South Australian Consolidated Acts South Australian Consolidated Acts28—Resignation and preservation of benefits
(1) A contributor who
resigns from employment before reaching the age of 55 years may elect—
(a) to
take immediately an amount (to be charged against the contributor's
contribution account) equivalent to the amount standing to the credit of the
contributor's contribution account; or
(b) to
preserve his or her accrued superannuation benefits; or
(c) to
carry over his or her accrued superannuation benefits to some other
superannuation fund or scheme approved by the Board.
(1a) A contributor who
fails to inform the Board in writing of his or her election under
subsection (1) within three months after resignation will be taken to
have elected to preserve his or her accrued superannuation benefits.
(1b) If the Board is
of the opinion that the limitation period referred to in subsection (1a)
would unfairly prejudice a contributor, the Board may extend the period as it
applies to the contributor.
(1c) Where a
contributor resigns and elects to take the amount referred to in
subsection (1)(a) the contributor is also entitled to a superannuation
payment in accordance with the following provisions:
(a) the
contributor may at any time require the Board to make the payment to some
other superannuation fund or scheme approved by the Board;
(ab)
the Board must—
(i)
not less than 6 months before the contributor's 60th
birthday—notify the contributor in writing of the contributor's
entitlement to require the Board to make the payment under paragraph (b);
and
(ii)
not less than 6 months before the contributor's 55th
birthday—notify the contributor in writing of the contributor's
entitlement to require the Board to make the payment under paragraph (c);
(b) the
contributor may at any time after reaching the age of retirement require
the Board to make the payment and, if no such requirement has been made on or
before the date on which the contributor reaches 65 years of age, the Board
will make the payment;
(c) if
the contributor has reached the age of 55 years and is not employed by an
employer within the meaning of the Commonwealth Act, the contributor may
require the Board to make the payment to the contributor;
(d) if
the contributor has become incapacitated and satisfies the Board that his or
her incapacity for all kinds of work is 60 per cent or more of total
incapacity and is likely to be permanent, the Board will make the payment to
the contributor;
(e) if
the contributor dies, the payment will be made to the spouse of the deceased
contributor or, if he or she left no surviving spouse, to the contributor's
estate,
(and a payment under any of the above paragraphs excludes further rights so
that a claim cannot be subsequently made under some other paragraph).
(1d) The amount of the
superannuation payment referred to in subsection (1c) is the amount of
the minimum contribution required to avoid payment of the superannuation
guarantee charge in respect of the contributor under the Commonwealth Act
together with interest from the date of resignation.
(1e) The amount of
interest will be calculated and credited to the contributor at the end of each
financial year and will be calculated on the amount referred to in
subsection (1d) at the end of the first financial year and on the
aggregate of that amount and the interest previously credited at the end of
each subsequent financial year.
(1f) The rate of
interest will be determined by the Board in respect of each financial year in
accordance with section 20A.
(2) Where the
contributor elects to preserve his or her accrued superannuation benefits, the
following provisions apply—
(aa)
the Board must, not less than 6 months before the contributor's 55th birthday,
notify the contributor in writing of the contributor's entitlement to require
the Board to make a superannuation payment under paragraph (a);
(a) the
contributor may at any time after reaching 55 years of age require the Board
to make a superannuation payment and, if no such requirement has been made on
or before the date on which the contributor reaches 65 years of age, the Board
will make such a payment;
(b) if
the contributor has become incapacitated and satisfies the Board that his or
her incapacity for all kinds of work is 60 per cent or more of total
incapacity and is likely to be permanent, the Board will make the payment to
the contributor;
(c) if
the contributor dies, a payment will be made to the spouse of the deceased
contributor or, if he or she left no surviving spouse, to the contributor's
estate,
(and a payment under any of the above paragraphs excludes further rights so
that a claim cannot be subsequently made under some other paragraph).
(3) A payment under
subsection (2) will be made up of two components—
(a) an
employee component (to be charged against the contributor's contribution
account) equivalent to the amount standing to the credit of the contributor's
contribution account; and
(b) an
employer component calculated in accordance with subsection (4).
(4) The employer
component will be the lesser of the following:
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(a) |
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(b) |
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Where—
"EC" is the employer component
"AFS" is the contributor's actual or attributed salary as at the date of
resignation (expressed as an annual amount)adjusted to reflect changes in
the Consumer Price Index since the date of resignation
"A" is the lesser of the following—
(a)
unity;
(b) the
numerical value obtained by dividing the number of the contributor's accrued
contribution points by 420
"Pn" is—
(a) in
the case of a contributor who was in full-time employment during that part of
the contribution period occurring after 30 June 1992—1;
(b) in
any other case—the numerical value arrived at by expressing the
contributor's employment while an active contributor during that part of the
contribution period as a proportion of full-time employment during that part
of the contribution period
"M" is the number of months of the contributor's contribution period occurring
after 30 June 1992
"X" is—
(a)
where the contributor is under the age of 60 years when the payment is made or
where the contributor dies under the age of 60 years—the lesser of 60
and the number of months by which the contributor's age falls short of 60
years;
(b) in
any other case—zero.
(5) Where the
contributor elects to carry over his or her accrued superannuation benefits to
an approved superannuation fund or scheme, the following provisions
apply—
(a) the
contributor must satisfy the Board by such evidence as it may require that he
or she has been admitted to membership of the fund or scheme; and
(b) on
being so satisfied the Board will make a payment on behalf of the contributor
to the fund or scheme made up of two components—
(i)
an employee component (to be charged against the
contributor's contribution account) equivalent to the amount standing to the
credit of the contributor's contribution account; and
(ii)
an employer component which will be the aggregate of the
following amounts:
(A) an amount equal to the lesser of twice
the amount of the employee component or twice the amount that would have
constituted the employee component if the contributor had contributed to
the Scheme at the standard contribution rate throughout the contributor's
contribution period; and
(B) an amount calculated as follows:
Where—
"A" is the amount
"Pn" is—
(a) in
the case of a contributor who was in full-time employment during that part of
the contribution period occurring after 30 June 1992—1;
(b) in
any other case—the numerical value arrived at by expressing the
contributor's employment while an active contributor during that part of the
contribution period as a proportion of full-time employment during that part
of the contribution period
"FS" is the contributor's actual or attributed salary immediately before
resignation (expressed as an annual amount)
"M" is the number of months of the contributor's contribution period occurring
after 30 June 1992.
(7) For the purposes
of this section, a contributor will be taken to resign if the contributor's
employment terminates or is terminated for any reason except invalidity (in
circumstances entitling the contributor to benefits under this Act),
retrenchment or death.
(8) This section does
not apply to, or in relation to, an outplaced employee who resigned from
employment before reaching the age of 55 years unless he or she has made an
election in accordance with section 28C to preserve his or her accrued
superannuation benefits under this section or is taken under section 28C
to have made such an election.
