New South Wales Consolidated Acts

SUPERANNUATION ACT 1916 - SECT 10QB

10QB Limitation on increase in contributions by certain contributors

(1) This section applies to a contributor on an annual review day of the contributor if:

(a) the contributor’s entry payment day was before 1 July 1985,

(b) the contributor has any abandoned units, and

(c) the number of units of pension for which contributions are payable by the contributor on the annual review day is less than the number for which the annual cost is equal to an amount representing 6 per cent of the annual salary of the contributor at the rate actually being paid on the next preceding annual review day of the contributor.

(2) On an annual review day on which this section applies to a contributor, sections 10Q and 10QA shall be construed, in their application to the contributor on that day, as if references in those sections to 6 per cent were references to the minimum prescribed percentage referred to in subsection (3).

(3) For the purpose of subsection (2), the minimum prescribed percentage in relation to a contributor on an annual review day is:

(a) the sum of:

(i) 1 per cent, and

(ii) the percentage, on the next preceding annual review day, of the annual salary of the contributor at the rate actually being paid at that preceding annual review day that represents the amount that is equal to the annual cost to the contributor for the units of pension for which contributions were payable by the contributor on the annual adjustment day of the contributor next following that preceding annual review day, or

(b) 6 per cent,

whichever is the lesser.

(4) In this section:

(a) a reference to a preceding annual review day of a contributor is, if there is no such day, a reference to the contributor’s entry review day, and

(b) a reference to the annual adjustment day of the contributor next following that annual review day is a reference to the contributor’s entry payment day.