EXPLANATORY STATEMENT

FAMILY LAW (SUPERANNUATION) (METHODS AND FACTORS FOR VALUING PARTICULAR SUPERANNUATION INTERESTS) AMENDMENT APPROVAL 2005 (No.2)

ISSUED BY THE AUTHORITY OF THE ATTORNEY-GENERAL

In this instrument methods are approved, for the purpose of the provisions of the Family Law Act 1975 that allow for superannuation to be split on marriage breakdown, for determining the gross value of interests in the scheme established by Part 2 of the Judges’ Pensions Act 1971 (SA), the scheme which provides pensions for Judges and their surviving spouses in South Australia.

The gross value is one element in the determination of an amount which is taken to be the value of a superannuation interest in property settlement proceedings under the Family Law Act.

Three methods are approved for interests in the scheme.

The first method approved is for the interests that current South Australian Judges have in the scheme.  The method provides for an actuarial value of these interests, and assumes an even accrual of benefits until 10 years judicial service is attained.  From that time, provided that a Judge, if able to do so, then continues to serve until age 60, he or she is entitled to an indexed lifetime pension linked to salary on retirement or resignation.  The factors that apply under the method reflect the mortality and invalidity experience of South Australian public sector employees.

A method is also approved for interests that former South Australian Judges have in the scheme where they resigned with 15 years or more judicial service before reaching age 60. 

Such former judges are entitled to an indexed lifetime pension at age 60. 

This second method values the interests of such former South Australian Judges by reference to the pension that is then payable to the person, the length of time until he or she attains age 60 and the mortality experience of South Australian public sector employees.

Finally, a method is also approved for former South Australian Judges or their surviving spouses with pension entitlements under the scheme. 

This method values the interests of such former Judges or surviving spouses by reference to their pension entitlements and the mortality experience of South Australian public sector employees.

The instrument incorporates by reference the Judges’ Pensions Act 1971 (SA), the Act of the State of South Australia which established the scheme providing pensions for Judges of that State and their surviving spouses.

The South Australian Judges’ Pensions Act may be viewed at the following website:

http://www.parliament.sa.gov.au/Catalog/legislation/Acts/j/1971.30.un.htm

A copy of the Act may be purchased from the Service SA Government Legislation Outlet (GLO), situated at Ground Floor, Land Titles Office, 101 Grenfell Street, Adelaide, South Australia (telephone: 13 23 24).

Consultation on the content of the instrument was undertaken under section 17 of the Legislative Instruments Act 2003 with the Australian Government Actuary and the South Australian Department of Treasury and Finance (the South Australian Department) by way of exchange of correspondence, discussions and a meeting.  In addition, the South Australian Department also consulted with the Chief Justice of the Supreme Court of South Australia and the Chief Judge of the District Court of South Australia, by way of exchange of correspondence and discussions.