DEFENCE FORCES RETIREMENT

BENEFITS.

No. 103 of 1959.

An Act relating to Retirement Benefits for Members of the Defence Forces of the Commonwealth.

[Assented to 4th December, 1959.]

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

Part I.—Preliminary.

Short title and citation.

1.—(1.) This Act may be cited as the Defence Forces Retirement Benefits Act 1959.

(2.) The Defence Forces Retirement Benefits Act 1948–1958 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Defence Forces Retirement Benefits Act 1948–1959.

Commencement.

2. This Act shall come into operation on the fourteenth day of December, One thousand nine hundred and fifty-nine.

Parts.

3. This Act is divided into Parts, as follows:—

Part I.—Preliminary.

Part II.—Amendments of the Defence Forces Retirement Benefits Act 1948–1958.

Part III.—Miscellaneous.

Part II.—Amendments of the Defence Forces

Retirement Benefits Act 1948–1958.

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 Section three of the Principal Act is repealed and the following section inserted in its stead:—

Parts.

“3. This Act is divided into Parts, as follows:—

Part I.—Preliminary (Sections 1–4a).

Part II.—The Defence Forces Retirement Benefits Board (Sections 5–14).

Part III.—The Defence Forces Retirement Benefits Fund (Sections 15–22).

Part IV.—Contributions.

Division 1.—Contributions by Members (Sections 23–27).

Division 3.—Rates of Contributions by Members (Sections 30–31).

Division 4.—Contributions by the Commonwealth (Sections 32–33).

Division 5.—General Provisions as to Contributions (Sections 36–37).

Part V.—Pensions and Benefits.

Division 1.—Grant of Pensions and Benefits (Sections 38–73).

Division 2.—Commutation of Pension (Section 74).

Division 3.—Transfer to the Superannuation Fund (Sections 74a–74b).

Part VI.—Assurance Policies (Section 75).

Part VIb.—Application of this Act to Pensioners who again become Members (Sections 82e–82h).

Part VII.—Miscellaneous (Sections 83–88).”.

Interpretation.

5. Section four of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the definition of “initial engagement”, the following definition:—

“‘invalidity benefit’ means benefit to which a member is entitled by virtue of sub-section (1.) of section fifty-one of this Act;”;

(b) by omitting the definition of “member” in sub section (1.) and inserting in its stead the following definition:—

“‘member’ means a member of the Permanent Naval Forces, the part of the Active Permanent Military Forces known as the Australian Regular Army or the Permanent Air Force on full-time continuous service, and includes a cadet enrolled at a naval, military or air force college, but does not include—

(a) in the case of the Permanent Naval Forces—a member of the Naval Dockyard Police (Guard Section),

an officer appointed for temporary service, an officer enrolled on the Emergency List or Retired List or a native member of the Papua and New Guinea Division; or

(b) in the case of the Australian Regular Army—a native member of the Pacific Islands Regiment;”;

(c) by inserting in sub-section (1.), after the definition of “officer”, the following definition:—

“‘period of non-effective service’, in relation to a member, means any period of service of the member exceeding twenty-one consecutive days during which the member was—

(a) on leave of absence without pay;

(b) absent without leave;

(c) awaiting or undergoing trial on a charge in respect of an offence of which he was later convicted; or

(d) undergoing field punishment, detention or imprisonment;”;

(d) by omitting from sub-section (3.) the words “sub sections (5.) and (6.) of section forty-eight, paragraph (c) of sub-section (3.) of section fifty-two, section seventy-two and section seventy-two a” and inserting in then-stead the words “sub-sections (6.) and (7.), and para graph (b) of sub-section (8.), of section fifty-two, section fifty-six a and section seventy-two”;

(e) by omitting from sub-section (4.) the words “sub sections (5.) and (6.) of section forty-eight and paragraph (c) of sub-section (3.) of section fifty-two” and inserting in their stead the words “sub-sections (6.) and (7.), and paragraph (b) of sub-section (8.), of section fifty-two and section fifty-six a”: and

(f) by adding at the end thereof the following sub-section:—

“(6.) Where, by virtue of an election made by a member in pursuance of the Air Force Regulations within a period of four months after the commencement of this sub-section, the age for compulsory retirement of the member is an age other than the retiring age for the rank held by him, this Act shall apply to and in relation to the member as if the retiring age for the rank held by him were the age for compulsory retirement of the member.”.

6. After section four of the Principal Act the following section is inserted in Part I.:—

Categories of members.

“4a.—(1.) For the purposes of this Act, members are divided into categories according to the ranks and descriptions set out in the First Schedule, and a reference in this Act to the category of a member shall be read as a reference to the category of members within which the member is included.

“(2.) Where a number is specified in a column headed ‘Category of Member’ in the Second, Third, Fourth or Fifth Schedule, that number shall be read as a reference to the category of members in relation to which that number is specified in the First Schedule.”.

Establishment of the Fund.

7. Section fifteen of the Principal Act is amended by omitting from sub-section (1.) the words “, and from which shall be paid the benefits provided for in this Act”.

8. After section fifteen of the Principal Act the following sections are inserted:—

Payments by Commonwealth to Fund.

“15a. Payments by the Commonwealth to the Fund shall be made from the Consolidated Revenue Fund, which is appropriated accordingly.

Benefits to be paid from Fund.

“15b.—(1.) Subject to the next succeeding sub-section, payments in respect of benefits under this Act shall be made from the Fund.

“(2.) Where the Commonwealth would be liable to pay to the Fund an amount equal to the whole or a part of a payment made to a person from the Fund, that amount may be paid to that person by the Commonwealth instead of from the Fund, and the Consolidated Revenue Fund is appropriated accordingly.

“(3.) A payment by the Commonwealth under the last preceding sub-section does not affect the liability of the Commonwealth to pay to the Fund an amount referred to in that sub-section.

Payments to be made at end of financial year.

“15c. Payments by the Commonwealth to the Fund shall be made on the last day of each financial year and on that day there shall be paid from the Fund to the Commonwealth an amount equal to the sum of the payments made by the Commonwealth under sub-section (2.) of the last preceding section during that financial year.”

General Account and Pensions Account.

9. Section seventeen of the Principal Act is repealed.

10.—(1.) Section twenty-two of the Principal Act is repealed and the following section inserted in its stead:—

Quinquennial investigation by Commonwealth Actuary.

“22.—(1.) An investigation as to the state and sufficiency of the Fund shall be made as at the thirtieth day of June, One thousand nine hundred and sixty-four, and thereafter at intervals of not less than five years.

“(2.) The investigation shall be made by the Commonwealth Actuary.

“(3.) The Commonwealth Actuary shall report to the Board the result of his investigation, and shall state whether any reduction or increase is necessary in the rates of contributions payable to the Fund or in the amount payable by the Commonwealth in respect of any pension and, where the Fund is found to be more than sufficient to provide for the benefits that are a charge upon the Fund, he shall also state what additional benefits (if any) could, in his opinion, be provided out of the surplus or in what other manner the surplus should, in his opinion, be dealt with.

“(4.) The Board shall inform the Treasurer of the result of any investigation made under the provisions of this section.”.

(2.) Notwithstanding the repeal of section twenty-two of the Principal Act effected by the last preceding sub-section, the provisions of that section continue to apply to and in relation to the investigation required to be made by that section as at the thirtieth day of June, One thousand nine hundred and fifty-nine.

(3.) If as a result of the investigation referred to in the last preceding sub-section—

(a) the Commonwealth Actuary certifies that, as at the thirtieth day of June, One thousand nine hundred and fifty-nine, there was a surplus in the Pensions Account maintained in the Defence Forces Retirement Benefits Fund—the Treasurer may direct that an amount equal to the whole or any part of the surplus shall be used to reduce, during such period as the Treasurer specifies, the payments by the Commonwealth to the Fund; or

(b) the Commonwealth Actuary certifies that, as at that date, there was a deficiency in that Account—the Treasurer may direct that additional sums, not exceeding in the aggregate the amount of the deficiency, shall be paid, in such amounts and during such period as the Treasurer specifies, by the Commonwealth to the Fund.

(4.) Payments by the Commonwealth to the Fund in pursuance of a direction of the Treasurer given under paragraph (b) of the last preceding sub-section shall be made from the Consolidated Revenue Fund, which is appropriated accordingly.

11. Section twenty-three of the Principal Act is repealed and the following section inserted in its stead:—

Commencement and cessation of contributions.

“23.—(1.) Every member shall, except as otherwise provided by this Act, contribute to the Fund from the date when he becomes a member.

“(2.) A member shall not contribute to the Fund prior to his attaining the age of eighteen years.

“(3.) A member, not being an officer, shall not contribute to the Fund unless he is serving or has served under an engagement or a re-engagement for a period of six years or a period exceeding six years.

“(4.) A female officer (other than a female officer who was a contributor immediately before the commencement of this sub-section) who—

(a) is serving under a commission, or an extension of a commission, that is a short service commission within the meaning of the appropriate Service Regulations; and

(b) was not a contributor to the Fund immediately before her appointment to that commission or the grant of that extension, as the case may be,

shall not contribute to the Fund unless she was appointed to that commission, or the extension was granted, for a period of six years or a period exceeding six years.

“(5.) A person shall not contribute to the Fund in respect of any period after the day on which—

(a) he ceases to be a member;

(b) a period of two years after he attains the retiring age for the rank held by him expires; or

(c) he attains the age of sixty years,

whichever first occurs, or, if that day is not a pay-day, after the pay-day last preceding that day.”.

Contributions under Superannuation Act 1922–1948.

12. Section twenty-four of the Principal Act is repealed.

Counting of previous service.

13. Section twenty-six of the Principal Act is repealed.

Counting of service under short-term engagement.

14. Section twenty-seven of the Principal Act is amended by inserting in sub-section (1.), before the word “member”, the word “male”.

15. Divisions 2, 3 and 4 of Part TV. of the Principal Act are repealed and the following Divisions inserted in their stead:—

“Division 3.—Rates of Contributions by Members.

Rates of contribution.

“30.—(1.) The amount of contribution to be paid at any time by a member who became a contributor before attaining the age of thirty years is an amount ascertained in accordance with the tables of contributions set out in the Second Schedule, having regard to his category at that time and, in the case of an officer to whom Table 1 in that Schedule applies, to his age on his birthday next following the day on which he became a contributor.

“(2.) The amount of contribution to be paid at any time by a member who became a contributor after attaining the age of thirty years is the amount that would have been payable by him in accordance with the last preceding sub-section if he had become a contributor immediately before attaining that age increased by such percentage as is determined in relation to the member by the Board on the advice of the Commonwealth Actuary.

Change in contributions.

“31.—(1.) If, upon a change in the category of a member, the amount of contribution which he is required to pay becomes greater or less than the amount of contribution that he was required to pay immediately before the change, he shall, subject to the next succeeding sub-section, pay the greater or lesser amount of contribution as from the day on which the change occurred or, if that day is not a pay-day, as from the pay-day next following that day.

“(2.) The amount of contribution which a member is paying under the last preceding section shall not be reduced by reason only of a promotion of the member.

“Division 4.—Contributions by the Commonwealth.

Commonwealth contributions in respect of pensions.

“32.—(1.) In respect of each payment of pension paid under this Act, the Commonwealth shall, except where otherwise provided by this Act, pay to the Fund an amount equal to seventy-seven and one-half per centum of that payment.

“(2.) The amount by which a payment of pension is increased by virtue of section forty-five of this Act shall not be taken into account for the purposes of the last preceding sub-section.

Commonwealth contributions in respect of benefits other than pensions or refunds of contributions.

“33.  In respect of each payment of benefit (other than a pension or a refund of the amount of a member’s contributions) paid under this Act, the Commonwealth shall pay to the Fund an amount equal to that payment.”.

Absences without leave for more than twenty-one days.

16. Section thirty-six of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(2.) Where—

(a) an officer has not, by virtue of the last preceding sub section, contributed to the Fund in respect of a period; and

(b) on retirement, he is entitled to a pension, not being invalidity benefit,

no payment of that pension shall be made to him until he has paid to the Fund an amount equal to the amount that, but for that sub-section, he would have been required to contribute to the Fund in respect of that period.”.

17. Sections thirty-eight, thirty-nine, forty, forty-one and forty-two of the Principal Act are repealed and the following sections inserted in their stead:—

Pension on retirement after twenty years’ service for pension—officers.

“38.—(1.) This section applies to an officer who—

(a) is a contributor;

(b) has completed twenty years’ service for pension; and

(c) is not entitled to invalidity benefit.

“(2.) An officer to whom this section applies is entitled, on his retirement on or after attaining the retiring age for the rank held by him, to pension in accordance with the succeeding pro visions of this section.

“(3.) Subject to this Act, the pension payable to an officer under this section is a pension at such rate set out in Part I. of the Third Schedule as is applicable to him having regard to his category and his age at the date of his retirement, increased, if section forty-five of this Act applies to him, in accordance with that section.

“(4.) Where an officer has completed more than two years’ service after attaining the retiring age for the rank held by him, the pension payable to him under this section shall be the pension that would have been so payable if he had retired upon completing two years’ service after attaining that retiring age.

Pension on retirement under special circumstances—officers.

“39.—(1.) This section applies to an officer who—

(a) is a contributor; and

(b) is not entitled on retirement to a pension under the last preceding section or to invalidity benefit.

“(2.) Where—

(a) an officer to whom this section applies—

(i) retires on or after attaining the retiring age for the rank held by him; and

(ii) had, not later than two years after attaining that retiring age, completed fifteen years’ service for pension;

(b) an officer to whom this section applies—

(i) has completed twenty years’ service for pension; and

(ii) retires before attaining the retiring age for the rank held by him,

and the Board is satisfied that the purpose of his retirement is to meet the needs of the Service; or

(c) an officer to whom this section applies—

(i) has completed a period of service for pension not less than the period specified in the Fourth Schedule in relation to his category at the date of his retirement; and

(ii) retires with the approval of the Service Board before, but within three years of, attaining the retiring age for the rank held by him, being a rank the retiring age for which is an age not greater than fifty-five years,

and the Board is satisfied that the purpose of the retirement is to enable him to establish himself in civil employment and approves payment of pension under this section to him,

the officer is entitled, on his retirement, to a pension in accordance with the succeeding provisions of this section.

“(3.) Subject to this Act, the pension payable to an officer under this section is a pension at such rate set out in Part I. of the Third Schedule as is applicable to him having regard to his category and his age at the date of his retirement.

“(4.) In the application of the last preceding sub-section and Part I. of the Third Schedule to an officer referred to in paragraph (a) of sub-section (2.) of this section, the age of that officer at the date of his retirement shall be deemed to be his actual age on that date reduced by—

(a) a period equal to the difference between twenty years and the number of years of service for pension completed by him; and

(b) the number of years of service, if any, completed by him after the expiration of two years after he attained the retiring age for the rank held by him.

Benefits other than pension-officers.

“40.—(1.) This section applies to an officer who—

(a) is a contributor; and

(b) is not entitled on retirement to a pension under either of the last two preceding sections or to invalidity benefit.

“(2.) Where—

(a) an officer to whom this section applies—

(i) has completed ten years’ service for pension; and

(ii) retires on or after attaining the retiring age for the rank held by him; or

(b) an officer to whom this section applies—

(i) has completed twelve years’ service for pension; and

(ii) retires before attaining the retiring age for the rank held by him,

and the Board is satisfied that the purpose of his retirement is to meet the needs of the Service,

he is entitled, on his retirement, in addition to a refund under section sixty of this Act of the amount of the contributions paid by him to the Fund, to a gratuity in accordance with this section.

“(3.) Subject to the next succeeding sub-section, the gratuity to which an officer is entitled under this section is an amount calculated at the rate of One hundred and twenty pounds if the officer is a male, or Sixty pounds if the officer is a female, for each completed year of the officer’s service for pension.

“(4.) Where the period of service for pension of an officer includes a period served as a member other than an officer, the gratuity to which the officer is entitled under this section is the sum of—

(a) an amount calculated at the rate of Fifty pounds per annum if the officer is a male, or Twenty-five pounds per annum if the officer is a female, in respect of the period of service for pension completed by the officer as a member other than an officer; and

(b) an amount calculated at the rate of One hundred and twenty pounds per annum if the officer is a male, or Sixty pounds per annum if the officer is a female, in respect of the period that is equal to the difference between—

(i) the period comprising the years of service for pension completed by the officer before retirement; and

(ii) the period of service for pension completed by the officer as a member other than an officer.

Pension after twenty years’ service for pension—other ranks.

“41.—(1.) This section applies to a member, not being an officer, who—

(a) is a contributor;

(b) has completed twenty years’ service for pension; and

(c) is not entitled to invalidity benefit.

“(2.) A member to whom this section applies is entitled to a pension on his retirement after completion of his engagement or, if he has had successive and continuous engagements, after completion of the last of those engagements.

“(3.) Subject to this Act, the pension payable to a member under this section is a pension at such rate set out in Part II. of the Third Schedule as is applicable to him having regard to his category and the number of years of service for pension completed by him on his retirement.

Benefits other than pension-other ranks.

“42.—(1.) Subject to this section, a member (not being an officer) who is a contributor and who, on retirement after completion of his engagement, or, if he has had successive and continuous engagements, after completion of the last of those engagements, is not entitled to a pension under the last preceding section or to invalidity benefit is, on retirement, entitled, in addition to a refund under section sixty of this Act of the amount of the contributions paid by him to the Fund, to a gratuity in accordance with this section.

“(2.) The gratuity to which a member is entitled under this section is—

(a) in the case of a member who, on retirement, has not completed twelve years’ service for pension—an amount determined in accordance with the following table, having regard to the number of years of service for pension completed by the member on his retirement: —

(b) in any other case—an amount calculated at the rate of Fifty pounds if the member is a male, or Twenty-five pounds if the member is a female, for each year of service for pension completed by the member on retirement.

“(3.) A person to whom this section applies who—

(a) on retirement, is requested by the Service Board to serve on the Reserve maintained by the Service of which the person was a member; and

(b) does not agree so to serve,

is entitled to so much only of the gratuity payable under this section as exceeds the sum of Two hundred pounds if the person is a male or One hundred pounds if the person is a female.

“(4.) For the purposes of this section, ‘service for pension’ includes service before attaining the age of twenty years under the engagement or successive and continuous engagements referred to in sub-section (1.) of this section, but does not include any period of such service under an initial engagement of less than six years.

Payment to other ranks after six years’ service.

“42a.—(1.) Where—

(a) a male member (other than an officer), after the commencement of this section, completes six years’ service for pension under an initial engagement; and

(b) he has engaged or agreed to engage to serve for a further period of not less than six years,

he is entitled to receive a payment of Three hundred pounds by way of benefit under this Act unless, by notice in writing given to the Board before he has completed six years’ service for pension, he has elected not to receive that payment.

“(2.) Where—

(a) a member who has received a payment under the last preceding sub-section ceases to be a member, whether by death or otherwise; and

(b) pension is not payable to or in respect of the member,

an amount equal to the payment shall be deemed to have been payable by the member to the Board immediately before he ceased to be a member and that amount—

(c) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the member, be deducted by the Board from the benefit; and

(d) may, to the extent, if any, that it exceeds the amount of that benefit, be recovered by the Board in any court of competent jurisdiction.

“(3.) Where an amount is deducted by the Board under the last preceding sub-section from any benefit and the benefit consists of a refund of contributions and a gratuity, the deduction shall be made successively from the gratuity and the amount of the refund.

“(4.) Where, on retirement, a member who has received a payment under sub-section (1.) of this section is entitled to a pension (not being invalidity benefit) under this Act, the rate of that pension shall be reduced by such rate as is determined by the Board on the advice of the Commonwealth Actuary to

be the actuarial equivalent of that payment unless, not later than four months after the date of his retirement, the member pays to the Fund an amount equal to that payment.

“(5.) Where—

(a) in pursuance of sub-section (2.) of this section, an amount is deducted from a refund of a member’s contributions or recovered in a court by the Board; or

(b) an amount is paid by a member to the Fund for the purposes of the last preceding sub-section,

there shall be paid from the Fund to the Commonwealth an amount equal to the amount so deducted or recovered, or to the amount so paid to the Fund, as the case may be.

“(6.) Where, by reason of sub-section (4.) of this section, a payment of pension is reduced, the amount that, but for this sub-section, the Commonwealth would be required to pay to the Fund in respect of that payment of pension shall be the amount that the Commonwealth would have been required to pay to the Fund if the payment of pension had not been reduced less an amount equal to the reduction.

“(7.) In this section, ‘service for pension’ means service, other than non-effective service, that is service for pension for the purposes of the last preceding section.’’.

18. Sections forty-four to fifty-two (inclusive) of the Principal Act are repealed and the following sections inserted in their stead:—

Completion of engagement.

“44.—(l.) Subject to this section, a member shall not, for the purposes of sections forty-one and forty-two of this Act and of the last preceding section, be deemed to have completed an engagement unless he has served under the engagement up to the date on which the engagement was due to terminate.

“(2.) Where a member who is a contributor (not being a member to whom sub-section (4.) of this section applies)—

(a) has completed not less than six years’ continuous service after he became a contributor; and

(b) before the completion of his engagement, or, if he has had successive and continuous engagements, before completion of the last of those engagements, retires with the approval of the Service Board or is discharged for reasons other than disciplinary reasons,

he shall, for the purposes of sub-section (1.) of section forty-two of this Act, be deemed to have completed his engagement or the last of those engagements, as the case may be, and, for the purposes of sub-section (2.) of that section, the number of years of service for pension completed by him on retirement shall be deemed to be—

(c) if he has not completed nine years’ service for pension—six years;

(d) if he has completed nine years’ service for pension but has not completed twelve years—nine years;

(e) if he has completed twelve years’ service for pension but has not completed fifteen years—twelve years; or

(f) if he has completed fifteen years’ service for pension— fifteen years.

“(3.) In paragraphs (c), (d), (e) and (f) of the last preceding sub-section, ‘service for pension’ has the same meaning as in section forty-two of this Act.

“(4.) Where a member who is a contributor—

(a) has completed not less than six years’ continuous service after he became a contributor; and

(b) before completion of his engagement, or, if he has had successive and continuous engagements, before completion of the last of those engagements, retires with the approval of the Service Board on or after attaining the retiring age for his rank or is retrenched,

he shall, for the purposes of sub-section (1.) of section forty-two of this Act, be deemed to have completed his engagement or the last of those engagements, as the case may be.

“(5.) For the purposes of the last preceding sub-section, a member shall be deemed to have been retrenched if his service is compulsorily terminated under such circumstances as are prescribed.

Pension increase on officer retiring at age of sixty-one years or over.

“45. Where—

(a) a contributor, being an officer, retires on or after the day on which he attains the age of sixty-one years;

(b) the retiring age for the rank held by him is sixty years; and

(c) he is entitled to a pension under section thirty-eight, or under sub-section (1.) of section fifty-two, of this Act,

the amount of that pension shall be increased by an amount ascertained by multiplying the portion of the pension equivalent to the contributions paid by him to the Fund by—

(d) if his age on retirement is less than sixty-two years—six per centum; or

(e) in any other case—thirteen per centum.

Alteration of retiring age-officers.

“49.  If the retiring age for the rank held by an officer is, or has been, lowered or raised, the regulations may make provision for varying any pension or benefit that may become payable to or in respect of him.

Service on Reserve.

“50.—(1.) Notwithstanding anything contained in this Act, if a person entitled to a pension under this Act is, on retirement, requested by the Service Board to serve on the Reserve maintained by the Service of which the person was a member and the person—

(a) does not agree so to serve; or

(b) having agreed so to serve, is released at his or her own request from the agreement,

there shall, subject to the next succeeding sub-section, be deducted from each fortnightly instalment of the pension an amount of Two pounds if the person is a male or One pound if the person is a female.

“(2.) The sum of the deductions made from instalments of the pension of a person under the last preceding sub-section shall not exceed—

(a) if the person has not agreed to serve on the Reserve— Two hundred pounds if the person is a male or One hundred pounds if the person is a female; or

(b) if the person has agreed to serve on the Reserve but is released at his or her own request from the agreement—such amount as the Board determines, being an amount that does not exceed Two hundred pounds if the person is a male or One hundred pounds if the person is a female.

“(3.) Where, under this section, an amount is deducted from a payment of pension to a person, the amount that, but for this sub-section, the Commonwealth would be required to pay to the Fund under this Act in respect of the payment shall be such amount as the Commonwealth would have been required to pay if the deduction had not been made less the amount of the deduction.

Invalidity benefit.

“51.—(1.) Where a member has been retired prior to attaining the retiring age for the rank held by him, or within two years after attaining that retiring age, on the ground of invalidity or of physical or mental incapacity to perform his duties (not, in the opinion of the Board, due to wilful action on his part for the purpose of obtaining pension or other benefit), he is entitled to benefit in accordance with the next two succeeding sections, but, subject to section sixty of this Act, is not otherwise entitled to benefit under this Act.

“(2.) Where a person is, or is about to become, entitled to benefit by virtue of the last preceding sub-section, the Board shall determine the percentage of total incapacity of the member in

relation to civil employment and shall classify the member according to the percentage of incapacity as follows:—

Rate or amount of invalidity benefit.

“52.—(1.) A member who is entitled to invalidity benefit and is classified as Class A under sub-section (2.) of the last preceding section is entitled to a pension at such rate set out in the Fifth Schedule as is applicable to him having regard to his category at the date of his retirement, increased, if section forty-five of this Act applies to him, in accordance with that section.

“(2.) An officer who is entitled to invalidity benefit and is classified as Class B under sub-section (2.) of the last preceding section is entitled to a pension—

(a) if he has completed twenty years’ service for pension and has not attained the retiring age for the rank held by him—at the rate at which pension would be payable to an officer of the same category who became entitled to a pension under section thirty-eight of this Act upon retiring on attaining the retiring age for that rank;

(b) if he has completed twenty years’ service for pension and has attained the retiring age for the rank held by him—at the rate at which pension would be payable to him under section thirty-eight of this Act if he were not entitled to invalidity benefit; or

(c) in any other case—at whichever is the lesser of the following rates:—

(i) the rate at which pension would be payable to an officer of the same category who became entitled to a pension under section thirty-eight of this Act upon retiring on attaining the retiring age for that rank; or

(ii) a rate equal to one-half of the rate at which pension would be payable to him if he were classified as Class A under sub-section (2.) of the last preceding section.

“(3.) A member, other than an officer, who is entitled to invalidity benefit and is classified as Class B under sub-section (2.) of the last preceding section is entitled to a pension—

(a) if he has completed twenty years’ service for pension—at the rate at which pension would be payable to him under section forty-one of this Act if he were not entitled to invalidity benefit; or

(b) in any other case—at the rate at which pension would be payable to a member of the same category who became entitled to a pension under section forty-one of this Act upon retiring on completing twenty years’ service for pension.

“(4.) Where a member to whom paragraph (a) of the last preceding sub-section applies retires before completing the engagement under which he was serving on the date of his retirement and before attaining the retiring age for the rank held by him, then, for the purpose of determining the rate at which pension is payable to him, his period of service for pension shall be deemed to be the period that would have been his period of service for pension if he had retired upon completing that engage-ment.

“(5.) An officer who is entitled to invalidity benefit and is classified as Class C under sub-section (2.) of the last preceding section is entitled—

(a) if he has completed twenty years’ service for pension and has not attained the retiring age for the rank held by him—to a pension at the rate at which pension would be, payable to him if, upon retirement, he had become entitled to a pension under section thirty-nine of this Act by virtue of paragraph (b) of sub section (2.) of that section;

(b) if he has completed twenty years’ service for pension and has attained the retiring age for the rank held by him—to a pension at the rate at which pension would be payable to him if he were classified as Class B; or

(c) in any other case—in addition to a refund under section sixty of this Act of the amount of contributions paid by him under this Act, to a gratuity in accordance with the next two succeeding sub-sections.

“(6.) Subject to the next succeeding sub-section, the gratuity to which an officer is entitled under paragraph (c) of the last preceding sub-section is an amount calculated at the rate of Seventy-five pounds if the officer is a male, or Thirty-seven pounds ten shillings if the officer is a female, for each year of service for pension completed by the officer.

“(7.) Where the period of service for pension of an officer includes a period served by the officer as a member other than an officer, the gratuity to which the officer is entitled under paragraph (c) of sub-section (5.) of this section is the sum of—

(a) an amount calculated at the rate of Fifty pounds per annum if the officer is a male, or Twenty-five pounds per annum if the officer is a female, in respect of the period of service for pension completed by the officer as a member other than an officer; and

(b) an amount calculated at the rate of Seventy-five pounds per annum if the officer is a male, or Thirty-seven pounds ten shillings per annum if the officer is a female, in respect of the period that is equal to the difference between—

(i) the period comprising the years of service for pension completed by the officer on retirement; and

(ii) the period of service for pension completed by the officer as a member other than an officer.

“(8.) A member, other than an officer, who is entitled to invalidity benefit and is classified as Class C under sub-section (2.) of the last preceding section is entitled—

(a) if the member has completed twenty years’ service for pension—to a pension at the rate at which pension would be payable to a member of the same category who became entitled to a pension under section forty-one of this Act upon retiring on completing a period of service for pension equal to the period of service for pension completed by that first-mentioned member; or

(b) in any other case—in addition to a refund under section sixty of this Act of the amount of contributions paid by the member under this Act, to a gratuity—

(i) if the member is a male—of an amount calculated at the rate of Fifty pounds for each year of service for pension completed by him; or

(ii) if the member is a female—of an amount calculated at the rate of Twenty-five pounds for each year of service for pension completed by her.

“(9.) For the purposes of sub-sections (6.) and (7.) of this section and sub-paragraphs (i) and (ii) of paragraph (b) of the last preceding sub-section, ‘service for pension’ includes service before attaining the age of twenty years and after attaining the age of eighteen years under any engagement under which the member has served, but does not include any period of such service under an initial engagement of less than six years.

“(10.) Where at any time the Board is satisfied that the value of any invalidity benefit payable to an officer who was retired on or after attaining the retiring age for the rank held by him is less than the value of any benefit to which he would have been entitled under this Act if he had not been entitled to invalidity benefit, the Board may vary the invalidity benefit to such extent as it thinks proper in the circumstances, but not so as to reduce its value.”

Reclassification of percentage of incapacity.

19. Section fifty-three of the Principal Act is amended by omitting sub-sections (2.) and (3.) and inserting in their stead the following sub-sections:—

“(2.) Where a person is reclassified under this section, the Board shall specify the date from which the reclassification has effect and, on and after that date, the person shall, for the purposes of the last preceding section, be deemed to be classified accordingly.

“(3.) If, upon reclassification as Class C, a person would, but for this sub-section, be entitled in accordance with the last preceding section to invalidity benefit consisting of a refund of contributions and a gratuity, he is entitled to that benefit only to the extent that it exceeds the sum of the payments of pension received by him as invalidity benefit.”.

20. After section fifty-three of the Principal Act the following section is inserted:—

Invalidity pensioner engaged in employment.

“53a.—(1.) If a person to whom a pension, being invalidity benefit, is being paid engages in employment at a remuneration the rate of which is not less than two-thirds of the rate of his pay, as determined in accordance with the regulations, immediately before his retirement, the Board may suspend the pension and, upon the Board so doing, the pension ceases to be payable so long as he continues in employment at such a remuneration.

“(2.) For the purposes of sub-section (1.) of the last preceding section and sub-section (3.) of section seventy-three of this Act, a person whose pension is suspended under this section shall not be deemed to have ceased to be a pensioner during the period of the suspension.

“(3.) In this section, ‘invalidity benefit’ includes pension payable under section seventy-three of this Act.”.

Incapacity due to wilful action.

21. Section fifty-four of the Principal Act is amended by adding at the end thereof the words “, and no pension or other benefit under this Act shall be payable to or in respect of the member”.

Pension on death of married member.

22. Section fifty-five of the Principal Act is amended—

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

“(a) during her life—a pension at a rate equal to five-eighths of the rate at which pension would have been payable to her husband if, on the date of his death, he had become entitled to invalidity benefit and had been classified as Class A under sub-section (2.) of section fifty-one of this Act; and”; and

(b) by omitting sub-section (3.).

Alternative benefits for officers serving under short service commissions.

23. Section fifty-six of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the word “Act” (last occurring), the words “(other than under the next succeeding section)”; and

(b) by omitting paragraphs (b) and (c) of sub-section (3.) and inserting in their stead the following word and paragraph:—

“and (b) the period of his service under the short service commission shall not be taken into account as service for pension for the purposes of this Act, other than for the purposes of the next succeeding section.”.

24. After section fifty-six of the Principal Act the following section is inserted:—

Gratuity payable to certain officers serving under short service commissions.

“56a.—(1.) Where—

(a) an officer who retires was, immediately before his retirement, serving under a commission that is a short service commission within the meaning of the Service Regulations;

(b) he was, immediately before he commenced to contribute to the Fund as an officer, contributing to the Fund as a member other than an officer;

(c) he has completed not less than six years’ service for pension; and

(d) but for this section, he would not be entitled to any benefit under this Act other than to a refund of the amount of the contributions paid by him under this Act,

he is entitled, in addition to that refund, to a gratuity in accordance with this section.

“(2.) Where an officer to whom this section applies retires on completion of, or of any extension of, the short service commission under which the officer was serving, the gratuity payable to the officer under this section is—

(a) if the officer had not completed six years’ service for pension before appointment to that short service commission—an amount calculated at the rate of Twenty pounds if the officer is a male, or Fifteen pounds if the officer is a female, for each year of service for pension completed by the officer before that appointment;

(b) if the officer had completed six, but had not completed twelve, years’ service for pension before that appointment—an amount determined in accordance with the

following table, having regard to the number of years of service for pension completed by the officer before that appointment:—

(c) if the officer had completed twelve years’ service for pension before that appointment—an amount calculated at the rate of Fifty pounds if the officer is a male, or Twenty-five pounds if the officer is a female, for each year of service for pension completed by the officer before that appointment.

‘‘(3.) Subject to the next succeeding sub-section, where an officer to whom this section applies retires before completing his or her short service commission or an extension of that short service commission, the gratuity payable to the officer under this section is an amount determined in accordance with the following table, having regard to the number of years of service for pension completed by the officer on retirement:—

“(4.) Where an officer to whom the last preceding sub-section applies has been paid, or is entitled to be paid, a gratuity otherwise than under this Act in respect of his service under his short service commission, a gratuity shall not be paid to him under this section except to the extent that it exceeds the amount of that other gratuity.

‘‘(5.) For the purposes of this section, ‘service for pension’ includes service before attaining the age of twenty years, but does not include service under an initial engagement of less than six years.”.

Pension on death of pensioner.

25. Section fifty-seven of the Principal Act is amended—

(a) by omitting from paragraph (a) of sub-section (1.) the word “one-half” and inserting in its stead the word “five-eighths”;

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

“(2.) For the purposes of the last preceding sub section, the pension payable to the widow of a male pensioner during her life shall, in any case where—

(a) the male pensioner had commuted any portion of his pension;

(b) the rate of the pension of the male pensioner had been reduced by virtue of sub-section (4.) of section forty-two a of this Act;

(c) an amount had been deducted from the last fortnightly instalment of the pension of the male pensioner under section fifty of this Act; or

(d) the pension of the male pensioner had been suspended under section fifty-three a of this Act,

be calculated upon the rate of pension that would have been payable to the male pensioner at the time of his death if no portion of his pension had been commuted, the rate of his pension had not been reduced, the amount had not been deducted from his pension or his pension had not been suspended, as the case may be.”; and

(c) by omitting from sub-section (3.) the words “a pension under section fifty-two or fifty-three of this Act” and inserting in their stead the words “a pension, being invalidity benefit,”.

26. Section fifty-nine of the Principal Act is repealed and the following section inserted in its stead:—

Benefits on death of certain members.

“59. Where—

(a) a male member who is unmarried or is a widower without children under the age of sixteen years; or

(b) a female member,

dies before retirement, the contributions paid by the member shall be paid to the personal representatives of the member or, failing them to such persons, if any, as the Board determines, and no pension or other benefit under this Act is payable in respect of the member.”.

Refund of contributions.

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

“(1.) Where a contributor retires or otherwise ceases to be a member and he is not entitled to a pension under this Act, he is, subject to the regulations, entitled to a refund of the amount of the contributions paid by him under this Act.”.

28. Section sixty-eight of the Principal Act is repealed and the following section inserted in its stead:—

Deduction of unpaid contributions from benefits.

“68.—(1.) There shall be deducted from any payment of pension or other benefit payable to or in respect of a person under this Act the amount of any contribution which that person is liable to pay, but has not paid, to the Fund.

“(2.) Where a person ceases to be a member within a period of less than one fortnight after he became a contributor and has not commenced to make contributions to the Fund, he shall, for the purposes of the last preceding sub-section, be deemed to be liable to pay to the Fund one fortnightly contribution.”.

Re-employment of pensioners.

29. Section sixty-nine of the Principal Act is amended—

(a) by inserting in paragraph (a) of sub-section (1.), after the word “pensioner” (first occurring), the words “,other than a pensioner under section fifty-five or fifty-seven of this Act,”;

(b) by omitting from sub-section (1.) the words “Three hundred and sixty-four pounds “(wherever occurring) and inserting in their stead the words “Five hundred pounds ten shillings”;

(c) by inserting in sub-section (1a.), after the word “pensioner”, the words “,other than a pensioner under section fifty-five or fifty-seven of this Act”;

(d) by omitting from sub-section (1a.) the words “in excess of twenty-eight working days in any period of twelve months”;

(e) by omitting sub-sections (3.) to (7.) (inclusive) and inserting in their stead the following sub-sections:—

“(3.) Where—

(a) a person in receipt of a pension under section fifty-five or fifty-seven of this Act becomes a contributor under this Act or an employee for the purposes of the Superannuation Act 1922–1959; and

(b) the rate of the pension exceeds Three hundred and twelve pounds sixteen shillings and threepence per annum,

the pension payable to her during any period in respect of which she is such a contributor or in respect of which she is paid salary or wages as such an employee is, in lieu of the pension that, but for this sub-section, would have been payable under this Act, a pension at the rate of—

(c) Three hundred and twelve pounds sixteen shillings and threepence per annum; or

(d) one-half of the rate of pension that, but for this sub-section, would have been payable under this Act,

whichever is the greater.

“(4.) Where a person in receipt of a pension under section fifty-five or fifty-seven of this Act is a contributor under this Act, she is, on retirement on pension, entitled to receive—

(a) the proportions of both pensions that are based upon the contributions paid by her and by her husband; and

(b) the proportion payable by the Common wealth—

(i) of whichever of the pensions secures to her the greater payment from the Commonwealth; or

(ii) if the payments from the Common wealth are equal—of one only of those pensions.

“(5.) Where a person in receipt of a pension under section fifty-five or fifty-seven of this Act is a contributor under the provisions of the Super annuation Act 1922–1959, she is, on retirement on pension under that Act, entitled to receive, in addition to that last-mentioned pension—

(a) the proportion of the pension under section fifty-five or fifty-seven of this Act that is based upon the contributions paid by her husband; and

(b) the amount (if any) by which the proportion of the pension payable by the Common wealth under this Act exceeds the proportion of the pension payable by the Commonwealth under the Superannuation Act 1922–1959. “

(6.) Where a person in receipt of a pension under section fifty-five or fifty-seven of this Act becomes a contributor to the Provident Account under the provisions of the Superannuation Act 1922–1959, she is, when she ceases to be such a contributor (except where she so ceases by reason of re-marriage), entitled to receive a pension under this Act at the same rate as that to which she would have been entitled if she had not become such a contributor.

“(7.) A person who is in receipt of a pension under this Act shall, within fourteen days after he—

(a) becomes a member;

(b) commences to serve on full-time continuous service in the Service;

(c) becomes an employee for the purposes of the Superannuation Act 1922–1959; or

(d) is employed by the Commonwealth or by a prescribed authority of the Common wealth,

notify the Board in writing accordingly.

Penalty: Ten pounds.”;

(f) by omitting from sub-section (8.) the words “sub section (6.) or (7.) of this section” and inserting in their stead the words “the last preceding sub section”; and

(g) by adding at the end thereof the following sub sections:—

“(9.) Where, by reason of the operation of sub-section (1.), (1a.) or (3.) of this section, a payment of pension is reduced, the amount payable by the Commonwealth to the Fund in respect of that payment of pension is the amount that would be payable by the Commonwealth if the reduction had not been made, less the amount by which the payment of pension is so reduced.

“(10.) In sub-sections (1.), (3.), (4.) and (5.) of this section, a reference to a pension does not include a reference to a pension payable in respect of a child.”.

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

Contributions and pensions under Superannuation Act 1922–1939.

“70 A member shall not be required or permitted to con tribute for units of pension under the Superannuation Act 1922–1959 and pension shall not be payable under that Act to or in respect of a member except under section forty-six, forty-seven or fifty of that Act.”.

31. Sections seventy-two, seventy-two a, seventy-three and seventy-three a of the Principal Act are repealed and the following sections inserted in their stead:—

Reduction of gratuity by reason of non-effective service.

“72.  Where—

(a) a person is entitled to a gratuity under this Act; and

(b) the period of service for pension of that person includes a period of non-effective service,

the amount of the gratuity that would, but for this section, be payable to the person shall be reduced by an amount that bears to that first-mentioned amount the same proportion as the period of non-effective service bears to the period of service for pension.

Special invalidity benefit to members under eighteen years or age.

“73.—(1.) Where a member who is a cadet or apprentice, or who is serving under an initial engagement for a period of not less than six years, is retired prior to attaining the age of eighteen years on the ground of invalidity or of physical or mental incapacity to perform his duties (not, in the opinion of the Board due to wilful action on his part for the purpose of obtaining pension under this section), the Board shall determine the percentage of total incapacity of the member in relation to civil employment and shall classify the member according to the percentage of incapacity as follows:—

“(2.) A person who is classified as Class A under the last preceding sub-section is entitled, on retirement, to a pension at the rate of Two hundred and seventy-three pounds per annum, a person who is classified as Class B under the last preceding sub section is entitled, on retirement, to a pension at the rate of One hundred and thirty-six pounds ten shillings per annum and a person who is classified as Class C under the last preceding sub-section is not entitled to any benefit.

“(3.) The Board may, from time to time, if it is satisfied that the percentage of incapacity of a pensioner classified under sub section (1.) of this section has altered, or, because of the nature of his employment, should be varied, reclassify him in accordance with the altered percentage of incapacity.

“(4.) Where a person is reclassified under the last preceding sub-section, the Board shall specify the date from which the reclassification has effect, and, on and after that date, the person shall, for the purposes of sub-section (2.) of this section, be deemed to be classified accordingly.

“(5.) In respect of each payment of pension paid under this section, the Commonwealth shall pay to the Fund an amount equal to that payment.”.

Commutation of pension.

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

“(1.) Subject to the regulations, a pensioner who has not attained the age of fifty-seven years may apply to the Board for the commutation of a portion of his pension, being a portion that does not exceed one-third of the pension.”.

(2.) The amendment made by the last preceding sub-section does not apply to or in relation to a person who became a pensioner before the commencement of this Act.

33. Section seventy-four a of the Principal Act is repealed and the following section inserted in its stead:—

Persons to whom this Division applies.

“74a. This Division applies to a person who, being a contributor—

(a) ceases to be a member;

(b) is not entitled to pension under this Act; and

(c) is a person to whom paragraph (a) of sub-section (1.) of section one hundred and eleven of the Superannuation Act 1922–1959 applies or to whom paragraphs (a), (b) and (c) of sub-section (2.) of that section apply.”.

Transfer to the Superannuation Fund.

34. Section seventy-four b of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “employed by the Commonwealth or the authority” and inserting in their stead the words “a person to whom this Division applies”; and

(b) by omitting from sub-section (2.) the words “twenty-six or” (wherever occurring).

35. Parts VI. and VIa. of the Principal Act are repealed and the following Part is inserted in their stead:—

“Part VI.—Assurance Policies.

Transfer of policies to Board.

“75.—(1.) A member who is a contributor and whose life is assured may, with the consent of the Board, transfer the policy, if the policy is unencumbered, to the Board or to a person approved by the Board and request the Board to continue the payment of the premiums under the policy.

“(2.) Where a transfer is made under the last preceding sub-section, the Board shall duly pay the premiums and, on the maturity of the policy, shall pay to the member or to his personal representatives, to be administered as part of his estate, any sums received on the policy, less the amounts of the premiums paid by the Board with compound interest on those amounts from the respective dates of payment at such rate as is prescribed.

“(3.) Where the member desires that his policy be re-transferred to him before maturity or he retires, the Board may, on receipt of a request for re-transfer or upon the retirement, as the case may be, re-transfer the policy to the member upon payment to the Board of the amounts of the premiums paid by the Board with compound interest on those amounts from the respective dates of payment at such rate as is prescribed.”.

Contributions.

36. Section eighty-two f of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-section:—

“(3.) For the purpose of determining the amount of contribution payable by a person to whom this Part applies, the age at which that person again becomes a member shall be deemed to be the age at which he became a contributor prior to becoming entitled to a pension.”.

37. The Schedules to the Principal Act are repealed and the following Schedules inserted in their stead:—

THE SCHEDULES.

——

FIRST SCHEDULE.  Section 4a.

Categories of Members.

Officers.

First Schedule—continued’.

——

Officers—continued.

First Schedule—continued.

Officers—continued.

Male Members, other than Officers.

First Schedule—continued.

Male Members, other than Officers—continued.

Female Members, other than Officers.

First Schedule—continued.

Female Members, other than Officers—continued.

SECOND SCHEDULE. Section 30.

Amount of Contribution to be paid Fortnightly by Members.

Table 1.—Members other than those to whom Table 2 applies.

Second Schedule—continued.

      Table 2.

THIRD SCHEDULE. Sections 38, 39 and 41.

Rates of Pension per Annum.

Part I.—Officers.