Division 3BDivision 3B Deferral of benefit for contributors aged 55 years and over in certain circumstances
(1) This Division applies to a person who is a contributor:(a) who is of or above the age of 55 years, and(b) who, as a result of a single reduction of salary, has undergone a reduction of 20% or more in salary after reaching that age, and(c) whose employer certifies the matters referred to in paragraphs (a) and (b).(2) The fact that a person undergoes more than one salary reduction of 20% or more does not mean that the person ceases to be a person to whom this Division applies.
In this Division, exit day, in relation to an employee to whom this Division applies, means the day immediately preceding the day of the reduction in salary in relation to which the employee makes an election under section 52N.
52N Election to defer or preserve a benefit
(1) A person to whom this Division applies may elect:(a) if the person would have been entitled to be paid a benefit under section 21 (1) or 21 (1B) had he or she ceased employment on his or her exit day—to defer that benefit (in this Division termed a deferred benefit) in accordance with this Division, or(b) in any other case—to preserve a benefit provided for by Division 3A which benefit is to be dealt with in accordance with that Division.(2) When a person has made a valid election under subsection (1) (b), a benefit is not payable to, or in respect of, that person:(a) under any other provision of this Act, and(b) unless that person has ceased employment or has died.(3) An employee may make only one election under this section but the election may relate to any single reduction in salary of 20% or more that occurs after the employee reaches 55 years of age (not just the first reduction that occurs).
52O Date of deferral or preservation of benefit
A benefit referred to in this Division is deferred or preserved from the exit day.
52P Calculation of value of deferred benefit
The initial value of a deferred benefit is to be calculated in accordance with Division 2 as if the person had retired and may be adjusted or reduced in the same way as any other benefit payable to a person on retirement.
52Q Election to commute deferred benefit
(1) A person who has made a valid election under section 52N (1) (a) may elect to commute the whole or part of his or her pension benefit in accordance with sections 21C and 21D, except that:(a) sections 21C (5) and (6) and 21D (4) do not apply with respect to such an election, and(b) the election must be made by the person within 3 months after his or her exit day.(2) A person may not amend or withdraw an election to commute, in whole or in part, a deferred benefit made under this Division.
52R Adjustment of deferred benefit
A deferred benefit is to be adjusted:(a) as to the pension component of the benefit—in accordance with Division 6, and(b) as to the commuted component of the benefit—in accordance with section 8.
52S When deferred benefit is payable
A deferred benefit is to be paid on the happening of any of the following:(a) the person in respect of whom a benefit is payable applying for payment of the benefit following resignation, retirement or any other cessation of employment,(b) the death of the person in respect of whom a benefit is payable.
52T Payment of deferred benefit
(1) A deferred benefit is to be paid in accordance with this section.(2) In a case other than death of the person to whom this Division applies, payment is to be made to the person of the deferred pension, if any, and the deferred commuted component, if any, adjusted in accordance with this Division.(3) If the person to whom this Division applies dies and is survived by a spouse or de facto partner, payment is to be made to the spouse or de facto partner of:(a) a fortnightly pension at the rate of two-thirds of the pension, as adjusted, which would have been payable to the person, on the day immediately preceding the day of the person’s death, if no election to commute any part of the person’s benefit had been made, and(b) where applicable, the deferred commuted component, as adjusted, which would have been payable to the person had the person retired on the day immediately preceding the day of the person’s death, and(c) amounts in accordance with this Act in respect of any eligible children.(4) If the person to whom this Division applies dies and is not survived by a spouse or de facto partner, payment is to be made:(a) to the estate of the deceased of:(i) where applicable, the deferred commuted amount, as adjusted, or(ii) an amount calculated in accordance with section 38A which would have been payable to the person on the day immediately preceding the day of the person’s death,whichever is the greater, and(b) of amounts in accordance with this Act in respect of any eligible children.
When a benefit is deferred in accordance with this Division, section 33B applies.
When a benefit is deferred in accordance with this Division, section 38C does not apply.