South Australian Consolidated Acts South Australian Consolidated Acts39—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 total balance of the account; or
(b) to
preserve his or her accrued superannuation benefits.
(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 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 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 aggregate
of—
(a) 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 31 December 1987—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
"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
"M" is the number of months of the contributor's contribution period occurring
after 31 December 1987 and before 1 July 1992; and
(b) the
amount (if any) 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.
(1da) 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.
(1db) The rate of
interest will be determined by the Board in respect of each financial year in
accordance with section 20A.
(2) Where a
contributor resigns after a contribution period of less than 120 months and
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 total balance of the account; and
(b) an
employer component that is the aggregate of—
(i)
an amount that is, subject to subsection (4), equal
to 2⅓ times the amount of the employee component; and
(ii)
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 31 December 1987—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
"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
"M" is the number of months of the contributor's contribution period occurring
after 31 December 1987.
(4) The amount
referred to in subsection (3)(b)(i) cannot exceed 2⅓ times the
amount that would have constituted the employee component if the contributor
had contributed at the standard rate of contribution throughout the
contributor's contribution period.
(5) Where a
contributor resigns after a contribution period of 120 months or more and
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 payment of a retirement pension under paragraph (a);
(a) the
contributor may, at any time after reaching 55 years of age require the Board
to commence paying a retirement pension and, if no such requirement has been
made on or before the date on which the contributor reaches 60 years of age,
the Board will commence paying a retirement pension as from that date;
(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 pay an
invalid pension to the contributor;
(c) if
the contributor dies and is survived by a spouse (not being a person who
became the contributor's spouse after the contributor's resignation and less
than five years before the date of his or her death), a pension will be paid
to the spouse of the deceased contributor;
(d) if
the contributor dies and is survived by a spouse and an eligible child or
eligible children, a pension will be paid to each eligible child;
(e) if
the contributor dies and 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;
(f) if
the contributor dies and is not survived by a spouse or an eligible child a
lump sum will be paid to the contributor's estate.
(6) Subject to
subsection (7), a pension payable under subsection (5) will be
calculated in the same way as if—
(a) the
contributor had continued in his or her former employment between the date of
resignation and the date on which a pension first became payable under that
subsection but had elected to make no contribution in respect of that period;
(b) the
contributor's actual or attributed salary for the purpose of calculating the
pension were that salary as at the date of resignation adjusted to reflect
changes in the Consumer Price Index between the date of resignation and the
date on which the pension first became payable;
(c) in
the case of a retirement pension—the contributor had retired on the date
on which the retirement pension first became payable under this section;
(d) in
the case of an invalid pension—the contributor's employment had been
terminated on the ground of invalidity on the date on which he or she
satisfied the Board of the matters referred to in subsection (5)(b).
(7) When calculating a
pension under subsection (6) in respect of a contributor who was accepted
as a contributor before the prescribed age and before the commencement of
the repealed Act, a factor in the relevant formula designated "A" will be
replaced by a factor calculated as follows:
Where—
"A" "1" is the substituted factor
"A" is the factor designated "A" in the relevant formula
"M" is—
(a) in
the case of a contributor for whom the age of retirement is 55
years—360;
(b) in
the case of a contributor for whom the age of retirement is 60 years—
(i)
in the case of a retirement pension where the contributor
is 55 years or more but less than 60 years when the pension first becomes
payable—300 + n;
(ii)
in all other cases—360
"NM" is the number of months between the date on which the contributor was
accepted as a contributor and—
(a) in
the case of a retirement pension—the date on which the pension first
became payable or the date on which the contributor reached or will reach the
age of retirement whichever occurs first;
(b) in
all other cases—the date on which the contributor will reach, or would
have reached, the age of retirement
"CP" is the number of months in the contribution period to the date of
resignation
"S" is the number of months in the contribution period after the date on which
the contributor reached the prescribed age
"n" is the number of months between the day on which the contributor reached
the age of 55 years and the day on which the pension first became payable.
(7a) In
subsection (7)—
"the prescribed age" means—
(a) in
relation to a contributor for whom the age of retirement is 55 years—the
age of 25 years;
(b) in
relation to all other contributors—the age of 30 years.
(8) Where a retirement
pension calculated in accordance with subsection (7) exceeds the pension
to which the contributor would have been entitled if he or she had continued
in employment from the date of resignation to the date on which the retirement
pension first became payable under this section and had contributed at the
standard contribution rate over that period, the pension will be reduced to
that latter amount.
(8a) 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 the amount standing
to the credit of the contributor's contribution account and will be charged
against that account.
(8b) 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:
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(i) |
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(ii) |
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Where—
"EC" is the employer component
"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 360
"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 from the date of resignation until the contributor's
death
"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
"Pn" is—
(a) in
the case of a contributor who was in full-time employment during that part of
the contribution period occurring after 31 December 1987—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 31 December 1987.
(8c) Subject to this
Act, benefits under this section will be calculated by using the appropriate
formula in force under this Part on the day on which the contributor resigned
or is taken to have resigned by virtue of some other provision of this Act.
(9) The right to
preserve accrued superannuation benefits under this section does not apply for
the benefit of a contributor who was, when he or she resigned, an
employee—
(a) of
the Australian National Railways Commission; or
(b) of a
prescribed employer.
(10)
Subsection (9)(a) does not apply to former employees of the Australian
National Railways Commission who resigned to take up employment with the
National Rail Corporation.
(10a) 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.
(10b) A contributor
who is taken by clause 7(6)(a) of Schedule 2 of the State Bank
(Corporatisation) Act 1994 to have resigned from his or her employment
and to have elected to preserve his or her accrued benefits under this section
will, for the purposes of the application of subsection (5), be taken to
have resigned after a contribution period of 120 months or more.
(11) 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 39C to preserve his or her accrued
superannuation benefits under this section or is taken under section 39C
to have made such an election.
