PARLIAMENTARY CONTRIBUTORY SUPERANNUATION AMENDMENT ACT 1978

No. 41 of 1978

An Act to amend the Parliamentary Retiring Allowances Act 1948.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Parliamentary Contributory Superannuation Amendment Act 1978.

(2) The Parliamentary Retiring Allowances Act 1948 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Amendment of title

3. The title of the Principal Act is amended by omitting “Retiring Allowances” and substituting “Superannuation”.

Amendment of short title

4. Section 1 of the Principal Act is amended by omitting “Retiring Allowances” and substituting “Contributory Superannuation”.

Interpretation

5. (1) Section 4 of the Principal Act is amended—

(a) by inserting after the definition of “member” in sub-section (1) the following definition:

“‘office holder’ means a person who is in receipt of a parliamentary allowance and—

(a) is a Minister of State; or

(b) holds any office (other than an office of Minister of State) in or in connection with the Parliament or either House, being an office in respect of which salary is payable;”; and

(b) by inserting after the definition of “retiring allowance” in sub-section (1) the following definition:

“‘salary’—

(a) in relation to a Minister of State—does not include any allowance; and

(b) in relation to an office other than an office of Minister of State—means any allowance by way of salary payable in respect of the holding of the office

but does not include any special or other allowance payable in respect of the holding of the office;”.

(2) For the purpose of ascertaining the rate of retiring allowance payable under the Principal Act to a person who ceased to be entitled to a parliamentary allowance before the commencement of this Act, the reference in sub-section 18(6) of that Act to the rate of the parliamentary allowance for the time being payable under sub-section (1) of section 4, or sub-section (1) of section 5, whichever is appropriate, of the Parliamentary Allowances Act 1952-1973 shall be read as a reference to the rate of the parliamentary allowance for the time being determined by the Remuneration Tribunal in lieu of the rate specified in whichever of those last-mentioned sub-sections is appropriate.

Contributions by members

6. Section 13 of the Principal Act is amended by omitting sub-sections (1), (2) and (3) and substituting the following sub-sections:

“(1) A member or other person who is in receipt of a parliamentary allowance shall pay contributions to the Commonwealth—

(a) in the case of a member or other person whose period of service is less than 18 years—at the rate per month of 11½ per centum of the monthly amount of his parliamentary allowance; or

(b) in the case of a member or other person whose period of service is not less than 18 years—at the rate per month of 5¾ per centum of the monthly amount of his parliamentary allowance.

“(1a) An office holder shall, in addition to the contributions payable by him under sub-section (1), pay contributions to the Commonwealth at the rate per month of 11½ per centum of the monthly amount of his salary as an office holder.

“(2) For the purposes of sub-sections (1) and (1a)—

(a) the monthly amount of a parliamentary allowance shall be deemed to be one-twelfth of the annual amount of that allowance; and

(b) the monthly amount of the salary of an office holder shall be deemed to be one-twelfth of the annual amount of that salary.

“(3) The contributions payable by a person under this section shall be deducted—

(a) in the case of the contributions referred to in sub-section (1)—from payments of parliamentary allowance made to the person; and

(b) in the case of the contributions referred to in sub-section (1a)—from payments of parliamentary allowance or of salary as an office holder made to the person,

and each deduction shall, so far as practicable, be made in respect of the same period as that in respect of which the payment is made.”.

7. After section 13 of the Principal Act the following section is inserted in Part IV:

Additional contributions by office holders

“14. (1) A reference in this section to a period during which a person served as an office holder does not include a reference to any period that does not also form part of the period of service of the person for the purposes of this Act.

“(2) Where a person who is a member at the date of commencement of this section served as an office holder for any period or periods before that date, he may, within 3 months after that date, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect to have the whole of that period or of those periods taken into account for the purposes of sub-section (9) of section 18.

“(3) Where a person, not being a person who is a member at the date of commencement of this section, becomes a member on or after that date and that person served as an office holder for any period or periods before that date, he may, within 3 months after the date on which he so becomes a member, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect to have the whole of that period or of those periods taken into account for the purposes of sub-section (9) of section 18.

“(4) A person who makes an election in accordance with sub-section (2) or (3) shall—

(a) if he received any refund of contributions under Part Va of the Parliamentary Retiring Allowances Act 1948-1964, or of that Act as amended, not being a refund that was subsequently repaid by him under section 22m of that Act, or of that Act as amended, or received any refund of contributions under sub-section (12) or (13) of section 22 of the Parliamentary and Judicial Retiring Allowances Act 1973—pay to the Commonwealth an amount equal to that refund (excluding any part of that refund that comprises contributions made in respect of a period to which sub-section (7) of section 19a applies); and

(b) if he served as an office holder during any period or periods during the period that commenced on 8 June 1973 and ended immediately before the commencement of this section—pay to the Commonwealth an amount equal to 11½ per centum of the total of the amounts of the salary received by him as an office holder in respect of the period or periods during which he so served as an office holder.

“(5) If, but for this sub-section, sub-section (2) of section 22 of the Parliamentary and Judicial Retiring Allowances Act 1973 would apply to and in respect of a person who makes an election under this section, that sub-section ceases to apply to and in respect of him when the election is made.

“(6) Any amounts payable to the Commonwealth by a person under this section shall be paid at such times and in such amounts as are agreed upon between the person and the Minister for Finance or, in the absence of agreement, at such times and in such amounts as the Minister for Finance determines, but so that the total of the amounts is paid to the Commonwealth within 3 years after the date on which the person made the relevant election under this section.

“(7) If a person who has made an election under this section becomes entitled to a retiring allowance and, after becoming so entitled, elects under sub-section (3) of section 18b to convert a percentage of that retiring allowance into a lump sum payment, there shall be deducted from the amount of that lump sum payment the amount (if any) by which the total of the amounts that the person is liable to pay to the Commonwealth under sub-section (4) of this section exceeds the total of any of those amounts that the person has paid in accordance with sub-section (6) of this section and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make payments under this section.”.

Commonwealth supplement

8. Section 16 of the Principal Act is amended—

(a) by inserting after sub-section (1) the following sub-section:

“(1a) Any amounts paid by a person to the Commonwealth under section 14 shall be deemed to be contributions paid by him during his period of service, or during the last 8 years of his period of service, to the extent that those amounts relate to—

(a) in the case of amounts paid in pursuance of paragraph (a) of sub-section (4) of that section—contributions (other than a repayment of a refund) made during his period of service, or during those last 8 years of his period of service, as the case may be, under Part Va of the Parliamentary Retiring Allowances Act 1948-1964 or of that Act as amended; and

(b) in the case of amounts paid in pursuance of paragraph (b) of sub-section (4) of that section—any period occurring during his period of service, or during those last 8 years of his period of service, as the case may be.”; and

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

“(3) For the purpose of ascertaining the Commonwealth supplement in relation to a person who paid contributions in accordance with paragraph (b) of sub-section (1) of section 13, he shall be deemed to have paid (in addition to the contributions that he has paid under that paragraph and any other contributions that he has paid) further contributions equal to the contributions that he paid under that paragraph.”.

Benefits to members

9. (1) Section 18 of the Principal Act is amended—

(a) by inserting after sub-section (1) the following sub-sections:

“(1a) Where the period of service of a member is not less than 12 years, the benefit shall be a retiring allowance during his life-time at the rate applicable in accordance with the scale set out in sub-section (6).

“(1b) Where the period of service of a member is less than 12 years but he has, on each of at least 4 occasions (including occasions before the commencement of this sub-section), ceased to be a member upon the dissolution or expiration of the House of which he was then a member or upon the expiration of his term of office, the benefit shall be—

(a) if his period of service is less than 8 years—a retiring allowance during his life-time at the rate applicable in accordance with the scale set out in sub-section (6) in the case of a member whose period of service is 8 years; or

(b) in any other case—a retiring allowance during his lifetime at the rate applicable in accordance with the scale set out in sub-section (6).”;

(b) by inserting in sub-section (2) “(other than a member to whom sub-section (1a) or (1b) applies)” after “member” (first occuring);

“(2a) For the purposes of sub-section (1b) and paragraph (aa) of sub-section (2), every senator whose term of office was 6 years shall, if at the expiration of 3 years after the commencement of that term of office that term of office had not expired, be deemed (in addition to his having ceased to be a senator at the actual expiration of that term of office if he continued in office for the whole of that term) to have at the expiration of that period of 3 years ceased to be a senator by reason of the expiration of that term of office.”;

(d) by inserting in sub-section (3) “sub-section (1b) or” after “purposes of”; and

(e) by omitting sub-sections (4), (5) and (6) and substituting the following sub-sections:

“(4) In the case of a member (other than a member to whom sub-section (1a) or (1b) applies) who retires voluntarily, the benefit shall be a refund of his contributions together with a payment of one-half of the Commonwealth supplement.

“(6) The rate of retiring allowance payable to a person under this section is such percentage of the rate of the parliamentary allowance for the time being determined by the Remuneration Tribunal in lieu of the rate specified in sub-section (1) of section 4, or sub-section (1) of section 5, whichever is appropriate, of the Parliamentary Allowances Act 1952 as is applicable in accordance with the following scale:

Number of complete years in period of service of person	Percentage of parliamentary allowance to be paid as retiring allowance
8	50.00
9	52.50
10	55.00
11	57.50
12	60.00
13	62.50
14	65.00
15	67.50
16	70.00
17	72.50
18 or more	75.00

“(7) Where—

(a) the number of complete years in the period of service of a member is not less than 8 but less than 18; and

(b) that period of service includes, apart from those complete years, a number of complete days,

the percentage of the rate of the parliamentary allowance applicable in relation to the member in accordance with the scale set out in sub-section (6) shall be increased by an additional percentage (calculated to 3 decimal places) of that rate ascertained by multiplying the number of those complete days or 364, whichever is the less, by .00685.

“(8) Where the additional percentage ascertained in accordance with sub-section (7) in relation to a member would, if it were calculated to 4 decimal places, end with a number greater than 4, that additional percentage shall be taken to be the percentage calculated to 3 decimal places in accordance with that sub-section and increased by 0.001.

“(9) Where the period of service of a member includes—

(a) a period or periods during which the member served as an office holder after the commencement of this sub-section; or

(b) a period or periods during which the member served as an office holder before the commencement of this sub-section and which the member elected under section 14 to have taken into account for the purposes of this sub-section,

or both a period or periods referred to in paragraph (a) and a period or periods referred to in paragraph (b), the percentage of the rate of the parliamentary allowance applicable in relation to the member under this section for the purpose of calculating the rate of the retiring allowance payable to the member shall, in lieu of the percentage that would; but for this sub-section, be applicable, be the percentage (calculated to 3 decimal places)

ascertained in accordance with the formula	p(x + y + z),	where—
	x

p is the percentage ascertained in accordance with sub-sections (6) and (7) before the application of sub-section (8);

x is the total of the amounts of the parliamentary allowance paid, or accrued due, to the member in respect of his period of service;

y is the total of the amounts of the salary paid, or accrued due, to the member as an office holder in respect of any period or periods of service as an office holder after the commencement of this sub-section; and

z is the total of the amounts of the salary paid, or accrued due, to the member as an office holder in respect of any period or periods of service as an office holder before the commencement of this sub-section, being a period or periods of service that the member has elected under section 14 to have taken into account for the purposes of this sub-section.

“(10) Where the percentage ascertained in accordance with sub-section (9) in relation to a member would, if it were calculated to 4 decimal places, end with a number greater than 4, that percentage shall be taken to be the percentage calculated to 3 decimal places in accordance with that sub-section and increased by 0.001.

“(11) A reference in this section to a member includes a reference to any person who is in receipt of a parliamentary allowance.”.

(2) The amendments made by sub-section (1) apply only to or in respect of persons who—

(a) are members at the date of commencement of this Act; or

(b) become members on or after that date (whether or not they had at any previous time been members).

10. After section 18a of the Principal Act the following section is inserted:

Commutation of retiring allowance

“18b. (1) This section applies to a person who becomes entitled to a retiring allowance after the commencement of this section other than a person who—

(a) becomes entitled to that allowance in pursuance of paragraph (a) or (aa) of sub-section (2) of section 18; and

(b) becomes so entitled by reason of his having retired on account of ill-health.

“(2) The reference in sub-section (1) to a person who becomes entitled to a retiring allowance by reason of his having retired on account of ill-health shall be construed as a reference to a person who—

(a) ceases to be a member by reason of his having resigned his place before the expiration of his term of office;

(b) ceases to be a senator upon the expiration of the term of office of a class of senators or the dissolution of the Senate and is not, at the time of an election to fill places in the Senate that become vacant at the time when his place becomes vacant, a candidate for election as a senator or, if elections of members of the House of Representatives are held, or an election of a member of the House of Representatives is held, at the same time as such a Senate election, a candidate for election either as a senator or as a member of the House of Representatives;

(c) ceases to be a member of the House of Representatives upon the dissolution or expiration of that House and is not, at the time of the next ensuing elections for the House of Representatives, a candidate for election to that House or, if elections of senators are held, or an election of a senator is held, at the same time as those elections for that House, a candidate for election either as a senator or as a member of the House of Representatives; or

(d) ceases to be a senator by reason of the election of a successor under section 15 of the Constitution and is not, at the time of the election at which his successor is elected, a candidate for election as a senator or, if his successor is elected at a general election of members of the House of Representatives, a candidate for election either as a senator or as a member of the House of Representatives,

and who, by reason of his having satisfied the Trust that his resignation was made bona fide on account of ill-health or that his failure to be such a candidate was due to ill-health, as the case may be, is not deemed by section 17 to have retired voluntarily.

“(3) Notwithstanding anything in this Act, a person to whom this section applies may, within 3 months after becoming entitled to a retiring allowance, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect to convert such percentage (not exceeding 50 per centum) of his retiring allowance as is specified in the notice (in this section referred to as the ‘specified percentage’) to a lump sum payment determined in accordance with this section.

“(4) A lump sum payment under sub-section (3) shall be—

(a) in any of the cases mentioned in sub-section (5)—the specified percentage of the annual amount of the retiring allowance payable to him multiplied by 10; or

(b) in any other case—the specified percentage of the annual amount of the retiring allowance payable to him multiplied by the number ascertained in accordance with the formula 10-x ,

where x is the number of whole months in the period that commenced on the day on which he attained the age of 65 years and ended on the day immediately before he became entitled to the retiring allowance.

“(5) The cases referred to in paragraph (a) of sub-section (4) are—

(a) the case where the person had not attained the age of 66 years at the time when he became entitled to the retiring allowance;

(b) the case where the person attained the age of 66 years after the dissolution or expiration of the House of which he was last a member, or after the expiration of his last term of office as a member, and before he became entitled to the retiring allowance; and

(i) the person attained the age of 66 years at a time when he was a member;

(ii) the person ceased to be a member upon the dissolution or expiration of the House of which he was a member at the time when he attained that age or upon the expiration of the term of office during which he attained that age; and

(iii) the person did not, after so ceasing to be a member, again become a member before he became entitled to the retiring allowance.

“(6) Where a person elects to convert a percentage of his retiring allowance to a lump sum payment in accordance with sub-section (3)—

(a) the percentage of the rate of the parliamentary allowance applicable in relation to him under section 18 for the purpose of calculating the rate of the retiring allowance payable to him shall, in lieu of the percentage (in this paragraph referred to as the ‘previous percentage’) that would, but for this paragraph, be applicable under that section, be the percentage ascertained in

accordance with the formula	p (x−y),	where—
	x

p is the previous percentage;

x is the annual amount of the retiring allowance payable to the person; and

y is the part of the annual amount of the retiring allowance payable to the person that he elected to convert to a lump sum payment; and

(b) if a payment or payments of retiring allowance has or have already been made to him since he became entitled to the retiring allowance, the amount of the lump sum payment referred to in sub-section (4) shall be reduced by so much of the amount of the payment, or of the sum of the amounts of the payments, already made as relates or relate to the percentage of the retiring allowance that he elected to convert to a lump sum payment.

“(7) A reference in this section to the annual amount of the retiring allowance payable to a person shall be construed as a reference to the annual amount of the retiring allowance that was payable to the person at the time when he became entitled to that allowance.”.

Benefits to widow or widower

11. (1) Section 19 of the Principal Act is amended by omitting sub-sections (2), (3), (4), (5) and (6) and substituting the following sub-sections:

“(2) Subject to sub-section (7), if the deceased person is survived by a widow or widower, there is payable to the widow or widower an annuity, during her or his life-time, at a rate ascertained in accordance with sub-section (3).

“(3) The rate of the annuity referred to in sub-section (2) is five-sixths of the rate of the retiring allowance that would have been applicable to the deceased person if he had not died and—

(a) where he died while entitled to a parliamentary allowance—he had ceased to be entitled to that allowance on the date of his death;

(b) where his period of service was less than 8 years—his period of service had been 8 years; and

(2) The amendment made by sub-section (1) applies only in relation to a widow or widower of a member or former member who died after the commencement of this Act but, for the purposes of the application after the commencement of this Act of section 19 of the Principal Act in relation to a widow or widower of a member or former member who died before the commencement of this Act, that section has effect as if-

(a) “but ceasing upon her or his re-marriage” were omitted from paragraph (a) of sub-section (2);

(b) “or re-marries” and “or re-marriage” were omitted from sub-section (4); and

(3) Where—

(a) a widow’s or widower’s entitlement to an annuity under section 19 of the Principal Act ceased before the commencement of this Act upon her or his re-marriage; and

(b) the widow or widower makes application to the Trust for the restoration of the annuity and the Trust is satisfied that the widow or widower is in necessitous circumstances or that the restoration of the annuity is otherwise warranted,

the Trust may direct in writing that the widow’s or widower’s entitlement to an annuity be restored from and including such date as the Trust specifies and, upon such a direction being given, the widow or widower again becomes entitled to an annuity from and including that date at a rate determined by the Trust (being a rate that does not exceed the rate at which the annuity would have been payable if the entitlement had not ceased).

(4) The date specified by the Trust under sub-section (3) in relation to the restoration of a widow’s or widower’s entitlement to an annuity shall not, unless the Trust is satisfied that special circumstances exist that justify an earlier date being so specified, be a date earlier than the date of the direction, and shall not, in any event, be a date earlier than the date of commencement of this Act.

Benefits in respect of orphaned children

12. (1) Section 19aa of the Principal Act is amended—

(a) by omitting sub-section (2) and substituting the following sub-sections:

“(2) Subject to the sub-sections (2a) and (2b), where a person has died or dies—

(a) while entitled to a parliamentary allowance; or

(b) while entitled to a retiring allowance,

and the deceased person was not or is not survived by a widow or widower who was or is entitled to an annuity under section 19, but was or is survived by a child of the deceased person or of a former spouse of the deceased person, being a child who was a dependant of the deceased person and is an eligible child, benefit in accordance with this section is payable in respect of the child.

“(2a) Subject to sub-section (2b), if the deceased person died while entitled to a retiring allowance, sub-section (2) does not apply in relation to a child who was born, or was adopted by the deceased person, either alone or together with another person, after the date on which the deceased person became entitled to the retiring allowance and after the date on which the deceased person attained the age of 60 years.

“(2b) Sub-section (2a) does not exclude a child from benefit where—

(a) the child was born during a marriage of the deceased person to another person or was adopted during such a marriage by the deceased person, or by the deceased person together with that other person; and

(b) if that other person had survived the deceased person, that other person would have been entitled to an annuity under section 19.”.

(b) by omitting from sub-section (3) “Where” and substituting “Subject to sub-section (3a), where”;

“(3a) Sub-section (3) does not apply in relation to a child who was born after the date of death of the late spouse of the widow or widower, or was adopted by the widow or widower after that date, either alone or together with another person, other than a child who, in the opinion of the Trust, would have been a dependant of that late spouse if that late spouse had not died.”;

(d) by adding “or” at the end of paragraph (a) of sub-section (4);

(e) by omitting paragraph (b) of sub-section (4);

(f) by inserting after sub-section (4) the following sub-section:

“(4a) A reference in this section to the late spouse of a widow or widower shall be construed as a reference to the deceased person by reason of whose death the widow or widower became entitled to an annuity under this section.”; and

(g) by omitting the definition of “child” from sub-section (5) and substituting the following definition:

“‘child’ in relation to a person, means a child (including an adopted child or an ex-nuptial child) of the person;”.

(2) The amendments made by sub-section (1) apply in relation to persons who have died before, or die after, the commencement of this Act but those amendments do not create an entitlement to payment of an annuity in respect of any period before the commencement of this Act.

13. After section 19aa of the Principal Act the following section is inserted:

Benefits payable to personal representative

“19ab. (1) Where—

(a) a person dies after the commencement of this section while entitled to a parliamentary allowance or while entitled to a retiring allowance; and

(b) the deceased person is not survived by a widow or widower to whom an annuity is payable under section 19 and no benefits are payable in respect of a child or children of the deceased person or of a former spouse of the deceased person,

there is payable to the personal representative of the deceased person the amount (if any) by which the sum of the contributions paid by the deceased person and the Commonwealth supplement in relation to the deceased person exceeds the sum of any benefits under this Act paid to, or accrued due to, the deceased person before the death of that person.

“(2) Where—

(a) a person dies after the commencement of this section while entitled to a parliamentary allowance or while entitled to a retiring allowance; and

(b) the sum of the contributions paid by the deceased person and the Commonwealth supplement in relation to the deceased person exceeds the sum of any benefits under this Act paid to, or accrued due to, the deceased person before the death of that person or paid or payable to a widow or widower of the deceased person or a child or children of the deceased person or of a widow or widower or former spouse of the deceased person,

an amount equal to the excess is payable to the personal representative of the deceased person.

“(3) In this section, ‘child’ has the same meaning as in section 19aa.”.

Additional benefit to Prime Minister

14. Section 19a of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(4) This section does not apply to or in respect of any person who, not having held the office of Prime Minister before the commencement of the Parliamentary Contributory Superannuation Amendment Act 1978, commences to hold that office after the commencement of that Act.

“(5) Any period in which a person holds the office of Prime Minister after the commencement of the Parliamentary Contributory Superannuation Amendment Act 1978 shall not be taken into account for the purposes of the application of this section to or in respect of him.

“(6) A person who—

(a) held the office of Prime Minister at the commencement of the Parliamentary Contributory Superannuation Amendment Act 1978; or

(b) ceased to hold the office of Prime Minister before the commencement of that Act after having held that office for a continuous period of not less than 2 years or for periods amounting in the aggregate to not less than 2 years and was entitled to a parliamentary allowance at the commencement of that Act,

may, within 3 months after the date of commencement of that Act, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect that this section shall not apply to and in respect of him and, where such an election is made, a retiring allowance is not payable under this section to the person and an annuity is not payable under this section to a widow of the person.

“(7) Any period in which a person has held the office of Prime Minister and which is taken into account for the purposes of the application of this section to or in respect of the person shall be deemed for the purposes of this Act not to be a period in which the person served as an office holder.”.

Re-election

15. Section 20 of the Principal Act is amended—

(a) by inserting after sub-section (2) the following sub-sections:

“(2a) Where a person who is entitled to a parliamentary allowance at the date of commencement of this sub-section has, at any time before that date, received an amount referred to in sub-section (1) that he did not contract, or was not entitled to contract, with the Trust to repay to the Commonwealth as provided by that sub-section, the person may, within 3 months after that date, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect to repay that amount to the Commonwealth.

“(2b) Where a person who becomes entitled to a parliamentary allowance on or after the date of commencement of this sub-section has, at any time before that date, received an amount referred to in sub-section (1) that he is not entitled to contract with the Trust to repay to the Commonwealth as provided by that sub-section, the person may, within 3 months after the date on which he so becomes entitled to a parliamentary allowance, by notice in writing signed by the person and delivered personally or sent by post to the Secretary to the Department of Finance, elect to repay that amount to the Commonwealth.

“(2c) Where an election is made under sub-section (2a) or (2b) to repay an amount to the Commonwealth—

(a) the amount shall be repaid at such times and in such amounts as are agreed upon between the person and the Minister for Finance or, in the absence of agreement, at such times and in such amounts as the Minister for Finance determines, but so that the total of the amounts is repaid to the Commonwealth within 3 years after the date on which the person made the election; and

(b) sub-section (1) does not prevent any part of the period of service of the person, and any occasion on which he ceased to be a member, before he became entitled to that amount from being taken into account for the purposes of determining his rights in respect of any further benefit under this Act.

“(2d) Where a person who has contracted with the Trust under sub-section (1), or has made an election under sub-section (2a) or (2b), to repay an amount to the Commonwealth elects under sub-section (3) of section 18b to convert a percentage of the retiring allowance to which he is entitled into a lump sum payment, there shall be deducted from that lump sum payment so much (if any) of the amount as remains to be paid under the contract or in pursuance of the election and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make repayments under the contract or in pursuance of the election.”;

(b) by inserting in sub-section (3) “, subject to sub-section (3a),” before “thereafter”; and

“(3a) Where—

(a) a person who has elected (including a person who has elected on more than one occasion) to convert into lump sum payment a percentage of a retiring allowance to which he was entitled again becomes a member;

(b) the person subsequently becomes entitled to a retiring allowance; and

(c) the total of the amounts of the benefits previously received by him under this Act exceeds the total of the amounts of the benefits that he would have received if he had not made the election or elections,

the annual amount of the retiring allowance to which he becomes entitled as mentioned in paragraph (b) shall be reduced by 10 per centum of the excess.”.

Period of service as member of a State Parliament to be taken into account in certain circumstances

16. Section 20a of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) Where a person who has contracted with the Trust under sub-section (1) of this section to pay an amount to the Commonwealth elects under sub-section (3) of section 18b to convert a percentage of the retiring allowance to which he is entitled into a lump sum payment, there shall be deducted from that lump sum payment so much of the amount as remains to be paid under the contract and, upon the deduction being made, the person is, to the extent of the amount deducted, discharged from further liability to make payments under the contract.”.