State Authorities Superannuation Act 1987 No 211
Current version for 12 December 2014 to date (accessed 21 December 2014 at 17:53)
Part 3

Part 3 Employee contributions and salary sacrifice contributions

19   Election to have employee or salary sacrifice contributions paid to the Fund

(1)  An employee may at any time lodge with STC an election to contribute to the Fund.
(2)  An election under subsection (1) shall:
(a)  be in a form approved by STC for the purposes of this section,
(b)  specify the rate at which contributions are, subject to this Act, to be credited to the contributor’s account in respect of the employee (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), being the rate of 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent of the employee’s salary,
(c)  be supported by the certificate by the employee’s employer referred to in the definition of employee in section 3 (1), and
(d)  be supported by a further certificate by the employee’s employer that is in a form approved by STC.
(3)  The further certificate must state:
(a)  the date of birth of the employee,
(b)  the salary (and, in the case of a part-time employee, the attributed salary) of the employee,
(c)  that the employer has no reason to believe that the employee will not continue to be an employee within the meaning of this Act for at least 1 year from the date of the certificate, and
(d)  such other matters as STC considers necessary or convenient for the purposes of this section.
(4)  A failure to comply with subsection (2) (b) does not invalidate an election and, in the event of such a failure, the form of election shall be deemed to specify a rate of 1 per cent.
(5)  An election made by an employee under subsection (1) is ineffective if, at the time the election would take effect, the employee would be of or above the age of 70 years.
(6)  An election made by an employee under subsection (1) (other than an election referred to in subsection (5)) takes effect not later than the first day of the second contribution period after that in which the election is received in the office of STC, but, if an employee makes a subsequent election under section 27 (Variations of contribution rate), ceases to be in force immediately before the subsequent election takes effect.
(7)  If STC approves, an employee may, before an election made under this section takes effect, vary the election.
(8)  If a contributor to another superannuation scheme would become (but for being such a contributor) entitled to elect to contribute to the Fund by reason of a change of work category or for any other reason:
(a)  the contributor shall be deemed not to be a contributor to the other superannuation scheme for the purposes of making the election,
(b)  the contributor may make the election on condition that STC approves an application made by the person under section 20 to be covered for the additional benefit, and
(c)  the election takes effect as at a date determined by STC.

19A   Contributions by or on behalf of employees

(1)  Contributions may be made to the Fund for crediting to a contributor’s account:
(a)  by the contributor (employee contributions), and
(b)  by the contributor’s employer in accordance with an agreement between the contributor and the employer under which the contributor is to forgo remuneration yet to be earned and the remuneration foregone is to be applied by the employer to contributions on behalf of the contributor (salary sacrifice contributions).
(2)  In this Act and the regulations, a reference (however expressed) to a contribution by an employee or a contributor or a contributor-financed portion of a benefit is taken to include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution.
(3)  In this Act and the regulations, a reference (however expressed) to an employer contribution or an employer-financed portion of a benefit does not include a reference to a salary sacrifice contribution or any part of a benefit financed by a salary sacrifice contribution.

19B   Amount payable for salary sacrifice contributions to allow for the contributions tax payable

The amount payable to the Fund in respect of a salary sacrifice contribution in respect of a contributor is the amount that is necessary for an amount at the rate specified in accordance with this Part to be retained in the contributor’s account out of the salary sacrifice contribution after the tax amount is deducted under section 12 (3) (a1).

20   Additional benefit

(1)  An employee under the early retirement age may lodge with STC an application to be covered for the additional benefit.
(2)  Such an application may be made:
(a)  by an employee who is not a contributor—at the time the employee makes an election under section 19 (Election to contribute to the Fund), or
(b)  except to the extent that section 23 or 24 (5) otherwise provides—at any time by a contributor.
(3)  Such an application shall:
(a)  be in a form approved by STC for the purposes of this section, and
(b)  be accompanied by such documents, evidence and information as STC may require for the purposes of this section.

21   Medical examination

(1)  This section applies to an application made under section 20 by a person to be covered for the additional benefit.
(2)  STC may require the applicant:
(a)  to submit to such medical examinations as may be required by STC, and
(b)  to provide such medical reports, evidence and information as are specified by STC.
(3)  Where the applicant:
(a)  fails, in the opinion of STC, to pass a medical examination to which the applicant has submitted in accordance with a requirement under this section, or
(b)  fails to comply with a requirement under this section,
STC shall refuse the application.
(4)  For the purpose of deciding whether or not to approve the application, STC:
(a)  may, under subsection (2), require the applicant to submit to further medical examinations or provide further medical reports, and
(b)  may obtain such evaluations of medical examinations or medical reports as it thinks fit.

22   Approval of application

(1)  If STC approves an application made under section 20:
(a)  STC shall appoint the day on and from which the applicant’s cover for the additional benefit is to commence and shall notify the applicant accordingly, and
(b)  the applicant becomes, and remains, liable for payment of the additional benefit levy in accordance with subsection (2).
(2)  Payment by a contributor of the additional benefit levy:
(a)  shall commence on a date appointed by STC and shall be made at a rate determined by STC and at times so determined,
(b)  shall be effected by transfer from the contributor’s account, and
(c)  shall cease when the contributor no longer has available to be taken into account any prospective benefit points.

23   Refusal of application

If an application made under section 20 is refused, the applicant may not again make such an application before the expiration of:
(a)  the period of 3 years that next succeeds the refusal, or
(b)  in a particular case—such shorter period as STC may decide.

24   Revocation of approval

(1)  If, after approving an application made under section 20, STC forms the opinion that, in relation to the application, or to a medical examination of the applicant, an untrue statement within the meaning of section 48 was made and that its approval would not have been given had the untrue statement not been made, STC shall, subject to this section, revoke the approval.
(2)  For the purpose of deciding whether or not, in relation to an application or a medical examination of an applicant, it is of the opinion referred to in subsection (1), STC may, if it thinks fit, require the applicant, within a time specified by STC or within such further time as STC may allow, to provide information, or to undergo a medical examination, or to provide medical reports, as specified by STC.
(3)  On the expiration of the time, or further time, referred to in subsection (2), STC may, whether or not the requirement so referred to is complied with, proceed to decide whether or not it is of the opinion referred to in subsection (1).
(4)  If the applicant fails to comply with a requirement under subsection (2), STC may revoke the approval.
(4A)  An approval may be revoked whether it relates to a contributor or a former contributor and the revocation has effect as if the contributor or former contributor had never been entitled to the cover.
(5)  If, under subsection (1) or (4), STC revokes its approval of an application:
(a)  the applicant (if a contributor) ceases to be covered for the additional benefit and ceases to be liable to pay the additional benefit levy,
(b)  the applicant (if a contributor) is disqualified for 3 years from again applying to be covered for the additional benefit, and
(c)  the amount of any additional benefit levy paid by the applicant (whether a contributor or a former contributor) before revocation of the approval is not recoverable.

25   Liability to contribute

(1)  Where an election under section 19 takes effect, the contributor who made the election becomes, and remains, liable to ensure that contributions are paid to the Fund in the amount necessary to result in an amount being credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), at the rate specified under section 19 (2) (b) and, except as provided by sections 27, 28, 29 and 35A, to ensure those contributions are paid in respect of successive contribution periods:
(a)  commencing with the contribution period in which the contributor’s entry date occurs, and
(b)  ending with the last complete contribution period ending on or before the contributor’s exit date.
(2)  Contributions under this Part are to be calculated on the basis of the contribution periods applicable to the contributor and a contribution payable in respect of a contribution period shall be paid to STC within 7 days after the last day of that period.
(3)  Contributions under this Part are payable to STC by the employer by which the contributor is employed and the employer is entitled to deduct those contributions from any amount or amounts that may become payable by the employer to the contributor, whether as salary or otherwise.
(4)  STC may, in a particular case, charge interest calculated on a daily basis at a rate determined by STC on a contribution under this Part for any period during which the contribution remains unpaid after the time allowed for payment under subsection (2) and any such interest:
(a)  shall be paid to STC by the employer in default, and
(b)  is not chargeable against any employee.
(5)  An employee is not entitled to contribute to the Fund, and STC is not to accept a contribution to the Fund offered by an employee, unless the employee is under 70 years of age.
(5A)  An employer is not entitled to pay a salary sacrifice contribution to the Fund on behalf of an employee, and STC is not to accept a salary sacrifice contribution to the Fund on behalf of an employee, unless the employee is under 70 years of age.
(6)  A contributor is not entitled to accrue benefit points after attaining the age of 70 years.

26   Salary basis for contributions

Employee contributions and salary sacrifice contributions in respect of a contributor during a superannuation year shall be based on the salary paid to the contributor by his or her employer at the rate applicable as at:
(a)  31 December last preceding the commencement of the superannuation year, or
(b)  the contributor’s entry date,
whichever is the later.

27   Variations of contribution rate

(1)  A contributor may, during the period that commences at the beginning of a superannuation year and ends on the next succeeding 31 December or such later date as STC may approve, lodge with STC an election to vary the rate specified under section 19 (2) (b).
(2)  An election under subsection (1):
(a)  shall be in a form approved by STC for the purposes of this section,
(b)  is to specify the varied rate per cent (being 1, 2, 3, 4, 5, 6, 7, 8 or 9 per cent) of contributions to be credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B), and
(c)  takes effect on 1 April next succeeding receipt of the election in the office of STC.
(3)  Where the nature of the employment of a contributor changes from full-time to part-time or from part-time to full-time, or the amount of time worked part-time by a contributor changes, the amount of contributions payable under this Part in respect of the contribution period during which the change operates, and each succeeding contribution period until varied in accordance with this Act, is the amount calculated by multiplying by the contributor’s salary ratio at the commencement of the period the amount of the contribution that would be payable on the basis of the contributor’s attributed salary last applicable for the purpose of calculating contributions payable under this Part.
(4)  Except as provided by subsection (3) or to the extent that STC upon the application of a contributor otherwise directs, a reduction in the salary of the contributor below that upon which his or her contributions are based does not, until the beginning of the superannuation year that next succeeds the reduction, affect the amount of contributions payable under this Part.
(5)  Except in the case of a contributor who applies for a direction of STC under subsection (4), where a contributor’s attributed salary is reduced as a consequence of the contributor’s ill-health or in circumstances considered by the contributor to be special, the contributor may apply to STC in a form that:
(a)  is approved by STC for the purposes of this subsection, and
(b)  is accompanied by such evidence of the cause of the reduction in salary as STC requires,
for the application of subsection (6) in respect of the contributor.
(6)  Where STC approves an application by a contributor under subsection (5), the attributed salary of the contributor shall, for the purposes of this Act, be deemed to be the same as the contributor’s attributed salary immediately before the reduction until:
(a)  the beginning of the superannuation year that next succeeds a 31 December as at which the contributor’s attributed salary is equal to or greater than his or her attributed salary immediately before the reduction, or
(b)  STC’s approval is revoked on the application of the contributor,
whichever first occurs.
(7)  Subject to section 28, an election that takes effect under this section remains in force until a further election made under this section takes effect.

28   Variations of contribution rate: hardship

(1)  Despite section 27 (1), STC may, if it is satisfied that a continuation of contributions under this Part in respect of a contributor would result in financial hardship for the contributor, accept at any time an election under that subsection to reduce, as from a date determined by STC having regard to the circumstances of the contributor, the rate of contributions to be credited to the contributor’s account (or, in the case of salary sacrifice contributions, retained in that account as provided by section 19B) under this Part.
(2)  Despite section 27 (1), an election referred to in subsection (1) may specify as the varied rate the rate of 0 per cent.
(3)  During a period when a rate of 0 per cent is in force, no contributions are payable under this Part.
(4)  After an election referred to in subsection (1) is accepted by STC, STC must refund any resulting excess of contributions paid to the Fund under this Part to the person who paid them, after the date determined by STC for commencement of the new rate.
(5)  STC’s acceptance of an election for a rate of 0 per cent is to be given only for a limited period or periods.

29   Contributions during leave without pay and other matters

(1)  In this section:

leave without pay means a period of leave from employment with an employer (otherwise than on secondment as referred to in section 4) during which the contributor is not entitled to receive payment of salary from the employer.

prescribed leave means leave without pay during which the contributor on leave is absent from employment with an employer:

(a)  pursuant to a grant of sick leave,
(b)  for a period during which the contributor receives periodic payments under an Act relating to workers’ compensation,
(c)  pursuant to a grant of maternity leave,
(d)  pursuant to an agreement with the employer for the secondment of the contributor to employment that is not employment with an employer,
(e)  to enable the contributor to perform union duties unless, in a particular case, the employer certifies that this paragraph is not to apply,
(f)  to enable the contributor to perform duties that the employer certifies to be in the interests of the employer or the State,
(g)  on service with the naval, military or air forces of the Commonwealth, or
(h)  in circumstances approved by STC for the purposes of this section.

(2)  A contributor who takes leave without pay that is prescribed leave is liable to make contributions to the Fund under this Part in respect of the contribution periods occurring wholly or partly while on prescribed leave.
(2A)  However, a contributor who takes a single period of prescribed leave that is sick leave or maternity leave is not liable to make contributions to the Fund under this Part in respect of any contribution periods during the period of leave occurring wholly or partly more than 2 years after the period of leave commences.
(3)  A contributor who takes leave without pay that is not prescribed leave:
(a)  is liable to make contributions to the Fund under this Part in respect of:
(i)  a contribution period that begins before but finishes after the start of that leave, and
(ii)  a contribution period that begins before but finishes after the end of that leave, and
(b)  is not liable or entitled to make contributions to the Fund under this Part in respect of:
(i)  a contribution period that begins on the first day of that leave and finishes before the end of that leave, or
(ii)  a contribution period that, having begun after the start of that leave, finishes on the last day of that leave, or
(iii)  a contribution period that falls between a contribution period referred to in paragraph (a) (i) or subparagraph (i) and a contribution period referred to in paragraph (a) (ii) or subparagraph (ii) (whichever is relevant).
(3A)  For the purposes of this Act, a contributor who is employed by an employer for less than 10 hours a week for a single period of more than 2 years is not liable to make contributions to the Fund under this Part in respect of any contribution periods occurring wholly or partly more than 2 years after the period commences and while the contributor is so employed for less than 10 hours a week.
(4)  A contributor liable to make contributions under subsection (2) or (3) is to pay to the Fund in accordance with directions given by STC such contributions as would have been, but for the contributor being on leave without pay, required to be paid under this Part if the contributor had continued to be paid salary by the employer during the contribution period or periods concerned at the rate at which the contributor would have been paid.
(5)  A contribution period in respect of which a contributor is not liable to make contributions to the Fund under this section is not an applicable contribution period in relation to the contributor.

29A   Other contributions by contributors

(1)  A contributor, who is not required by this Act to contribute to the Fund under this Act merely because the contributor is on authorised leave without pay as an employee, is entitled to remain a contributor to the Fund even though the contributor is not contributing to the Fund.
(2)  This section applies to a contributor only if:
(a)  the leave is for the purposes of raising children of whom the contributor is a parent, or for whom he or she has assumed the responsibility of a parent, and
(b)  he or she has been on that leave for less than 7 years consecutively, and
(c)  he or she has a statutory or contractual right to resume employment at the end of the leave.
(3)  A contribution period in respect of which a contributor is a contributor to whom this section applies is not an applicable contribution period in relation to the contributor.
(4)  This section has effect despite section 29.
(5)  In this section:

authorised leave means:

(a)  leave approved by the contributor’s employer, or
(b)  leave authorised by an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the State or the Commonwealth.

30   Resumption of contributions after break in employment

(1)  This section applies to a contributor where the employment of the contributor with an employer:
(a)  ceases in circumstances entitling the contributor to be paid a benefit under section 40 (Benefit on partial and permanent invalidity before early retirement age),
(b)  ceases in circumstances entitling the contributor to be paid a benefit under section 41 (Benefit on resignation, dismissal or discharge before early retirement age) but the contributor does not elect to make provision for a deferred benefit, or
(c)  ceases in circumstances entitling the contributor to be paid a benefit under section 42 (Benefit on retrenchment before early retirement age),
and the contributor has not made an application for payment of the benefit.
(2)  If the contributor resumes employment as an employee (with the same or any other employer) before the end of the period of 3 months after the contributor ceased employment in circumstances referred to in subsection (1), the contributor may apply to STC for the resumption of contributions under this Part.
(3)  If STC approves the application:
(a)  any intervening contribution period is taken to be an applicable contribution period in relation to the contributor as an employee of the employer with whom the contributor resumed employment, and
(b)  the contributor is liable to make contributions to the Fund under this Part in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer with whom the contributor has resumed employment for the duration of the intervening contribution period or periods, and
(c)  the employer with whom the contributor has resumed employment is liable to make contributions to the Fund under Part 4 in respect of the intervening contribution period or periods, as if the contributor had been employed with the employer for the duration of the intervening contribution period or periods.
(4)  A contribution in respect of any intervening contribution period is payable in accordance with such directions as may be given by STC.
(5)  In this section, an intervening contribution period means any contribution period that:
(a)  begins before a contributor ceases employment in the circumstances referred to in subsection (1) and has not finished when the contributor ceases that employment, or
(b)  begins after a contributor ceases employment in the circumstances referred to in subsection (1) and finishes before the contributor’s application under subsection (2) takes effect.

30A   Contributor who is executive officer

(1)  When a contributor becomes an executive officer, the contributor must:
(a)  elect to continue to contribute to the Fund, or
(b)  elect to make provision for a benefit provided by section 43 (6).
(2)  If a contributor fails to make an election under subsection (1) within 2 months of being required to make that election, the contributor, for the purposes of this section, is to be taken to have elected to continue to contribute to the Fund.
(3)  Nothing in this Act prevents a contributor who elects to continue to contribute to the Fund from also contributing to the First State Superannuation Fund or another superannuation scheme and such a contributor is entitled to benefits in accordance with this Act despite being a member of that Fund or another scheme.
(4)  If a contributor elects to continue to contribute to the Fund, the contributor may, at any time thereafter while being an executive officer, elect to make provision for a benefit provided by section 43 (6).
(5)  A contributor who elects, under this section, to make provision for a benefit provided by section 43 (6):
(a)  is entitled to make provision for the benefit even though he or she is not entitled to a benefit (including any interest paid by STC) of or exceeding the amount prescribed for the purposes of section 43 (1), and
(b)  is not entitled to a benefit payable under any other provision of this Act, and
(c)  is not entitled to elect to take the benefit provided by section 43 (7), and
(d)  except as provided by subsection (6), is not entitled to be paid the benefit provided by section 43 (6) until on or after first ceasing to be an employee after making the election and unless there exist the circumstances set out in section 43 (3), and
(e)  may elect at any time before the benefit is paid to have the benefit paid to the credit of the contributor in the First State Superannuation Fund or another complying superannuation fund, a complying approved deposit fund or a retirement savings account, if the contributor is a member or is eligible to become a member of that fund or account.
(6)  If a contributor makes an election under subsection (5) (e), STC must, as soon as practicable after the election is made, pay to the trustee or provider of the nominated fund or account the amount of the benefit provided by section 43 (6) to which the contributor is entitled having regard to this section.
(7)  If a contributor makes an election under subsection (1) (b) or (4) within 12 months after being:
(a)  appointed as a chief executive officer or senior executive officer or a police executive officer, or
(b)  nominated as an office holder for the purposes of section 11A of the Statutory and Other Offices Remuneration Act 1975,
the salary of the contributor, for the purpose of determining the amount of the benefit to which the election relates, is to be taken to be his or her salary immediately before that appointment or nomination took effect.
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