South Australian Consolidated Acts

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SUPERANNUATION ACT 1988 - SECT 32

32—Death of contributor

        (1)         Where a contributor's employment is terminated by the contributor's death—

            (a)         if the contributor is survived by a spouse—a lump sum payment will be made to the spouse;

            (b)         if the contributor is survived by a spouse and an eligible child or eligible children—a pension will be paid to each eligible child throughout any period of dependency;

            (ba)         if the contributor is not survived by a spouse but is survived by an eligible child or eligible children—a lump sum will be paid to the contributor's estate and a pension will be paid to each eligible child throughout any period of dependency;

            (c)         if the contributor is not survived by a spouse or an eligible child—a lump sum payment will be made to the contributor's estate.

        (2)         The lump sum to be paid to a surviving spouse, 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 as follows:

                  (i)         if the contributor reached the age of 55 years on or before the date of death and is not survived by an eligible child—the employer component is calculated in the same way as the employer component of the lump sum that would have been payable to the contributor if he or she had retired on the date of death;

                  (ii)         in any other case the employer component is calculated in accordance with the following formula:

1988.37.un12.jpg

Where—

"EC" is the employer component

"A" is the lesser of the following:

            (a)         unity;

            (b)         whichever of the following is applicable in the circumstances of the case:

                  (i)         if the spouse is not receiving, and is not entitled to receive, weekly workers compensation payments in relation to the contributor's death and the contributor was an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's extrapolated contribution points by 420;

                  (ii)         if the spouse is receiving, or is entitled to receive, weekly workers compensation payments in relation to the contributor's death based on partial dependency and the contributor was an active contributor immediately before his or her death—the numerical value obtained from the following formula:

1988.37.un13.jpg

Where—

"n" is the numerical value

"acp" is the number of the contributor's accrued contribution points

"ecp" is the number of the contributor's extrapolated contribution points

"x" is the extent of the spouse's dependency expressed as a proportion of full dependency;

                  (iii)         in any other case—the numerical value obtained by dividing the number of the contributor's accrued contribution points by 420

"FS" is the contributor's actual or attributed salary immediately before the contributor's death (expressed as an annual amount);

"X" is—

            (a)         where the contributor was an active contributor immediately before the date of death—the amount (if any) by which the employee component falls short of twice the contributor's adjusted final salary immediately before the contributor's death (expressed as an annual amount);

            (b)         where the contributor was not then an active contributor—zero.

"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—

            (a)         where the contributor was an active contributor immediately before termination of employment—the aggregate of the number of months of the contributor's contribution period occurring after 30 June 1992 and the number of months difference between the contributor's age as at the entitlement day and the age of retirement;

            (b)         in any other case—the number of months of the contributor's contribution period occurring after 30 June 1992.

        (2a)         However, a surviving spouse will not be entitled to a benefit under this section if section 43AG applies to the spouse.

        (3)         The pension for an eligible child is calculated as follows:

            (a)         where the contributor is survived by a spouse, then—

                  (i)         if there are no more than three eligible children:

1988.37.un14.jpg

                  (ii)         if there are more than three eligible children:

1988.37.un15.jpg

            (b)         where the contributor is not survived by a spouse, then—

                  (i)         if there are no more than three eligible children:

1988.37.un16.jpg

                  (ii)         if there are more than three eligible children:

1988.37.un17.jpg

Where—

"P" is the amount of the pension (expressed as an amount per fortnight)

"A" is the lesser of the following:

            (a)         unity

            (b)         —

                  (i)         where the contributor was an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's extrapolated contribution points by 420;

                  (ii)         where the contributor was not an active contributor immediately before the contributor's death—the numerical value obtained by dividing the number of the contributor's accrued contribution points by 420

"FS" is the contributor's actual or attributed salary immediately before the contributor's death (expressed as an amount per fortnight)

"n" is the number of eligible children.

        (3a)         The lump sum to be paid to the estate of a contributor who is not survived by a spouse but is survived by an eligible child or eligible children will be charged against the contributor's contribution account to the extent of the amount standing to the credit of the account and will be the aggregate of the following amounts:

            (a)         —

                  (i)         where the contributor was an active contributor immediately before his or her death—the greater of the following amounts:

                        (A)         an amount equivalent to the amount standing to the credit of the contributor's contribution account;

                        (B)         an amount equivalent to twice the amount of the contributor's adjusted salary immediately before the contributor's death (expressed as an annual amount);

                  (ii)         where the contributor was not an active contributor immediately before his or her death—an amount equivalent to the amount standing to the credit of the contributor's contribution account; and

            (b)         an amount calculated as follows:

1988.37.un18.jpg

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 the contributor's death (expressed as an annual amount)

"M" is—

            (a)         where the contributor was an active contributor immediately before termination of employment—the aggregate of the number of months of the contributor's contribution period occurring after 30 June 1992 and the number of months difference between the contributor's age as at the entitlement day and the age of retirement;

            (b)         in any other case—the number of months of the contributor's contribution period occurring after 30 June 1992.

        (4)         The pension for an eligible child will be indexed.

        (5)         The lump sum to be paid to the estate of a contributor who is not survived by a spouse or an eligible child 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 that is the lesser of the following:


(i)

1988.37.un19.jpg

(ii)

1988.37.un20.jpg

Where—

"EC" is the employer component

"FS" is the contributor's actual or attributed salary immediately before death (expressed as an annual amount)

"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

"X" is—

            (a)         in relation to a contributor who was at the date of death under the age of 60 years—the lesser of 60 and the number of months by which the contributor's age fell short of 60 years;

            (b)         in any other case—zero

"M" is the number of months of the contributor's contribution period occurring after 30 June 1992.



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