SUPERANNUATION.

No. 49 of 1951

An Act to amend the Superannuation Act 1922-1950, and for other purposes.

[Assented to 11th December, 1951.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Superannuation Act 1951.

(2.) The Superannuation Act 1922–1950 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922–1951.

Commencement.

2. Except as otherwise provided by this Act, this Act shall come into operation on the day on which it receives the Royal Assent.

Parts.

3. Section three of the Principal Act is amended by inserting after the words—

“Part IVd.—Special Provisions in Relation to Certain Former State Employees.”

the words—

“Part IVe.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds.”.

Interpretation.

4. Section four of the Principal Act is amended—

(a) by adding at the end of sub-section (1.) the following definitions:—

“‘The Public Service Arbitrator’ means the Public Service Arbitrator holding office under the Public Service Arbitration Act 1920–1950;

“‘The Public Service Board’ means the Public Service Board constituted under the Public Service Act 1922–1950.”; and

(b) by omitting sub-sections (4.), (5.) and (6.) and inserting in their stead the following sub-sections:—

“(4.) Where a person is the holder for a term of years of a statutory office under the Commonwealth (whether his appointment was made before or is made after the commencement of this sub-section) and, by the terms of his appointment, that person is required to give the whole of his time to the duties of his office, the Treasurer may, by notice published in the Gazette, direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the publication of the notice or from such earlier date (not being a date earlier than the date of appointment to the statutory office) as the Board determines.

“(5.) Where—

(a) a person employed by the Commonwealth otherwise than in a permanent capacity is by the terms of his employment required to give the whole of his time to the duties of his employment;

(b) that person has been so employed for a continuous period of not less than three years; and

(c) the Public Service Board, or, on appeal from the Public Service Board, the Treasurer, certifies that that person’s employment is likely to be continued for a period of at least seven years,

the Treasurer may, by notice published in the Gazette, direct that that person be deemed to be an employee within the meaning of this section, and that person shall be deemed to be such an employee as from the date of the publication of the notice.

“(6.) Where a person employed by an approved authority is required by the terms of his employment to give the whole of his time to the duties of his office and—

(a) the approved authority certifies that the person’s employment is likely to be continued for a period of at least seven years; or

(b) the person was, immediately prior to commencing his employment with the approved authority, a contributor to a State Fund as defined by section sixty an, or a Public Service Superannuation Fund as defined by section sixty au, of this Act,

the Minister administering the Act under which the authority is constituted may, on the recommendation of the approved authority, by notice published in the Gazette, direct that that person be deemed to be an employee within the meaning of this section and that person shall be deemed to be such an employee as from the date of publication of the notice or, in the case of a person referred to in paragraph (b) of this sub-section, from such earlier date (not being a date earlier than the date on which his employment with the approved authority commenced) as the Board determines.”.

Commencement and cessation of contributions.

5. Section twelve of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “from the date of commencement of his employment” and inserting in their stead the words “as from the prescribed date”; and

(b) by omitting sub-section (1a.) and inserting in its stead the following sub-section:—

“(1a.) For the purposes of the last preceding sub-section, the prescribed date is—

(a) in the case of a person who, in the first instance, is appointed on probation—the date on which his appointment is confirmed or, if that date is not a pay-day, the next succeeding pay-day after that date;

(b) in the case of a person who, in the first instance, is not appointed on probation—the date on which he becomes an employee or, if that date is not a pay-day, the next succeeding pay-day after that date; or

(c) in the case of a person who, by reason of the publication in the Gazette of a notice by the Treasurer or a Minister in pursuance of sub-section (4.), (5.) or (6.) of section four of this Act or section nine of the High Commissioner Act 1909–1945, is deemed to be an employee within the meaning of section four of this Act— the date on which the notice is published in the Gazette or such other date as the Board determines under sub-section (4.) or (6.)

of section four of this Act, as the case may be, or, if the date of publication or the date so determined is not a pay-day, the next succeeding pay-day after that date.”.

Scale of unite of pension.

6.—(1.) Section thirteen of the Principal Act is amended—

(a) by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:—

“(1.) Subject to this Act, contributions by an employee shall be in respect of units of pension as defined by section twenty-eight of this Act and the number of units in respect of which an employee shall contribute is the number of units specified in column two of the following scale opposite to the salary group in which the employee’s annual salary falls:—

“(2.) The annual salary of an employee who is paid salary at a rate other than an annual rate of salary shall, for the purposes of this section, be ascertained as prescribed.”; and

(b) by omitting sub-sections (4b.) and (4c.) and inserting in their stead the following sub-section:—

“(4b.) Where the salary of a contributor is increased by reason of an order or determination made by the Public Service Arbitrator, the date on which the determination is made, or, if the date from which the salary of the contributor is to be increased under the order or determination is subsequent to the date on which the determination is made, that subsequent date, is, for the purposes of this section, the date on which payment of salary at the increased rate is approved.”.

(2.) The amendment effected by paragraph (a) of the last preceding sub-section shall be deemed to have come into operation on the first day of November, One thousand nine hundred and fifty-one.

(3.) Where the number of units of pension (not including reserve units of pension) for which a contributor was, immediately before the first day of November, One thousand nine hundred and fifty-one, contributing exceeds the number of units specified in column two of the scale contained in sub-section (1.) of section thirteen of the Superannuation Act 1922–1951, opposite to the salary-group within which the salary of the contributor fell on that date, the contributor shall, subject to section fifteen of that Act, contribute for that first-mentioned number of units as from that date to the date upon which his salary falls within a salary-group which requires him to contribute for a number of units greater than the first-mentioned number of units.

(4.) Where, immediately before the first day of November, One thousand nine hundred and fifty-one, the time within which a contributor who had a right to elect under paragraph (a), (b) or (c) of sub-section (4.) of section thirteen of the Principal Act had not expired, the right of that contributor to make the election shall, notwithstanding the amendment effected by paragraph (a) of sub-section (1.) of this section, be deemed to have continued, or to continue, until the expiration of that time and, if, before the expiration of that time, the contributor has made or makes an election under any of those paragraphs, the number of units for which he contributes as from the date of his election shall, for the purpose of the last preceding sub-section, be deemed to be the number of units for which he was contributing immediately before the first day of November, One thousand nine hundred and fifty-one.

(5.) Where, before the commencement of this Act, the Public Service Arbitrator has made an order or determination increasing the salary of a contributor, but payment of salary at the increased rate has not been approved for the purposes of section thirteen of the Superannuation Act 1922–1950, the date of commencement of this Act is, for the purposes of section thirteen of the Superannuation Act 1922–1951, the date on which payment of salary at the increased rate is approved.

7. Section seventeen of the Principal Act is repealed and the following section inserted in its stead:—

Tables of contributions.

“17. The contributions payable by an employee for units of pension for which he is required or permitted to contribute are as follows:—

(a) where the obligation to make contributions existed at the date of commencement of the Superannuation Act 1942, the contributions shall be in accordance with the tables of contributions contained in Schedule I., II., III. or IV., as the case requires, to this Act; and

(b) where the obligation to make contributions came into existence after the date of commencement of the Superannuation Act 1942, or came or comes into existence on or after the first day of November, One thousand nine hundred and fifty-one, the contributions shall be in accordance with, the tables of contributions contained in Schedule V., VI., VII. or VIII., as the case requires, to this Act.”.

Payments by the Commonwealth where contributions are at rate for age.

8. Section eighteen of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-section:—

“(1.) The Commonwealth shall, in respect of each unit or portion of a unit of pension paid from the Fund on the basis of a contribution corresponding to the rate prescribed for the age of the employee at the date upon which he commenced to pay the contribution, pay to the Fund a sum equal to two-thirds of the payment so made.”.

Units of pension.

9. Section twenty-eight of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(1.) The unit of pension is Thirty-nine pounds per annum.”.

10.—(1.) After section twenty-nine a of the Principal Act the following section is inserted:—

Increase in certain pensions.

“29b.—(1.) Where, before the commencement of the Superannuation Act 1947, a contributor had retired not less than one year, after attaining the maximum age for retirement, the pension payable to him shall, as from the commencement of that Act, be increased by an amount ascertained by multiplying the portion of the pension which is the equivalent of the contributions made by him by a percentage ascertained in accordance with the following table:—

“(2.) Where, before the commencement of the Superannuation Act 1947, a married contributor who had completed not less than one year’s service after attaining the maximum age for retirement died before retirement, or having been retired after completing not less than that period of service, died before the commencement of the Superannuation Act 1951 and is survived by his widow, the pension payable to his widow shall, as from the date of commencement of the Superannuation Act 1947. or the date of the death of her husband, whichever is the later, be increased by one-half of the amount by which the pension which would have been payable to her husband would have been increased under the last preceding sub-section if he had retired immediately before his death or if he had not died before the commencement of the Superannuation Act 1951.

“(3.) The Commonwealth shall pay to the Fund the amount by which a pension is increased under this section and the Consolidated Revenue Fund is, to the necessary extent, hereby appropriated accordingly.”.

Pension to widow and children on death of contributor.

11. Section thirty-one of the Principal Act is amended by omitting from paragraph (b) of sub-section (1.) the words “Thirteen pounds” and inserting in their stead the words “Nineteen pounds ten shillings”.

Pension to widow and children on death of pensioner after retirement.

12. Section thirty-two of the Principal Act is amended by omitting from paragraph (b) of sub-section (1.) the words “Thirteen pounds” and inserting in their stead the words “Nineteen pounds ten shillings”.

Pension to orphan on death of contributor or pensioner.

13. Section thirty-three of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “Twenty-six pounds” and inserting in their stead the words “Thirty-two pounds ten shillings”; and

(b) by omitting from sub-section (2.) the word “one-half” and inserting in its stead the word “two-fifths”.

14.—(1.) After section forty a of the Principal Act the following section is inserted:—

Rights and obligations of certain contributors who change the nature of their employment.

“40b. Where an employee who is a contributor resigns from his employment and, immediately after the date of his resignation, becomes employed by the Commonwealth or an approved authority otherwise than as a casual, exempt or temporary employee, he shall, for the purposes of this Act, be deemed not to have resigned.”.

(2.) Where, on or after the first day of July, One thousand nine hundred and fifty, a contributor to whom section forty b of the Superannuation Act 1922–1951 would have applied if that section had come into operation on that date has received a refund of contributions in accordance with section forty of the Superannuation Act 1922–1948 or the Superannuation Act 1922–1950, that contributor may, within

three months after the commencement of this Act, or within such further time as the Board allows, repay to the Board an amount equal to the amount refunded to him and upon the payment of that amount he shall be deemed not to have resigned for the purposes of the Superannuation Act 1922–1951.

Employment by the Commonwealth of pensioner.

15. Section fifty a of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-sections:—

“(1.) Where a pensioner is employed by the Commonwealth or by an approved authority and is in receipt of a pension at a rate exceeding Four hundred and twenty-nine pounds per annum, the pension payable to the pensioner during any period for which he is paid salary or wages in respect of that employment is, in lieu of the pension which would otherwise have been payable under this Act, a pension at the rate of —

(a) Four hundred and twenty-nine pounds per annum; or

(b) an amount equal to one-half of the pension which would otherwise have been payable under this Act,

whichever is the greater.

“(1a.) The last preceding sub-section does not apply in relation to a pensioner who—

(a) has been retrenched;

(b) has been retired on the ground of invalidity or physical or mental incapacity to perform his duties; or

(c) is in receipt of a pension under section thirty-one or thirty-two of this Act.”.

16.—(l.) Section sixty w of the Principal Act is repealed and the following section inserted in its stead:—

Contributions to Provident Account.

“60w.—(1.) The contributions of a contributor to the Provident Account—

(a) shall be at the rate of One shilling for each pound or part of a pound of each fortnightly payment of salary payable to him; and

(b) shall be deducted from his salary at each payment of salary.

“(2.) A contributor to the Provident Account shall contribute to that Account as from the date from which he would have been required, under section twelve of this Act, to contribute to the Superannuation Fund if he had become a contributor to that Fund.

“(3.) Where the salary of a contributor to the Provident Account is increased, contributions payable by him shall be payable as from the date from which the increased salary is payable or, if that date is not a pay-day, as from the next succeeding pay-day after that date.

“(4.) Where a contributor to the Provident Account is on leave of absence on the ground of illness, either without pay or at less than full pay, he is liable to pay the contributions which he would have

been liable to pay if he had not been absent, but the Board may, upon his application, permit him to pay those contributions in such smaller sums and during such periods as the Board approves.”.

“(5.) Where a contributor to the Provident Account is on leave of absence without pay on a ground other than the ground of illness, that contributor shall not make a contribution in respect of a fortnightly pay day occurring during the period of that leave.

“(6.) The fortnightly salary of a contributor to the Provident Account who is paid salary in respect of periods other than a fortnight shall, for the purposes of this section, be ascertained as prescribed.”.

(2.) Contributions to the Provident Account shall be made in accordance with the Principal Act as amended by the last preceding sub-section as from the first day of November, One thousand nine hundred and fifty-one.

Payments on retirement.

17. Section sixty y of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “two and one-half” and inserting in their stead the words “two and two-thirds”;

(b) by omitting sub-sections (2.) and (3.) and inserting in their stead the following sub-section:—

“(2.) Where the sum payable under the last preceding sub-section is less than one-half of the annual rate of salary payable to a contributor to the Provident Account at the date of his retirement, the sum payable to the contributor to the Provident Account shall be a sum equal to one-half of the annual rate of salary payable to him at that date.”;

(c) by omitting from sub-section (4.) the words “The last preceding sub-section” and inserting in their stead the words “Sub-section (2.) of this section”; and

(d) by omitting from sub-section (5.) the figure “(3.)” and inserting in its stead the figure “(2.)”.

Payment on death of a contributor with dependants.

18. Section sixty z of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “two and one-half” and inserting in their stead the words “two and two-thirds”;

(b) by omitting sub-section (2.); and

(c) by omitting from sub-section (3.) the words “Where the aggregate of the sums payable under the preceding provisions of this section” and inserting in their stead the words “Where the sum payable under sub-section (1.) of this section”.

19.—(1.) After section sixty ab of the Principal Act the following section is inserted:—

Certain contributors who change the nature of their employment deemed not to have resigned.

“60aba. Where an employee who is a contributor resigns from his employment and, immediately after the date of his resignation, becomes employed by the Commonwealth or an approved authority otherwise than as a casual, exempt or temporary employee, he shall, for the purposes of this Act, be deemed not to have resigned.”.

(2.) Where, on or after the first day of July, One thousand nine hundred and fifty, a contributor to whom section sixty aba of the Superannuation Act 1922–1951 would have applied if that section had come into operation on that date has received payment of an amount in accordance with section sixty ab of the Superannuation Act 1922–1948 or the Superannuation Act 1922–1950, that contributor may, within three months after the commencement of this Act or within such further time as the Board allows, repay to the Board an amount equal to the amount so paid to him and upon the payment of that amount he shall be deemed not to have resigned for the purposes of this Act.

Payments by Commonwealth.

20. Section sixty ae of the Principal Act is amended—

(a) by omitting from sub-section (1.) the word “three-fifths” and inserting in its stead the word “five-eighths”; and

(b) by omitting sub-section (2.) and inserting in its stead the following sub-section:—

“(2.) The Commonwealth shall pay to the Provident Account an amount equal to the amount by which the sum paid to, or in respect of, a contributor to the Provident Account under sub-section (2.) of section sixty y, or sub-section (3.) of section sixty z, as the case may be, of this Act exceeds the sum which would, but for the operation of whichever of those sub-sections is applicable, have been payable to, or in respect of, that contributor under sub-section (1.) of section sixty y, or sub-section (1.) of section sixty z, of this Act.”.

Superannuation rights and obligations of former employees of Williamstown Dockyard.

21. Section sixty ag of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-section:—

“(3.) Where, in respect of a transferred dockyard employee, a notice has not been published in the Gazette under the last preceding sub-section, the Treasurer may—

(a) if the transferred dockyard employee has had not less than three years’ continuous service with the Trust or partly with the Trust and partly with the Commonwealth; and

(b) if the Secretary, Department of the Navy, or, on appeal from him, the Treasurer, certifies that the transferred dockyard employee’s employment is likely to be continued for at least seven years,

by notice published in the Gazette, direct that the transferred dockyard employee be deemed to be an employee within the meaning of section four of this Act, and the transferred dockyard employee shall be deemed to be such an employee as from the publication of the notice and shall commence contributing to the Fund as from the day on which the notice is so published or, if that day is not a pay-day, as from the next succeeding pay-day after that first-mentioned day.”.

Definitions.

22. Section sixty an of the Principal Act is amended by omitting the definition of “State employee” and inserting in its stead the following definition:—

“‘State employee’ means a person who became an employee before the first day of November, One thousand nine hundred and fifty-one, and was, immediately before becoming an employee, a contributor to a State Fund;”.

Superannuation rights and obligations of persons formerly employed by States.

23. Section sixty ao of the Principal Act is amended by omitting sub-sections (1a.) and (1b.).

24. After Part IVd. of the Principal Act the following Part is inserted:—

“Part IVe.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds.

Definition.

“60au. In this Part, ‘Public Service Superannuation Fund’ means a fund or account established under the law of a State to provide superannuation or other similar benefits for persons employed in the Public Service of that State and includes such other funds or accounts as are specified by the regulations to be Public Service Superannuation Funds for the purposes of this Act.

Provisions relating to former contributors to Public Service Superannuation Funds.

“60av.—(1.) An employee who became or becomes a contributor on or after the first day of November, One thousand nine hundred and fifty-one, and, immediately before becoming an employee, was a contributor to a Public Service Superannuation Fund may, within three months after the date of his becoming an employee, elect to pay to the Board the amount refunded to him from the Public Service Superannuation Fund upon his ceasing to be a contributor to that Fund.

“(2.) The amount refunded to a contributor from the Public Service Superannuation Fund shall not, for the purposes of the last preceding sub-section, include the amount (if any) refunded to him in respect of contributions paid by him to that Fund for reserve units of pension.

“(3.) Upon payment to the Board of an amount referred to in sub-section (1.) of this section, the actuarial member of the Board shall certify the number of units (including, where necessary, a fraction of a unit) the present value of which is, in his opinion, equal to three times that amount and the contributor shall be deemed to be a contributor for that number of units, but is not required to make contributions in respect of those units.

“(4.) An amount paid to the Board under this section—

(a) shall be paid into and form part of the Fund; and

(b) shall, for the purposes of this Act, be deemed to be contributions made by the employee to the Fund.”.

Schedules.

25. Schedules V., VI., VII. and VIII. to the Principal Act are repealed and the following Schedules inserted in their stead:—

“SCHEDULE V.

Section 17.

Rates of Contribution to be Paid Fortnightly by Male Members, Based on a Retiring Age of Sixty-five Years.

Schedule V.—continued.

“SCHEDULE VI.

Section 17.

Rates of Contribution to be Paid Fortnightly by Female Contributors, Based on a Retiring Age of Sixty-five Years.

Schedule VI.—continued.

“SCHEDULE VII.

Section 17.

Rates of Contribution to be Paid Fortnightly by Male Members, Based on a Retiring Age of Sixty Years.

“SCHEDULE VIII.

Section 17.

Rates of Contribution to be Paid Fortnightly by Female Contributors, Based on a Retiring Age of Sixty years.