
(1) Where a benefit is payable as a lump sum to a person and the payment of the benefit is delayed, CSC may, in accordance with this rule, approve an increase, by an amount of interest, in the amount of the benefit payable to the person.
(2) Where a pension or associate pension is payable to, or for the benefit of a person and the commencement of the payment of that pension or associate pension is delayed, CSC may, in accordance with this rule, approve an increase, by an amount of interest, in the rate of the pension or associate pension payable to the person for such period as CSC determines.
(3) A pension or associate pension is not to be increased under subrule (2) if CSC is of the opinion that the amount of the increase would not be significant.
(4) Interest applicable under this rule is calculated in such manner as CSC determines:
(a) in the case of a lump sum payment — in respect of the period of the delay; and
(b) in the case of a pension or associate pension — in respect of:
(i) each instalment of the pension or associate pension delayed; and
(ii) the period of delay of that instalment.
(5) In this rule:
benefit means ancillary benefit, associate A benefit, associate B benefit, employer benefit or member benefit.
70 Payment of benefit otherwise than to person entitled
(1) Where, in the opinion of CSC, the part of:
(a) an instalment of spouse’s pension; or
(b) a spouse’s lump sum payment;
attributable to an eligible child or eligible children, or any portion of that part, should, by reason of the child or children not being in the custody, care and control of the spouse, or for any other reason which CSC thinks proper, be paid to a person other than the spouse, CSC may authorise payment of that part, or a portion of the part, to the other person and if CSC does so payment is to be made to the other person accordingly.
(2) For the purposes of subrule (1), the part of a spouse’s lump sum payment attributable to that eligible child or those eligible children is taken to be the amount obtained by multiplying the spouse’s lump sum payment by the percentage applicable in respect of an eligible child or children under rule 42 in relation to a pension.
(3) Where, in the opinion of CSC:
(a) an instalment, or part of an instalment, of a pension or associate pension; or
(b) an amount of any other benefit;
should:
(c) by reason of the person who, but for this rule, would be entitled to the payment being a child, or being a person who is of unsound mind or undergoing imprisonment or otherwise being under a disability; or
(d) for any other reason which CSC thinks proper;
be paid to a person other than the person who would be so entitled to the payment, CSC may authorise payment to the other person and if CSC does so payment is to be made to the other person accordingly.
(4) It is the intention of this rule that a payment of:
(a) the part, or a portion of the part, of an instalment of spouse’s pension attributable to an eligible child that, by virtue of subrule (1), is paid to a person other than the child to which that part or portion is attributable; or
(b) an instalment of pension payable to a child that, by virtue of subrule (3), is paid to a person other than the child;
be applied for the maintenance, education or other benefit of the child.
71 Withholding payment of benefit where required information not provided
CSC may withhold payment of the whole, or a part, of a benefit in relation to a person where that person does not provide, or arrange to be provided, to CSC information required by CSC in connection with the determination of the person’s entitlement to benefits under these Rules or the determination of the amount of those benefits.
Part 9 Reconsideration of decisions
72 Reconsideration Committees
A Reconsideration Committee established under paragraph 3 (2) (h) of the Trust Deed is constituted under, has the functions set out in, and must operate in accordance with, this Part.
(1) A Committee comprises such number of persons as CSC determines.
(2) Subject to subrule (2A), the qualifications or other requirement, which are or is a prerequisite to the appointment of each member of the Committee, are such as CSC determines.
(2A) One member of the Committee must be a retirement pensioner.
(2B) If a member of the Committee ceases to hold the relevant qualifications or to comply with the relevant requirement, applicable under subrule (2) or (2A), his or her membership of the Committee is thereupon taken to be terminated.
(3) A person who is a member of CSC is not disqualified by reason of that fact from being appointed to a Committee.
(1) The functions of a Committee are:
(a) to review a decision referred to it by CSC under this Part; and
(b) in accordance with a request of CSC, either:
(i) to make recommendations to CSC in relation to the decision; or
(ii) to affirm or vary the decision, or to set the decision aside and substitute another decision for it.
(2) As part of performing its functions, the Committee:
(a) must take into account any evidence, relevant to the decision, that is made available, or submitted, to the Committee; and
(b) may also take steps to obtain any other evidence that the Committee considers necessary for a proper reconsideration of the decision.
Subject to any directions given by CSC, a Committee may regulate its proceedings as the Committee thinks fit.
76 Reconsideration of decisions made by delegates
(1) A person who is affected by a decision of a delegate of CSC may apply to CSC for reconsideration of the decision within:
(a) a period of 30 days after the day on which the person was notified of the decision; or
(b) a longer period that, because of special circumstances, CSC or a Committee allows, either during or after the 30 days period.
(2) An application may be:
(a) in writing addressed to CSC and setting out the particulars of the decision that the person wishes to be reconsidered; or
(b) in any other form that is acceptable to CSC.
(3) CSC must refer the decision to which an application relates to a Committee.
(4) CSC may also, on its own motion, refer a decision of a delegate to a Committee.
(5) If CSC requests the Committee, under subparagraph 74 (1) (b) (i), to make recommendations to CSC, CSC must, after receiving the Committee’s recommendations:
(a) take into account the recommendations and any other matter that CSC considers relevant; and
(b) affirm or vary the decision, or set the decision aside and substitute another decision for it; and
(c) state in writing the results of the reconsideration, including the reasons for CSC’s decision.
(6) CSC must give a copy of a document mentioned in subrule (5) to the applicant.
(7) If CSC requests the Committee, in accordance with subparagraph 74 (1) (b) (ii), to affirm, vary or set aside the decision:
(a) the Committee must:
(i) reconsider the decision; and
(ii) affirm or vary the decision, or set the decision aside and substitute another decision for it; and
(iii) state in writing the results of the reconsideration, including the reasons for the Committee’s decision; and
(iv) give the statement, or a copy of the statement, to CSC; and
(b) the Committee’s decision has effect as the decision on reconsideration.
(8) CSC must give a copy of a document mentioned in subrule (7) to the applicant.
77 Reconsideration of decisions made by CSC and Committees
(1) A person affected by a decision of CSC (including a decision under subrule 76 (5)), or a decision of a Committee under subrule 76 (7), may apply to CSC for reconsideration of the decision within:
(a) a period of 30 days after the day on which the person was notified of the decision; or
(b) a longer period that, because of special circumstances, CSC allows, either during or after the 30 day period.
(2) An application must:
(a) be in writing addressed to CSC; and
(b) set out particulars of the decision that the person wishes to be reconsidered; and
(c) specify the grounds for reconsideration of those particulars; and
(d) be accompanied by the prescribed fee (if any).
(3) A decision of CSC, or a Committee, must not be reconsidered unless evidence is mentioned in the application for reconsideration that:
(a) is not trivial or lacking in substance; and
(b) was not previously considered by CSC or Committee in making that decision; and
(c) CSC reasonably considers is relevant to the decision.
(4) If an application is not supported by evidence in accordance with subrule (3), CSC must dismiss the application.
(5) The dismissal of an application in respect of a decision does not preclude the applicant from subsequently submitting another application in respect of the decision.
(6) If CSC does not dismiss an application under subrule (4), CSC must refer the decision to which the application relates to a Committee.
(7) CSC may also, on its own motion, refer any of its decisions to a Committee.
(8) If CSC requests the Committee to reconsider the decision in accordance with subparagraph 74 (1) (b) (i), CSC must, after receiving the Committee’s recommendations:
(a) take into account the recommendations and any other matter that CSC considers relevant; and
(b) affirm or vary the decision, or set the decision aside and substitute another decision for it; and
(c) state in writing the results of the reconsideration, including the reasons for CSC’s decision.
(9) CSC must give a copy of a document mentioned in subrule (8) to the applicant.
78 Content of statements of reasons for decisions
Where CSC or a Committee is required by a provision of this Part to give written reasons for a decision made by it, the instrument giving the reasons must also set out the findings on material questions of fact and refer to the evidence or other material on which those findings were based.
For the purposes of this Part, a determination or a decision of the Incapacity Classification Committee under Subdivision A or C of Division 2 of Part 3 is taken to be the decision of a delegate of CSC.
Part 10 Surcharge deduction amount
80 Deduction of surcharge deduction amount
(1) If a member’s surcharge debt account is in debit when a benefit under these Rules becomes payable to or in respect of the member, the member may, by notice in writing to CSC, elect to discharge the debt in one or more of the following ways:
(a) by deduction from the member’s employer benefit before it is paid to the member as a lump sum, or before it is converted into a pension;
(b) by deduction from the member’s member benefit before it is paid to the member as a lump sum;
(c) by deduction from the pension payable to the member after conversion of the member’s employer benefit;
(d) by deduction from the member’s ancillary benefit, associate A benefit or associate B benefit before the benefit is paid.
(2) If the member does not make an election in accordance with subrule (1), the debt must be discharged in the following ways:
(a) if these Rules provide that the member is to receive the employer benefit in the form of a pension — by deduction from the member’s employer benefit after it is converted into a pension;
(b) if these Rules provide that the member may elect to receive their employer benefit either as a lump sum payment or converted into a pension and the member elects to convert the whole or any part of the benefit to a pension — by deduction from the member’s employer benefit after it is converted to a pension;
(c) in any other case — by deduction from the member’s employer benefit before it is paid as a lump sum.
81 Deduction of surcharge deduction amount where member deceased
(1) If a deceased member’s surcharge debt account is in debit, a person entitled under these Rules to be paid the deceased member’s employer benefit or member benefit (the claimant) may, by notice in writing to CSC, elect to have the debt discharged in one or more of the following ways:
(a) by deduction from the deceased member’s employer benefit before it is paid to the claimant as a lump sum, or converted into a pension;
(b) by deduction from the deceased member’s member benefit before it is paid to the claimant as a lump sum;
(c) by deduction from the pension payable to the claimant after conversion of the deceased member’s employer benefit.
(2) If the claimant does not make an election in accordance with subrule (1), the debt must be discharged in the following ways:
(a) if these Rules provide that the claimant is to receive the deceased member’s employer benefit in the form of a pension — by deduction from the deceased member’s employer benefit after it is converted into a pension;
(b) if these Rules provide that the claimant may elect to receive the deceased member’s employer benefit either as a lump sum payment or converted into a pension and the claimant elects to convert the whole or any part of the benefit to a pension — by deduction from the deceased member’s employer benefit after it is converted into a pension;
(c) in any other case — by deduction from the deceased member’s employer benefit before it is paid as a lump sum.
82 Member benefits accruing before 1 July 1999
If a person becomes entitled to be paid a member benefit:
(a) the amount of the member benefit accruing to the person before 1 July 1999 is payable to him or her as a lump sum; or
(b) the person may elect to preserve that amount in a regulated superannuation fund.
83 Member benefits accruing on or after 1 July 1999
If a person becomes entitled to be paid a member benefit, the amount of the benefit accruing to the person on or after 1 July 1999 must be preserved in a regulated superannuation fund until he or she attains his or her preservation age.
If a person turns age 55 before attaining his or her preservation age, the amount of the employer benefit accruing to the person must be preserved in a regulated superannuation fund until he or she attains his or her preservation age.
Part 12 Associate benefit and ancillary benefit
85 Associate A benefit and ancillary benefit
(1) Associate A benefit is a benefit:
(a) created as associate A benefit under Part 13; and
(b) held for a person as units in one or more Investment Divisions.
(2) Ancillary benefit is a benefit:
(a) created as ancillary benefit under Part 14; and
(b) held for a person as units in one or more Investment Divisions.
(2A) For paragraph (2) (b), ancillary benefit arising from a contribution taken to be made by a spouse under rule 110 is to be held for the spouse.
(3) Divisions 5, 6 and 7 of Part 2B apply in relation to associate A benefit and ancillary benefit as if the person for whom the benefit is held were a unitised member and the units were units in a member funded account.
(4) A person is entitled to be paid associate A benefit and ancillary benefit when the person reaches his or her preservation age.
(5) The person may, at any time before the benefit becomes payable, request that CSC roll over or transfer the associate A benefit or ancillary benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(6) When the benefit becomes payable in accordance with subrule (4), the person may request that CSC:
(a) pay the benefit to the person as a lump sum; or
(b) roll over or transfer the benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(7) If a person does not make a request under subrule (5) or (6), the benefit must be paid to the person as a lump sum when the person reaches the age of 65.
(1) Associate B benefit is a benefit:
(a) created as associate B benefit under Part 13; and
(b) preserved in the Scheme for a person; and
(c) indexed annually at the long term bond rate.
(2) A person is entitled to be paid associate B benefit when the person reaches his or her preservation age.
(3) On reaching the age of 55, the person may request that CSC roll over or transfer the associate B benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(4) When the benefit becomes payable in accordance with subrule (2), the person may request that CSC:
(a) pay the benefit to the person as a lump sum; or
(b) roll over or transfer the benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(5) If a person does not make a request under subrule (3) or (4), the benefit must be paid to the person as a lump sum when the person reaches the age of 65.
(1) This rule applies to a person:
(a) to whom associate A benefit, associate B benefit or ancillary benefit applies; and
(b) who has not reached his or her preservation age.
(2) Subject to Part 10, the associate A benefit, associate B benefit or ancillary benefit becomes payable to the person as a lump sum:
(a) if CSC decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining — on the date on which CSC so decides; or
(b) if the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A (2) of the SIS Regulations — on the date CSC approves payment; or
(c) if CSC is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the SIS Regulations — on the date when CSC becomes so satisfied.
(3) An amount that becomes payable under paragraph (2) (b) or (c) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or is necessary to alleviate financial hardship.
(4) If only part of a benefit payable under subrule (2) is payable because of subrule (3), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if CSC considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.
88 Death of a person who has associate benefit or ancillary benefit
(1) This rule applies if a person for whom associate A benefit, associate B benefit or ancillary benefit is held dies.
(2) Associate A benefit, associate B benefit or ancillary benefit is payable as a lump sum as follows:
(a) if the deceased person is survived by a spouse, the benefit is payable to the spouse;
(b) if the deceased person is survived by more than one spouse, the benefit is payable to the spouses;
(c) if the deceased person is survived by:
(i) a spouse or spouses; and
(ii) an eligible child or children;
the benefit is payable to, or for the benefit of, the spouse or spouses and the child or children;
(d) if the deceased person is not survived by a spouse but is survived by an eligible child or children, the benefit is payable to, or for the benefit of, the child or children;
(e) if the deceased person is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the benefit is payable to, or for the benefit of, the person or persons;
(f) in any other case, the benefit is payable to the deceased person’s personal representative.
Part 13 Family law superannuation interest splitting
In this Part:
base amount means:
(a) for a splitting agreement — the base amount specified in, or calculated under, the agreement; or
(b) for a splitting order — the amount allocated under subsection 90MT (4) of the Family Law Act 1975.
employer funded component of a transfer amount, means the employer benefit, or part of the employer benefit, that is totally funded.
employer unfunded component of a transfer amount, means the employer benefit, or part of the employer benefit that is not totally funded.
family law value means the amount determined in accordance with regulations made under the Family Law Act 1975 that apply for paragraph 90MT (2) (a) of that Act (taking the relevant date to be the date on which the operative time occurs).
Note The family law value is determined by applying those regulations, whether or not an order has been made under subsection 90MT (1) of the Family Law Act 1975.
member funded component of a transfer amount means the member benefit or part of the member benefit, that is totally funded.
member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975.
member unfunded component of a transfer amount means the member benefit, or part of the member benefit, that is not totally funded.
non‑member spouse has the same meaning as in Part VIIIB of the Family Law Act 1975.
operative time, for a splitting agreement or splitting order, means the time that is the operative time for Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order.
payment split has the same meaning as in Part VIIIB of the Family Law Act 1975.
scheme value means the amount determined under rule 98.
splitting percentage means:
(a) for a splitting agreement — the percentage specified in the agreement under subparagraph 90MJ (1) (c) (iii) of the Family Law Act 1975; or
(b) for a splitting order — the percentage specified in the order under subparagraph 90MT (1) (b) (i) of the Family Law Act 1975.
transfer amount means:
(a) if a splitting percentage applies — the amount calculated by multiplying the splitting percentage by the greater of:
(i) the family law value; and
(ii) the scheme value; or
(b) if a base amount applies and the scheme value is not more than the family law value — the base amount; or
(c) if a base amount applies and the scheme value is more than the family law value — the amount worked out using the formula:
Division 2 Dealing with splitting agreements and splitting orders
Subdivision 1 Compliance with splitting agreements and splitting orders
89A General requirement for CSC
(1) Despite any other Rules in this Part, if there is a splitting agreement or splitting order in respect of a member spouse’s superannuation interest, CSC must:
(a) if no benefit reduction factors and methodology have been developed and maintained by an actuary to enable a particular superannuation interest to be split — have an actuary develop and maintain benefit reduction factors and methodology for the interest; and
(b) reduce the superannuation interest in accordance with the splitting agreement or splitting order using the benefit reduction factors and methodology that has been developed by the actuary.
(2) If:
(a) an invalidity benefit is split in accordance with a splitting agreement or splitting order; and
(b) as a result of a subsequent change in the member spouse’s invalidity classification, the member spouse’s entitlement to invalidity benefits is altered;
the altered invalidity benefit must be calculated in accordance with benefit reduction factors and methodology developed and maintained by an actuary for these Rules.
Subdivision 2 Payment split of benefit in the growth phase
90 Splitting a benefit that is not ancillary benefit, associate A benefit or associate B benefit
(1) This rule applies if:
(a) CSC receives a splitting agreement or a splitting order in respect of a member spouse’s superannuation interest that is:
(i) a superannuation interest under the Act; and
(ii) not ancillary benefit, associate A benefit or associate B benefit; and
(b) the member spouse and the non‑member spouse are both alive at the operative time; and
(c) if a base amount applies — the base amount at the operative time is not more than the family law value or the scheme value.
Note 1 This rule applies to the benefit of a member spouse as a member of the Scheme. The member spouse may also have ancillary benefit or associate benefit in the Scheme. Ancillary benefit and associate benefit are split under rule 91.
Note 2 The non‑member spouse may also be a member of the Scheme, in which case he or she will have benefit held as a member of the Scheme as well as the benefit created under this rule.
(2) CSC must determine the transfer amount for the non‑member spouse and allocate the transfer amount as associate benefit to the non‑member spouse in accordance with subrules (3) and (4).
(3) The value of the following components of the transfer amount is transferred to the non‑member spouse as associate A benefit:
(a) any member funded component of the transfer amount;
(b) any member unfunded component of the transfer amount;
(c) any employer funded component of the transfer amount.
(4) Any employer unfunded component of the transfer amount is transferred to the non‑member spouse as associate B benefit.
(5) If the non‑member spouse has nominated to CSC the Investment Division or Investment Divisions to which the associate A benefit should be credited (an investment nomination), CSC must comply as far as possible with the nomination.
(6) If CSC:
(a) has not received an investment nomination from the non‑member spouse; or
(b) cannot comply with an investment nomination in relation to all or part of the associate A benefit because the nomination is defective or because the Investment Divisions have changed;
CSC must allocate the associate A benefit to the default Investment Division.
(7) To derive the transfer amount, the following benefits are reduced in respect of the superannuation interest of the member spouse:
(a) any benefit in the member funded account;
(b) any benefit in the member unfunded account;
(c) any employer funded benefit;
(d) any employer unfunded benefit.
(8) In allocating the transfer amount to the non‑member spouse:
(a) a proportion must be taken from any benefit, in the member funded account, any benefit in the member unfunded account, any employer funded benefit and any employer unfunded benefit; and
(b) the proportion taken from each category of benefit must be the same as the category bears to the member spouse’s original interest immediately before the payment split.
(9) The total reduction of the benefit is made in accordance with the benefit reduction factors and methodology developed and maintained by an actuary for these Rules.
91 Splitting ancillary benefit, associate A benefit or associate B benefit
(1) This rule applies if:
(a) CSC receives a splitting agreement or a splitting order in respect of a superannuation interest that is ancillary benefit, associate A benefit or associate B benefit held for the member spouse; and
(b) an associate pension is not payable in respect of the interest at the operative time; and
(c) the member spouse and the non‑member spouse are both alive at the operative time; and
(d) if a base amount applies — the base amount at the operative time is not more than the family law value or the scheme value.
Note This rule applies to ancillary benefit and associate benefit. If the member spouse is a member of the Scheme, the benefit of the member spouse as a member of the Scheme will be split under rule 90.
(2) CSC must determine the transfer amount for the non‑member spouse and allocate the transfer amount as associate benefit to the non‑member spouse in accordance with subrules (3) and (4).
(3) The component of the transfer amount that is taken from any ancillary benefit or associate A benefit of the member spouse is transferred to the non‑member spouse as associate A benefit.
(4) The component of the transfer amount that is taken from any associate B benefit of the member spouse is transferred to the non‑member spouse as associate B benefit.
(5) If the non‑member spouse has nominated to CSC the Investment Division or Investment Divisions to which the associate A benefit should be credited (an investment nomination), CSC must comply as far as possible with the nomination.
(6) If CSC:
(a) has not received an investment nomination from the non‑member spouse; or
(b) cannot comply with an investment nomination in relation to all or part of the associate A benefit because the nomination is defective or because the Investment Divisions have changed;
CSC must allocate the associate A benefit to the default Investment Division.
(7) To derive the transfer amount, the ancillary benefit, the associate A benefit and the associate B benefit are reduced in respect of the superannuation interest of the member spouse.
(8) In allocating the transfer amount to the non‑member spouse:
(a) a proportion must be taken from:
(i) any ancillary benefit and associate A benefit; and
(ii) any associate B benefit; and
(b) the proportion taken from each category of benefit must be the same as the category bears to the member spouse’s original interest immediately before the payment split.
(9) The total reduction of each category of benefit must be made in accordance with the benefit reduction factors and methodology developed and maintained by an actuary for these Rules.
92 Member spouse is 1973 Act member
(1) This rule applies if:
(a) CSC receives a splitting agreement or splitting order in respect of a superannuation interest under the 1973 Act; and
(b) the non‑member spouse is not entitled to associate pension under subsection 49B (2) of the 1973 Act.
(2) CSC must allocate the transfer amount as associate B benefit for the non‑member spouse.
Note The benefit of the member spouse under the 1973 Act is reduced in accordance with the Defence Force Retirement and Death Benefits (Family Law Superannuation) Orders 2004.
93 Member spouse has a superannuation interest under section 52 of the Defence Act 1903
(1) This rule applies if CSC receives a splitting agreement or a splitting order in respect of a superannuation interest under section 52 of the Defence Act 1903.
Note 1 If a member spouse has a DFRDB productivity benefit accumulating under the Defence Act 1903, the non‑member spouse is entitled to benefits.
Note 2 The benefit of the member spouse is reduced in accordance with the Defence Force (Superannuation) (Productivity Benefit) Determination.
(2) CSC must allocate the transfer amount as associate B benefit for the non‑member spouse.
94 Member spouse is member who has ancillary benefit or associate benefit
(1) This rule applies if:
(a) CSC receives a splitting agreement or a splitting order in respect of the superannuation interest of a member spouse; and
(b) the member spouse:
(i) is a member of the Scheme or a former member with preserved member benefit or preserved employer benefit; and
(ii) has ancillary benefit, associate A benefit or associate B benefit; and
(c) a pension is not payable in respect of the interest at the operative time; and
(d) the splitting agreement or splitting order provides for the splitting of the member spouse’s superannuation interest as a whole and does not differentiate the member spouse’s superannuation interest as a member or the interest that is preserved member benefit or preserved employer benefit from the member spouse’s superannuation interest that is ancillary benefit, associate A benefit or associate B benefit; and
(e) the member spouse and the non‑member spouse are both alive at the operative time; and
(f) if a base amount applies — the base amount at the operative time is not more than the family law value or scheme value of the member interest and any ancillary interest and associate interest.
(2) CSC must determine a proportion of the transfer amount in relation to 2 categories of interest:
(a) the member spouse’s superannuation interest as a member, the preserved member benefit or preserved employer benefit; and
(b) the ancillary benefit, associate A benefit or associate B benefit;
and the proportion for each category of interest must be the same as the category bears to the member spouse’s total superannuation interest immediately before the payment split.
(3) Rule 90 is to be used in respect of the proportion of the transfer amount determined for paragraph (2) (a) and rule 91 is to be used in respect of the proportion of the transfer amount determined for paragraph (2) (b) as if the amounts determined by CSC were amounts specified in the splitting agreement or splitting order.
Note If CSC receives a splitting agreement or a splitting order that differentiates between member benefit or preserved benefit and ancillary benefit or associate benefit, the agreement or order will be given effect under rule 90 in respect of the member benefit or preserved benefit and under rule 91 in respect of any ancillary benefit or associate benefit.
Subdivision 3 Payment split of benefit in the payment phase
95 Member spouse is in receipt of a pension or associate pension
(1) This rule applies if:
(a) CSC receives a splitting agreement or a splitting order in respect of the superannuation interest of a member spouse; and
(b) either:
(i) the splitting agreement or splitting order has an operative time on or after the commencement of Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004; or
(ii) the splitting agreement or splitting order has an operative time earlier than the commencement of Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004, and no benefits have become payable before that time in respect of the original interest to which the agreement or order relates; and
(c) at the operative time the member spouse receives:
(i) a pension, other than a pension payable in respect of a child; or
(ii) an associate pension; and
(d) the member spouse and the non‑member spouse are both alive at the operative time; and
(e) if a base amount applies — the base amount at the operative time is not more than the family law value or the scheme value.
(2) The non‑member spouse in relation to the splitting agreement or splitting order is entitled to an associate pension from the operative time at a rate calculated under rule 99 by reference to the transfer amount in relation to a pension or associate pension.
Note The associate pension for the non‑member spouse does not include a reversionary component and therefore ceases on the death of the non‑member spouse.
(3) The annual rate of the pension payable to the member spouse is reduced to the amount calculated under rule 100.
Note If a member in receipt of a pension was, for the purposes of family law superannuation splitting, a non‑member spouse in relation to another member of the Scheme who was also in receipt of a pension at the operative time, the first‑mentioned member may receive an associate pension.
A person who receives an associate pension does not become a member but a member who receives an associate pension in addition to a pension under the Scheme remains a member.
(4) Where a member spouse is in receipt of a pension and also has a preserved benefit, an ancillary benefit or both, the preserved benefit is to be split in accordance with rule 90 and the ancillary benefit is to be split in accordance with rule 91.
96 Commutation of small associate pension
(1) If the annual rate of associate pension is less than $1 303.03, the non‑member spouse may elect to commute the associate pension.
(2) On 1 January 2005, the amount mentioned in subrule (1) is indexed in accordance with rule 97.
(2A) On 1 July 2005, and on 1 January and 1 July in each year following 2005, the indexed amount in force immediately before that date is indexed in accordance with rule 97.
(3) The election must be made, in writing to CSC, not later than 3 months after the non‑member spouse becomes entitled to the associate pension.
(4) If the non‑member spouse makes the election, the non‑member spouse is entitled instead to a lump sum equal to the transfer amount mentioned in rule 95.
97 Indexation of amount for small associate pension
(1) If the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of the half‑year immediately before the date of the indexation (factor A) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of any earlier half‑year, not being a half‑year earlier than the half‑year that commenced on 1 January 2004 (factor B), the amount is increased at the rate worked out in accordance with subrule (2).
(2) The rate is A – B, expressed as a percentage of B.
Division 3 Determination of scheme value, associate pension rate and member spouse pension reduction
For the definition of scheme value the scheme value in relation to a member spouse is determined as follows:
Step 1 | Identify the methodology and factors set out in regulations made for section 90MT of the Family Law Act 1975 that would be used to determine the family law value in relation to the member spouse in accordance with that section as if that section applied in relation to the member spouse. Note The family law value is determined in accordance with the Family Law (Superannuation) Regulations 2001 that are made for paragraph 90MT (2) (a) of the Family Law Act 1975. The process of determining the family law value may include reliance on methodology and factors approved by the Attorney‑General under subsection 90MT (3) of that Act. |
Step 2 | Substitute the factors with factors nominated by an actuary for this rule. |
Step 3 | Use the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse. |
99 Annual rate of associate pension
For rule 95, the annual rate of associate pension payable to a non‑member spouse is calculated as follows:
Step 1 | Identify the transfer amount in relation to the non‑member spouse. |
Step 2 | Identify a pension factor, nominated by an actuary for this rule, based on the non‑member spouse’s age and gender. Note 1 Schedule 4 to the Family Law (Superannuation) Regulations 2001 sets out general pension factors based on age and gender, but those factors are not specific to benefits payable under the Act. Note 2 The associate pension does not include a reversionary component and therefore ceases on the death of the non‑member spouse. |
Step 3 | Divide the transfer amount by the pension factor. |
The result is the annual rate of the associate pension.
For rule 95, the amount to which an annual rate of pension is to be reduced is calculated as follows:
Step 1 | Identify the annual rate of pension that was payable to the member spouse immediately before the operative time. |
Step 2 | Work out a reduction factor using the formula:
|
Step 3 | Multiply the amount identified in step 1 by the reduction factor. |
The result is the annual rate of pension payable after the operative time in respect of the member spouse’s interest.
Part 14 Contributions to ancillary benefit
101 Definitions
In this Part:
approved deposit fund has the same meaning as in subsection 10 (1) of the SIS Act.
contribution means a contribution made, or taken to be made, under this Part.
Government co‑contribution means an amount paid as a Government co‑contribution under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.
SG top-up contribution means an amount contributed by the Department, for the benefit of a member or a DFRDB member, in order to ensure that the Department does not have an individual superannuation guarantee shortfall (within the meaning of the Superannuation Guarantee (Administration) Act 1992) in relation to the member or the DFRDB member.
Special Account has the same meaning as in section 4 of the Small Superannuation Accounts Act 1995.
Part 2 does not apply to contributions made under this Part.
103 Certain investment nominations to continue in operation
(1) An investment nomination in force under subrule 103 (2) (a former nomination) immediately before the commencement of this rule is to be taken:
(a) if made by a member — to have been made under subrule 11Q (1) and to continue in force until changed by the member under subrule 11Q (4); or
(b) if made by a DFRDB member — to have been made under rule 104 and to continue in force until changed by the member under that rule.
(2) However, subrule (1) does not apply to a former nomination by a member if:
(a) the member had also, before the commencement of this rule, made an investment nomination under subrule 11Q (1); and
(b) the investment nomination under subrule 11Q (1) had the same effect as the former nomination; and
(c) the investment nomination under subrule 11Q (1) was in force immediately before that commencement.
104 Investment nominations by DFRDB members and spouses
(1) This rule applies to:
(a) a DFRDB member; and
(b) a person taken to be making contributions under rule 110.
(2) A person may nominate to CSC the Investment Division or Investment Divisions to which contributions by the person should be allocated, from the day specified in the nomination.
(3) A person may change an investment nomination at any time.
105 Allocation of contributions
(1) This rule applies to:
(a) a member; and
(b) a DFRDB member; and
(c) a person taken to be making contributions under rule 110.
(2) Subject to rules 105A and 105B, CSC must allocate contributions by a person to the Investment Division or Investment Divisions nominated by the person under their investment nomination and comply as far as possible with that nomination.
(3) If CSC:
(a) has not received an investment nomination from a person; or
(b) cannot comply with an investment nomination in relation to all or part of a person’s contribution because the nomination is defective or because one or more of the Investment Divisions have changed;
CSC must allocate the person’s contributions, or the part of the person’s contributions, to the default Investment Division.
(4) Subject to rule 11R, a contribution to be allocated to an Investment Division in accordance with this rule must be allocated to the Investment Division as at the day that the contribution is received.
(5) A person’s contribution allocated under this rule becomes ancillary benefit for the person.
105A Treatment of additional personal contributions where no tax file number has been provided
(1) Subject to subrule (2), if CSC receives an additional personal contribution from, or on behalf of, a member under rule 109 in a manner that is inconsistent with subregulation 7.04 (2) of the Superannuation Industry (Supervision) Regulations 1994, CSC:
(a) must allocate the contribution to the Investment Division or Investment Divisions nominated by the member; but
(b) must not allocate the contribution to the member’s account.
(2) If, within 30 days after CSC receives the contribution, the member’s tax file number is provided to CSC, CSC must allocate the contribution to the member’s account with effect from the day the tax file number is provided to CSC.
(3) If, at the end of 30 days after CSC receives the contribution, the member’s tax file number has not been provided to CSC, CSC must return the contribution to the member or, if the contribution was paid to CSC by another person on behalf of the member, to that person for the benefit of the member.
(4) In this rule, member includes a DFRDB member.
(1) Subject to subrule (2), if CSC receives a contribution from, or on behalf of, a member for the benefit of the spouse of the member under rule 110 in a manner that is inconsistent with subregulation 7.04 (2) of the Superannuation Industry (Supervision) Regulations 1994, CSC:
(a) must allocate the contribution to the Investment Division or Investment Divisions nominated by the member’s spouse; but
(b) must not allocate the contribution to the member’s spouse’s account.
(2) If, within 30 days after CSC receives the contribution, the member’s spouse’s tax file number is provided to CSC, CSC must allocate the contribution to the member’s spouse’s account with effect from the day the tax file number is provided to CSC.
(3) If, at the end of 30 days after CSC receives the contribution, the member’s spouse’s tax file number has not been provided to CSC, CSC must return the contribution:
(a) to the member for the benefit of the member’s spouse; or
(b) if the contribution was paid to CSC by another person on behalf of the member, to that person for the benefit of the member’s spouse.
(4) In this rule, member includes a DFRDB member.
106 Government co‑contribution and SG charge payments
(1) If CSC receives a Government co‑contribution in respect of a member or a DFRDB member, the co‑contribution is taken to be a contribution by the member or DFRDB member for rule 105.
(2) If CSC receives an amount payable to, or in respect of a member or a DFRDB member, under Part 8 of the Superannuation Guarantee (Administration) Act 1992, the amount is taken to be a contribution by the member or DFRDB member for rule 105.
(1) If CSC receives an SG top-up contribution in respect of a member or a DFRDB member, the contribution is taken to be a contribution by the member or the DFRDB member for rule 105.
(2) To avoid doubt, an SG top-up contribution:
(a) is not part of the funded employer benefit in relation to the member or the DFRDB member in respect of whom the contribution is made; and
(b) is not required to be allocated to the default Investment Division as set out in rule 11P.
107 Amounts transferred from regulated superannuation funds, etc
(1) A member or a DFRDB member may make a request in writing to CSC to transfer into the Scheme the whole or part of the member’s or DFRDB member’s benefit in:
(a) another regulated superannuation fund; or
(b) an RSA; or
(c) an approved deposit fund; or
(d) the Special Account.
Note This rule does not enable the transfer into the Scheme of a DFRDB member’s benefit in the 1973 Scheme, as the 1973 Scheme is not a regulated superannuation fund or an RSA.
(2) CSC:
(a) must refuse to accept a transfer, if the transfer does not comply with the SIS Act; and
(b) may refuse to accept a transfer, if CSC does not have sufficient information to accept the transfer.
(3) If CSC receives a request for transfer from:
(a) a member or a DFRDB member; or
(b) a regulated superannuation fund, an RSA, an approved deposit fund or the Special Account on behalf of a member or a DFRDB member;
and CSC accepts the transfer, the transferred benefit is taken to be a contribution by the member or DFRDB member for rule 105.
(1) A member or a DFRDB member may make a request in writing to the Department to deduct an amount from the member’s or DFRDB member’s pre‑tax salary to be paid into the Scheme for the benefit of the member or DFRDB member.
(2) CSC may refuse to accept an amount on behalf of a member or a DFRDB member, if CSC does not have sufficient information to accept the amount.
(3) If the Department sends CSC an amount deducted under this rule and CSC accepts the amount, the amount is taken to be a contribution by the member or DFRDB member for rule 105.
109 Additional personal contributions
(1) A member may, in addition to any contributions made under Part 2, make one or more contributions into the Scheme for the benefit of the member by paying the contributions directly to CSC.
(2) A DFRDB member may, in addition to any contributions made under Part III of the 1973 Act, make one or more contributions into the Scheme for the benefit of the DFRDB member by paying the contributions directly to CSC.
(3) CSC may refuse to accept a contribution from a member or a DFRDB member, if CSC does not have sufficient information to accept the contribution.
110 Contributions for the benefit of the spouse of a member
(1) A member or a DFRDB member may make a request in writing to CSC to establish a superannuation interest for the spouse of the member or DFRDB member.
(2) A request must be accompanied by sufficient information to enable CSC to identify and contact the spouse.
(3) The member or DFRDB member may make contributions into the Scheme for the benefit of the spouse by paying the contributions directly to CSC.
(4) However, CSC may refuse to accept a contribution for the benefit of the spouse of a member or a DFRDB member, if CSC does not have sufficient information to accept the contribution.
(5) If a member or a DFRDB member makes a contribution under this rule and CSC accepts the contribution, the contribution is taken to be a contribution by the member’s spouse for rule 105.
[3] Schedules 1 to 12
substitute
(rule 2)
Part 1 Definitions [see Note 2]
1. In the Rules, unless the contrary intention appears:
1948 Act means the Defence Forces Retirement Benefits Act 1948.
1973 Act means the Defence Force Retirement and Death Benefits Act 1973.
1973 Scheme means the retirement and death benefits scheme provided for in the 1973 Act.
1973 Scheme (deferred benefit) re‑entrant means a 1973 Scheme re‑entrant to whom, immediately before he or she became a member, deferred benefits were applicable under the 1973 Act.
1973 Scheme (invalidity pay) re‑entrant means a 1973 Scheme re‑entrant whose invalidity pay under the 1973 Act was, upon his or her becoming a member, cancelled under section 61D of that Act.
1973 Scheme re‑entrant means a member, other than a transferred member, who:
(a) had not been a member before he or she began to render the period of continuous full‑time service which he or she is rendering; and
(b) had been an eligible member of the Defence Force within the meaning of the 1973 Act before becoming a member.
1973 Scheme (refunded contributions) re‑entrant means a 1973 Scheme re‑entrant who, in respect of his or her last period of service as an eligible member of the Defence Force within the meaning of the 1973 Act, received, under section 56 of that Act, a refund of the amount of the contributions paid by him or her.
1973 Scheme (retirement pay) re‑entrant means a 1973 Scheme re‑entrant whose retirement pay under the 1973 Act was, upon his or her becoming a member, suspended under section 61C of that Act.
1973 Scheme retirement pensioner means a person to whom retirement pay is payable under the 1973 Act.
1991 Scheme means the Scheme.
1991 Scheme re‑entrant means a member who, having been a member and retired, again became a member after a break in the continuity of his or her service.
actuary means a Fellow or an Accredited Member of the Institute of Actuaries of Australia.
aggregated service, in relation to a person, means service calculated in relation to that person in accordance with Part 6 to Schedule 8.
allocation, of a unit in an Investment Division, has the meaning given by rule 11O.
allowance means an allowance determined by the Defence Force Remuneration Tribunal under section 58H of the Defence Act 1903.
ancillary means a person for whom ancillary benefit is held in the Scheme.
ancillary benefit has the meaning given by subrule 85 (2).
associate has the meaning given in subsection 46 (1A) of the Act.
Note Under subsection 46 (1A) of the Act an associate is a person to whom an associate benefit is payable. Associate benefit includes an associate A benefit, an associate B benefit and an associate pension.
associate A benefit has the meaning given by subrule 85 (1).
associate B benefit has the meaning given by subrule 86 (1).
associate pension means a pension that is paid under rule 95.
bank includes, but is not limited to, a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.
Board means the Military Superannuation and Benefits Board of Trustees No. 1 that was established under Part 6 of the Act, before the repeal of that Part by item 110 of Schedule 1 to the Superannuation Legislation (Consequential Amendments and Transitional Provisions) Act 2010.
calendar month means a period commencing at the beginning of a day of one of the 12 months of the year and ending immediately before the beginning of the corresponding day of the next month or, if there is no such corresponding day, ending at the expiration of the next month.
carry over value, in relation to a 1973 Scheme (deferred benefit) re‑entrant, means an amount calculated in relation to that person in accordance with Schedule 10A.
child, in relation to a person who has died, means any of the following:
(a) a child of the member, within the meaning of the Family Law Act 1975;
(b) an ex‑nuptial child of the deceased person;
(c) a person who is, immediately before the death of the deceased person, a step‑child, an adopted child, a foster child or a ward, of the deceased person;
(d) a person who:
(i) is a child or ex‑nuptial child of a spouse who survives the deceased person; and
(ii) was wholly or substantially dependent upon the deceased person at the time of the deceased person’s death;
(e) a person who:
(i) is, within the meaning of the Family Law Act 1975, a child of a spouse who survives the member; and
(ii) was wholly or substantially dependent upon the member at the time of the member’s death.
classification means a classification referred to in rule 22.
Committee, in Part 3 of the Rules, means the Incapacity Classification Committee established under rule 17.
Committee, in Part 9 of the Rules, means a Reconsideration Committee established under rule 72.
contribution means contribution to the Fund.
contributory service, in relation to a transferred person, means service by the person after 1 October 1991 in respect of which the person paid contributions under Part 2 or contributions under section 17 of the 1973 Act.
CSC (short for Commonwealth Superannuation Corporation) means the body corporate continued in existence by section 4 of the Governance of Australian Government Superannuation Schemes Act 2011.
default Investment Division has the meaning given by rule 11D.
Department means the Department of State for Defence.
DFRDB member means a person who is a contributing member within the meaning of subsection 3 (1) of the 1973 Act.
eligible child, in relation to a person who has died and was at the time of his or her death, an ancillary, an associate, a member or a former member, means a person who is the child of the deceased person and:
(a) is a person who has not attained the age of 16 years; or
(b) is a person who:
(i) has attained the age of 16 years but has not attained the age of 25 years; and
(ii) is receiving full‑time education at a school, college or university or other full‑time education approved by CSC for the purposes of this subparagraph; and
(iii) is not ordinarily in employment or engaged in work on his or her own account.
eligible service, in relation to a person, means service calculated in relation to that person in accordance with Schedule 6.
employer benefit, in relation to a person, means the amount of employer benefit calculated in relation to that person in accordance with Schedule 8.
employer funded account, for a unitised member, means the account established under paragraph 11M (1) (b).
final average salary, in relation to a person, means an amount calculated in relation to that person in accordance with Schedule 7.
financial year means a period of 12 months commencing on 1 July.
flying allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
foreign service member means a person (not being a person who has been an eligible member of the Defence Force within the meaning of the 1973 Act):
(a) who, before he or she became a member, had been a member of the armed forces of a country other than Australia; and
(b) who rendered with those forces a period of service (in this definition called full‑time service) of a kind similar to continuous full‑time service in the Defence Force for a period of or exceeding 12 months; and
(c) with regard to whom CSC, after consultation with the appropriate authority of the Defence Force, directs that the full‑time service or a part of that service of that person with those forces is to be included in aggregated service for the purposes of Schedule 8.
Fund means the fund established by the Trust Deed and, from 1 July 2011, vested in CSC.
funded employer benefit, in relation to a person, means:
(a) before 1 July 2002 — the sum of:
(i) the amount of employer contributions paid by the Department, in relation to the person, under rule 10 less the amount of income tax paid or payable by the Fund in respect of those contributions; and
(ii) the interest (if any) in respect of the amount in subparagraph (i) in accordance with a determination or determinations by CSC as to rates of interest and the method of allocation of interest to such amounts; and
(b) on or after 1 July 2002 — the sum of the values of units in the person’s employer funded account.
higher duties allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
invalidity, in relation to a person, includes physical or mental incapacity of the person to perform his or her duties.
invalidity pension means a pension payable under rule 27 or 28.
invalidity pensioner means a person who is entitled to invalidity pension or would be so entitled if payment of that pension had not been suspended under subrule 25 (3).
invalidity retiree means a person who is about to be, or has been, retired from the Defence Force on the ground of invalidity and includes a person who, in accordance with rule 30, is to be treated as if he or she had been retired on that ground.
Investment Division means the Investment Division established on 1 July 2002 or an Investment Division established as a result of an action by CSC under rule 11C.
investment nomination means a nomination under subrule 11Q (1) or 104 (2).
issue price has the meaning given by rule 11J.
lump sum maximum benefit limit, in relation to a person, means an amount calculated in relation to that person in accordance with item 1 of Schedule 3.
marital or couple relationship has the meaning given by Part 1A of Schedule 1.
MBL member means a member who has ceased to pay contributions in accordance with rule 5.
member means a person who, in accordance with section 6 of the Act, is a member of the Scheme.
member benefit, for a person, means:
(a) before 1 July 2002 — an amount calculated in accordance with Schedule 9; and
(b) on or after 1 July 2002 — the sum of the value of units in the person’s member funded account and member unfunded account.
member funded account, for a unitised member, means the account established under paragraph 11M (1) (a).
member unfunded account, for a unitised member, means the account established under paragraph 11M (2) (a).
membership means membership of the Scheme.
month means calendar month.
net asset value has the meaning given by rule 11F.
Parliamentary Candidates Act means the Defence (Parliamentary Candidates) Act 1969.
partner has the meaning given by Part 1A of Schedule 1.
pension means a pension payable under the Rules.
pension maximum benefit limit, in relation to a person, means an amount calculated in relation to that person in accordance with item 3 of Schedule 3.
Permanent Forces has the same meaning as in the Defence Act 1903.
prescribed fee means a fee prescribed in regulations made in pursuance of section 52 of the Act.
prescribed half‑year means the half‑year commencing on 1 January 2002 or a subsequent half‑year.
prescribed year means the year commencing on 1 July 1991 or a subsequent year.
preservation age has the same meaning as in subregulation 6.01 (2) of the SIS Regulations.
previous contributions, in relation to a person, means contributions made by him or her under the previous legislation, other than:
(a) any such contributions refunded to him or her under that legislation; and
(b) in the case of a person who, immediately before he or she transferred from the 1973 Scheme, was rendering continuous full‑time service (in this paragraph called the relevant service) and who, before he or she began to render the relevant service, was a 1973 Scheme retirement pensioner — any such contributions made in respect of service rendered by the member before the member began to render the relevant service; and
(c) any such contributions in respect of which a transfer value was paid under section 82ZA of the 1948 Act or section 77 of the 1973 Act.
previous legislation means the 1948 Act and the 1973 Act.
regulated superannuation fund has the same meaning as in section 19 of the SIS Act.
relevant percentage, in relation to a spouse or eligible child of a deceased person, means the percentage applicable to that spouse or child in accordance with Schedule 4.
relevant period, in relation to a person to whom Part 7 of the Rules applies, means the period referred to in a relevant provision in the application of that provision to that person.
relevant provision, in relation to the Parliamentary Candidates Act, means subsection 10 (2), 11 (2) or 12 (2), as the case requires.
Reserves has the same meaning as in the Defence Act 1903.
retirement pensioner means a former member to whom a pension is payable but does not include a person to whom a pension is payable only because he or she is the spouse or the child of a deceased member.
RSA has the same meaning as in the Retirement Savings Accounts Act 1997.
salary has the meaning given by Part 10 of this Schedule.
Scheme means the Military Superannuation and Benefits Scheme established by the Trust Deed.
service means service as a member of the Defence Force.
service allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
service offence has the same meaning as in the Defence Force Discipline Act 1982.
SIS Act means the Superannuation Industry (Supervision) Act 1993.
SIS preservation threshold amount means the amount specified, in column 2, in item 104 of Schedule 1 to the Superannuation Industry (Supervision) Regulations.
SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.
special action forces allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
specialist operations allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
spouse:
(a) in relation to someone who survives a deceased person — has the meaning given by Part 5 of this Schedule; and
(b) in any other case (except Part 13) — means a person who has a marital or couple relationship within the meaning of Part 1A of this Schedule.
spouse’s pension means pension payable to a spouse under Part 4 of these Rules.
Statistician means the Australian Statistician.
step‑child includes a person who would be the step‑child of a person (person A), but for the fact that person A is not legally married to his or her partner.
submarine service allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
surcharge debt account, for a member of the Scheme, means the surcharge debt account kept for the member by CSC under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997.
surcharge deduction amount, in relation to a member of the Scheme to or in respect of whom benefits become payable under the Rules, means the surcharge deduction amount that is specified in the determination made by CSC, under Schedule 12, in relation to the member.
tax file number has the same meaning as in Part VA of the Income Tax Assessment Act 1936.
total benefit, in relation to a person, means the sum of the person’s member benefit and employer benefit.
trainee allowance means the allowance of that name determined under Part IIIA of the Defence Act 1903.
transfer, of a unit in an Investment Division, has the meaning given by rule 11S.
transfer application has the meaning given by rule 11U.
transferred (former recipient) person means a transferred person who, immediately before he or she transferred from the 1973 Scheme, was rendering continuous full‑time service and who, immediately before he or she began to render that service, was a 1973 Scheme retirement pensioner.
transferred person means a person who became a member in consequence of his or her having made an election to do so under section 132 of the 1973 Act.
transferred (refunded contributions) person means a transferred person who, immediately before he or she transferred from the 1973 Scheme, was rendering continuous full‑time service and who, before he or she began to render that service, had been an eligible member of the Defence Force within the meaning of the 1973 Act during an earlier period of such service rendered by him or her, in respect of which he or she:
(a) received, under section 56 of that Act, a refund of the amount of the contributions paid by him or her; and
(b) did not subsequently make an election under paragraph 63 (1) (d) or subsection 64 (1) of that Act.
transfer value, in relation to a transferred person, means an amount calculated in relation to that person in accordance with Schedule 10.
unfunded preserved benefit, in relation to a person, means so much of the employer benefit included in the preserved benefit applicable to the person as is not funded.
unitised member means:
(a) a member of the Fund; and
(b) a person who has a preserved benefit (other than a person in respect of whom a death benefit is payable).
unit value has the meaning given by rule 11I.
withdrawal price has the meaning given by rule 11K.
Part 1A Marital or couple relationship
1A. A person has a marital relationship with another person (the other) at a particular time if the person ordinarily lives with the other as the other’s husband, wife or partner on a permanent and bona fide domestic basis at the time.
1AA. A person is the partner of another person if the two persons have a relationship as a couple (whether the persons are the same sex or different sexes).
1B. For the purpose of this Part:
(a) a person is regarded as ordinarily living with another person as that other person’s husband, wife or partner on a permanent and bona fide domestic basis at a particular time only if:
(i) the person had been living with that other person as that person’s husband, wife or partner for a continuous period of at least 3 years up to that time; or
(ii) the person had been living with that person as that person’s husband, wife or partner for a continuous period of less than 3 years up to that time and CSC, having regard to any relevant evidence, is of the opinion that the person ordinarily lived with that other person as that other person’s husband, wife or partner on a permanent and bona fide domestic basis at that time;
whether or not the person was legally married to that other person; and
(b) a person is taken to be living with another person if CSC is satisfied that the person would have been living with that person except for a period of:
(i) temporary absence; or
(ii) absence because of special circumstances (for example, absence because of a person’s illness or infirmity or a posting of the person); and
(c) A marital or couple relationship begins at the beginning of the continuous period mentioned in subparagraph (a) (i) or (ii).
1C. For the purposes of item 1B, relevant evidence includes, but is not limited to, evidence establishing any of the following:
(a) the person was wholly or substantially dependent on that person at the time;
(b) the persons were legally married to each other at the time;
(ba) the persons’ relationship was registered under a law of a State or Territory prescribed for section 22B of the Acts Interpretation Act 1901;
(c) the persons had a child who was:
(i) born of the relationship between the persons; or
(ii) adopted by the persons during the period of the relationship; or
(iii) a child of both of the persons, within the meaning of the Family Law Act 1975;
(d) the persons jointly owned a home which was their usual residence.
Part 2 Resign to contest an election
2. A reference in the Rules to a person who resigns to contest an election is a reference to a member who:
(a) is transferred to a Reserve (being a Reserve within the meaning of the Parliamentary Candidates Act); or
(b) is discharged from the Defence Force; or
(c) has his or her continuous full‑time service terminated;
under the Parliamentary Candidates Act.
3. A reference in the Rules to the retirement of a person is a reference to his or her retirement from the Defence Force and includes:
(a) any voluntary or involuntary termination of the person’s services as a member of that force; or
(b) in the case of a person who is an officer of the Permanent Forces — the transfer of the officer to the Reserves if, on that transfer, the person ceases to render continuous full‑time service; or
(c) in the case of a person who is a member of the Reserves and is rendering continuous full‑time service — the cessation of that service.
4. Where a person retires and, without a break in the continuity of his or her service, again becomes a member of the Defence Force serving on continuous full‑time service, the person is to be treated, for the purposes of the Rules, as not having retired by reason only of that retirement.
Part 3A Retirement on completion of limited tenure appointment
4A. Subject to item 4B, where:
(a) a member who is an officer of the Defence Force holds an appointment under section 9 or 9AA of the Defence Act 1903 (in this Part called the relevant appointment); and
(b) before the member was appointed to the relevant appointment he was notified in writing by the Minister that he or she would be expected to resign his or her naval, military or air force office immediately after ceasing to hold the relevant appointment; and
(c) the member resigns his or her office accordingly;
then, for the purposes of the Rules, the member is taken not to have resigned but to have retired on completion of a limited tenure appointment.
4B. Item 4A does not apply to an officer who, on or before the completion by him or her of the period of a relevant appointment to which paragraph 4A (b) applies is offered a further relevant appointment to which that paragraph applies and declines that further appointment.
4C. In paragraph 4A (c), a reference to a member who resigns his or her office includes a reference to a member who ceases to render continuous full‑time service on being transferred to the Reserves.
5. A reference in the Rules to the retiring age of a member is:
(a) in the case of a member who is a member of the Permanent Forces — the age for the compulsory retirement of the member ascertained in accordance with, or in accordance with regulations under, the Defence Act 1903, the Naval Defence Act 1910 or the Air Force Act 1923; or
(b) in the case of a member who is not a member of the Permanent Forces — the age that would be the age for the compulsory retirement of the person if the person were a member of the Permanent Forces.
6. Where the age for the compulsory retirement of a member is, in accordance with a law referred to in item 5, extended, the member is to be treated for the purposes of the Rules, on his or her subsequent retirement, as if:
(a) where he or she is subsequently retired on the ground of invalidity — he or she had been retired on that ground; or
(b) where he or she retires or is retired on any other ground — he or she retired on reaching the age for his or her compulsory retirement.
7. In item 5:
Permanent Forces does not include the Regular Army Supplement.
Part 5 Spouse who survives a deceased person
8. In this Part:
deceased person means a person who:
(a) has died; and
(b) was, at the time of his or her death, a member, a former member or a person who was a retirement pensioner.
9. A person is a spouse who survives a deceased person if the person had a marital or couple relationship with the deceased person at the time of the death of the deceased person.
10. Despite item 9, a person is taken to be a spouse who survives a deceased person if:
(a) the person had previously had a marital or couple relationship with the deceased person; and
(b) the person did not, at the time of the death, have a marital or couple relationship with the deceased person but was legally married to the deceased person; and
(c) in CSC’s opinion, the person was wholly or substantially dependent upon the deceased person at the time of the death.
Benefits for certain spouses in post-retirement marital or couple relationships
11. (1) This item applies if:
(a) a spouse survives a deceased person; and
(b) the spouse’s marital or couple relationship with the deceased person:
(i) began after the deceased person became a retirement pensioner; and
(ii) began after the deceased person reached 60; and
(iii) continued for a period (the period of the relationship) of less than 3 years up to the time of the deceased person’s death.
Rate of spouse’s pension
(2) The rate of spouse pension to which the spouse is entitled is worked out using the formula:
where:
r means the rate of spouse pension to which the spouse would otherwise be entitled.
n means the number of days in the period of the relationship.
Minimum amount for lump sum payment
(3) If the annual rate of pension worked out under subitem (2) is less than or equal to $1 407.79, the spouse is instead entitled to a lump sum payment worked out in accordance with this item.
Indexation of the amount mentioned in subitem (3)
(4) On 1 July 2008, the amount mentioned in subitem (3) is indexed in accordance with subitem (5).
(5) If the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of the half‑year immediately before the date of the indexation (A) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of any earlier half‑year, not being a half‑year earlier than the half‑year that commenced on 1 July 2007 (B), the amount is increased, at the rate calculated in accordance with subitem (6).
(6) The rate is A – B expressed as a percentage of B.
(7) On 1 January and 1 July in each year following 2008, the indexed amount in force immediately before that date is indexed in accordance with subitem (5).
Calculating the lump sum payment
(8) For the purposes of this item, a lump sum is worked out using the formula:
where:
p means the annual rate of pension worked out in accordance with subitem (2).
a means the spouse’s age factor.
(9) For subitem (8), the spouse’s age factor is determined by:
(a) first — identifying the spouse’s age in the list of ages in column 1 of table 4A (for males) or table 4B (for females) in Part 4 of Schedule 1 to the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003; and
(b) second — adopting the figure in column 6 of table 4A (for males) or table 4B (for females) in Part 4 of Schedule 1 to the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003, which is in the same row as the spouse’s age identified using paragraph (a), as the spouse’s age factor.
Part 6 Parts of speech and grammatical forms
13. In the Rules, unless the contrary intention appears, where a word or phrase is given a particular meaning, other parts of speech and grammatical forms of that word or phrase have corresponding meanings.
14. In the Rules, unless the contrary intention appears, words in the singular number include the plural and words in the plural number include the singular.
15. Where, in the Rules, any period of time, dating from a given day, act or event, is required or allowed for any purpose, the time is, unless the contrary intention appears, to be reckoned exclusive of that day or the day of that act or event.
16. Where the last day of any period required or allowed by a provision of the Rules for the doing of anything falls on a Saturday, on a Sunday or on a day which is a public holiday or a bank holiday in the place in which the thing is to be or may be done, the thing may be done on the first day following which is not a Saturday, a Sunday or a public holiday or bank holiday in the place.
Part 9 Attainment of particular age
17. For the purposes of the Rules, unless the contrary intention appears, the time at which a person attains a particular age expressed in years is the commencement of the relevant anniversary of the date of the birth of that person.
18 (1) Subject to this item, salary, in relation to a person who is a member of the Scheme on a particular day, means the sum of:
(a) the annual rate of salary applicable to the member on that day under a determination under Part IIIA of the Defence Act 1903; and
(b) for a member to whom service allowance is payable — an amount equal to the annual rate of the service allowance that is applicable in respect of service by the member on that day; and
(c) for a member to whom higher duties allowance is payable — an amount equal to the annual rate of the higher duties allowance that is applicable in respect of service by the member on that day; and
(d) for a member to whom trainee allowance is payable — an amount equal to the annual rate of the trainee allowance that is applicable in respect of service by the member on that day; and
(e) for a member to whom the qualifications and skill component of:
(i) a flying allowance; or
(ii) a special action forces allowance; or
(iii) a specialist operations allowance; or
(iv) a submarine service allowance;
is payable — an amount equal to the annual rate of the qualifications and skill component that is applicable in respect of service by the member on that day.
Note The qualifications and skill component of the allowances mentioned in subparagraphs (1) (e) (i) to (iv) is only payable to a member who was in receipt of the component before 4 June 2008.
(2) For a member holding the office of Chief of the Defence Force, Vice Chief of the Defence Force, Chief of Navy, Chief of Army, Chief of Air Force or Director of Military Prosecutions on a particular day, salary means the annual rate of salary on that day of a holder of that office as determined by the Remuneration Tribunal under subsection 7 (3) of the Remuneration Tribunal Act 1973.
(3) To avoid doubt, salary does not include an allowance other than an allowance mentioned in subitem (1).
Schedule 2 Prescribed periods for the purposes of rule 4
(rule 4)
1. Where:
(a) the salary of a member in respect of a period was, on or after the date of his or her entry into the Scheme, forfeited, in whole or in part, under regulations made under the Defence Act 1903; and
(b) the period exceeded 21 consecutive days; and
(c) an amount equal to the amount of the salary forfeited was not subsequently paid, and is not payable, under those regulations to the member;
that period is a prescribed period.
2. Where:
(a) a member was in custody under the Defence Force Discipline Act 1982 awaiting or undergoing trial for a service offence; and
(b) the period for which the member was in custody awaiting or undergoing trial commenced on or after the date of his or her entry into the Scheme and exceeded 21 consecutive days; and
(c) the member was subsequently convicted of the offence or another service offence at the trial; and
(d) either of the following subparagraphs apply:
(i) the conviction was not quashed or set aside;
(ii) the conviction was quashed or set aside and:
(A) a conviction for another service offence was substituted; or
(B) the member was ordered to be tried again for the offence of which the member was convicted, or for another service offence, and was convicted of a service offence at the subsequent trial;
that period is a prescribed period.
3. Where:
(a) a member was in custody under the Defence Force Discipline Act 1982 awaiting or undergoing trial for a service offence; and
(b) the period for which the member was in custody awaiting or undergoing trial commenced before the date of his or her entry into the Scheme and ended on or after that date and exceeded 21 consecutive days; and
(c) the member was subsequently convicted of the offence or another service offence at the trial; and
(d) either of the following subparagraphs apply:
(i) the conviction was not quashed or set aside;
(ii) the conviction was quashed or set aside and:
(A) a conviction for another service offence was substituted; or
(B) the member was ordered to be tried again for the offence of which the member was convicted, or for another service offence, and was convicted of a service offence at the subsequent trial;
so much of that period as commenced on that date is a prescribed period.
4. Where:
(a) 2 or more consecutive periods of 24 hours or more would, but for paragraph 1 (b), 2 (b) or 3 (b) or 2 or all of those provisions, be taken to be prescribed periods for the purposes of subrule 4 (4) in relation to a member; and
(b) the periods exceed, in the aggregate, 21 days;
those periods are prescribed periods.
5. Where:
(a) a period of 24 hours or more would, but for paragraph 1 (b), 2 (b) or 3 (b), be a prescribed period for the purposes of subrule 4 (4) in relation to a member; and
(b) the period is consecutive with a period that, under item 1, 2 or 3, is a prescribed period for the purposes of subrule 4 (4);
the period referred to in paragraph (a) is a prescribed period.
6. Where:
(a) a period of 24 hours or more would, but for paragraph 1 (b), 2 (b) or 3 (b), be a prescribed period for the purposes of subrule 4 (4) in relation to a member; and
(b) the period is consecutive with a period that, under item 5 or this paragraph, is a prescribed period for the purposes of subrule 4 (4) in relation to the member;
the period referred to in paragraph (a) is a prescribed period.
Schedule 3 Calculation of maximum benefit limits
(rule 5)
1. The lump sum maximum benefit limit, in relation to a member, is the product of the member’s final average salary and the member’s lump sum maximum benefit multiple.
2. In item 1:
lump sum maximum benefit multiple means the number obtained by dividing, by the member’s final average salary:
(a) in relation to a member whose salary is less than $25 000 — $200 000; or
(b) in any other case — the sum of:
(i) 8 times $39 970 or, if the member’s final average salary is less than $39 970, 8 times the member’s final average salary; and
(ii) 6 times the part (if any) of the member’s final average salary that exceeds $39 970 but does not exceed $74 220; and
(iii) 3 times the part (if any) of the member’s final average salary that exceeds $74 220.
3. The pension maximum benefit limit, in relation to a member, is the product of the member’s final average salary and the member’s pension maximum benefit multiple.
4. In item 3:
pension maximum benefit multiple means the number obtained by dividing, by the member’s final average salary:
(a) in relation to a member whose salary is less than $25 000 — $250 000; or
(b) in any other case — the sum of:
(i) 10 times $39 970 or, if the member’s final average salary is less than $39 970, 10 times the member’s final average salary; and
(ii) 7 times the part (if any) of the member’s final average salary that exceeds $39 970 but does not exceed $74 220; and
(iii) 4 times the part (if any) of the member’s final average salary that exceeds $74 220.
5. If a member’s benefits have been subject to a family law superannuation payment split under Part 13, the maximum benefit limit in relation to the member is calculated as if there were no benefit reduction under that Part.
6. This Schedule does not apply to ancillary benefit, associate A benefit or associate B benefit held for the member.
(rule 42)
1. The percentage of an employer benefit or deceased pensioner’s pension applicable to a spouse or eligible child of a deceased person is the percentage in whichever of the following tables is applicable according to the relationship of the person to the deceased person and the number of such persons.
Table 1: Relevant percentage where deceased person is survived by a spouse with or without eligible children
Relationship and number of persons | Relevant Percentage |
Spouse only | 67 |
Spouse and one eligible child | 78 |
Spouse and 2 eligible children | 89 |
Spouse and 3 or more eligible children | 100 |
Table 2: Relevant percentage where deceased person is survived by an eligible child or eligible children only
Number of eligible children | Relevant Percentage |
One | 45 |
Two | 80 |
Three | 90 |
Four or more | 100 |
Schedule 4A Calculation of notional employer benefit
(rule 52)
1 Interpretation
In this Schedule:
notional employer benefit means the sum of:
(a) the amount of the employer benefit included in a preserved benefit that applied to a person at the date of the person’s retirement; and
(b) the amount by which the amount referred to in paragraph (a) is calculated to have increased, under items 2 and 3, in the period that begins on the date of the person’s retirement and ends on the date of the person’s election to convert the benefit to a pension.
2 Calculating increase in the notional employer benefit in any year
(1) A person’s notional employer benefit is taken to have increased in a financial year (in this item called the relevant year):
(a) if the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of the year immediately preceding the relevant year exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of any earlier year (except a year earlier than the year that commenced on 1 July 1989); and
(b) in the circumstances described in paragraph (a) — by an amount equal to the prescribed percentage of the person’s notional employer benefit as at the end of the previous financial year.
(2) The prescribed percentage is A B, expressed as a percentage of B where:
A is the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of the year immediately preceding the relevant year; and
B is the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter of any year earlier than the year immediately preceding the relevant year (except a year earlier than the year that commenced on 1 July 1989).
(3) If the percentage calculated is or includes a fraction of one‑tenth of 1%:
(a) that is less than one‑half of one‑tenth — the fraction is to be disregarded; and
(b) that is not less than one‑half of one‑tenth — the fraction is taken to be one‑tenth.
3 Calculating increase in notional employer benefit in an incomplete year
(1) If, in a financial year:
(a) a person retires on a day other than 1 July; or
(b) a person elects to convert his or her residual employer benefit to a pension on a day other than 30 June;
the amount by which the notional employer benefit increases in that year is worked out using the formula:
where:
full increase means:
(a) if the date of retirement and the date of election do not occur in the same financial year — the amount, calculated in accordance with item 2, by which the person’s notional employer benefit would have increased in the relevant financial year if the person had:
(i) retired on 1 July; or
(ii) elected to convert his or her residual employer benefit to a pension on 30 June
as the case may be; or
(b) if the date of retirement and the date of election occur in the same financial year — the amount, calculated in accordance with item 2, by which the person’s notional employer benefit would have increased in that year if the person had retired on 1 July and had elected to convert his or her residual employer benefit to a pension on 30 June.
number of months means:
(a) if the date of retirement and the date of election do not occur in the same financial year—the number of months in the period that begins:
(i) on the date of retirement and ends on 30 June in that financial year; or
(ii) on 1 July in the financial year in which the election occurs and ends on the date of election:
as the case may be; or
(b) if the date of retirement and the date of election occur in the same financial year — the number of months in the period that begins on the date of retirement and ends on the date of election.
(2) If the period referred to in subitem (1) is less than one month, that period is taken to be one month.
(3) If the period referred to in subitem (1) consists of at least one whole month and a part of a month:
(a) if the number of days in that part is less than one‑half of the number of days in that month — that part is disregarded; and
(b) if the number of days in that part is more than one‑half of the number of days in that month — that part is taken to be a whole month.
4 Interpretation
(1) Subject to subitem (2), if at any time, whether before or after the commencement of the Rules, the Statistician has published or publishes in respect of a particular March quarter an all groups consumer price index number for the weighted average of the 8 capital cities in substitution for an index number published by him or her in respect of that quarter, the publication of the later index number is disregarded for the purposes of this Schedule.
(2) If, at any time, whether before or after the commencement of the Rules, the Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Schedule after the change took place or takes place, regard is to be had only to index numbers published in terms of the new reference base.
Schedule 5 Calculation of rate of pension by conversion of employer benefit
(rule 65)
1. For the purpose of converting an employer benefit into a pension, the annual rate of that pension is calculated by dividing the amount of the benefit that is to be so converted by:
(a) if the person’s age, in years, on the day on which he or she becomes entitled to the benefit is 65 years — a factor of 10; or
(b) in any other case where the person’s age is an exact number of years — a factor of 10 increased by 0.2 in respect of each year by which the person’s age, in years, on the day on which he or she becomes entitled to the benefit is less than 65 years; or
(c) in any case where the person’s age is not an exact number of years — the factor that would be applicable if paragraph (b) applied to the person’s age in years, reduced by a number in respect of the number of days in the person’s age in excess of the person’s age in years (in this paragraph called excess days), being a number which bears to 0.2 the same proportion as the number of excess days bears to the number of days in a year.
2. In the application of item 1 in relation to a person who is entitled to invalidity benefits and is:
(a) classified as Class A; or
(b) classified as Class B and entitled to a pension calculated at the rate set out in subparagraph 28 (1) (b) (i);
the references in that paragraph to the person’s age on the day on which he or she becomes entitled to invalidity benefits are read as references to the greater of his or her retiring age immediately before his or her retirement and the age of 55 years.
Schedule 6 Calculation of eligible service
(Schedule 1, definition of eligible service)
1. The eligible service of a member is the sum of:
(a) subject to item 2, service by the person as a member (treating a member who is entitled to invalidity benefits, classified as Class B and entitled to a pension calculated at the rate set out in subparagraph 28 (1) (b) (ii) as if he or she had not been retired on the grounds of invalidity and had elected to convert his or her employer benefit into pension); and
(b) in the case of a person entitled to an invalidity pension who:
(i) is classified as Class A; or
(ii) at the time of his or her death, was classified as Class B and was entitled to a pension that was equal to half the rate of pension payable to a pensioner who had been classified as Class A under rule 22 or 23;
a period equal to the period commencing on the day immediately following the last day of the person’s service and ending on the day on which the person would have retired if he or she had not been retired on the ground of invalidity but had served until the greater of his or her retiring age immediately before his or her retirement and the age of 55 years; and
(c) in the case of a transferred person — a period specified in the following table in relation to that person:
Person | Period included |
1. A person who, immediately before he or she transferred from the 1973 Scheme, was rendering continuous full‑time service and who, before he or she began to render that service, was not a 1973 Scheme retirement pensioner. | Any period that, before the transfer of the person, was a period of effective service in relation to the person for the purposes of the 1973 Act. |
2. A person who, immediately before he or she transferred from the 1973 Scheme, was rendering continuous full‑time service and who, before he or she began to render that service, was a 1973 Scheme retirement pensioner. | So much of that period of service rendered by the person after the person ceased to be a 1973 Scheme retirement pensioner and before his or her transfer to the 1991 Scheme as was a period of effective service in relation to the person for the purposes of the 1973 Act. |
; and
(d) in the case of a 1973 Scheme (deferred benefit) re‑entrant — so much of the period of effective service in relation to the person for the purposes of the 1973 Act in respect of which the person accrued benefits from which the deferred benefits, which were applicable to the member under the 1973 Act immediately before he or she became a member, derived; and
(e) in the case of a 1973 Scheme (invalidity pay) re‑entrant — any period that, before the person became a member, was a period of effective service in relation to the person for the purposes of the 1973 Act.
2. Service referred to in paragraph 1 (a) does not include:
(a) service during a period:
(i) prescribed in Schedule 2 in respect of which, under subrule 4 (4), salary is taken not to be paid to the member; or
(ii) that was a period of leave of absence without pay granted to the member in respect of which the Department did not pay contributions to the Fund in relation to the member; or
(iii) in respect of which the person accrued an employer benefit that was paid to the person as a lump sum, was converted into a pension or became applicable to the person as a preserved benefit; or
(b) if the member is not an invalidity retiree who is entitled to an invalidity benefit — service during a period:
(i) that occurred after the member has been notified that his or her total benefit has equalled or exceeded his or her lump sum maximum benefit limit and in respect of which the member, in pursuance of rule 5, did not pay contributions to the Fund; or
(ii) that occurred after the member has been notified that his or her total benefit has equalled or exceeded his or her pension maximum benefit limit.
Schedule 7 Calculation of final average salary
(Schedule 1, definition of final average salary)
1. The final average salary, in relation to a person who is or was a member, is an amount equal to:
(a) in the case of a person with less than 1 095 days of service — the amount worked out using the formula:
where:
salary, in relation to the person, means the amount of salary payable to the person during his or her service; and
number of days of service, in relation to the person, means the number of days of service of the person; or
(b) in any other case — one‑third of the amount of salary payable to the person during his or her last 1 095 days of service.
2. For the purpose of ascertaining the amount of salary payable to a person during his or her service or service or last 1 095 days of service, as the case may be, in a case where that service included a period in respect of which the person:
(a) was in receipt of half‑pay; or
(b) was not entitled to be paid salary; or
(c) forfeited his or her salary;
salary is taken to have been payable to the person in respect of that period as if the person were on full pay.
2A. For the purpose of ascertaining the amount of salary payable to a person during his or her service or service (or last 1 095 days of service) as a trainee other ranks who became entitled to an invalidity benefit or died, the person’s salary, for the period of trainee service, is the maximum increment (less service allowance) that is applicable in the period to:
(a) the rank of Private Group 1 in the Army; or
(b) the equivalent rank in the Air Force or Navy that the trainee held.
2B. For the purpose of ascertaining the amount of salary payable to a person during his or her service or service (or last 1 095 days of service) as a trainee officer who became entitled to an invalidity benefit or died, the person’s salary, for the period of trainee service, is the greater of:
(a) the maximum increment (less service allowance) that is applicable, in the period of the person’s service, to the rank of Private Group 1; and
(b) the maximum increment (less service allowance) that is applicable to the person in that period.
3. In this Schedule:
service, in relation to a person, does not include service by the person before a break in the continuity of the person’s service.
trainee means a person who is or was a trainee officer, or trainee other ranks, of the Permanent Forces when he or she became entitled to an invalidity benefit or died.
Schedule 8 Calculation of employer benefit
(Schedule 1, definition of employer benefit)
Part 1 Calculation of employer benefit of members other than particular MBL members
1. This Part applies in relation to a person who:
(a) is an invalidity retiree, other than an invalidity retiree to whom Part 5 applies; or
(b) is a transferred (former recipient) person; or
(c) is a 1973 Scheme (retirement pay) re-entrant; or
(d) is a 1973 Scheme (refunded contributions) re-entrant; or
(e) is a transferred (refunded contributions) person; or
(f) is a 1991 Scheme re-entrant; or
(g) a foreign service member;
other than:
(h) an MBL member who is not an invalidity retiree; or
(i) an invalidity retiree who:
(i) is an MBL member; and
(ii) is classified, or is taken to be classified, as Class C under rule 22.
2. The employer benefit, in relation to a person to whom this Part applies, is worked out using the formula:
where:
FPES means:
(a) for a person mentioned in paragraph (1) (d), (e), (f) or (g) — so much of the person’s eligible service (if any) that is included in the person’s first period of aggregated service; and
(b) in any other case — the person’s first period of eligible service; and
FAS means the person’s final average salary; and
SPES means:
(a) for a person mentioned in paragraph (1) (d), (e), (f) or (g) — so much of the person’s eligible service (if any) that is included in the person’s second period of aggregated service; and
(b) in any other case — the person’s second period of eligible service; and
TPES means:
(a) for a person mentioned in paragraph (1) (d), (e), (f) or (g) — so much of the person’s eligible service (if any) that is included in the person’s third period of aggregated service; and
(b) in any other case — the person’s third period of eligible service; and
3. For the purposes of item 2:
first period of aggregated service, in relation to a person mentioned in paragraph (1) (d), (e), (f) or (g), means:
(a) the first 7 years of aggregated service of the person; or
(b) if the person did not complete 7 years of aggregated service — the period of aggregated service of the person.
first period of eligible service, in relation to a person, means:
(a) the first 7 years of eligible service of the person; or
(b) if the person did not complete 7 years of eligible service — the period of eligible service of the person.
second period of aggregated service, in relation to a person mentioned in paragraph (1) (d), (e), (f) or (g), means:
(a) the first 20 years of aggregated service of the person exclusive of the first 7 years of that service; or
(b) if the person completed 7 but did not complete 20 years of aggregated service — the period of aggregated service of the person exclusive of the first 7 years of that service.
second period of eligible service, in relation to a person, means:
(a) the first 20 years of eligible service of the person exclusive of the first 7 years of that service; or
(b) if the person completed 7 but did not complete 20 years of eligible service — the period of eligible service of the person exclusive of the first 7 years of that service.
third period of aggregated service, in relation to a person mentioned in paragraph (1) (d), (e), (f) or (g), means the period of aggregated service of the person exclusive of the first 20 years of that service.
third period of eligible service, in relation to a person, means the period of eligible service of the person exclusive of the first 20 years of that service.
Part 5 Calculation of employer benefit of particular MBL members
11. The employer benefit, in relation to:
(a) an MBL member who is not an invalidity retiree; or
(b) an MBL member who:
(i) is an invalidity retiree; and
(ii) is classified, or is taken to be classified, as Class C under rule 22;
is worked out in accordance with whichever formula in this Part is applicable to the member.
12. In the case of an MBL member who elected under subrule 5 (2) to cease paying contributions, the formula is:
where:
LSMBMR means the person’s lump sum maximum benefit multiple, worked out in accordance with item 2 of Schedule 3, on retirement; and
TB means the sum of the person’s employer benefit and member benefit on ceasing contributions; and
FASC means the person’s final average salary on ceasing contributions; and
LSMBMC means the person’s lump sum maximum benefit multiple, worked out in accordance with item 2 of Schedule 3, on ceasing contributions; and
FASR means the person’s final average salary on retirement; and
MB means the amount of the person’s member benefit on ceasing contributions.
13. In the case of an MBL member who:
(a) ceased paying contributions because of the operation of subrule 5 (1); or
(b) being a transferred member, did not pay contributions because of the operation of that subrule;
the formula is:
where:
PMBMR means the person’s pension maximum benefit multiple, worked out in accordance with item 4 of Schedule 3, on retirement; and
TB means the sum of the person’s employer benefit and member benefit on ceasing contributions; and
FASC means the person’s final average salary on ceasing contributions; and
PMBMC means the person’s pension maximum benefit multiple, worked out in accordance with item 4 of Schedule 3, on ceasing contributions; and
FASR means the person’s final average salary on retirement; and
MB means the amount of the person’s member benefit on ceasing contributions.
13A. If an MBL member’s benefits have been subject to a family law superannuation payment split under Part 13, the employer benefit will be reduced, at the time of the payment split, in accordance with that Part.
Note The maximum benefit limit in relation to the member is calculated as if there were no benefit reduction under Part 13.
14. A reference in this Schedule to an invalidity retiree does not include a reference to a person who, by reason of rule 32, 33 or 34, is not entitled to invalidity benefits.
15. A reference in this Schedule to the aggregated service of a transferred (refunded contributions) person, a 1973 Scheme (refunded contributions) re‑entrant, a 1991 Scheme re‑entrant or a foreign service member, is a reference to the sum of:
(a) the eligible service of that person; and
(b) either:
(i) in the case of a transferred (refunded contributions) person — any other period that, before the person began to render the period of continuous full‑time service which he or she was rendering when he or she transferred to the 1991 Scheme, was a period of effective service in relation to the person for the purposes of the 1973 Act; or
(ii) in the case of a 1973 Scheme (refunded contributions) re‑entrant — any period that, before the person became a member, was a period of effective service in relation to the person for the purposes of the 1973 Act; or
(iii) in the case of a 1991 Scheme re‑entrant — any period that, before the person last became a member, had been a period of eligible service in relation to the person; or
(iv) in the case of a foreign service member — so much of the person’s full‑time service with the forces of a country other than Australia as CSC has directed under the definition of foreign service member is service for the purposes of this Schedule.
Schedule 9 Calculation of member benefit before 1 July 2002
(Schedule 1, definition of member benefit)
1. A member benefit, in relation to a person who is or was a member, is an amount equal to the sum of:
(a) the contributions that have been paid under the Rules by the person on or after he or she began his or her current period of membership; and
(b) in the case of a member to whom a preserved benefit is applicable — the amount of the member benefit (if any) included in that preserved benefit; and
(c) the interest (if any), in respect of the amount in paragraph (a) and of such of the amount in paragraph (b) as is funded, in accordance with a determination or determinations by CSC as to rates of interest and the method of allocation of interest to such amounts; and
(d) an amount equal to the interest, in respect of such of the amount in paragraph (b) as is not funded, which would have accrued after the person last became a member if that amount had been funded; and
(e) in the case of a member who transferred from the 1973 Scheme (not being a person who has since retired and has again become a member):
(i) the person’s transfer value; and
(ii) an amount equal to the interest in respect of that transfer value which would have accrued on or after the date of the person’s transfer if the transfer value had been funded;
less, in the case of a person who paid an amount to the Commonwealth under item 3 of this Schedule or item 3 of Schedule 10 (each item, in this item called a repayment provision), the amount of interest calculated under subparagraph (ii) in respect of so much of the person’s transfer value as is an amount equal to the sum of:
(iii) the amount by which so much of the person’s transfer value as comprised previous contributions is taken to have increased by reason of the recalculation of the person’s transfer value in consequence of the operation of the relevant repayment provision; and
(iv) an amount equal to the amount by which the amount calculated under paragraphs 1 (a) and (b) of Schedule 10 is, by reason of the recalculation of the person’s transfer value in consequence of the operation of the relevant repayment provision, no longer reduced by an amount calculated under paragraphs 1 (c), (d) and (e) of that Schedule;
in respect of the period before the day on which the amount so paid was, in fact, paid; and
(f) in the case of a 1973 Scheme (deferred benefit) re‑entrant:
(i) the person’s carry over value; and
(ii) an amount equal to the interest in respect of that carry over value which would have accrued on or after the date on which the person became a member if the carry over value had been funded.
2. Where a transferred person who retired in the period from and including 27 May 1992 to and including 8 September 1992 (in this item called the relevant period):
(a) had been, before transfer to the Scheme, a person in respect of whom an amount (in this item called the unpaid amount) remained unpaid to the Commonwealth by the person in respect of:
(i) an election by him or her under the previous legislation to have a period of service taken into account as service for pension or as qualifying service; or
(ii) an amount required to be paid by him or her under subsection 87 (3) of the 1973 Act; and
(b) had, before transferring, paid the unpaid amount or a part of that amount to the Commonwealth;
then, the person is entitled to be paid, as additional member benefit, the amount worked out by using the formula:
where:
recalculated member benefit means the member benefit that would have been payable to the person on his or her retirement if paragraph (b) of the definition of previous contributions in Schedule 1 (as in force during the relevant period) had been omitted from that definition; and
original member benefit means the member benefit that was paid or payable to the person on his or her retirement.
3. Where a transferred person who has retired became a transferred person on a day (in this item called the person’s commencement day), and in the application of Schedule 10 to that person on that day:
(a) the calculation of the person’s transfer value required the deduction of an amount (in this paragraph called the deducted amount) in accordance with item 1 of that Schedule from the sum of the amounts referred to in paragraphs 1 (a) and (b) of that Schedule; and
(b) the deducted amount included an amount in respect of an election referred to in paragraph 1 (c) of that Schedule, or an amount referred to in paragraph 1 (e) of that Schedule;
then, if the person pays to the Commonwealth for the purposes of this item, before the expiration of 90 days after the commencement of this item, an amount (in this item called the paid amount) equal to, or less than, the deducted amount, then, the person is entitled to be paid, as additional member benefit, the amount worked out using the formula:
where:
recalculated member benefit means the member benefit that would have been payable to the person on his or her retirement if the person had paid the paid amount to the Commonwealth immediately before the person’s commencement day; and
original member benefit means the member benefit that was paid or payable to the person on his or her retirement.
(Schedule 1, definition of transfer value)
1. The transfer value, in relation to a transferred person, is an amount equal to the sum of:
(a) previous contributions made by the person under the previous legislation; and
(b) interest in respect of the amount in paragraph (a) which would have accrued before the date of his or her transfer if so much of that amount:
(i) as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid before 1 October 1991 had been earning interest at the annual rates applicable in accordance with Schedule 11; and
(ii) as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid on or after that date had been funded;
less the amount (if any) remaining unpaid to the Commonwealth by the person in respect of:
(c) an election by him or her under the previous legislation to have a period of service taken into account as service for pension or as qualifying service; and
(d) an advance payment made to him or her in respect of a gratuity under:
(i) the previous legislation; or
(ii) the Defence Force (Bounties and Gratuities) Regulations; or
(iii) Determination 0705 made under Part IIIA of the Defence Act 1903; and
(e) an amount required to be paid by him or her under subsection 87 (3) of the 1973 Act.
2. For the purpose of paragraph 1 (b), where, for any period, official records of the fortnightly amounts of contributions paid by a member when he or she was a member of the retirement benefits scheme under the 1948 Act are not available, the contributions paid by the member during that period are taken to have been paid on the date at the middle of that period, unless CSC, having regard to documentary evidence of those contributions produced to CSC by the member, otherwise determines.
3. Where, on a day (in this item called the person’s commencement day) a person became a transferred person (not being a person who has since retired), and in the application of this Schedule to that person on that day:
(a) the calculation of the person’s transfer value required the deduction of an amount (in this item called the deducted amount) in accordance with item 1 from the sum of the amounts referred to in paragraphs 1 (a) and (b); and
(b) the deducted amount included an amount in respect of an election referred to in paragraph 1 (c) or an amount referred to in paragraph 1 (e);
then, if the person pays to the Commonwealth for the purposes of this item, before the expiration of 90 days after the commencement of this item, an amount (in this item called the paid amount) equal to, or less than, the deducted amount, this Schedule applies to the person as if the person had paid the paid amount to the Commonwealth immediately before the person’s commencement day.
4. If:
(a) a transferred person (not being a person who has since retired) is a person who had a right to pay to the Commonwealth, within the time specified in item 3, an amount (referred to in item 3 as the paid amount) equal to, or less than, the deducted amount referred to in item 3; and
(b) CSC is satisfied that the person had not been informed, within the time specified in item 3, of his or her right to pay that paid amount to the Commonwealth;
CSC must give the person notice in writing informing the person of his or her right to pay to the Commonwealth, before the end of 90 days after the day on which the notice is given, that paid amount.
5. If a transferred person (not being a person who has since retired) who has been given notice by CSC under item 4 pays to the Commonwealth, before the end of 90 days after the day on which the notice is given, an amount (in this item called the paid amount) equal to, or less than, the deducted amount referred to in item 3, this Schedule applies to the person as if the person had paid the paid amount to the Commonwealth immediately before the day on which the person became a transferred person.
(Schedule 1, definition of carry over value)
1. The carry over value, in relation to a 1973 Scheme (deferred benefit) re‑entrant, is an amount equal to the sum of:
(a) previous contributions made by the person under the previous legislation which comprised the benefits from which the deferred benefits, which were applicable to the member under the 1973 Act immediately before he or she became a member, derived; and
(b) interest in respect of the amount in paragraph (a) which would have accrued before the date on which he or she first became a member if so much of that amount:
(i) as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid before 1 October 1991 had been earning interest at the annual rates applicable in accordance with Schedule 11; and
(ii) as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid on or after that date had been funded.
Schedule 11 Annual rates of interest applicable in respect of certain unfunded amounts
(subrule 16 (1) and Schedules 10 and 10A)
1. For the purposes of -subparagraph 1 (b) (i) of Schedule 10 and subparagraph 1 (b) (i) of Schedule 10A:
(a) the annual rate applicable in relation to a complete salary fortnight in a financial year; and
(b) the annual rate applicable in relation to a salary fortnight which concludes in a financial year;
is the rate applicable in relation to that financial year in accordance with the table.
Rates applicable in relation to financial years
A reference in this table to a year is a reference to the financial year ending on 30 June in that year.
Year | Rate |
1950 | 3.19 |
1951 | 3.53 |
1952 | 4.60 |
1953 | 4.50 |
1954 | 4.46 |
1955 | 4.57 |
1956 | 5.35 |
1957 | 5.08 |
1958 | 4.95 |
1959 | 4.88 |
1960 | 4.88 |
1961 | 5.38 |
1962 | 4.81 |
1963 | 4.37 |
1964 | 4.58 |
1965 | 5.15 |
1966 | 5.17 |
1967 | 5.03 |
1968 | 5.11 |
1969 | 5.35 |
1970 | 6.86 |
1971 | 6.83 |
1972 | 5.85 |
1973 | 6.72 |
1974 | 9.52 |
1975 | 9.50 |
1976 | 9.99 |
1977 | 10.41 |
1978 | 9.10 |
1979 | 10.00 |
1980 | 11.76 |
1981 | 13.15 |
1982 | 16.40 |
1983 | 14.85 |
1984 | 13.75 |
1985 | 13.50 |
1986 | 12.95 |
1987 | 12.80 |
1988 | 11.95 |
1989 | 13.50 |
1990 | 12.04 |
1991 | 11.10 |
1992 | 11.10 |
Schedule 12 Surcharge deduction amount
(Schedule 1, definition of surcharge deduction amount)
1. If a member’s surcharge debt account, or a deceased member’s surcharge debt account, is in debit when benefits become payable to or in respect of the member, CSC must determine, in writing:
(a) the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of the benefits; and
(b) if the benefits have been converted into a pension — the conversion factor for working out the yearly amount that would have to be paid to discharge a liability equal to the surcharge deduction amount.
2. In making the determination, CSC must have regard to the following:
(a) the amount by which the member’s surcharge debt account is in debit when those benefits become payable;
(b) the value of the employer‑financed component of those benefits;
(c) the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the member, were assumed to be likely to be payable to the member on his or her retirement;
(d) whether the member has or had qualified for his or her maximum benefit entitlement under the Rules;
(e) any other matter that CSC considers relevant.
3. The amount determined by CSC for paragraph 1 (a) may not be more than the total of the following amounts:
(a) 15% of the employer‑financed component of any part of the benefits payable to the member that accrued between 20 August 1996 and 1 July 2003;
(b) 14.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2003–2004 financial year;
(c) 12.5% of the employer‑financed component of any part of the benefits payable to the member that accrued in the 2004–2005 financial year.
4. In making a determination for paragraph 1 (b), CSC must also have regard to:
(a) written advice about the conversion factor, prepared by an actuary; and
(b) the person’s age when the benefit becomes payable to the person.
Note A surcharge deduction amount is not subject to a family law superannuation payment split under Part 13.
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.
