Part 3B Conversion of existing entitlements
(1) This Part applies to a contributor who is eligible to make a conversion election.(2) A contributor is eligible to make a conversion election if the contributor is an employee of an employer listed in Part 1 or Part 2 of Schedule 26.(3) The Governor may by order published on the NSW legislation website amend Schedule 26.(4) An order under this section, and any order varying or revoking such an order, may be made to take effect on and from a day specified in the order, whether or not the day is earlier than the day of publication of the order.(5) The name of an employer may not be added to or omitted from Part 2 of Schedule 26 by an order under this section, except with the written consent of the employer.
(1) A conversion notice is a notification by the Treasurer to a contributor notifying the contributor of the right to make a conversion election under this Part.(2) The Treasurer must send to each contributor a conversion notice.(3) A conversion notice must be in writing in the form determined by the Treasurer and may consist of one or more documents.(4) A conversion notice is to be sent in the manner determined by the Treasurer.(5) Without limiting any other matters that may be included, a conversion notice must set out the following matters:(a) a statement to the effect that on taking effect a conversion election will terminate the contributor’s membership of the Fund and of the Fund under the State Authorities Non-contributory Superannuation Act 1987 and terminate any right of the contributor to any benefit (other than a conversion benefit) from those Funds,(b) the estimated benefits payable in respect of the contributor under this Part on making a conversion election and the estimated amount of benefits payable under this Act if the contributor does not make the election,(c) details of any benefits forgone by the contributor, whether under this Act or the State Authorities Non-contributory Superannuation Act 1987, on a conversion election taking effect,(d) the date on which a conversion election is to take effect (in this Part referred to as the conversion date) and the last date for making an election,(e) a statement to the effect that on and from the conversion date a contributor who makes a conversion election is required to become a member of the First State Superannuation Fund or, if the contributor is required by this Part to become a member of another specified superannuation fund or a superannuation fund of a specified kind, the fund or kind of fund to which STC is required to pay the conversion benefit,(f) a statement to the effect that independent financial advice should be obtained before making a conversion election and particulars of persons who are available to provide that advice,(g) a statement of the manner in which a conversion election is to be made,(h) a statement of the manner in which a conversion election may be amended or revoked and the last date on which it may be amended or revoked.
(1) A contributor may make a conversion election.(2) A conversion election is an election:(a) to make provision for the conversion benefit, and(b) to cease to be a contributor, and(c) to pay the conversion benefit in accordance with section 20M.(3) If a contributor is an executive officer, the conversion election must nominate an amount of salary or wages of the officer for the purposes of the First State Superannuation Act 1992.(4) If a contributor fails to make a conversion election on or before the last date for making an election specified in the conversion notice sent to the contributor, or purports to make an election after that date, the contributor is taken to have elected not to make a conversion election.(5) A contributor who makes a conversion election, and anyone else who would otherwise be a beneficiary under this Act through the contributor, is not entitled to a benefit under any provision of this Act after the conversion election takes effect, other than a conversion benefit.(6) A conversion election made by a contributor takes effect on the conversion date specified in the conversion notice given to the contributor.(7) The employer of a contributor who makes a conversion election must, on being notified by a person or body determined by the Treasurer for the purposes of this subsection that the contributor has made a conversion election, provide the person or body with particulars of the contributor’s salary as at the conversion date for the contributor within the period requested by the person or body.
20H Making, amendment and revocation of conversion election
(1) A conversion election must be in writing in the form determined by the Treasurer.(2) A conversion election is not validly made, amended or revoked, by a contributor unless it is made, amended or revoked as determined by the Treasurer and as specified in the conversion notice.(3) A conversion election may be amended or revoked in writing at any time by a contributor on or before the last date for making an election specified in the conversion notice for the contributor but may not be amended or revoked after that date.(4) The Treasurer, or a person or body authorised by the Treasurer for the purposes of this subsection, must notify STC when a conversion election takes effect in respect of a contributor.(5) For the avoidance of doubt, section 91 (2) applies to a conversion election.
20I Circumstances in which a conversion election revoked or may not be made
If a benefit is paid or becomes payable or is deferred or preserved in respect of a contributor under this Act before the conversion date for the contributor:(a) the contributor is not eligible to make a conversion election, and(b) if the contributor has made a conversion election, the election is taken to be revoked.
20J Matters to be determined by Treasurer
The Treasurer may, for the purposes of this Part, determine the following matters:(a) the form of the conversion notice and the conversion election,(b) the conversion date for a contributor, or class of contributors,(c) the information to be provided to contributors, employers and other persons in respect of the conversion benefit and related matters,(d) the period, or periods, within which a conversion notice is to be sent to a contributor or conversion notices are to be sent to classes of contributors,(e) the manner in which a conversion notice, and information about a conversion notice or the conversion benefit, is to be sent to a contributor or a class of contributors or any other persons,(f) the manner in which a conversion election is to be made, amended or revoked, the form of the conversion election and the period, or periods, within which a conversion election may be made, amended or revoked by a contributor or class of contributors.
(1) The conversion benefit provided for a contributor under this Part is the amount that is equal to the sum of the benefits set out in subsections (2), (3) and (4).(2) The benefit provided under this subsection is the amount of a benefit payable in respect of a contributor calculated in accordance with section 37A (4) (a) as if the contributor were retrenched on the conversion date for the contributor and was eligible for such a benefit. However, for the purposes of section 37A (5), if the contributor has reached the maturity age on or before the conversion date, item “M”, as referred to in section 37A (6), is taken to be equal in value to item “A”, as referred to in that subsection.(3) The benefit provided under this subsection is an amount equal to the greater of the following amounts:(a) the amount of the basic benefit provided to the contributor under the State Authorities Non-contributory Superannuation Act 1987, calculated as if the contributor had been retrenched on the conversion date for the contributor and the benefit was payable on that date, and reduced by the amount, if any, that it would have been reduced by under section 26A of that Act if it had been so payable,(b) $18,000.(4) The benefit provided under this subsection is an amount equal to the amount, if any, that would be payable under section 15A (6AB) in respect of the contributor if the contributor were retrenched on the conversion date for the contributor.(5) If the amount of the conversion benefit calculated under this section is less than the minimum benefit payable to the contributor, the amount of the conversion benefit is to be the amount of the minimum benefit.(6) STC may make a determination under section 61RA only in respect of the amount of the conversion benefit that consists of the amount of the benefit provided under subsection (2).(7) If STC has made a determination under section 61RA in relation to a conversion benefit, the amount of the benefit is reduced by the amount specified in the determination.
(1) For the purposes of section 20K, the minimum benefit payable to the contributor is the minimum benefit that would be payable to satisfy the requirements of section 61U, as determined by STC.(2) For the purposes of this section, STC may obtain actuarial advice.
20M Payment of conversion benefit
(1) If a person makes a conversion election in accordance with this Part, STC must, as soon as practicable after being notified that the election has taken effect, pay the amount of the conversion benefit payable but not paid in respect of the person:(a) if the person’s employer is an employer under the First State Superannuation Act 1992, to FTC, or(b) if the person’s employer is a university, to Unisuper Limited, or(c) in any other case, if the employer consents, to another superannuation scheme that is an accumulation scheme and is a regulated fund under the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.(2) STC is liable to pay interest, at a rate determined by the Treasurer, on any outstanding amount of a conversion benefit not paid on the conversion date for the contributor concerned.(3) STC may meet the requirement to pay an amount under this section by transferring assets equivalent to the value of that amount or by paying part of the amount and transferring assets of the value of the remaining amount payable.(4) If the conversion benefit is payable to FTC, FTC must credit the amount of the conversion benefit to an account to be established to the credit of the person in the First State Superannuation Fund, or to any existing account of the person under that Act.(5) If the conversion benefit is payable to Unisuper Limited, Unisuper Limited must credit the amount of the conversion benefit to an account to be established to the credit of the person in the accumulation division of the Superannuation Scheme for Australian Universities, or to any existing account of the person under that Division.(6) Duty under the Duties Act 1997 is not payable in respect of the transfer of any assets by STC to FTC under this section.(7) In this section:university includes the following:
(a) University of Wollongong Recreation and Sports Association,(b) Armidale Union-University of New England.
20N Reserves from which conversion benefit to be paid
(1) A conversion benefit payable under this Part is to be paid from the reserves of the Fund in accordance with section 33B.(2) If there is not a sufficient amount in the appropriate employer reserve of an employer for whom the Crown contributes amounts to the Fund, the amount of the insufficiency is payable from the Crown reserve established in the Fund or assets acquired using funds from the Crown reserve.
20O Information and assistance to be provided by STC
STC must, at the request of the Treasurer, provide to the Treasurer such information and assistance as the Treasurer requires for the purposes of this Part.
20P Liability for actions taken under Part
(1) A matter or thing done or omitted to be done by the Treasurer, or any person acting under the direction of the Treasurer, does not, if the matter or thing was done or omitted to be done in good faith:(a) in connection with obtaining or making a conversion election, or(b) in connection with the provision of information in relation to this Part, or(c) for the purpose of executing this Part,subject the Treasurer, a person so acting, FTC, STC, the FTC Board, the STC Board, a member of either of those Boards, or any person acting under the direction of FTC, STC or either of those Boards, to any action, liability, claim or demand.(2) Without limiting subsection (1), the Treasurer, FTC, STC, the FTC Board, the STC Board, a member of either of those Boards, or any person acting under the direction of the Treasurer, FTC, STC or either of those Boards, is not liable for any action, liability, claim or demand relating to the duties of FTC or STC as a trustee in respect of anything done or omitted to be done by the Treasurer, or any person acting under the direction of the Treasurer, as referred to in that subsection.(3) A matter or thing done or omitted to be done by STC, the STC Board, a member of the Board or any person acting under the direction of STC or the Board, does not, if the matter or thing was done or omitted in good faith:(a) in connection with obtaining or making a conversion election, or(b) in connection with the provision of information in relation to this Part, or(c) for the purpose of executing this Part,subject STC, a member of the Board or a person so acting, to any action, liability, claim or demand.(4) A matter or thing done or omitted to be done by FTC, the FTC Board, a member of the Board or any person acting under the direction of FTC or the Board, does not, if the matter or thing was done or omitted in good faith:(a) in connection with obtaining or making a conversion election, or(b) in connection with the provision of information in relation to this Part, or(c) for the purpose of executing this Part,subject FTC, a member of the Board or a person so acting, to any action, liability, claim or demand.(5) This section has effect despite the Superannuation Administration Act 1996 or any other law.