Division 3ADivision 3A Voluntarily deferred benefits
52A Calculation of preserved pension components
(1) Where a person who is retrenched or resigns or is dismissed or discharged from the service of an employer elects to take the benefit of this Division, there shall be calculated, as at the person’s exit day, the employee-contributed pension component, and the employer-financed pension component, in relation to the person.(2) For the purposes of subsection (1), the employee-contributed pension component in relation to a person shall be calculated in accordance with the following formula:
where:P1 is the employee-contributed pension component.
EPU is the sum of the following:
(a),
(b),
(c) UC.UHn is the number of units of pension for which contributions were payable by the person on the person’s exit day 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 last contribution period for which contributions were payable by the person before the person’s exit day, in respect of that number of units of pension.
Rn is the relevant amount under subsection (4) in relation to the person for an additional unit of pension on the person’s exit day.
TCB is the total amount paid in respect of instalments payable by the person on or before the person’s exit day for units of pension for which the person contributed in accordance with Division 6 of Part 3 (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 person.
UC is the number of units (if any) purchased by the person and credited to the person as fully paid up units under section 20C or otherwise.
(3) For the purposes of subsection (1), the employer-financed pension component in relation to a person shall be calculated in accordance with the following formula:
where:P2 is the employer-financed pension component.
UE is the number of units of pension that, pursuant to section 12 (1), is appropriate to the salary payable to the person on the person’s exit day plus, in a case to which section 10W applies, the number of any excess units of pension referred to in section 10W (1) and in respect of which STC considers, in accordance with section 10W (5), that the retention of entitlement to benefits under this Act is warranted.
S is the number of years (including any fractional part of a year calculated on a daily basis) of continuous contributory service by the person with any one or more employers.
T is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the person’s exit day precedes:
(a) the date on which the person attains the maturity age, or(b) where any employment which, on the person’s exit day, the person 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.(4) For the purposes of subsection (2), the relevant amount in relation to a person for an additional unit of pension on the person’s exit day is:(a) where the person has attained the prescribed age on or before that day, the amount which, if the person were required under Division 5 of Part 3 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 person has not attained the prescribed age on or before that day, the amount equal to the sum of:(i) the amount payable by the person for any additional unit of pension for which the person had been required to commence contributing on and from the person’s last annual adjustment day for a contribution period or, as the case may be, the amount that would have been so payable if the person 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 person’s exit day, 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 person had been 1 year older than the age actually attained.(5) For the purposes of subsection (3), the period of continuous contributory service by a person on the person’s exit day is the period that commenced when the person last became a contributor and ended on that day (but excluding any part of that period during which the person is treated by section 48 as being on leave of absence without pay).(6) If STC has made a determination under section 61RA in respect of a pension payable under this Division, the amount of the pension is reduced by the amount specified in STC’s determination.
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52B Adjustment of pension components
(1) Expressions used in this section have the same meanings as they have in Division 6.(2) Where:(a) the employer-financed pension component in relation to a person is calculated under this Division as at the person’s exit day,(b) pensions are adjusted under Division 6 by a percentage for a year commencing after the exit day, and(c) no benefit became payable under this Division during that year to, or by virtue of the death of, the person,the component, as so calculated and as previously adjusted under this section, is, as from the adjustment date for that year, adjusted by that percentage.(3) Where:(a) the employer-financed pension component in relation to a person is calculated under this Division as at the person’s exit day,(b) pensions are adjusted under Division 6 by a percentage for a year commencing on or before the exit day and ending after the exit day, and(c) no benefit became payable under this Division during that year to, or by virtue of the death of, the person,the component, as so calculated, is, as from the adjustment date for that year, adjusted by the percentage calculated in accordance with the following formula:
where:A is the percentage by which the component is to be adjusted.
P is the percentage for the year by which pensions are adjusted.
Q is the number of whole quarters of the year, being the whole quarters after the exit day.
(4) Where:(a) a pension under this Division, or a pension that is calculated by reference to a pension that is payable under this Division, has become payable to or in respect of a person referred to in section 52A, and(b) pensions are adjusted under Division 6 by a percentage for a year beginning before and ending after the date on which that pension became so payable,the pension, as from the adjustment date for that year, is, in addition to any adjustment of the pension under Division 6, adjusted by the amount calculated in accordance with the following formula:
where:A represents the amount of the pension as adjusted.
C2 represents:
(a) in the case of a pension payable under section 52C or 52E to a person—the amount of the employer-financed pension component calculated in relation to the person and as adjusted by the operation (if any) of this section before the pension became payable, or(b) in the case of a pension payable under section 52D to a person—the amount obtained in relation to the person from the calculation, under that section, of the formula, or
(c) in the case of a pension payable under this Division to the spouse or de facto partner of a person referred to in section 52A (1)—an amount equal to two-thirds of the amount of the employer-financed pension component calculated in relation to that person and as adjusted by the operation (if any) of this section before the pension became payable, or(d) in the case of a pension of a spouse or de facto partner that is calculated by reference to a pension that was payable to a person under this Division—an amount equal to two-thirds of the amount referred to in paragraph (a) or (b), as the case may be, in relation to that person.P represents the percentage for the year by which pensions are adjusted.
Q represents the number derived by adding together the following:
(a) except when paragraph (b) applies—“1” (representing the quarter of the year during which the pension became payable),(b) if the pension became payable on the first day of a quarter, “0”,(c) the smaller of:(i) the number of whole quarters in that year that have occurred before the day on which the pension became payable, and(ii) the number of whole quarters that have occurred since the exit day of the person to or in respect of whom the pension is payable and before the day on which the pension became payable.
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(1) A person referred to in section 52A (1) who has not received any other benefit under this Division and who applies to STC to receive a pension under this section is entitled to receive that pension:(a) on the person’s attaining the maturity age,(b) where any employment which, on the person’s ceasing to be a contributor, the person was entitled to count as service for the purposes of section 21 was, in total, for less than a period of 10 years—on the expiration of such time after the person ceased to be a contributor as is equivalent to the balance of that period, or(c) on receipt by STC of the application,whichever is the latest.(1A) The pension provided by this section is not payable under subsection (1) to a person who elected to provide for the benefit under section 20AB unless the requirements of section 20AB (5) (d) are satisfied.(2) The pension which a person is entitled to receive under this section is a pension of an amount per fortnight equivalent to the sum of:(a) the employee-contributed pension component calculated in relation to the person, and(b) the employer-financed pension component calculated in relation to the person and as adjusted by the operation (if any) of section 52B.(3) This Act applies to and in respect of a person who is entitled to a pension under this section in the same way as it applies to and in respect of a contributor who is entitled to a pension under section 27 and so applies as if the pension payable under this section were a pension payable under that section.
52D Pensions at early retirement age
(1) A person referred to in section 52A (1) who has not received any other benefit under this Division and who applies to STC to receive a pension under this section is entitled to receive that pension:(a) on the person’s attaining the age of 55 years,(b) on the expiration of the period of ten years after the person last became a contributor, or(c) on receipt by STC of the application,whichever is the latest.(1A) The pension provided by this section is not payable under subsection (1) to a person who elected to provide for the benefit under section 20AB unless the requirements of section 20AB (5) (d) are satisfied.(2) The pension which a person is entitled to receive under this section is a pension of an amount per fortnight calculated in accordance with the following formula:
where:TP is the amount of the pension.
P1 is the employee-contributed pension component calculated in relation to the person.
P2 is the employer-financed pension component calculated in relation to the person and as adjusted by the operation (if any) of section 52B.
TM is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day from which the pension commences to be payable precedes the date on which the person attains the age of 60 years.
(3) This Act applies to and in respect of a person who is entitled to a pension under this section in the same way as it applies to and in respect of a contributor who is entitled to a pension under section 28A and so applies as if the pension payable under this section were a pension payable under that section.
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(1) A person referred to in section 52A (1) who has not received any other benefit under this Division and who applies to STC to receive a pension under this section is entitled to receive that pension:(a) on receipt by STC of the application, or(b) on STC’s being satisfied, after taking into account any medical opinion that it considers to be relevant, that the person is physically or mentally incapable of performing the duties of any employment that, in the opinion of STC, it would be reasonable for the person to undertake,whichever is the later.(1A) (Repealed)(2) The pension which a person is entitled to receive under this section is a pension of an amount per fortnight equivalent to the sum of:(a) the employee-contributed pension component calculated in relation to the person, and(b) the employer-financed pension component calculated in relation to the person and as adjusted by the operation (if any) of section 52B.(3) A person to whom this section applies shall be granted payment of pension only for such period at a time as STC determines and a fresh application shall, unless STC from time to time otherwise determines, be necessary before any further payment is made.(4) The period determined by STC as referred to in subsection (3) for the payment of pension to a person:(a) if the person has not attained the maturity age, shall be such period (not exceeding 5 years) as STC thinks fit, having regard to the state of health of the person, and(b) if the person has attained the maturity age—may be for the remainder of the person’s life.(4A) Despite subsection (4), STC may determine that the period for payment of a pension to a person to whom this section applies or a person who is being paid a pension under this section, and who has attained the age of 55 years, is to be for the remainder of the person’s life.(4B) STC may not make a determination under subsection (4A), except at the election of the person concerned.(4C) Subsections (5)–(7) do not apply to a person the subject of a determination under subsection (4A).(5) A person receiving a pension under this section shall submit to a medical examination as and when required by STC and, if the person defaults in complying with any such requirement, pension shall cease to be payable to the person during the default.(6) A pension payable under this section shall cease to be payable to a person on STC’s ceasing to be satisfied as referred to in subsection (1) (b) in relation to the person.(7) Where a pension under this section ceases to be payable to a person, the person shall, for the purposes of this Division, be deemed not to have received a benefit under this Division.(8) Except as provided by this section, this Act applies to and in respect of a person who is entitled to a pension under this section in the same way as it applies to and in respect of a person entitled to a pension under section 29 and so applies as if the pension payable under this section were a pension payable under that section.
(1) STC may grant an interim pension to a person who has attained the age of 55 years and who, on application, would be entitled to a pension under section 52D, pending the determination of an application under section 52E.(2) The pension which STC may grant is a pension equal to the early retirement pension to which the person would be entitled on application under section 52D.(3) This Act applies to and in respect of a person granted a pension under this section in the same way as it applies to a person entitled to a pension under section 28A and so applies as if a pension payable under this section were a pension payable under that section.(4) If an interim pension is granted, the amount of any pension payable to a person under section 52E is to be reduced by the amount of any interim pension paid.(5) Despite section 52E (1), the grant of an interim pension under this section does not make a person ineligible for a pension under section 52E or affect any other right of a person granted a pension under that section.(6) However, a person who commutes an interim pension before the determination of an application under section 52E is not entitled to a pension under section 52E.
52F Pensions for spouses or de facto partners
(1) Where a person referred to in section 52A (1) who has not received a benefit under this Division dies, the spouse or de facto partner of the person is entitled to receive a pension under this section on receipt by STC of an application by the spouse or de facto partner for that pension.(2) The pension which a spouse or de facto partner of a person is entitled to receive under this section is a pension at the rate of two-thirds of the pension that would have been payable to the person had the person been entitled to pension under section 52E immediately before dying.(3) This Act applies to and in respect of a spouse or de facto partner who is entitled to receive a pension under this section in the same way as it applies to and in respect of a spouse or de facto partner of a contributor, being a spouse or de facto partner to whom pension is payable under this Act, and so applies as if the pension payable under this section were a pension payable under section 30 by virtue of the death of a contributor.
52FA Children’s pensions at sec 61M rates
(1) A pension of the appropriate amount per fortnight under section 61M is payable in respect of a child on the death of a person referred to in section 52A (1) (the former employee) who has not received a benefit under this Division if the conditions set out in subsections (2) and (3) are satisfied.(2) The child must be a child of the former employee or a child of a surviving spouse or de facto partner of the former employee who is not eligible to receive a pension under section 52G.(3) If the child is not a child of the former employee, the child:(a) must have been born or adopted before the death of the former employee, and(b) must have been ordinarily part of the former employee’s household at the time of the death of the former employee.(4) A pension under this section ceases to be payable in respect of a child if the surviving parent dies, but continues to be payable even though the surviving parent marries or remarries.(5) This Act applies to and in respect of a child in respect of whom a pension is payable under this section in the same way as it applies to and in respect of a child in respect of whom a pension is payable under Division 2, and so applies as if the pension payable under this section were a pension payable under Division 2 by virtue of the death of a contributor.
(1) A pension of the appropriate amount per fortnight under section 61N is payable in respect of a child on the death of a person referred to in section 52A (1) (the former employee) who has not received a benefit under this section if the conditions set out in subsections (2)–(3A) are satisfied.(2) The child must be a child of the former employee or a child of a spouse or de facto partner of the former employee.(3) The other parent of the child or the spouse or de facto partner of the former employee who was a parent of the child:(a) must have died before the former employee’s death, or(b) must have been divorced from the former employee, or(c) must have been in a registered relationship or interstate registered relationship, within the meaning of the Relationships Register Act 2010, or a de facto relationship, with the former employee that ended before the former employee’s death.(3A) If the child is not a child of the former employee:(a) in a case where the spouse or de facto partner who is the parent of the child is divorced from or the former de facto partner of the former employee, the child must have been born or adopted before the divorce or end of the relationship, and(b) in any case, the child must have been ordinarily part of the former employee’s household at the time of the death of the spouse or de facto partner, divorce or end of the relationship.(4) Where a pension ceases to be payable under section 52FA in respect of a child because the surviving parent dies, a pension of the appropriate amount per fortnight under section 61N is payable in respect of the child.(5) This Act applies to and in respect of a child in respect of whom a pension is payable under this section in the same way as it applies to and in respect of a child in respect of whom a pension is payable under Division 2, and so applies as if the pension payable under this section were a pension payable under Division 2 by virtue of the death of a contributor.(6) In this section:spouse or de facto partner includes a person previously married to the former employee or a former de facto partner.
(1) In this section, student has the same meaning as it has in section 43A.(2) Where a person referred to in section 52A (1) who has not received a benefit under this Division dies, a pension under this section:(a) is payable in respect of a student if a pension would be payable in respect of the student were the person a contributor and the student under the age of 18 years, on receipt by STC of an application for that pension, and(b) is payable to such persons as STC determines a pension would have been payable were the student under the age of 18 years or shall be expended by STC towards the support or education of the student.(3) The amount of pension payable under this section shall be:(a) in the case of a student in respect of whom the pension referred to in subsection (2) (a) is a pension payable under section 33—the appropriate amount per fortnight under section 61N, or(b) in any other case—the appropriate amount per fortnight under section 61M.(4) For the purposes of section 43A (1), (5), (6) and (7), a pension payable under this section shall be deemed to be a pension payable under section 43A.(5) This Act applies to and in respect of a student in respect of whom a pension is payable under this section in the same way as it applies to and in respect of a student in respect of whom a pension is payable under section 43A, and so applies as if the pension payable under this section were a pension payable under that section by virtue of the death of a contributor.
(1) A person referred to in section 52A (1) who has not received any other benefit under this Division may, at any time, apply to STC for a cash termination benefit under this section.(2) On receipt by STC of an application made by a person in accordance with subsection (1), there shall be payable to the person:(a) if the person was retrenched from the service of an employer—the lump sum payment to which the person would have been entitled under section 38B in consequence of the retrenchment if the person had elected under that section to take a lump sum benefit, or(b) if the person resigned or was dismissed or discharged from the service of an employer—the lump sum payment to which the person would have been entitled under section 38A in consequence of the resignation, dismissal or discharge.(2A) STC is to adjust the amount of a benefit payable under this section, having regard to any adjustment of a contributor’s account under section 8.(3) An application made in accordance with subsection (1) shall be deemed to be revoked if the person dies before payment of the cash termination benefit applied for, leaving a spouse or de facto partner to whom, but for the payment of that benefit, a pension would, on application, be payable under this Act.(4) Where a person referred to in section 52A (1) dies without having received a benefit under this Division and without leaving a spouse or de facto partner (or leaving a spouse or de facto partner who dies without having received a benefit under this Division), the person shall, unless the person leaves a child or children in respect of whom pension is payable under this Act or would, but for this section, be so payable, if application is made to STC for a benefit under this section, be deemed to have applied for a cash termination benefit under subsection (1) immediately before the death, and the money payable under subsection (2) shall be paid by STC to the person’s personal representatives or, where the person has no personal representatives, to such persons as STC may determine.(5) Where a person referred to in section 52A (1) dies without having received a benefit under this Division leaving a child or children in respect of whom pension is, on application, payable under this Act or would, but for this section, be so payable, STC may, on receipt by it of an application for a benefit under this section, or section 52FA or 52G:(a) pay the cash termination benefit under this section as if the person had not died leaving the child or children, in which case a pension or pensions shall not be payable under this Act in respect of the child or children, or(b) pay a pension or pensions in respect of the child or children as if this section had not been enacted,whichever STC considers to be in the best interests of the child or children.
52IA Effect of contributor becoming a contributor to another scheme while employed by the same employer
(1) A contributor (other than a contributor who is an executive officer) who becomes a contributor to another superannuation scheme while employed by the same employer:(a) is required to make provision for a benefit provided by this Division (section 52I excepted) despite anything to the contrary in this Division, and(b) shall be regarded as having elected to make provision for that benefit on becoming a contributor to that other superannuation scheme, and(c) is not entitled to elect to take the benefit provided by section 52I while employed by that same employer.(2) Subsection (1) does not apply to an employee for whom additional pre-tax employer contributions are made to another superannuation scheme.