3.4 Paragraph (a) of clause 3.1 is amended by deleting
“and persons who have preserved benefits” and substituting “, preserved benefit
members and associates,”.
3.5 Paragraph
(b) of clause 3.1 is replaced with the following paragraph:
“(b) to
provide information about benefits or potential benefits, and available
options, to:
(i) members;
(ii) preserved
benefit members;
(iii) associates;
and
(iv) potential
members;”
3.6 Paragraph
(h) of clause 3.2 is amended by deleting “members’ entitlements to benefits and
the entitlements of persons who have preserved benefits” and substituting
“entitlements to benefits of members, preserved benefit members and
associates”.
3.7 The
following clause is inserted after clause 3.2:
“3.2A In
exercising its functions and powers the Board shall comply with the
requirements of the Superannuation Industry (Supervision) Act 1993 and
Regulations made under that Act, and have regard to the interests of members
and their employers, preserved benefit members and associates.”
3.8 Clause
3.3 is amended by deleting “In exercising its functions and powers the Board
shall comply with the requirements of the Superannuation Industry
(Supervision) Act 1993 and Regulations made under that Act, and have regard
to the interests of members, their employers and persons with preserved
benefits.”
3.9 Paragraph
(c) of clause 3.3 is amended by deleting “and persons who have preserved
benefits” and substituting “, preserved benefit members and associates”.
3.10 Paragraph
(h) of clause 3.3 is amended by deleting “or a person who has a preserved
benefit” and substituting “, a preserved benefit member or an associate”.
3.11 Paragraph
(d) of clause 9.2 is amended by deleting “and”.
3.12 Paragraph
(e) of clause 9.2 is amended by adding at the end “; and”.
3.13 Clause
9.2 is amended by inserting the following paragraph after paragraph (e):
“(f) funded
components of associate benefits.”
3.14 Clause
9.3 is amended by inserting “and associates,” after “members”.
4. The
Rules are amended as follows:
4.1 Rule
1.1.1 is amended by deleting “divided into 14 Parts” and substituting “divided
into 16 Parts”.
4.2 The
table to Rule 1.1.1 is amended by deleting “Guide to the 14 Parts of the Rules”
(wherever occurring) and substituting “Guide to the 16 Parts of the Rules”.
4.3 The
table to Rule 1.1.1 is amended by adding at the end the following items:
|
15
|
Commutation
of pension: Payment of Surcharge Liability
|
Allowing
a person who receives a surcharge assessment while in receipt of pension to
commute that pension to pay the surcharge liability to the ATO.
|
|
16
|
Family
Law Superannuation Splitting
|
The
creation of a separate interest in the PSS for a non-member spouse and
subsequent reduction of the benefit of a member spouse following the receipt
of an agreement or court order as a result of Family Law actions.
|
4.4 Rule
1.2.1 is amended by deleting the definitions of accumulated member
contributions, accumulated productivity contributions and
unfunded preserved benefit and substituting the following definitions:
|
accumulated
member contributions
|
in
relation to a member or a preserved benefit member, means the
sum of the following cumulative amounts taking into account any reductions
that apply under rule 16.4.2(a):
(a) the cumulative amounts are:
·
contributions that have been, or are deemed to have been, paid
or have become payable, by the member or preserved benefit member
on or after his/her first day of membership; and
·
the amount of any accumulated member contributions
included in a preserved benefit applicable to the person immediately
before last becoming a member, together with the amount of any
interest up to his/her first day of membership in accordance with a
determination or determinations by the Board as to rates of interest
and the method of allocation; and
·
the amount of any accumulated member contributions
accrued before last becoming an invalidity pensioner by, and not
refunded to, a person who was an invalidity pensioner immediately
before becoming a member; and
·
any amount that is the member’s paid accumulated contributions
under the Superannuation Act 1976 included in a transfer of assets in
respect of him/her to the Board under section 248 of that Act; and
·
the amount calculated under paragraph 11.3.29(b) (if any); and
·
the interest (if any) in respect of these amounts in accordance
with a determination or determinations by the Board as to rates of
interest and method of allocation.
|
|
accumulated
productivity contributions
|
in relation to a member or a preserved
benefit member, means the sum of the accumulated funded productivity
contributions and the accumulated
unfunded productivity contributions
taking into account any reductions that apply under rule 16.4.2(b).
|
|
unfunded
preserved benefit
|
in
relation to a preserved benefit for a preserved benefit member
on a particular day, means the amount of the preserved benefit on that
day that is attributable to the amount (if any) of the member’s final unfunded
benefit accrual included in the preserved benefit, taking into
account any reductions that apply under Rule 16.4.5.
|
4.5 Rule
1.2.1 is amended by inserting each of the following definitions, in its
appropriate alphabetical order (determined on a letter-by-letter basis):
|
accumulated
transfer amount
|
means:
·
in relation to a member—the transfer amount
relating to the member plus accumulated interest calculated under Rule
11.1.4, taking into account any reductions that apply under
paragraph 16.4.2(c).
·
in relation to a preserved benefit member—the amount so
preserved in the PSS scheme plus accumulated interest calculated under
Rule 11.1.5, as taking into account any reductions that apply under
paragraph 16.4.2(c).
|
|
additional
accumulation amount
|
(see
Rule 16.1.2)
|
|
additional
accumulation component
|
(see
Rule 16.1.2)
|
|
associate
|
a
person who has an entitlement to an associate benefit.
|
|
associate
benefit
|
(see
Rule 16.1.2)
|
|
associate
preserved
benefit
|
(see
Rule 16.1.2)
|
|
associate
preserved pension
|
(see
Rule 16.1.2)
|
|
associate
standard pension
|
(see
Rule 16.1.2)
|
|
base
amount
|
(see
Rule 16.1.2)
|
|
family
law value
|
(see
Rule 16.1.2)
|
|
funded
component
|
(see
Rule 16.1.2)
|
|
member
contributions amount
|
(see
Rule 16.1.2)
|
|
member
contributions component
|
(see
Rule 16.1.2)
|
|
member
spouse
|
(see
Part VIIIB of the Family Law Act 1975 and Rule 16.1.1)
|
|
non-member
spouse
|
(see
Part VIIIB of the Family Law Act 1975 and Rule 16.1.1)
|
|
non-standard
pension
|
(see
Rule 16.1.2)
|
|
operative
time
|
(see
Rule 16.1.2)
|
|
original
interest
|
(see
Rule 16.1.2)
|
|
payment
split
|
(see
Rule 16.1.2)
|
|
productivity
contributions amount
|
(see
Rule 16.1.2)
|
|
productivity
contributions component
|
(see
Rule 16.1.2)
|
|
scheme
value
|
(see
Rule 16.1.2)
|
|
separation
amount
|
(see
Rule 16.1.2)
|
|
separation
factor
|
(see
Rule 16.1.2)
|
|
splitting
agreement
|
(see
Rule 16.1.2)
|
|
splitting
order
|
(see
Rule 16.1.2)
|
|
splitting
percentage
|
(see
Rule 16.1.2)
|
|
standard
pension
|
(see
Rule 16.1.2)
|
|
superannuation
interest
|
(see
Rule 16.1.2)
|
|
unfunded
component
|
(see
Rule 16.1.2).
|
4.6 The
following rule is inserted after Rule 1.2.1:
“
1.2.2
If a word or phrase defined in a Part or a Division of these Rules is used
elsewhere in these Rules, it has the same meaning unless excluded by the
context. For convenience, these words and phrases are listed as signpost
definitions in Rule 1.2.1 above.”
4.7 The
table to Rule 5.2.1 is amended by adding at the end the following item:
|
Reduction
Multiple
|
The
application of a splitting agreement or splitting order under Part 16.
|
5.2.26
|
4.8 The
following rule is inserted after Rule 5.2.25:
“
5.2.26 A Reduction Multiple applies to a member
to whom Part 16 applies and is calculated under Rule 16.4.3. This multiple is
to be used to reduce the Benefit Accrual Multiple.”
4.9 The
table to Rule 5.3.1 is amended by adding at the end the following item:
|
Reduction
Multiple
|
The
application of a splitting agreement or splitting order under Part 16
|
5.3.26
|
4.10 The
following rule is inserted after Rule 5.3.25:
“
5.3.26 A Reduction Multiple applies to a member
to whom Part 16 applies and is calculated under Rule 16.4.3. This multiple is
to be used to reduce the Benefit Accrual Multiple.”
4.11 The
following rule is inserted after Rule 5.6.5:
“
Reduction Multiple to be disregarded in
certain cases
5.6.6 In deciding the date on which a person
becomes a maximum benefits member, a Reduction Multiple must not be
taken into account, however the benefit payable to the person is subject to
reduction under Rule 16.4.4.”
4.12 The
following rule is inserted after Rule 5.7.7:
“
Reduction Multiple to be disregarded in
certain cases
5.7.8 In deciding the date on which a person becomes
a maximum benefits member, a Reduction Multiple must not be taken into
account, however the benefit payable to the person is subject to reduction
under Rule 16.4.4.”
4.13
Paragraph (b) of Rule 10.6.3 is amended by deleting “or former member”
and substituting “, former member or associate”.
4.14
Paragraph (b) of Rule 10.6.4 is amended by deleting “a preserved benefit
under Rule 8.1.1, whether the former member” and substituting “to a
person a preserved benefit under Rule 8.1.1 or an associate preserved
benefit under Rule 16.3.6, whether the person”.
4.15
Paragraph (c) of Rule 10.6.6 is amended by deleting “a former member seeking
payment of his/her preserved benefit ” and substituting “a person
seeking payment of a preserved benefit or an associate preserved
benefit”.
4.16 The
following Division is inserted after Division 8 of Part 10:
“
|
Division 8A
|
Payment of Associate Preserved Benefits on
Invalidity
|
Clear
entitlement to invalidity benefits
10.8A.1 Where a request to pay an associate
preserved benefit on invalidity grounds under Rule 16.3.2 has been
received, the Board may approve the payment if, after considering:
(a) the
report or reports of one or more medical practitioners submitted with the
request; and
(b) any
other matters the Board considers relevant;
it is satisfied
there is no reasonable doubt the associate is:
(c) totally
and permanently incapacitated; or
(d) suffering
from a terminal medical condition.
Reasonable doubt
regarding entitlement to associate preserved benefits
10.8A.2 If the Board considers there is
reasonable doubt that the associate is totally and permanently
incapacitated, the Board must:
(a) require
the associate to undergo a medical examination by a Commonwealth Medical
Officer or other approved medical practitioner within six months, or
other period specified by the Board, of the date the Board was
asked to approve the payment; and
(b) refer
the issue of whether the associate is totally and permanently
incapacitated and the report of the medical examination to an Assessment
Panel;
before considering
a request to pay the associate preserved benefit on invalidity
grounds.
10.8A.3 The Board must decide whether or
not to pay an associate preserved benefit to an associate,
other than an associate entitled to his/her associate preserved
benefit under Rule 10.8A.1. When making its decision the Board
must consider the recommendation of the Assessment Panel.
Decision to be
advised to associate
10.8A.4 The Board must advise its decision
under Rule 10.8A.1 or 10.8A.3 to the associate. The advice is to include
a statement of the reasons for the decision and a copy of the
recommendation made by the Assessment Panel, if any.”
4.17 Rule
11.1.4 is amended by deleting “The transfer amount plus accumulated
interest is called the Accumulated Transfer Amount.”
4.18 Rules
11.1.5, 11.2.1, 11.2.2 and 11.2.4 are amended by deleting “Accumulated Transfer
Amount” (wherever occurring) and substituting “accumulated transfer amount”.
4.19 Rule
11.3.1 is amended by deleting all the words and figures preceding the formula,
and substituting “Subject to Rule 11.3.1A, the Transfer Multiple Amount in
relation to a member is the amount calculated by the formula:”.
4.20 The
following rules are inserted after Rule 11.3.1:
“11.3.1A
The amount calculated under Rule 11.3.1 must take into account any reduction
that applies under paragraph 16.4.2(c).
11.3.1B On cessation of membership, a member
who transferred a transfer amount into the PSS scheme under
Rule 11.1.1, before 1 January 1996 (see also Rule 11.3.4) is, in respect
of that transfer amount, entitled, to whichever is the greater of
his/her:
(a) accumulated
transfer amount; or
(b) Transfer
Multiple Amount.”
4.21 Rule
11.3.2 is amended by deleting “Accumulated Transfer Amount under Rule 11.3.1”
and substituting “accumulated transfer amount under Rule 11.3.1B”.
4.22 Rules
11.3.7 and 11.3.9 are amended by deleting “Accumulated Transfer Amount”
(wherever occurring) and substituting “accumulated transfer amount”.
4.23 Rule
11.3.10 is amended by deleting “paragraph (b) of” from the value “TM”.
4.24 The
following rule is inserted after Rule 11.3.11:
“11.3.11A
In deciding the date on which a person becomes a maximum benefits member,
a Reduction Multiple must not be taken into account, however the benefit payable
to the person is subject to reduction under Rule 16.4.4.”
4.25 Rules
11.3.12, 11.3.13, 11.3.14, 11.3.18, 11.3.19, 11.3.20, 11.3.21, 11.3.22,
11.3.23, 11.3.24, 11.3.26, 11.3.27, 11.3.29, 11.5.1, 11.5.2 and 11.5.3 are
amended by deleting “Accumulated Transfer Amount” (wherever occurring) and
substituting “accumulated transfer amount”.
4.26 Rule
12.1.1 and its heading are replaced with the following rule and heading:
“
When a benefit option may be chosen
12.1.1 This rule applies to a person who has more
than one benefit option available for choice under any one or more of Parts 6,
11 or 16 of these Rules. The person may choose one of the options within the
period commencing three months before and ending three months after the relevant
time. In this rule, the relevant time is:
(a) for
a member or a former member—the time he/she ceases membership; or
(b) for
an associate—the time he/she becomes entitled to the payment of the associate
benefit;
and includes such
further period as the Board allows.
4.27 The
heading to Rule 12.1.2 is amended by deleting “or former member”
and substituting “etc”.
4.28 The
following rule is inserted after Rule 12.1.3:
“12.1.3A
This rule applies if an associate preserved benefit is payable to
a person who has more than one benefit option available for choice under these
Rules but the person dies before choosing one of the options. The amounts
mentioned in Rule 16.3.1 in respect of the benefit are payable to the legal
personal representative of the person or, if the person has no legal
personal representative, to any person or persons determined by the Board.
4.29 Rule
12.2.1 is amended by deleting “including preserved benefit members” and
substituting “preserved benefit members and associates”.
4.30 Rule
12.2.2 is replaced with the following rule:
“12.2.2
The Board may pay all or part of a person’s lump sum payment,
fortnightly instalment of pension (including partial invalidity
pension), or pre-assessment payments to the legal personal
representative of the person in the relevant circumstances. In this
rule, the relevant circumstances are that :
(a) in
the opinion of the Board, the person is insane; or
(b) the
person is in prison; or
(c) for
any other reason, the Board considers the circumstances appropriate.”
4.31 Paragraph
(b) of Rule 12.2.3 is replaced with the following paragraphs:
“(b) a
preserved benefit; or
(c) an associate preserved benefit;”
4.32 Paragraph
(b) of Rule 12.2.4 is replaced with the following paragraphs:
“(b) a
preserved benefit; or
(c) an associate preserved benefit;”
4.33 Rule
12.2.6 is amended by deleting “or of a class of persons” and substituting “, an
associate or any other class of persons”.
4.34 Rule
12.2.9 is amended by deleting “The Surcharge” and substituting “Subject to Rule
12.2.9A, the Surcharge”.
4.35 The
following rule is inserted after Rule 12.2.9:
“12.2.9A
Reductions under Rule 16.4.3 are to be disregarded in applying Rule 12.2.9.”
4.36 Rule
12.3.3 is amended by inserting “ or an associate” after “a former member”.
4.37 Paragraph
(d) of Rule 13.3.6 is replaced with the following paragraphs:
“(d) if
the Board has to reconsider whether to pay associate preserved
benefits on invalidity grounds under paragraph 16.3.2(a) or (b), whether
the associate is:
(i) suffering
from a terminal medical condition; or
(ii) totally
and permanently incapacitated;
as
appropriate; and
(e) on any other matters the panel considers relevant or the Board
requires;”
4.38 The following Part is inserted
after Part 15 of the Rules:
“
Part 16 – FAMILY LAW
SUPERANNUATION SPLITTING
|
Division 1
|
Words and Phrases Used
in this Part
|
Explanation of
certain words and phrases
16.1.1 If a word or phrase defined in Part VIIIB
of the Family Law Act 1975 is used in this Part, it has the same meaning
unless excluded by the context. For convenience, a number of these words and
phrases are listed as signpost definitions in Rule 16.1.2 below.
16.1.2 Other words and phrases that have a
special meaning when used in this Part have been explained below. They appear
throughout the Part in bold print to remind you they have a special
meaning.
|
additional
accumulation amount
|
in relation to a member spouse
who is, or has been at any time, a member, is the amount, if any, that
would become payable if the accumulated transfer amount became payable
as a lump sum at the operative time.
|
|
additional
accumulation component
|
means the
amount calculated by multiplying the additional accumulation amount by
the separation factor.
|
|
associate
benefit
|
means associate
preserved benefit, associate preserved pension or associate
standard pension.
|
|
associate
preserved
benefit
|
means
associate preserved benefit under Division 3 of this Part.
|
|
associate
preserved pension
|
means
associate preserved pension under Division 3 of this Part.
|
|
associate
standard pension
|
means
associate standard pension under Division 2 of this Part.
|
|
base amount
|
means:
·
for a splitting agreement – the base amount specified
in, or calculated under, the agreement; or
·
for a splitting order – the amount allocated under
subsection 90MT(4) of the Family Law Act 1975.
|
|
family
law value
|
means the
amount determined in accordance with regulations under the Family Law Act
1975 that apply for the purposes of paragraph 90MT(2)(a) of the Family
Law Act 1975. In applying those regulations, the relevant date is taken
to be the date on which the operative time occurs.
Note:
This amount is determined by applying those
regulations, whether or not an order has been made under subsection 90MT(1)
of the Family Law Act 1975.
|
|
funded
component
|
means:
·
where the original interest is not an entitlement to associate
preserved benefit—the sum of the following amounts:
-
the member contributions component;
-
the productivity contributions component;
-
the additional accumulation component; or
·
where the original interest is an entitlement to associate
preserved benefit—the amount that would have been payable under paragraph
16.3.1(a) if the original interest had become payable at the operative
time multiplied by the separation factor.
|
|
member
contributions amount
|
in
relation to a member spouse who is, or has been at any time, a member,
is the amount that would become payable if the accumulated member
contributions became payable as a lump sum at the operative time.
|
|
member
contributions component
|
means the
amount calculated by multiplying the member contributions amount by
the separation factor.
|
|
member
spouse
|
(see Part
VIIIB of the Family Law Act 1975)
|
|
non-member
spouse
|
(see Part
VIIIB of the Family Law Act 1975)
|
|
non-standard
pension
|
means a pension
under these Rules other than a standard pension.
|
|
operative
time
|
in
relation to a splitting agreement or splitting order, means the
time that is the operative time for the purposes of Part VIIIB of the Family Law
Act 1975 in relation to a payment split under the agreement or
order.
|
|
original
interest
|
means a superannuation
interest to which Division 2 of this Part applies.
|
|
payment
split
|
(see Part
VIIIB of the Family Law Act 1975)
|
|
productivity
contributions amount
|
in
relation to a member spouse who is, or has been at any time, a member,
is the amount that would become payable if the accumulated productivity
contributions became payable as a lump sum at the operative time.
|
|
productivity
contributions component
|
means the
amount calculated by multiplying the productivity contributions amount
by the separation factor.
|
|
scheme
value
|
means the
amount determined under Rule 16.2.2.
|
|
separation
amount
|
means:
·
if a splitting percentage applies – the amount
calculated by multiplying the splitting percentage by the greater of:
-
the family law value; and
-
the scheme value; or
·
if a base amount applies and the scheme value is
not more than the family law value – the base amount; or
·
if a base amount applies and the scheme value is
more than the family law value – the amount calculated using the
formula:
scheme
value ´
Whole dollars in base amount
Whole dollars in family law value
|
|
separation
factor
|
means the
number calculated by dividing the number of whole dollars in the separation
amount by the number of whole dollars in the scheme value.
|
|
splitting
agreement
|
means:
·
a superannuation agreement (within the meaning of Part VIIIB of
the Family Law Act 1975); or
·
a flag lifting agreement (within the meaning of Part VIIIB of
the Family Law Act 1975) that provides for a payment split.
|
|
splitting
order
|
(see Part
VIIIB of the Family Law Act 1975)
|
|
splitting
percentage
|
means:
·
for a splitting agreement—the percentage specified in
the agreement under subparagraph 90MJ(1)(c)(iii) of the Family Law Act
1975; or
·
for a splitting order—the percentage specified in the
order under subparagraph 90MT(1)(b)(i) of the Family Law Act 1975.
|
|
standard
pension
|
means any of the
following:
·
pension payable to a member, other than pre-assessment
payments and partial invalidity pensions;
·
pension payable to a spouse;
·
associate preserved pension;
·
associate standard pension.
|
|
superannuation
interest
|
(see Part
VIIIB of the Family Law Act 1975)
|
|
unfunded
component
|
means the separation
amount reduced by the funded component.
|
|
Division 2
|
Benefits for
non-member spouse -
associate pension or preserved benefit
|
Associate
pension or preserved benefit for non-member spouse
16.2.1 This Division applies to a superannuation
interest under these Rules (the original interest) if:
(a)
the Board
receives a splitting agreement or splitting order in respect of
the original interest; and
(b)
the splitting
agreement, or splitting order, has:
(i)
an operative time
on or after the commencement of Schedule 1 to the Superannuation Legislation
Amendment (Family Law and Other Matters) Act 2004; or
(ii)
an operative time
earlier than the commencement of Schedule 1 to the Superannuation
Legislation Amendment (Family Law and Other Matters) Act 2004 and no
benefits have become payable before that time in respect of the original
interest to which the agreement or order relates; and
(c) the
original interest is not an entitlement under Rules 7.1.3, 7.1.4, 7.3.2
and 7.3.7; and
(d) the
member spouse and the
non-member spouse are both alive at the operative time; and
(e)
if a base amount
applies—the base amount at the operative time is not more
than the family law value or the scheme value.
16.2.2 Scheme
value in relation to a member
spouse:
(a) where
the operative time is before the commencement of this Part—is the family
law value; or
(b) where
the operative time is on or after the commencement of this Part:
(i) is
determined using the applicable methods and factors in Division 8 as in force
at the operative time; or
(ii) if
it is not possible to determine the scheme value using that methods and
those factors, it is to be determined by an actuary appointed by the Board
for this rule.
Associate
pension for non-member spouse if operative time in payment phase
16.2.3 If, at the operative time, standard
pension is payable in respect of the original interest, the non-member
spouse is entitled to associate standard pension from the operative
time, at the rate calculated by reference to the separation amount.
16.2.4 The annual rate of associate standard
pension is calculated as follows:
(a) work
through each step in the order set out below:
|
Step 1
|
Identify
the separation amount in relation to the non-member spouse.
|
|
Step 2
|
Work out a
pension factor (F y+m) based on the non-member
spouse’s gender and age, using the formula:
where
Fy is the valuation factor mentioned in
Table 1 of Division 7 applicable, at the operative time, to the non-member
spouse’s gender and age in completed years;
m is the number of completed months of
the non-member spouse’s age, at the operative time, that are
not included in the non-member spouse’s age in completed years; and
FY
+ 1 is the
valuation factor mentioned in Table 1 of Division 7 that would apply if the
person's age in completed years at the operative time were 1
year more than it is.
Note The
associate standard pension does not include a reversionary component.
|
|
Step 3
|
Divide the
amount worked out in step 1 by the pension factor worked out in step 2.
The result
is the annual rate of the associate standard pension.
|
(b) however,
if it is not possible to calculate the annual rate of associate standard
pension using paragraph (a), the annual rate of associate standard
pension payable to a non-member spouse is to be calculated by an
actuary appointed by the Board for this rule.
Note:
If the member’s pension includes a
funded component, the associate standard pension should include a funded component in the same
proportion.
16.2.5 If the annual rate of associate
standard pension to which the non-member spouse becomes entitled is
less than $1300, the non-member spouse may elect to commute the pension.
16.2.6 The amount of $1300 is to be indexed in
the same way, and at the same time, as a standard pension is indexed
under Division 6 of Part 9 of these Rules.
16.2.7 The election under Rule 16.2.5 must be
made in writing to the Board not later than three months after the non-member
spouse becomes entitled to the pension, or within such further period as
the Board allows.
16.2.8 If the non-member spouse makes the
election under Rule 16.2.5, then the non-member spouse is entitled
instead to a lump sum equal to the separation amount.
Associate
preserved benefit if operative time in growth phase
16.2.9 If, at the operative time, standard
pension is not payable in respect of the original interest, then the
non-member spouse is entitled to associate preserved benefit in
accordance with Division 3 of this Part.
|
Division 3
|
Benefits for
non-member spouse -
associate preserved benefit
|
Associate
preserved benefit
16.3.1 Associate
preserved benefit consists
of:
(a) a
lump sum equal to the funded component of the separation amount,
together with interest (if any) in respect of that amount in accordance with a
determination or determinations by the Board as to rates of interest and
method of allocation taking into account any reduction under paragraph
16.5.2(a); and
(b) a
lump sum equal to the unfunded component of the separation amount,
increased as follows taking into account any reduction under paragraph
16.5.2(b):
|
Step 1
|
Identify
the unfunded component of the separation amount at the operative
time.
|
|
Step 2
|
Increase the unfunded
component for any period between the operative time and the time
at which the associate preserved benefit first becomes payable, using
the Treasury bond rate for the last working day of the financial year ending
immediately before the period for which the increase is being calculated for
bonds with a 10 year term.
Note The period between the
operative time and the time at which the associate preserved
benefit first becomes payable may include a number of full financial
years, or may occur entirely within a single financial year.
Treasury
bond rate for bonds with a 10 year term
The
Treasury bond rate for the last working day of a financial year for bonds
with a 10 year term is:
(a) if any Treasury bonds with that
term were issued on that day — the annual yield on those bonds; or
(b) in any other case — the
annual yield on Treasury bonds with that term, as published by the Reserve
Bank of Australia for that day.
Calculation of increase in separation amount
The increase in the unfunded component is calculated:
(a) at the end of each
financial year that occurs between the operative time and the time at
which the associate preserved benefit first becomes payable; and
(b) immediately before
the associate preserved benefit first becomes payable;
using
the applicable Treasury bond rate for the relevant period worked out in steps
3, 4 and 5, and compounded period by period.
|
|
Step 3
|
First period
Identify the shorter of:
(a) the
period between the operative time and the end of the financial year in
which the operative time occurs; and
(b) the
period between the operative time and the day before the associate
preserved benefit becomes payable.
This is the first period.
Multiply the number of days
in the first period by the Treasury bond rate for bonds with a 10 year term
that is applicable to the financial year in which the first period occurs,
and divide the result by 365.
Round the result to 3
decimal places.
The result is the applicable Treasury bond rate for the first
period.
|
|
Step 4
|
Full financial years (if any)
Use this step if a full financial year occurs immediately after
the end of the first period and before the associate preserved benefit
becomes payable. This is the second period.
Identify the Treasury bond rate for bonds with a 10 year term
that is applicable to the financial year.
Round the result to 3 decimal places.
The result is the applicable Treasury bond rate for the second
period.
Repeat
this arrangement for each full financial year after the second period.
|
|
Step 5
|
Final period (if any)
Use this step if:
(a) there is any period
between the end of a financial year and the time at which the associate
preserved benefit first becomes payable; and
(b) neither step 3 nor
step 4 covers that period.
This is the final period.
Multiply the number of days in the final period by the Treasury
bond rate for bonds with a 10 year term that is applicable to the financial
year in which the final period occurs, and divide the result by 365.
Round the result to 3 decimal places.
The
result is the applicable Treasury bond rate for the final period.
|
16.3.2 The benefit becomes payable at the later
of the operative time and the relevant time. The relevant
time is the earlier or earliest of whichever of the following dates are
applicable to the associate:
(a) the
date the Board decides that the associate is suffering from a terminal
medical condition; or
(b) the
date the Board decides that the associate is unlikely, because of
a physical or mental incapacity, ever to be able to work again in a job for
which he/she is reasonably qualified by education, training or experience or
could reasonably be qualified after retraining; or
(c) if
the associate is entitled to a payment under Rule 16.3.9—the date the Board
is satisfied that the associate departed from Australia permanently; or
(d) the
date notified to the Board under Rule 16.3.3; or
(e) the
date the associate reaches age 65.
16.3.3 The associate may give a written
notice to the Board specifying a date that is not earlier than the date
the associate reaches age 55.
Benefit options
– on reaching certain ages
16.3.4 This rule applies to an associate whose
associate preserved benefit has become payable on a date mentioned in
paragraph 16.3.2(d) or (e). The associate may choose:
(a) to
be paid a lump sum of that part of his/her associate preserved
benefit that the SIS Act permits to be paid in cash, or a lump sum
of less than that amount, and:
(i) roll-over
the balance of his/her associate preserved benefit; or
(ii) if
the balance is 50% or more of his/her associate preserved benefit
and the associate preserved benefit includes all of the funded
component, convert the balance into an associate preserved pension,
provided that the payment of the associate preserved pension is
permitted by the SIS Act; or
(b) to
take his/her associate preserved benefit as an associate
preserved pension provided that the associate preserved benefit
includes all of the funded component and the payment of the associate preserved
pension is permitted by the SIS Act; or
(c) to
roll-over his/her associate preserved benefit.
16.3.5 The amount of associate preserved
pension is calculated as follows:
(a) work through each
step in the order set out below:
|
Step 1
|
Identify
the amount, if any, of the associate preserved benefit to be converted
to associate preserved pension.
Note This is the balance
described in subparagraph 16.3.4(a)(ii) or the full amount as provided for by
paragraph 16.3.4(b).
|
|
Step 2
|
Work out a
pension factor (F y+m) based on the associate’s gender
and age, using the formula:
where
Fy is:
the
valuation factor mentioned in Table 2 of Division 7, applicable, when the
pension first becomes payable, to the associate’s gender and age in
completed years;
m is the number of completed months of
the associate’s age, when the pension first becomes payable, that are
not included in the associate’s age in completed years; and
FY
+ 1 is the
valuation factor mentioned in Table 2 of Division 7 that would apply if the
person's age in completed years at the operative time were 1
year more than it is.
Note The
associate preserved pension does not include a reversionary component.
|
|
Step 3
|
Divide the
amount identified in step 1, by the pension factor worked out in step 2.
The result
is the annual rate of the associate preserved pension.
|
(b) however,
if it is not possible to calculate the annual rate of associate preserved
pension using paragraph (a), the annual rate of associate preserved
pension payable to an associate is to be calculated by an actuary
appointed by the Board for this rule.
Benefit options
– terminal medical condition or incapacity
16.3.6 An associate whose associate
preserved benefit has become payable under Rule 16.3.2 on the date
the Board decides the benefit is payable on grounds of a terminal
medical condition or a physical or mental incapacity may choose:
(a) to take his/her associate preserved benefit:
(i) entirely as a associate preserved pension; or
(ii) as part associate preserved pension, provided
that the associate preserved benefit includes all of the funded
component, by converting at least all of the unfunded
component into associate preserved pension,
and the balance paid as a lump sum; or
(b) to be paid his/her associate preserved benefit as a
lump sum.
16.3.7 The amount of associate preserved
pension is calculated as follows:
(a) work
through each step in the order set out below:
|
Step 1
|
Identify
the amount, if any, of the associate preserved benefit to be converted
to associate preserved pension.
Note This
is the full amount as provided for by subparagraph 16.3.6(a)(i) or the part
described in subparagraph 16.3.6(a)(ii).
|
|
Step 2
|
Work out a
pension factor (F y+m) based on the associate’s gender
and age, using the formula:
where
Fy is:
the
valuation factor mentioned in Table 3 of Division 7, applicable, when the
pension first becomes payable, to the associate’s gender and age in
completed years;
m is the number of completed months of
the associate’s age, when the pension first becomes payable, that are
not included in the associate’s age in completed years; and
FY
+ 1 is the
valuation factor mentioned in Table 3 of Division 7 that would apply if the
person's age in completed years at the operative time were 1
year more than it is.
Note The
associate preserved pension does not include a reversionary component.
|
|
Step 3
|
Divide the
amount identified in step 1 by the pension factor worked out in step 2.
The result
is the annual rate of the associate preserved pension.
|
(b) however,
if it is not possible to calculate the annual rate of associate preserved
pension using paragraph (a), the annual rate of associate preserved
pension payable to an associate is to be calculated by an actuary
appointed by the Board for this rule.
Payment of lump
sum on death of a non-member spouse
16.3.8 If the associate dies before
his/her associate preserved benefit becomes payable, the Board
must pay the benefit as a lump sum to his/her legal personal
representative or, if no legal personal representative can be found,
to any individual or individuals that the Board determines.
Payment of lump
sum on leaving Australia permanently
16.3.9 An associate is to be paid his/her
associate preserved benefit as a lump sum if:
(a) the
Board is satisfied that he/she is departing from Australia permanently;
and
(b) the
payment is permitted by the SIS Act.
Access to all or
part of associate preserved benefit
16.3.10 An associate who applies to the Board
for the early release of his/her associate preserved benefit on
the grounds of severe financial hardship may, at any time, choose to be paid a
lump sum to the value approved by the Board and have the balance of the associate
preserved benefit (if any) remain in the scheme.
16.3.11 An associate who applies to the
Australian Prudential Regulation Authority for the early release of his/her associate
preserved benefit on compassionate grounds may, at any time, choose to
be paid a lump sum to the value approved by the Australian Prudential
Regulation Authority and have the balance of the associate preserved benefit
(if any) remain in the scheme.
16.3.12 An associate who has been paid a
lump sum under Rules 16.3.10 or 16.3.11 can be paid further amounts under those
Rules provided that any further payments have been approved by the Australian
Prudential Regulation Authority, or the Board, as the case may be.
Payment of
amounts by the Board to the Commonwealth
16.3.13 When the funded component, or part
of that component, becomes payable, an equal amount must be paid by the Board
out of the PSS Fund to the Commonwealth.
|
Division 4
|
Reduction of benefits
for member spouse – operative time during growth phase
|
Operative time
during growth phase – reduction of benefits
16.4.1 This Division applies if:
(a) at
the operative time, standard pension is not payable in respect of
the original interest; and
(b) the
original interest is not an entitlement to associate preserved
benefit.
Reduction of
accumulated contributions etc.
16.4.2 At the operative time the
following amounts are reduced in respect of the original interest:
(a) the
accumulated member contributions are reduced by the member
contributions component; and
(b) the
accumulated productivity contributions are reduced by the productivity
contributions component; and
(c) the
accumulated transfer amount and the Transfer Multiple Amount are reduced
by the additional accumulation component.
Reduction of
benefit multiple where member spouse not a preserved benefit member
16.4.3 Where the member spouse is not a preserved
benefit member the Benefit Accrual Multiple (see Divisions 2 and
3 of Part 5) is reduced in respect of the original interest by the
Reduction Multiple, which is calculated by multiplying the Benefit Accrual
Multiple immediately before the operative time by the separation
factor.
Note:
The reduction multiple is not to be taken into
account when determining if the maximum benefit limit applies to the member
spouse. (See Divisions 6 and 7 of Part 5.)
Reduction of
maximum benefits on cessation of membership
16.4.4 Where a reduction is made under Rule
16.4.3 in relation to a member spouse, when he/she ceases
membership his/her maximum benefit at that time will be calculated in
accordance with the following steps:
|
Step 1
|
Identify
the original reduction multiple that applied to the person at the operative
time.
|
|
Step 2
|
Calculate
the maximum benefit lump sum that would be payable apart from this
rule not taking the reduction multiple into account.
|
|
Step 3
|
Divide the
amount calculated at step 2 by the person’s average salary to produce
a multiple.
|
|
Step 4
|
Calculate
a revised reduction multiple by applying the separation factor
to the multiple calculated at step 3.
|
|
Step 5
|
Compare
the two reduction multiples.
|
|
Step 6
|
Recalculate
the maximum benefit by using the lesser of the reduction multiples.
|
Reduction of
unfunded preserved benefit where member spouse is a preserved benefit member
16.4.5 At the operative time the unfunded
preserved benefit is reduced in respect of the original interest by
the unfunded component.
Reduction not to
affect later non-standard pension
16.4.6 A reduction under this Part is to be
disregarded in calculating the amount of any non-standard pension that
later becomes payable.
Note:
For example,
the reduction will be disregarded in calculating the amount of pension payable
in respect of a child of the member spouse after the member spouse’s
death where there is no pension payable to an eligible spouse (see
Rules 7.1.4, 7.3.2 and 7.3.7).
|
Division 5
|
Reduction of benefits
for member spouse – operative time during growth phase -
reduction where original interest is entitlement to associate preserved
benefit
|
Operative time
during growth phase – reduction where original interest is entitlement to
associate preserved benefit
16.5.1 This Division applies if:
(a) at
the operative time, standard pension is not payable in respect of
the original interest; and
(b) the
original interest is an entitlement to associate preserved benefit.
16.5.2 The following amounts are reduced in
respect of the original interest from the operative time:
(a) the
funded component is reduced by the funded component of the later separation
amount; and
(b) the
unfunded component is reduced by the unfunded component of the
later separation amount.
|
Division 6
|
Reduction of benefits
for member spouse – operative time during payment phase -
reduction of pension
|
Operative time
during payment phase – reduction of pension
16.6.1 If, at the operative time, standard
pension is payable in respect of the original interest, the annual
rate of that pension is reduced as follows:
(a) work
through each step in the order set out below:
|
Step 1
|
Identify
the annual rate of standard pension that was payable in relation to
the member spouse immediately before the operative time.
|
|
Step 2
|
If that
annual rate of standard pension takes account of the existence of 1 or
more eligible children or partially dependent children, deduct
the part of the annual rate that takes account of the existence of those
children.
|
|
Step 3
|
Work out a
pension factor (F y+m) based on the member spouse’s
gender, age and kind of standard pension, using the formula:
where
Fy is the valuation factor mentioned in
Table 4 of Division 7 applicable, at the operative time, to the member
spouse’s gender and age in completed years;
m is the number of completed months of
the member spouse’s age, at the operative time, that are
not included in the member spouse’s age in completed years; and
FY
+ 1 is the
valuation factor mentioned in Table 4 of Division 7 that would apply if the
person's age in completed years at the operative time were 1
year more than it is.
|
|
Step 4
|
Multiply
the annual rate of standard pension by the pension factor worked out
in step 3.
|
|
Step 5
|
Subtract
the separation amount from the amount worked out in step 4.
|
|
Step 6
|
Divide the
amount worked out in step 5 by the pension factor worked out in step 3.
|
|
Step 7
|
If step 2
applies, increase the rate worked out in step 6 by the part of the rate that
was deducted under step 2.
The result
is the annual rate of the standard pension payable after the operative
time in respect of the original interest.
|
(b) however,
if it is not possible to calculate the annual rate of standard pension
using paragraph (a), the annual rate of standard pension payable to a member
spouse is to be calculated by an actuary appointed by the Board for
this rule.
16.6.2 A reduction under this Division is to be
disregarded in calculating the amount of any non-standard pension that
later becomes payable.
Note:
For example,
the reduction will be disregarded in calculating the amount of pension payable
in respect of a child of the member spouse after the member spouse’s
death where there is no pension payable to an eligible spouse (See Part 9).
|
Division 7
|
Pension factor tables
|
Table 1 Factors for Rule
16.2.4 (associate standard pension)
|
Division 8
|
Methods and Factors
used to determine scheme value in relation to member spouse
|
16.8.1 The
value of an interest that a person has as a member is to be worked out
using the following formula:
ABM × AS × ABFy+m,s + AMC × (1 ‑ MCFy+m,s
) + APC × ( 1 - PCFy+m,s ) + ATA
where:
ABM is:
(a) for a maximum benefits member — the lump sum benefit the person
would receive if the person ceased to be a member
of the PSS scheme at the operative time,
divided by the person’s average
salary at the operative time; and
(b) for any other
member — the benefit
accrual multiple, within
the meaning of Rule 5.2.1 or 5.3.1 of these Rules, as applicable, at the operative time, but excluding any excess contribution multiple that would apply if the person ceased
membership of the PSS
scheme at the operative time.
AS is the person’s average
salary at the operative time.
ABFy+m,s
is the factor calculated in
accordance with the following formula:
where:
ABFy,s
is the accrued benefit multiple valuation factor mentioned in whichever of Tables 1A
to 1D is applicable, given the following:
(a) the person's first day of membership of the PSS scheme;
(b) the person’s
gender;
(c) the person’s
age in completed years at the operative time;
(d) the number of
complete years between the person's first
day of membership and the operative
time.
m is the number of complete months of the person’s age,
at the operative time, that are not included in the person’s completed
years of age.
ABFy+1,s is the accrued
benefit multiple valuation factor
mentioned in Table 1A to 1D that would apply if the person’s age in completed
years at the operative time were 1 year more than it is.
AMC is the person’s accumulated
member contributions at the operative time.
MCFy+m,s is the factor calculated in accordance with the
following formula:
where:
MCFy,s
is the member contribution
valuation factor mentioned in whichever of Tables 2A to 2D is applicable, given
the following:
(a) the person's first day of membership of the
PSS scheme;
(b) the person’s
gender;
(c) the person’s
age in completed years at the operative
time;
(d) the number of
complete years between the person’s first
day of membership and the operative
time.
m has the meaning given above.
MCFy+1,s is the member contribution valuation factor mentioned
in Table 2A to 2D that would apply if the person’s age in completed years at
the operative time were 1 year more than it is.
APC is the person’s accumulated
productivity contributions at the operative time.
PCFy+m,s
is the factor calculated in
accordance with the following formula:
where:
PCFy,s is the productivity contribution valuation factor
mentioned in whichever of Tables 3A to 3D is applicable, given the following:
(a) the person's first day of membership of the
PSS scheme;
(b) the person’s
gender;
(c) the person’s
age in completed years at the operative
time;
(d) the number of
complete years between the person's first
day of membership and the operative
time.
m has the meaning given above.
PCFy+1,s
is the productivity
contribution valuation factor mentioned in Table 3A to 3D that would apply if
the person’s age in completed years at the operative time were
1 year more than it is.
ATA is the accumulated
transfer amount, or if there are 2 or
more such amounts, the sum of those amounts, in respect of the person at the operative time.
Preserved
benefit member eligible for benefit under paragraph 8.2.1(A)
16.8.2 This rule applies to the interest of a preserved
benefit member who is eligible to receive a benefit under paragraph
8.2.1(A). The value of the interest is to be worked out using the following
formula:
UDB × UDBFy+m
+ FDB × FDBFy+m + ATA
where:
UDB is the unfunded
preserved benefit included in the preserved benefit which, under Rule 8.6.2 of these Rules, increases in line with
movements in the consumer price index, as at the operative time.
UDBFy+m
is the factor calculated in
accordance with the following formula:
where:
UDBFy is the unfunded valuation factor, mentioned in Table 4
that applies at the person’s age in completed years, at the operative time,
for the person’s gender.
m is the number of complete months of the person’s age,
at the operative time, that are not included in the person’s completed
years of age.
UDBFy+1 is the unfunded valuation factor mentioned in Table 4
that would apply if the person’s age in completed years at the operative time
were 1 year more than it is.
FDB is the sum of the accumulated member contributions
and the accumulated productivity
contributions included in the preserved benefit which, under Rule 8.6.1 of these Rules, increases in line with the
fund crediting rate, as at the operative
time.
FDBFy+m is the factor calculated in accordance with the
following formula:
where:
FDBFy
is the funded valuation factor
mentioned in Table 4 that applies at the person’s age in completed years, at
the operative time, for the person’s gender.
m has the meaning given above.
FDBFy+1 is the funded valuation factor mentioned in Table 4
that would apply if the person’s age in completed years at the operative time
were 1 year more than it is.
ATA is the accumulated
transfer amount, or if there are 2 or
more such amounts, the sum of those amounts, in respect of the person at the operative time.
Preserved
benefit member not eligible for benefit under paragraph 8.2.1(A)
16.8.3 This rule applies to the interest of a preserved
benefit member who is not eligible to receive a benefit under paragraph
8.2.1(A). The value of the interest is to be worked out using the following
formula:
UDB × UDBFy+m
+ FDB + ATA
where:
UDB is the unfunded
preserved benefit included in the preserved benefit which, under Rule 8.6.2 of these Rules, increases in line with
movements in the consumer price index, as at the operative time.
UDBFy+m
is the factor calculated in accordance
with the following formula:
where:
UDBFy
is the valuation factor mentioned
in Table 5 that applies at the person’s age in completed years, at the operative time,
for the person's gender.
m is the number of complete months of the person’s age,
at the operative time, that are not included in the person’s completed
years of age.
UDBFy+1 is the valuation factor mentioned in Table 5 that
would apply if the person’s age in completed years at the operative time
were 1 year more than it is.
FDB is the sum of any accumulated member contributions
and any accumulated productivity
contributions included in the preserved benefit which, under Rule 8.6.1 of these Rules, increases in line with the
fund crediting rate, as at the operative
time.
ATA is the accumulated
transfer amount, or if there are 2 or
more such amounts, the sum of those amounts, in respect of the person at the operative time.
16.8.4 The value of an interest that a person
has as an associate is to be worked out using the following formula:
where:
FLS is the amount calculated under paragraph
16.3.1 (a) of these Rules that would be payable as a lump sum at the operative time.
UFLS is the amount calculated under paragraph
16.3.1 (b) of these Rules that would be payable as a lump sum at the operative time.
16.8.5 The value of an interest that a person
has as a pensioner is to be worked out using the following formula:
P × Fy+m
where:
P is:
(a) for an invalidity pensioner — the annual pension amount payable to the person disregarding any reduction or
suspension under Division 11 of Part 10 of these Rules; and
(b) in any other
case — the annual pension amount payable to the person, other than
any part of that pension that is additional pension paid in
respect of 1 or more eligible
children or partially dependent children.
Fy+m
is the factor calculated in
accordance with the following formula:
where:
Fy is the valuation factor mentioned in Table 6 that
applies given the following:
(a) the person’s age in
completed years at the operative
time;
(b) the member’s gender;
(c) the type of pension.
m is the number of complete months of the person’s age,
at the operative time, that are not included in the person’s completed
years of age.
Fy+1 is the valuation factor mentioned in Table 6 that
would apply if the person’s age in completed years at the operative time
were 1 year more than it is.