Superannuation Act 1916 No 28
Historical version for 8 July 2011 to 31 October 2011 (accessed 21 December 2014 at 19:31) Current version
Part 3

Part 3 Contributions

Division 1 Preliminary

10J   Definitions

(1)  In this Part, except in so far as the context or subject-matter otherwise indicates or requires:

half-year means a period of 6 months:

(a)  commencing on and including 1 January and ending on and including 30 June, or
(b)  commencing on and including 1 July and ending on and including 31 December.

relevant period, in relation to an employee, means the half-year in which the employee’s birthday does not fall.

(2)  In this Part, a reference:
(a)  to the number of units of pension for which the annual cost is equal to a particular amount includes a reference to the largest number of units of pension for which the annual cost is less than that amount, and
(b)  to the annual cost to a person for a unit of pension:
(i)  where the contributions in respect of the unit are required to be made by the person in accordance with the tables of contributions fixed by or under this Act—is a reference to an amount equal to 13 of those contributions or, after the commencement of Schedule 9 to the Superannuation (Amendment) Act 1983, 26 of those contributions, or
(ii)  where contributions in respect of the unit are required to be made by the person by instalments under section 10AH—is a reference to an amount equal to 13 of those instalments or, after the commencement of Schedule 9 to the Superannuation (Amendment) Act 1983, 26 of those instalments.

10K   Determination of entry review day and entry payment day

(1)  STC shall, in respect of a person who becomes a contributor on or after 13 January 1977, determine:
(a)  a day to be the person’s entry review day, and
(b)  a day to be the person’s entry payment day.
(2)  An employee’s entry payment day may be the same as, or later than, but not earlier than, his or her entry review day.
(3)  An employee’s entry review day and entry payment day shall be within the period of 12 months after the day on which the employee becomes a contributor.

10L   Determination of annual review day and annual adjustment day

(1)  STC shall, in respect of a contributor, determine:
(a)  a day in each relevant period to be the contributor’s annual review day, and
(b)  a day in each relevant period to be the contributor’s annual adjustment day,
but no such day shall be in a relevant period in which the contributor’s entry review day or the contributor’s entry payment day falls.
(2)  A contributor’s annual adjustment day for a relevant period may be the same as, or later than, but not earlier than, the contributor’s annual review day for that period.
(3)  A contributor may not have more than one annual review day, nor more than one annual adjustment day, in a relevant period.

10M   General provisions as to determinations under this Division

(1)  STC may amend or revoke a determination under this Division.
(2)  A determination may be made under this Division so as to apply to a specified employee or a specified class of employees.

Division 2 Liability of employees to contribute

10N   Requirement to contribute

Subject to this or any other Act, every employee shall contribute to the Fund in accordance with this Act.

10O   Existing contributors and employees

(1)  An employee who was contributing to the Fund on 12 January 1977 shall, subject to section 10W, contribute, and continue to do so, to the Fund for the number of units of pension for which, and at the rate for each such unit at which, the employee was required by or under this or any other Act to contribute on that date or at such other rates as may from time to time be fixed by or under this Act.
(2)  (Repealed)
(3)  Where:
(a)  a contributor’s first annual adjustment day falls before 31 December 1977,
(b)  the contributor contributes to the Fund in respect of an additional number of units of pension as on and from that adjustment day, and
(c)  the contributor was a contributor at 12 January 1977,
the contributor shall, for the purposes of section 28A, be deemed to have commenced contributing for those units as from 13 January 1976, or the day on which the contributor became a contributor, whichever is the later.

10P   Commencement of contributions

(1)  A person who becomes a contributor on or after 13 January 1977 shall commence to contribute to the Fund as on and from the person’s entry payment day.
(2)  The contributions of an employee referred to in subsection (1) shall be made in accordance with this Act by reference to the rate of salary actually being paid to the employee on the employee’s entry review day.
(2A)  On an employee’s entry review day, if the number of units of pension that, pursuant to section 12 (1), is appropriate for the salary actually being paid to the employee is in excess of the number for which the annual cost to the contributor is equal to an amount representing 6 per cent of the annual salary of the employee at the rate actually being paid, the excess units of pension are optional units of pension.
(3)  An employee may, within 2 months after the employee’s entry review day, elect to abandon any 1 or more of the optional units of pension in respect of which, but for the election, the employee would be required by this section to commence contributing to the Fund.
(4)  Subsection (1) does not apply to an employee referred to in section 10O (2).

10Q   Increase of contributions: annual review days

(1)  Subject to this or any other Act, where the number of units of pension that, pursuant to section 12 (1), is appropriate for the salary actually being paid to a contributor (including a contributor referred to in section 10O) on the contributor’s annual review day in any half-year is higher than the aggregate of:
(a)  the number of units of pension (if any) for which the contributor is contributing at that time,
(b)  the number of units of pension (if any) for which the contributor has completed contributing, and
(c)  the number of the contributor’s abandoned units (if any),
the contributor shall, as on and from the contributor’s annual adjustment day in that half-year, contribute to the Fund in respect of the additional number of units of pension in accordance with this Act.
(1A)  On a contributor’s annual review day in any half-year:
(a)  if the annual cost to the contributor for the units of pension for which contributions are payable by the contributor is not less than an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid—the additional units of pension referred to in subsection (1) are optional units of pension, and
(b)  if:
(i)  the annual cost to the contributor for the units of pension for which contributions are payable by the contributor is less than an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid, and
(ii)  the number of additional units of pension referred to in subsection (1) is in excess of the number for which the annual cost to the contributor is equal to the shortfall under subparagraph (i),
the excess additional units of pension are optional units of pension.
(2)  A contributor may, within 2 months after the contributor’s annual review day in any half-year, elect to abandon any 1 or more of the optional units of pension in respect of which, but for the election, the contributor, would be required by this section to commence contributing to the Fund.
(3)  Where a contributor entitled to make an election under subsection (2) dies without making such an election before the expiration of the period within which, but for the contributor’s death, the contributor could have made the election, the contributor’s spouse or de facto partner may, before the expiration of that period, make the election.

10QA   Abandoned units to be taken up if contributions fall below 6 per cent of salary

(1)  On a contributor’s annual review day, if the contributor has abandoned units and the annual cost to the contributor for the units of pension for which contributions are payable by the contributor is less than an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid:
(a)  where there are no additional units of pension as referred to in section 10Q (1), the contributor shall take up the lesser of all of the abandoned units and the number of abandoned units for which the annual cost is equal to the shortfall, or
(b)  where there are additional units of pension as so referred to but the annual cost to the contributor for the additional units is less than the shortfall, the contributor shall take up the lesser of all of the abandoned units and the number of abandoned units for which the annual cost is equal to the balance of the shortfall.
(2)  Where, under this section, a contributor is required to take up an abandoned unit which the contributor had on the contributor’s annual review day in any half-year:
(a)  the contributor shall commence to contribute for the unit as from the contributor’s annual adjustment day in that half-year, and
(b)  the unit ceases to be an abandoned unit as from the annual adjustment day.

10QB   Limitation on increase in contributions by certain contributors

(1)  This section applies to a contributor on an annual review day of the contributor if:
(a)  the contributor’s entry payment day was before 1 July 1985,
(b)  the contributor has any abandoned units, and
(c)  the number of units of pension for which contributions are payable by the contributor on the annual review day is less than the number for which the annual cost is equal to an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid on the next preceding annual review day of the contributor.
(2)  On an annual review day on which this section applies to a contributor, sections 10Q and 10QA shall be construed, in their application to the contributor on that day, as if references in those sections to 6 per cent were references to the minimum prescribed percentage referred to in subsection (3).
(3)  For the purpose of subsection (2), the minimum prescribed percentage in relation to a contributor on an annual review day is:
(a)  the sum of:
(i)  1 per cent, and
(ii)  the percentage, on the next preceding annual review day, of the annual salary of the contributor at the rate actually being paid at that preceding annual review day that represents the amount that is equal to the annual cost to the contributor for the units of pension for which contributions were payable by the contributor on the annual adjustment day of the contributor next following that preceding annual review day, or
(b)  6 per cent,
whichever is the lesser.
(4)  In this section:
(a)  a reference to a preceding annual review day of a contributor is, if there is no such day, a reference to the contributor’s entry review day, and
(b)  a reference to the annual adjustment day of the contributor next following that annual review day is a reference to the contributor’s entry payment day.

10R   Increase of contributions: exit days

(1)  Subject to this or any other Act, where the number of units of pension that, pursuant to section 12 (1), is appropriate for the salary actually being paid to a contributor on the contributor’s exit day is higher than the aggregate of:
(a)  the number of units of pension (if any) for which the contributor is contributing at that time,
(b)  the number of units of pension (if any) for which the contributor has completed contributing, and
(c)  the number of the contributor’s abandoned units (if any),
the former contributor or the former contributor’s spouse or de facto partner shall, within one month after the contributor’s exit day, or within such further period as STC may, in special circumstances, allow, contribute to the Fund in respect of the additional number of units of pension in accordance with this Act.
(1A)  On a contributor’s exit day:
(a)  if the annual cost to the contributor for the units of pension for which contributions are payable by the contributor is not less than an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid—the additional units of pension referred to in subsection (1) are optional units of pension, and
(b)  if:
(i)  the annual cost to the contributor for the units of pension for which contributions are payable by the contributor is less than an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid, and
(ii)  the number of additional units of pension referred to in subsection (1) is in excess of the number for which the annual cost is equal to the shortfall under subparagraph (i),
the excess additional units of pension are optional units of pension.
(2)  A contributor may, within 1 month after the contributor’s exit day, elect to abandon any 1 or more of the optional units of pension in respect of which, but for the election, the contributor would be required by this section to make a contribution to the Fund.
(3)  Where a person entitled to make an election under subsection (2) dies without making such an election before the expiration of the period within which, but for the contributor’s death, the contributor could have made the election, the person’s spouse or de facto partner may, before the expiration of that period, make the election.
(4)  This section does not apply to or in respect of a former contributor unless:
(a)  the former contributor or the former contributor’s spouse or de facto partner is entitled to a pension under this Act (other than a pension under section 28AA) consequent on the former contributor’s ceasing to be an employee, or
(b)  the former contributor elects to take the benefit of section 37.
(c)  (Repealed)

10S   No contributions for more than appropriate number of units

Except in the circumstances specified in Division 3 and except in consequence of an approval under section 13A (as in force at any time before 13 January 1977), an employee shall not contribute in respect of a number of units of pension that is greater than the number that, pursuant to section 12 (1), is appropriate for the employee’s salary.

10SA   Cessation of contributions

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, after the employee attains 70 years of age.

10T   Exemptions from contributing

(1)  STC may, on application made in accordance with section 10U, exempt from contributing to the Fund:
(a)  any employee who satisfies STC that the employee has made adequate provision for the employee and the employee’s family, or
(b)  any person of or above the age of 40 years who becomes an employee.
(2)  Where the spouse or de facto partner of a male contributor is also an employee, STC may, on application made by her in accordance with section 10U, exempt her from contributing to the Fund.
(3)  STC may, on application made in accordance with section 10U, exempt from contributing to the Fund a woman employee who is eligible for a pension under section 30 or 31.
(4)  Where a person who is also an employee is entitled by the terms of the person’s engagement but not as an employee within the meaning of this Act to a special pension on retirement from the person’s employment, then if the value as actuarially determined of the special pension equals or exceeds the value as so determined of the pension under this Act for which the person would, but for this subsection, be entitled to contribute, the person is exempted from contributing to the Fund; but if the value as so determined of the special pension is less than the value as so determined of the pension under this Act, the person shall only be entitled to come under this Act for the purpose of the difference.
(5)  STC may exempt from contributing to the Fund any person whose application for exemption from contributing to the Fund:
(a)  had been made but not dealt with by STC before 13 January 1977, and
(b)  could, in the opinion of STC, have been granted by STC if the Superannuation (Amendment) Act 1976 had not been enacted.
(6)  A person exempted from contributing to the Fund at 12 January 1977 continues to be so exempted after that date.
(7)  An exemption may not be granted or arise under this section after 1 July 1994. Any exemption in force under this section before that date continues in force.

10U   Salary sacrifice contributions

(1)  The whole or part of an amount that is required to be contributed to the Fund by an employee under this Act may be paid by salary sacrifice contributions.
(2)  A salary sacrifice contribution is a contribution paid in accordance with an agreement between an employee and the employee’s employer under which the employee is to forgo remuneration yet to be earned and the remuneration foregone is to be applied by the employer to the amount payable for the employee contributions under this Act.
(3)  The amount payable to the Fund for a salary sacrifice contribution to meet the requirement for an employee contribution under this Act is to comprise the following:
(a)  the amount necessary (taking into account any contributions not made on a salary sacrifice basis) to meet the required employee contribution under this Act (the contribution element),
(b)  the amount necessary to meet any tax payable under Commonwealth taxation law in respect of the amount paid under paragraph (a).
(4)  A salary sacrifice contribution is to be paid within the same period as a contribution made by deduction from the salary or wage of a contributor under section 20.
(5)  In this Act and the regulations, a reference (however expressed) to any of the following is taken to include a reference to the contribution element of a salary sacrifice contribution in accordance with an agreement under this section:
(a)  a contribution by an employee or a contributor,
(b)  the cost to an employee or a contributor of a unit of pension,
(c)  an instalment for a unit of pension paid by an employee or a contributor.
(6)  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.
(7)  This section has effect despite any other provision of this Act.

10V   Consequences of exemption

(1)  Where a person is exempted under this Act from contributing to the Fund, neither the person nor any other person claiming through the person is entitled to any benefit under this Act, but the contributions (if any) paid by the person so exempted shall be refunded.
(2)  Subsection (1) does not affect the entitlement of any person to any benefit under this Act if the entitlement accrues to or in relation to a person who is or has been a contributor and who is not so exempted.

Division 3 Decreases in salary or unit entitlement

10W   Decrease in salary

(1)  Where the salary of a contributor is reduced, the contributor shall continue to contribute for any units of pension that are in excess of the number of units that is, pursuant to section 12 (1), appropriate to the contributor’s salary as reduced.
(2)  Where the salary of a contributor is reduced (whether before, on or after 13 January 1977) and the salary as reduced is actually paid as from a date after 12 January 1977, the contributor may, within 2 months after the date on which the reduced salary is actually paid to the contributor, elect not to contribute for one or more units of pension, not exceeding the difference between:
(a)  the number of units that is, pursuant to section 12 (1), appropriate to the contributor’s salary as reduced, and
(b)  the number of units that is, pursuant to section 12 (1), appropriate to the contributor’s salary as at the latest of whichever of the following days is applicable to the contributor, namely:
(i)  the contributor’s entry review day,
(ii)  the contributor’s last annual review day,
(iii)  12 January 1976,
(iv)  the day on which the contributor became a contributor, if that day fell between 13 January 1976 and 12 January 1977 (both inclusive),
(v)  the day as from which the number of units of pension for which the contributor was contributing was reduced under section 13, if that day fell after 12 January 1976,
(vi)  the day as from which the number of units of pension for which the contributor was contributing was last reduced under this section or section 10WB or 10WC,
but so that the number of units in respect of which the contributor contributes is not reduced to less than 6.
(3)  Where a contributor elects not to contribute for a unit of pension under subsection (2), the contributor’s contributions to the Fund in respect of the unit shall cease on and from the first day of the contribution period in which the salary as reduced is actually paid and shall be refunded to the contributor.
(4)  No person has any rights in the Fund in respect of a unit of pension to which an election under subsection (2) relates.
(5)  No person has any rights in the Fund in respect of an excess unit of pension referred to in subsection (1) and not the subject of an election under subsection (2), unless STC is satisfied that the contributor’s salary was reduced by reason of the contributor’s ill health or for some other reason which STC, having regard to the circumstances of the case, considers warrants the retention of entitlement to benefits under this Act in respect of the unit.
(6)  Where no person has any rights in the Fund in respect of a unit of pension, as referred to in subsection (5), and the contributor ceases to be an employee, any contributions made by the contributor in respect of the unit shall be refunded to the contributor.
(7)  Where a contributor elects not to contribute for a unit of pension under subsection (2), and subsequently the contributor’s salary is increased, this Act applies in relation to the increase as if the contributor had not been formerly entitled to the unit.
(8)  A unit of pension in respect of which a contributor is contributing to the Fund ceases to be an excess unit of pension, as referred to in subsection (1), if the contributor’s salary is increased and that unit is one of the number of units that, pursuant to section 12 (1), is appropriate to the contributor’s salary as increased.

10WA   Fluctuations in salary

(1)  Where the number of units of pension that, pursuant to section 12 (1), was appropriate to the salary actually being paid to a contributor at any time after 12 January 1976 was higher than the number of units that, pursuant to section 12 (1), was or is appropriate to the salary actually being paid to the contributor at the contributor’s next review day after that time, STC may determine that the contributor’s salary as at the review day shall be treated as if it had been equal to the contributor’s salary as at the earlier time.
(2)  A determination under this section shall not take effect unless the appropriate contributions in respect of the additional units of pension (being the contributions that would have been already or would be payable in accordance with this Act had the greater salary in fact been paid to the contributor at the review day) have been or are paid to STC within a period approved by STC.
(3)  Where a determination under this section has effect, then, for all purposes of this Act:
(a)  the contributor’s salary shall be treated in accordance with the determination, and
(b)  the contributor shall be deemed to have been contributing for the additional units of pension as from the commencement of the period to which the contributions referred to in subsection (2) relate.
(4)  In this section:

contributor includes former contributor.

review day means entry review day, annual review day or exit day.

10WB   Decrease in unit entitlement on taking leave of absence

(1)  Where, on the commencement, or extension, by a contributor of a period of leave of absence, or on the commencement of a period for which a deduction factor is applied under section 12B (3A), 12BA (1) or 12C (4), the number of units of pension (if any) for which the contributor has completed contributing and the number of units of pension (if any) for which, but for this section, contributions would be payable by the contributor is greater than the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary actually being paid to the contributor, the contributor shall cease to contribute for the number of units of pension equal to the difference.
(2)  On the termination of a period of leave of absence by a contributor in respect of which section 12B (1) or (3A) applies before the expiration of the period or of a period in respect of which section 12BA (1) or 12C (4) applies:
(a)  the contributor shall be deemed not to have ceased to contribute for the number of units of pension for which the contributor ceased to contribute under subsection (1) but shall be deemed to have ceased to contribute for the number of units of pension (if any) equal to the difference between:
(i)  the number of units of pension (if any) for which the contributor has completed contributing and the number of units (if any) for which, but for the application of subsection (1) on the commencement of the period and of this subsection on the termination, contributions would be payable by the contributor, and
(ii)  the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary actually being paid to the contributor,
(b)  all contributions for units of pension which would have been payable, had the contributor ceased to contribute for the number of units of pension equal to the difference on the commencement of the period, shall be deemed to have been payable by the contributor, and
(c)  any contributions for units of pension which have been refunded or applied in accordance with a direction by the contributor as referred to in subsection (3) and which are payable as referred to in paragraph (b) shall be payable in respect of those units.
(3)  Where a contributor ceases to contribute for a unit of pension under this section, the contributor’s contributions to the Fund in respect of the unit shall cease, on and from the first day of the contribution period in which the period concerned commences, and any contributions paid in respect of that unit shall, unless the contributor directs STC to apply them towards contributions payable in respect of other units of pension during the period, be refunded to the contributor.
(4)  No person has any rights in the Fund in respect of a unit of pension for which contributions have ceased under this section and have not again become payable.
(5)  Where a contributor ceases to contribute for a unit of pension under this section and subsequently the salary of the contributor is increased, this Act applies in relation to the increase as if the contributor had not been formerly entitled to the unit.

10WC   Commencement of or change to part-time employment

(1)  In this section, a reference to a change in the employment status of a contributor is a reference:
(a)  to a contributor who is appointed to a full-time position being appointed to a part-time position, or
(b)  to a contributor who is appointed to a full-time position and who is on part-time leave without pay making an election under section 12C (1A) to be treated as a part-time employee, or
(c)  to the salary ratio (as defined in section 12C (1)) of a contributor who is appointed to a part-time position changing so that it is less than it was previously, or
(d)  to a contributor who is appointed to a full-time position and who is on part-time leave without pay making an election under section 12C (3A) in respect of a decrease in the salary ratio (as defined in section 12C (1)) of the contributor.
(2)  On a change in the employment status of a contributor, the contributor shall cease to be a contributor for the units of pension in respect of which contributions were payable by the contributor, or for which the contributor had completed contributing, before that change (other than any reserve units in respect of which contributions are payable under section 15A).
(3)  No person has any rights in the Fund in respect of units of pension for which a person has ceased to be a contributor pursuant to subsection (2).
(4)  Where a contributor whose employment status changes ceases to be a contributor for units of pension pursuant to subsection (2), the contributor’s contributions to the Fund in respect of those units of pension shall cease, as on and from the first day of the contribution period in which the change occurred.
(5)  Any contributions paid in respect of units of pension for which a person has ceased to be a contributor on a change in employment status shall be allocated towards the purchase of the number of fully paid up units calculated in accordance with the following formula:


where:

PUU is the number of units purchased.

TU is the highest whole number obtained from the calculation of the formula .

UHn is the number of units of pension for which contributions were payable by the contributor immediately before the change occurred in accordance with the tables of contributions fixed by or under this Act, but excluding:

(a)  any such units of pension which are excess units of pension referred to in section 10W (1) and in respect of which no person has any rights in the Fund, and
(b)  any such units of pension, being reserve units, for which contributions were being made under section 15A.

Cn is the amount of contributions due, for the contribution period preceding that in which the change occurred, in respect of that number of units of pension.

Rn is the relevant amount under subsection (6) in relation to the contributor for an additional unit of pension.

IU is the highest whole number obtained from the calculation of the formula .

TCB is the total amount paid in respect of instalments payable by the person on or before the time the change occurred for units of pension for which the contributor contributed in accordance with Division 6 (but deducting therefrom any part of that amount allocated under this Act to the purchase of fully paid up units).

RB is the amount specified in section 10AG (1) as the cost of a unit of pension in relation to the contributor.

UC is the number of units (if any) purchased by the person and credited to the person as fully paid up units under this section, section 20C, or otherwise.

(6)  For the purposes of subsection (5), the relevant amount in relation to a contributor whose employment status changes for an additional unit of pension is:
(a)  where the contributor has attained the prescribed age on or before the last day of the contribution period preceding that in which the change occurred, the amount which, if the contributor were required under Division 5 to commence to contribute for an additional unit of pension on that day, would be the amount payable in accordance with the tables of contributions fixed under section 10AD for that unit for a contribution period, or
(b)  where the contributor has not attained the prescribed age on or before that day, the amount equal to the sum of:
(i)  the amount payable by the contributor for any additional unit of pension for which the contributor had been required to commence contributing on and from the contributor’s last annual adjustment day before the change occurred for a contribution period or, as the case may be, the amount that would have been so payable if the contributor had been so required, and
(ii)  for each day of the period commencing on the day following that annual adjustment day and ending on the last day of the contribution period preceding that in which the change occurred, the amount equal to 1/364th part of the difference between the amount referred to in subparagraph (i) and the amount which that amount would have been if, on that annual adjustment day, the contributor had been 1 year older than the age actually attained.
(7)  Where, in relation to a contributor whose employment status has changed, the figure obtained pursuant to subsection (5) from the calculation of the formula is or includes a fraction, there shall be paid to the contributor from the Fund, as a refund of contributions not allocated towards the purchase of fully paid up units, the amount calculated in accordance with the following formula:


where:

Q1 is the amount to be paid.

S is the amount of the contributions paid by the contributor in respect of the units the number of which is attributed to the symbol UHn pursuant to subsection (5).

F1 is the fraction which is or is included in the figure obtained.

P1 is the figure obtained.

(8)  Where, in relation to a contributor whose employment status has changed, the figure obtained pursuant to subsection (5) from the calculation of the formula is or includes a fraction, there shall be paid to the contributor from the Fund, as a refund of instalments not allocated towards the purchase of fully paid up units, the amount calculated in accordance with the following formula:


where:

Q2 is the amount to be paid.

TCB is the amount attributed to that symbol pursuant to subsection (5).

F2 is the fraction which is or is included in the figure obtained.

P2 is the figure obtained.

(9)  Where a person’s contributions are allocated to the purchase of paid up units under this section on a change in employment status:
(a)  the person shall, on and from that change occurring, be deemed to be a contributor for the number of units purchased and to have contributed for those units for a period of 2 years and 6 months but shall not be required to make further contributions in respect of those units, and
(b)  the employer in whose service the person is employed will not be required to make, before the retirement of the person, any further contribution in respect of those units of pension.
(10)  Subject to this or any other Act, where the number of units of pension that, pursuant to section 12 (1), is appropriate for the salary certified by the employer of a contributor to be the salary which would be paid to the contributor if employed full-time in the position in which the contributor is employed on a change in employment status is higher than the number of fully paid up units credited to the contributor under this section, the contributor shall, as on and from the first day of the contribution period in which the change occurs, contribute to the Fund in respect of the additional number of units of pension in accordance with this Act.
(11)  On the day on which the employment status of a contributor changes, if the number of additional units of pension referred to in subsection (10) is in excess of the number for which the annual cost to the contributor is equal to an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid, the excess units of pension are optional units of pension.
(12)  A contributor may, within 2 months after the day on which the employment status of the contributor changes, elect to abandon any one or more of the optional units of pension in respect of which, but for the election, the contributor would be required by this section to commence contributing to the Fund.
(13)  Where a contributor elects not to contribute for a unit of pension under subsection (12), contributions to the Fund in respect of the unit shall cease as on and from the first day of the contribution period in which the employment status of the contributor changes and any contributions paid in respect of the unit shall be refunded to the contributor.
(14)  No person has any rights in the Fund in respect of a unit of pension to which an election under subsection (12) relates.
(15)  Where no person has any rights in the Fund in respect of an excess unit of pension of a contributor referred to in section 10W (1) and the employment status of the contributor changes, any contributions made by the contributor in respect of the unit shall be refunded to the contributor.
(16)  Where a person whose contributions are allocated to the purchase of fully paid up units under this section dies, retires under section 21 (1B) before attaining the age of 60 years, or is retired under section 22 before attaining that age, STC may, except where the contributions are refunded pursuant to section 32A or 32B, determine that a specified amount, being part of those contributions, be refunded to the person or, where the person is dead, to the person’s personal representatives, and may act in accordance with its determination.
(17)  Where a contributor whose employment status changes is a contributor whose entry payment day occurred before the commencement of Schedule 4 to the Superannuation (Amendment) Act 1985 and, immediately before the change occurred:
(a)  the contributor had any abandoned units, and
(b)  the annual cost to the contributor for the units of pension for which contributions were payable by the contributor was an amount representing a percentage which was less than 6 per cent of the annual salary of the contributor at the rate actually being paid on the contributor’s previous annual review day or, if there was no such day, the contributor’s entry review day, the number of those units being less than the number for which the annual cost was equal to an amount representing 6 per cent of that annual salary,
such of the additional units of pension (if any) referred to in subsection (10) as are in excess of the number for which the annual cost to the contributor is equal to an amount representing that lesser percentage of the annual salary at the rate actually being paid to the contributor on the day the change occurred are optional units of pension for the purposes of subsection (12), notwithstanding anything to the contrary in subsection (11).

Division 4 Abandoned units

10X   No contributions or rights in respect of abandoned units

(1)  Notwithstanding anything in this Part, contributions are not payable to the Fund in respect of an abandoned unit.
(2)  No person has any rights in the Fund in respect of an abandoned unit, but nothing in this subsection affects the refund of contributions made in respect of any such unit or the operation of Division 2A of Part 4 in relation to any such unit.

10Y   Elections to take up abandoned units at annual review day

Where an employee has an abandoned unit at the employee’s annual review day in any half-year:
(a)  the employee may, within 2 months after that day, elect to take up that unit, and
(b)  if the employee so elects:
(i)  the employee shall commence to contribute for the unit as from the employee’s annual adjustment day in that half-year, and
(ii)  the unit ceases to be an abandoned unit as from that annual adjustment day.

10Z   Elections to take up abandoned units at exit day

(1)  Where an employee has an abandoned unit at the employee’s exit day, the employee may, before the expiration of one month after that day, elect to take up that unit.
(2)  Where an employee entitled to make an election under subsection (1) dies without making such an election before the expiration of the period within which, but for the employee’s death, the employee could have made the election, the employee’s spouse or de facto partner may, before the expiration of that period, make the election.
(3)  Where an election has been made under this section to take up an abandoned unit:
(a)  the contribution payable in respect of the unit shall be paid to STC within one month after the employee’s exit day or within such further period as STC may, in special circumstances, allow, and
(b)  the unit ceases to be an abandoned unit, provided the contribution is paid.
(4)  This section does not apply to or in respect of an abandoned unit unless:
(a)  pension is payable in respect of the unit, or
(b)  the former contributor elects to take the benefit of section 37.
(c)  (Repealed)

10AA   Restrictions as to abandoned units

(1)  An abandoned unit may only be taken up under this Division by a person if the aggregate of:
(a)  the number of units of pension (if any) for which the person is contributing,
(b)  the number of units of pension (if any) for which the person has completed contributing, and
(c)  the number of the person’s abandoned units (including the firstmentioned abandoned unit),
is equal to or less than the number of units that, pursuant to section 12 (1), is appropriate for the rate of salary actually being paid to the person at the person’s annual review day or the person’s exit day, as the case may require.
(2)  Pension payable under section 29 or by virtue of the death of a contributor is not payable in respect of a unit of pension which a person has elected to take up under this Division unless:
(a)  contributions in respect of the unit were due, and have been paid, for at least 2 years and 6 months following the date from which the person commenced contributing for the unit, or
(b)  that person’s exit day is on or after the last day of the contribution period preceding that in which the person attains the maturity age.
(3)  Where a contributor’s contributions in respect of a unit of pension cease on the first day of the contribution period in which the contributor ceases to be an employee or attains the maturity age, the contributor shall, for the purposes of subsection (2) (a), be deemed to have paid contributions in respect of the unit for so much of that period as precedes the contributor so ceasing to be an employee or attaining that age, as the case may be.
(4)  Where:
(a)  a contributor’s first annual review day falls before 31 December 1977,
(b)  the contributor elects to take up abandoned units within 2 months after that day, and
(c)  the contributor would, had Part 8 not been enacted, have been entitled to elect to take up those abandoned units during the suspension period (as defined in section 95),
the contributor shall, for the purposes of subsection (2) (a), be deemed to have commenced contributing for those units as from 13 January 1976 or the day on which the contributor became a contributor, whichever is the later.

Division 5 Contributions by employees for units of pension at table rates

10AB   Contributions according to scale graduated by age etc

Except where otherwise provided by this Act:
(a)  the amount of contribution to be paid by a contributor shall be based upon the number of units of pension for which the contributor contributes, upon the sex of the contributor, and, in the case of a woman contributor, upon whether she contributes for a pension payable at the age of 55 years or 60 years, and shall be in accordance with the tables of contributions fixed by or under this Act, and
(b)  the amount of contribution to be paid by the contributor in respect of:
(i)  a unit for which the contributor commences to contribute as from the contributor’s entry payment day shall be based upon the age of the contributor at the contributor’s entry payment day,
(ii)  a unit for which the contributor commences to contribute as from the contributor’s annual adjustment day in any half-year shall be based upon the age of the contributor at the contributor’s annual adjustment day in that half-year, or
(iii)  a unit for which the contributor contributes as from the contributor’s exit day shall be based upon the age of the contributor at the contributor’s exit day.

10AC   Units taken up after prescribed age

Subject to section 10AF, an employee may not commence contributing for a unit of pension under this Division if the employee attains or has attained the prescribed age at the employee’s entry payment day or annual adjustment day, as the case may require.

10AD   Tables of contributions

(1)  Until other tables of contributions are fixed under this section, the tables of contributions, payable under this Division, for men and women according to the ages set out in Schedule 7 shall be in force and apply in respect of additional units of pension for which employees who were contributors at 30 June 1963 commence to contribute on or after 13 January 1977.
(2)  Until other tables of contributions are fixed under this section, the tables of contributions, payable under this Division, for men and women according to the ages set out in Schedule 9 shall be in force and apply to employees who became or become contributors on or after 1 July 1963 and shall be paid in respect of all units of pension contributed for by those employees.
(3)  (Repealed)
(4)  Subject to section 17D, the Governor may, by order in writing, fix other tables of contributions to be paid by contributors.
(5)  The tables of contributions that may be so fixed may:
(a)  be in substitution for any tables fixed by or under this Act in respect of the contributions payable by employees,
(b)  be made so as to apply generally to all units of pension or to units of pension in respect of which contributions commenced before, on or after a specified date (whether those contributions are paid by employees who were contributors before or who became contributors on or after that date), and
(c)  apply differently in respect of different classes of employees.
(6)  The substitution of Schedules 7 and 9 by the Superannuation (Amendment) Act 1977 does not affect the rate of contribution on or after 13 January 1978 for any unit of pension where contributions for the unit have been paid, or are payable, in accordance with this Act in respect of any period before that date.

10AE   Cessation of contributions

Subject to this Act, contributions payable to the Fund by a contributor under this Division in respect of any units of pension, other than those for which the contributor contributes by instalments under section 10AH, and those referred to in section 10AF, shall cease to be payable in respect of those units on the first day of the contribution period in which the contributor ceases to be an employee or attains the maturity age, whichever first occurs.

10AF   Units taken up at exit day

(1)  The contribution of a former contributor referred to in section 10R (1) in respect of an additional unit of pension shall, if the former contributor’s exit day is before the contribution period in which the former contributor would attain the maturity age, and whether or not the former contributor has attained the prescribed age, be the contribution payable for one contribution period in accordance with the appropriate table of contributions.
(2)  Where:
(a)  an election by a former employee or a former employee’s spouse or de facto partner under section 10Z to take up an abandoned unit takes effect, and
(b)  the former employee’s exit day is before the contribution period in which the former employee would attain the maturity age,
the contribution payable in respect of the unit shall, whether or not the former employee has attained the prescribed age, be the contribution for one contribution period in accordance with the appropriate table of contributions.

Division 6 Contributions by employees for units of pension otherwise than at table rates

10AG   Cost of units of pension

(1)  For the purposes of this Division, and notwithstanding anything contained in this or any other Act, the cost of a unit of pension is, in relation to an employee:
(a)  who was a contributor at 30 June 1963 and has continued to be a contributor since that date, and:
(i)  who, being a woman contributor, elected to contribute at the rate prescribed for retirement at the age of 55 years—$450.90,
(ii)  who, being a woman contributor, elected to contribute at the rate prescribed for retirement at the age of 60 years—$395.54, or
(iii)  who is a male contributor—$396.90, or
(b)  who commenced or commences to contribute after 30 June 1963 and:
(i)  who, being a woman contributor, elected to contribute at the rate prescribed for retirement at the age of 55 years—$534.40,
(ii)  who, being a woman contributor, elected to contribute at the rate prescribed for retirement at the age of 60 years—$468.80, or
(iii)  who is a male contributor—$499.68 in respect of each of the first 2 units, and $493.28 in respect of each subsequent unit.
(2)  Notwithstanding subsection (1), where an employee who, being a woman, elected to contribute at the rate prescribed for retirement at the age of 55 years has attained the age of 60 years on or before her entry payment day, annual adjustment day or exit day, the cost of a unit of pension for which she commences to contribute on or after that day shall, for the purposes of this Division, be the cost applicable had she elected to contribute at the rate prescribed for retirement at the age of 60 years.
(3)  Subject to section 17D, the Governor may, by order in writing, fix other amounts to be the cost of units of pension for the purposes of this Division.
(4)  The amount or amounts that may be so fixed may:
(a)  be in substitution for any amount or amounts set out in subsection (1) or provided for in subsection (2),
(b)  be made so as to apply generally to all units of pension or to units of pension in respect of which contributions commenced before, on or after a specified date (whether those contributions are paid by or in respect of employees who were contributors before or who become contributors on or after that date), and
(c)  apply differently in respect of different classes of employees.

10AH   Employees who have reached the prescribed age

(1)  Subject to sections 10AF and 10AI, where an employee who has reached the prescribed age on or before the employee’s entry payment day or annual adjustment day, as the case may require, is required or elects to commence contributing for a unit of pension, the employee shall, subject to this section, contribute the cost of the unit by 65 four-weekly instalments, each such instalment being equal to an amount determined by STC, being an amount that is, or is not less by more than a fraction of a cent than, one sixty-fifth of that cost.
(2)  Where an employee referred to in subsection (1) ceases to be employed by the employer prior to completion of payment of instalments pursuant to subsection (1), the following provisions apply:
(a)  where the employee retires after reaching the maturity age, the total amount of contributions unpaid as at the date of retirement shall be paid within one month after the date upon which the employee ceases to be so employed, or within such further period as STC may, in special circumstances, allow,
(b)  where the employee is retired in accordance with section 22, or elects to retire under section 21 (1B), or is retrenched before reaching the maturity age, the total amount of contributions unpaid as at the last day of the contribution period preceding that in which the employee ceases to be employed shall be paid within one month after the date upon which the employee ceases to be so employed, or within such further period as STC may, in special circumstances, allow,
(c)  where the employee dies and is survived by a spouse or de facto partner, the spouse or de facto partner, if a pension is payable to the spouse or de facto partner in accordance with section 30, shall within 3 months after the death of the employee, or within such further period as STC may, in special circumstances, allow, pay the total amount of contributions unpaid as at the date of the employee’s death.
(3)  Where the total amount of contributions required to be paid by subsection (2) (a), (b) or (c) is not paid within the time prescribed, or within such further period as STC may, in special circumstances, allow, the employee or the spouse or de facto partner of the employee, as the case may be, shall be refunded the amount of the instalments paid pursuant to subsection (1).
(4)  Where a refund is payable under subsection (3), no person has any rights in the Fund in respect of the unit or units of pension to which the refund relates, but nothing in this subsection affects the operation of Division 2A of Part 4 in relation to any such unit.
(5)  A reference in subsection (2) to the total amount of contributions unpaid as at a particular date is:
(a)  in relation to an employee who ceases to be employed by the employer before attaining the maturity age and who commenced contributing for the unit of pension:
(i)  before the contribution period in which the employee would attain the maturity age—a reference to the total amount of contributions that would have been payable up to and including that date had the tables of contributions fixed by or under this Act been applicable to the employee in respect of the unit, or
(ii)  after the contribution period in which the employee would attain the maturity age—a reference to the cost of the unit, or
(b)  in relation to an employee who ceases to be employed by the employer on or after attaining the maturity age—a reference to the cost of the unit, less the amount of instalments paid pursuant to subsection (1).
(6)  Where, but for this subsection, the 65 instalments payable in respect of a unit of pension pursuant to subsection (1) would be less than the cost of the unit, the 65th instalment shall, notwithstanding that subsection, be increased by the difference.

10AI   Units taken up at exit day

(1)  The contribution of a contributor referred to in section 10R (1) in respect of an additional unit of pension shall, if the contributor’s exit day is on or after the first day of the contribution period in which the contributor would attain or has attained the maturity age, be the cost of the unit.
(2)  Where:
(a)  an election by a former employee or a former employee’s spouse or de facto partner under section 10Z to take up an abandoned unit takes effect, and
(b)  the former employee’s exit day is on or after the first day of the contribution period in which the former employee would attain or has attained the maturity age,
the contribution payable in respect of the unit shall be the cost of the unit.

Division 7 Contributions by employers

10AJ   Contributions to be made by an employer listed in Schedule 3

(1)  An employer listed in Schedule 3 must pay to the Fund in respect of each contributor that the employer employs an amount equal to a specified multiple of the contributions payable to the Fund by that contributor.
(2)  The specified multiple referred to in subsection (1) is a multiple that STC, with the concurrence of the Treasurer, periodically fixes in respect of the employer concerned.
(3)  In determining the contributions payable by an employer specified in Part 2 of Schedule 3, STC is to have regard to the amount required to meet the full costs of the liabilities under this Act of all employers specified in Part 2 of Schedule 3.
(4)  STC may, with the concurrence of the Treasurer, require an employer specified in Part 2 of Schedule 3 to pay into the Fund additional contributions for a specified period if it appears to STC that there is insufficient money in the relevant employers’ reserves for employers specified in Part 2 of Schedule 3 to meet the employers’ liabilities under this Act.

10AK   Calculation of contributions and time for payment

(1)  Contributions under this Division shall be calculated on the basis of contribution periods.
(2)  An employer must, within 7 days after the end of each contribution period, pay to STC the contributions payable by the employer in respect of that period.

10AL   Employer may be required to make further payments in certain cases

(1)  Whenever it appears to STC that there is insufficient money in an employer reserve:
(a)  to pay the employer-financed portion of a benefit that is due to or in respect of a contributor or former contributor under this Act, or
(b)  to pay any other amounts that are payable from that reserve,
STC may require the contributor’s employer or former employer, by notice in writing, to pay into the Fund an amount equal to the amount of the insufficiency.
(2)  If an employer fails to pay an amount required to be paid under subsection (1) within 14 days after being notified of the requirement, the amount becomes an amount owing to the Fund and STC may recover that amount accordingly.

10AM   Power of STC to adjust employer reserves

Whenever it appears to STC that, because of a change of circumstances, it would be appropriate to adjust the amount that is currently standing to the credit or debit of an employer reserve so as to reflect the change of circumstances, STC may, with the concurrence of the Treasurer, adjust that reserve by crediting or debiting that reserve with a specified amount of money and correspondingly debiting or crediting one or more other employer reserves.

10AN   Transfer of credits between employers of transferred contributors

Whenever:
(a)  a contributor ceases to be employed by an employer and becomes employed by another employer, and
(b)  the contributor continues to be a contributor under this Act,
STC must, as soon as practicable after the contributor begins the later employment:
(c)  debit the employer reserve of the former employer with the actuarially calculated transfer value referable to the contributor, and
(d)  credit the employer reserve of the new employer with that value.

10AO   Variation of employer contributions

(1)  Despite any other provision of this Division, STC may determine that the contributions payable by an employer specified in Part 1 of Schedule 3 in respect of a contributor are to be determined, or are payable, on a basis other than that set out in this Division.
(2)  STC may only make such a determination with the concurrence of the Treasurer.

Division 8 Ancillary provisions

11–11D   (Repealed)

12   Contributions to be related to units of pension

(1)  Subject to this Act, the contributions of an employee under this Part shall be made in respect of units of pension as provided by section 27 and:
(a)  with respect to salaries not exceeding five thousand two hundred dollars, the number of those units shall vary in relation to salary in accordance with the following scale:

Where the salary of the employee is equivalent to an annual rate

The employee shall contribute the amount necessary to provide units of pension as under

Exceeding

But not exceeding

$

$

324

Two units.

324

520

Three units.

520

650

Four units.

650

780

Five units.

780

960

Six units.

960

1,140

Seven units.

1,140

1,320

Eight units.

1,320

1,500

Nine units.

1,500

1,660

Ten units.

1,660

1,820

Eleven units.

1,820

1,980

Twelve units.

1,980

2,140

Thirteen units.

2,140

2,300

Fourteen units.

2,300

2,460

Fifteen units.

2,460

2,620

Sixteen units.

2,620

2,780

Seventeen units.

2,780

2,940

Eighteen units.

2,940

3,100

Nineteen units.

3,100

3,260

Twenty units.

3,260

3,420

Twenty-one units.

3,420

3,580

Twenty-two units.

3,580

3,740

Twenty-three units.

3,740

3,980

Twenty-four units.

3,980

4,220

Twenty-five units.

4,220

4,460

Twenty-six units.

4,460

4,700

Twenty-seven units.

4,700

4,940

Twenty-eight units.

4,940

5,200

Twenty-nine units.

(b)  with respect to salaries exceeding $5,200, the number of those units, on any particular day, shall be calculated in accordance with the following formula:


where:

UE is the number of units of pension.

S is the annual rate of salary.

CF is 1 or , whichever is the greater.

a is the index number appearing in the Consumer Price Index (All Groups Index) for Sydney last published before that day by the Australian Statistician under the Census and Statistics Act 1905 of the Commonwealth.

b is:

(a)  the number 114.6, or
(b)  if, after the commencement of the amendments made to this section by the Statute Law (Miscellaneous Provisions) Act 1991, the Australian Statistician changes the reference base for the Consumer Price Index (All Groups Index) for Sydney—a number determined by STC, on actuarial advice, to represent what that index would have been for the June quarter 1982 if the change in the reference base had applied at that date.

(2)  Where the number of units of pension calculated in accordance with subsection (1) (b) includes a fraction of a unit, the number of units shall be deemed to be the next highest whole number.
(3)  Any Index number published by the Australian Statistician at any time (and whether before or after the commencement of this subsection) in respect of a particular quarter in substitution for an Index number previously published in respect of that quarter is to be disregarded for the purpose of ascertaining the value of the expression “a” in the formula in subsection (1), unless the Minister gives a direction to the contrary. If the Minister gives such a direction, the later Index number is to be used in the formula whenever it is applied after the direction has been given.
(4)  (Repealed)
(5)  In this section, Index number and quarter have the same meanings as in Division 6 of Part 4.
(6)–(12)  (Repealed)

12A   Alteration of unit entitlement in certain cases

(1)  Except as provided by subsection (2), a reference (however expressed) in any other provision of this Act to the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary being paid to a contributor on any particular day shall, if 1 or more deduction factors are required to be applied under this section by STC in relation to the contributor on that day, be construed as a reference to the number of units calculated in accordance with the following formula:


where:

U is the number of units to be calculated.

NU is the number of units that, but for this section, would be appropriate to that salary.

PFS is the sum of:

(a)  the number of years, if any, (including any fractional part of a year calculated on a daily basis) of the period that commenced when the contributor last became a contributor and ended on that day (but excluding any part of that period during which the person had been on leave of absence pursuant to section 48), and
(b)  the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which that day precedes:
(i)  the date on which the person attains the maturity age, or
(ii)  where any employment which, on that day, the contributor is entitled to count as service for the purposes of section 21 is, in total, for less than a period of 10 years—the expiration of the balance of that period of 10 years,
whichever is the later.

DT is the total of all deduction factors required to be applied by STC in relation to the contributor on that day.

(2)  Where the number of units of pension calculated in accordance with the formula specified in subsection (1) is or includes a fraction of a unit:
(a)  if the fraction is less than one-half—the fraction shall be disregarded, or,
(b)  if the fraction is not less than one-half—the fraction shall be deemed to be a whole unit.

12B   Deduction factors in relation to certain periods of leave

(1)  Except as provided by subsection (2), on and from the commencement of a period of full-time leave of absence without pay by a contributor, STC shall apply under section 12A, in relation to the contributor, in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor, a deduction factor equal to the length of so much of that period as exceeds 3 months (expressed in terms of years, if any, and including any fractional part of a year calculated on a daily basis).
(2)  Subsection (1) does not apply in relation to a period of leave of absence by a contributor where:
(a)  the leave is a prescribed form of leave or is leave with respect to which section 19 (2), (3) or (6) applies,
(b)  the period commences before the commencement of Schedule 6 to the Superannuation (Amendment) Act 1985 or is not more than 3 months, or
(c)  before the commencement of that period, the contributor elects to have subsection (1) not apply in relation to that period.
(2A)  The reference to a prescribed form of leave in subsection (2) (a) includes (but is not limited to) a reference to maternity leave and is to be taken to have included such a reference from and including 1 July 1985.
(3)  Where a period of leave of absence to which subsection (1) applies terminates (whether by reason of death of the contributor or otherwise), on or before the expiration of 3 months of the period, STC shall, on and from that termination, cease to apply under section 12A in relation to the contributor the deduction factor required under subsection (1) to be applied on and from the commencement of that period.
(3A)  STC must apply under section 12A, in relation to a contributor who takes a single period of leave without pay that is sick leave or maternity leave, a deduction factor equal to the length of that part of the period of leave that exceeds 2 years.
(3B)  The deduction factor applied under subsection (3A) is to be expressed in terms of years and include any fractional part of a year calculated on a daily basis.
(3C)  The deduction factor applied under subsection (3A) is to be applied on and from the end of 2 years after the commencement of the single period of leave and is in addition to any other deduction factor that STC is required to apply in relation to the contributor.
(4)  Where a period of leave of absence to which subsection (1) applies terminates (whether by reason of death of the contributor or otherwise) before the expiration of the whole, but after the expiration of 3 months, of the period or a period of leave of absence is extended after the commencement of the period and the period, as extended, is a period of leave of absence to which subsection (1) applies, STC shall, on and from that termination or extension, apply under section 12A in relation to the contributor:
(a)  instead of the deduction factor (if any) required under subsection (1) to be applied on and from the commencement of that period, and
(b)  in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor,
a deduction factor equal to the length of so much of the period of leave actually taken or the length of so much of the period of leave, as extended, as exceeds 3 months (expressed in terms of years, if any, and including any fractional part of a year calculated on a daily basis).

12BA   Deduction factors for periods determined by STC

(1)  Despite any other provision of this Act, STC may apply under section 12A, in relation to a contributor specified by STC, a deduction factor equal to the length of the period for which STC determines that the deduction factor is to apply.
(2)  The deduction factor is to be expressed in terms of years and include any fractional part of a year calculated on a daily basis.
(3)  STC may only make such a determination if it is of the opinion that it is necessary to do so for the purposes of being consistent with a relevant Commonwealth superannuation standard restricting the acceptance of contributions by a superannuation fund.
(4)  The deduction factor is to be applied on and from the commencement of the period specified by STC and is in addition to any other deduction factor that STC is required to apply in relation to the contributor.

12C   Deduction factors in relation to part-time employment

(1)  In this section:

part-time employee means:

(a)  a person appointed to a part-time position and certified to STC by the person’s employer to have a salary ratio of less than one, or
(b)  a person appointed to a full-time position and on part-time leave without pay, and certified to STC by the person’s employer to have a salary ratio of less than one, who has made an election, that is in force under this section, to be treated as a part-time employee.

salary ratio of a person means the ratio of the salary of the person while employed on a part-time basis to the salary certified by the employer of the person to be the salary which would be paid to the person if employed on a full-time basis.

(1A)  A person who is appointed to a full-time position and who commences a period of part-time leave without pay may elect to be treated as a part-time employee for the purposes of this section.
(2)  Where a contributor who is not a part-time employee becomes a part-time employee or a contributor who is a part-time employee becomes a part-time employee in a position in relation to which the salary ratio is different from that of the former position, STC shall, on and from the day on which the contributor becomes a part-time employee, or the salary ratio changes, apply under section 12A, in relation to the contributor, in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor, a deduction factor equal to the figure calculated in accordance with the following formula:


where:

D is the deduction factor.

PA is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day precedes the known or estimated date on which the period of part-time employment is to cease.

SR is the salary ratio (expressed as a fraction) in relation to the position.

(2A)  For the purposes of item “PA” in subsection (2), the known or estimated date on which part-time employment is to cease is:
(a)  in the case of a contributor on part-time leave without pay—the date on which the period of leave approved for the contributor is to cease, or
(b)  in any other case—the date certified in writing by the contributor’s employer to STC for the purposes of this subsection.
(3)  Where a contributor who is a part-time employee ceases to be a part-time employee or the salary ratio of the employee changes, STC must, on and from the day the contributor ceases to be a part-time employee or the salary ratio changes, apply under section 12A in relation to the contributor:
(a)  instead of the deduction factor required under subsection (2) to be applied, and on and from the day the person commenced to be a part-time employee or to be employed in a position having the former salary ratio,
(b)  in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor,
a deduction factor equal to the figure which would have been calculated in accordance with subsection (2) if the figure attributed to the symbol PA were the number of years, if any, (including any fractional part of a year calculated on a daily basis) of the period during which the contributor was employed as a part-time employee or employed in a position having the salary ratio of the former position.
(3A)  However, subsection (3) does not apply in respect of a part-time employee who has made an election under subsection (1A), and whose salary ratio decreases, unless the employee elects that subsection (3) is to apply in respect of that changed salary ratio.
(4)  STC must apply under section 12A, in relation to a contributor who is employed for less than 10 hours a week for a single period of more than 2 years, a deduction factor equal to the length of that part of the period that the contributor is so employed that exceeds 2 years and ends on the date on which the contributor attains the maturity age.
(5)  The deduction factor applied under subsection (4) is to be expressed in terms of years and include any fractional part of a year calculated on a daily basis.
(6)  The deduction factor applied under subsection (4) is to be applied on and from the end of 2 years after the commencement of the period of employment and is in addition to any other deduction factor that STC is required to apply in relation to the contributor.
(7)  Subsections (1)–(3) do not apply in respect of a contributor during any period in which STC is required to apply a deduction factor under subsection (4).
(8)  However, subsection (3) applies to a contributor who, at the end of the period, commences to be employed for more than 10 hours a week in the same way as it applies to any other employee whose salary ratio changes.

12CA   Continuation of certain contributions

(1)  Where a contributor completes payment of the 65 instalments under section 10AH, in respect of a unit of pension, or, pursuant to section 10AE, contributions cease to be payable in respect of a unit of pension by a contributor who attains the maturity age, contributions shall, until the contributor’s next annual adjustment day or exit day (whichever first occurs), continue to be made at the rate at which the contributor was contributing for that unit.
(2)  Any continued contributions made by a contributor by virtue of subsection (1) shall be credited, in such manner as STC thinks fit, to units of pension in respect of which the contributor is contributing or may, on the contributor’s next annual adjustment day or exit day, be required to contribute by instalments under section 10AH.
(3)  Subsection (1) ceases to apply to a contributor if STC so approves on application made by the contributor before the contributor’s exit day.
(4)  Without affecting the operation of this section, a contributor to whom this section applies shall be deemed, for the purposes of this Act, to have ceased contributing for the unit of pension referred to in subsection (1).

12D   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)  Section 12B (1) and (2) apply to a contributor, and to the period of leave of the contributor, during any period during which this section applies to the contributor.
(4)  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.

12E–15   (Repealed)

15A   Reserve units

(1)  There shall be a reserve units of pension account (in this section referred to as the reserve account) which shall form part of the fund and into which shall be paid all contributions made by contributors under this section.
(1A)  (Repealed)
(2)  A contributor who is contributing for not less than the number of units of pension corresponding to the salary-group within which the contributor’s salary falls may, by notice in writing to STC in the form prescribed, elect to contribute for reserve units of pension (hereinafter referred to as reserve units) in accordance with the provisions of this section.
(2A)  An election under subsection (2) may only be made by a contributor within 2 months after the contributor’s entry review day or the contributor’s annual review day in any half-year.
(3)  The number of reserve units for which a contributor shall be entitled to contribute shall not exceed eight.
(4)  Contributions in respect of a reserve unit:
(a)  shall take effect:
(i)  where the election is made within 2 months after the contributor’s entry review day—as from the contributor’s entry payment day, or
(ii)  where the election is made within 2 months after the contributor’s annual review day in any half-year—as from the contributor’s annual adjustment day in that half-year, and
(b)  shall be made as if the reserve unit were a contributory unit, contributions for which are payable as from that entry payment day or annual adjustment day, as the case may be.
(5) 
(a)  Where a contributor who has:
(i)  contributed for at least ten years for any reserve units, or contributed for at least one year for any reserve units and has attained the age of fifty years, becomes eligible to or is required to contribute for one or more additional units of pension in pursuance of the provisions of this Act,
(ii)  (Repealed)
the contributor may elect by notice in writing to STC in the form prescribed to appropriate to the contribution account the contributions paid by the contributor to the reserve account in respect of a number of reserve units not exceeding the number of those additional units of pension.
(b)  Where a contributor so elects, no further contributions shall be paid into the reserve account in respect of the reserve units to which the election applies and the contributions payable by the contributor in respect of so many of the additional units of pension as is equal to the number of those reserve units shall be at the same rate as the contributions paid into the reserve account in respect of those reserve units.
(6)  A contributor who, on 1 January 1992, is contributing for any reserve units may, by notice in writing lodged with STC within 60 days after that date, elect to discontinue paying contributions in respect of those units.
(6AA)  STC must pay to a contributor who, in accordance with subsection (6), elects to discontinue the payment of contributions for reserve units the amount paid in respect of those units, together with any interest payable under subsection (6AD).
(6AB)  If a contributor who is contributing for reserve units ceases to be an employee, STC must pay to the contributor or, as the case may be, to the contributor’s personal representatives the amount of the contributor’s contributions paid in respect of those units, together with any interest payable under subsection (6AD).
(6AC)  In subsection (6AB), the reference to personal representatives includes a reference to a person referred to in section 88A (2).
(6AD)  A contributor is entitled to interest on contributions for reserve units paid for by the contributor, compounded annually, at the rate fixed by STC in accordance with section 86A and payable from the respective dates of payment.
(6AE)  Payments under subsections (6AA) and (6AB) are to be made from the appropriate reserve.
(6A)  For the purposes of subsections (6)–(6AE), a reference to the specified rate is:
(a)  if the rate relates to a period before the commencement of Schedule 2 (4) to the Superannuation (Amendment) Act 1988—6.5 per cent per annum or, where the Minister by order published in the Gazette had specified some other rate for the purposes of subsection (6) (c) (as in force before that commencement), that other rate, or
(b)  if the rate relates to a period after that commencement—such rate as STC has fixed from time to time under section 86A for the purposes of this section.
(7)  A contributor who has made an election under subsection (6) in respect of any reserve unit or units shall not again be eligible to elect to contribute for any reserve unit or units.
(7A)  A contributor who has made an election under subsection (5) may elect to contribute for reserve units but so that the number of reserve units for which the contributor becomes a contributor by virtue of the operation of this subsection, together with the reserve units, if any, for which the contributor was contributing immediately before the election under this subsection and any reserve units which may already have been appropriated by the contributor under subsection (5) shall not exceed eight.
(8)  (Repealed)

16–17CB   (Repealed)

17D   Orders fixing different tables etc

(1)  An order under section 10AD or 10AG does not have effect unless approved by both Houses of Parliament.
(2)  After approval by both Houses of Parliament, such an order shall be published in the Gazette and shall take effect on and from such day as the Governor may, by proclamation published in the Gazette, specify in respect thereof, being a day not earlier than the date of publication of the order and the date of publication of the proclamation.

18   (Repealed)

19   Employees on leave of absence

(1)  In respect of any contributor who is on leave of absence, whether without pay or not, the contributor’s contributions shall be paid during such leave of absence as for a period of service and shall become due on or before the last day of each month or four-weekly contribution period.
(2)  For the purposes of this Act, where a contributor is on leave without pay from the service of the contributor’s employer and is on secondment to the service of another employer, the contributor’s salary shall, notwithstanding subsection (1), be that paid or payable by that other employer.
(3)  For the purposes of this Act, where a contributor is on approved leave from the service of the contributor’s employer and is not on secondment to the service of another employer and is not a contributor to and in respect of whom subsection (7) is declared pursuant to subsection (6) to apply, and STC is of the opinion that the contributor’s salary would have been varied had the contributor not been on that leave, the contributor shall, unless STC otherwise determines, be deemed to have been paid by the contributor’s employer salary at the rates to which and at the times at which it would have been varied.
(4)  For the purposes of subsection (3), a person is on approved leave if the person is on leave without pay from the service of the person’s employer:
(a)  by reason of:
(i)  the person’s ill health,
(ii)  the person’s secondment to the service of a public authority constituted by or under an Act,
(iii)  the person’s secondment to the service of the Government of the Commonwealth or another State or to the service of a public authority constituted by or under an Act of the Parliament of the Commonwealth or another State, or
(iv)  the person’s service with the naval, military or air forces of the Commonwealth, or
(b)  in circumstances approved by STC under subsection (5).
(5)  For the purposes of subsection (4) (b), STC may, if it thinks fit, approve of circumstances in which a person is on leave without pay from the service of the person’s employer, if that employer certifies to STC that that person is, during the period of leave, acting in the interests of the employer or the State.
(6)  The Governor may, by instrument in writing, declare, either unconditionally or subject to conditions, that subsection (7) or (8) applies, or both apply:
(a)  to and in respect of a contributor specified in the instrument who is on leave of absence from the service of the contributor’s employer and is on secondment but not to the service of another employer, and
(b)  generally during the period of that secondment or during such period as is specified in the instrument, being, in either case, a period commencing before or after the commencement of this subsection or the date of the declaration.
(7)  During the period in which this subsection is declared pursuant to subsection (6) to apply to and in respect of a contributor who is on secondment, the contributor’s salary shall, for the purposes of this Act, be that paid or payable in respect of the service to which the contributor is seconded.
(8)  During the period in which this subsection is declared pursuant to subsection (6) to apply to and in respect of a contributor who is on secondment, the employer specified in the declaration as the employer for the purposes of this Act shall, for the purposes of this Act, be deemed to be the employer from whose service the contributor is on leave of absence.

19A   Deferment of payment of contributions

STC may, in special circumstances, defer the payment of any contribution by a contributor but, where STC so defers a payment, no benefit is payable to or in respect of the contributor until the outstanding contribution and, where appropriate, interest thereon, have been paid or arrangements satisfactory to STC have been made for their payment.

19B   (Repealed)

20   Manner of payment—deduction from wages or salaries

(1)  Whenever salaries or wages are paid to contributors, their employer must deduct from those salaries or wages the contributions that those contributors are required to make to the Fund.
(2)  An employer who has deducted contributions in accordance with subsection (1) must pay those contributions to STC, without deduction, within:
(a)  the period of 7 days immediately following the end of the contribution period to which they relate, or
(b)  such extended period as STC may allow in a particular case.
(3)  STC may enter into an arrangement with a contributor, or may require a contributor to enter into an arrangement with STC, for the payment of arrears of contributions to the Fund that have been incurred, or are expected to be incurred, by the contributor.
(4)  Where a contributor:
(a)  fails to comply with a requirement under subsection (3) to enter into an arrangement referred to in that subsection, or
(b)  having entered into such an arrangement, fails to comply with its terms,
STC may direct that any period in respect of which any such arrears are outstanding is not a period of service by the contributor, and the direction shall have effect according to its tenor.
(5)  Arrears in employers’ contributions (including arrears arising as a consequence of contributors commencing to contribute to the Fund after the date on which they were required to contribute) shall be payable, and shall be deemed always to have been payable, at such time or times as STC may determine.

20A   Contributor transferred to Commonwealth Public Service

In the case of a contributor to whom the last paragraph of section 84 of the Commonwealth Constitution applies, STC shall on the contributor’s transfer to the Public Service of the Commonwealth pay to the Treasurer (who may pay the same to the Commonwealth) the amount of the contributions made to the fund by such contributor. This section shall be deemed to have commenced on the first day of July, one thousand nine hundred and nineteen.

20AB   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 Division 3A of Part 4.
(2)  If a contributor fails to make an election under subsection (1) within 2 months of being required to make that election, the contributor is, for the purposes of this section, 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 Division 3A of Part 4.
(5)  A contributor who elects, under this section, to make provision for a benefit provided by Division 3A of Part 4:
(a)  may elect to make provision for the benefit even though he or she has not completed 3 years’ continuous contributory service, 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 52I, and
(d)  except as provided by subsection (6), is not entitled to be paid the benefit provided by Division 3A of Part 4 until on or after first ceasing to be an employee after making the election and unless there exist the circumstances in which a person referred to in section 52A (1) is entitled to be paid a benefit under that Division, 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, complying approved deposit fund or retirement savings 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 Division 3A of Part 4 to which the contributor is entitled under subsections (7) and (8).
(7)  For the purposes of subsection (6), the benefit to which the contributor is entitled is an amount equal to the actuarially calculated lump sum value of the benefit provided by Division 3A of Part 4 on ceasing to be a contributor.
(8)  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 as 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.
(9)  In this section:

complying approved deposit fund means a complying approved deposit fund for the purposes of section 47 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

complying superannuation fund means a complying superannuation fund for the purposes of section 45 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

retirement savings account has the same meaning as in the Retirement Savings Accounts Act 1997 of the Commonwealth.

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