The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Parliamentary Contributory Superannuation Amendment Bill 2001

No. , 2001

(Finance and Administration)

A Bill for an Act to amend the Parliamentary Contributory Superannuation Act 1948, and for related purposes

ISBN: 0642 460167

Contents

Parliamentary Contributory Superannuation Act 1948 3

A Bill for an Act to amend the Parliamentary Contributory Superannuation Act 1948, and for related purposes

The Parliament of Australia enacts:

1 Short title This Act may be cited as the Parliamentary Contributory Superannuation Amendment Act 2001.

2 Commencement This Act commences on the day on which it receives the Royal Assent.

3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1--Amendments

Parliamentary Contributory Superannuation Act 1948

1 At the end of subsection 18B(1)

Add:

Note: For the purposes of this section, a person who is a deferring member for the purposes of Part VA is treated as not becoming entitled to a retiring allowance before the person attains the age of 55 years. See section 22DC.

2 Subsection 20(3)

Omit "received", substitute "been entitled to".

3 After Part V

Insert:

Part VA--Deferred payment of retiring allowance

22DA Definitions In this Part, unless the contrary intention appears:

deferral day means the day on which the deferring member attains the age of 55 years.

deferral period means the period that starts when the deferring member ceases to be entitled to parliamentary allowance and ends immediately before the deferral day.

deferring member has the meaning given by section 22DB.

invalidity determination means a determination under section 22DD.

SIS regulations means regulations under the Superannuation Industry (Supervision) Act 1993.

transitional general election means the first general election after the commencement of this Part.

22DB Members who are subject to deferral (1) A person is a deferring member in relation to the person's entitlement to a retiring allowance if:

(a) the person was elected as a member at the transitional general election; or

(b) the person became a member (by election or otherwise) after the transitional general election.

(2) However, a person is not a deferring member if the person was entitled to parliamentary allowance continuously for a period that:

(a) started before the polling day for the transitional general election;

(b) ended at the time of the cessation that gave rise to the person's entitlement to the retiring allowance.

Note: Under section 18, a person's entitlement to a retiring allowance arises because the person ceases to be entitled to parliamentary allowance.

(3) The following provisions apply in determining for the purposes of subsection (2) whether a person was entitled to parliamentary allowance at a particular time.

(4) If the person:

(a) ceased to be a member of the House of Representatives upon the dissolution or expiration of that House; and

(b) was elected as a member of the Senate within 3 months after so ceasing to be a member of the House of Representatives;

then the person is taken to have been entitled to parliamentary allowance from the time the person so ceased to be a member of the House of Representatives until the time the person first became entitled to parliamentary allowance after being so elected as a member of the Senate.

(5) If the person:

(a) resigned as a member of the Senate; and

(b) was elected as a member of the House of Representatives within 3 months after the resignation;

then the person is taken to have been entitled to parliamentary allowance from the time the person resigned as a member of the Senate until the time the person was elected as a member of the House of Representatives.

(6) For the purposes of this section, a member who is elected as a result of a polling is taken to be elected on the polling day.

22DC Deferral of retiring allowance (1) Subject to section 22DE, the retiring allowance of a deferring member is payable from the deferral day.

(2) For the purposes of section 18B, the deferring member is taken not to have become entitled to the retiring allowance before the deferral day.

(3) This section does not apply to a retiring allowance under subsection 18(2AA).

(4) This section does not affect any benefit payable under section 19, 19AA or 19AB.

22DD Invalidity determination during deferral period (1) If:

(a) a written application for an invalidity determination is made in accordance with section 22DF by, or on behalf of, a deferring member; and

(b) the Trust is satisfied that the deferring member would be unable, because of physical or mental impairment, to perform the duties of a member if he or she were still a member;

then the Trust may make a written determination to that effect.

(2) An invalidity determination takes effect on the day it is made, or on an earlier day specified in the determination (not being earlier than the day on which the application was made).

(3) If the Trust makes a decision refusing to make an invalidity determination, the Trust must give the applicant a written notice of the refusal.

22DE Effect of invalidity determination Retiring allowance is payable for any part of the deferral period that is covered by an invalidity determination (not including any part of the period during which the determination is suspended under subsection 22DH(3)).

22DF Invalidity determination--application requirements (1) An application for an invalidity determination must be accompanied by the following:

(a) such additional information (if any) as the Trust requires;

(b) a certificate given by a medical practitioner nominated by the Trust;

(c) a certificate given by a medical practitioner nominated by, or on behalf of, the deferring member;

(d) such additional documents (if any) as the Trust requires.

(2) Each certificate must include a statement to the effect that, in the opinion of the medical practitioner concerned, the deferring member would be unable, because of physical or mental impairment, to perform the duties of a member if he or she were still a member.

22DG Review of invalidity determination (1) The Trust may at any time review an invalidity determination. The Trust must review it at least once every 2 years.

(2) If, after reviewing an invalidity determination, the Trust is satisfied that the deferring member would no longer be unable, because of physical or

(3) The revocation takes effect on the day it is made or on a later day specified in the revocation.

(4) The Trust must give the deferring member a written notice of the revocation.

22DH Review of invalidity determination--medical examination (1) For the purposes of a review under section 22DG, the Trust may, by written notice given to the deferring member, request the deferring member:

(a) to submit himself or herself for medical examination by a specified medical practitioner at a time and place specified in the notice; or

(b) to give to the Trust, within the period specified in the notice, specified information that is relevant to the review; or

(c) to produce to the Trust, within the period specified in the notice, specified documents that are relevant to the review.

(2) The Trust may give more than one such notice in relation to the review.

(3) If the deferring member fails to comply with a notice under subsection (1), the Trust may, by written notice given to the deferring member, suspend the invalidity determination with effect from a specified day. The day must not be earlier than the day on which the notice was given.

(4) If the deferring member:

(a) submits himself or herself for medical examination in accordance with a notice under subsection (1); and

(b) incurs, in respect of attendance at that examination, expenses in respect of:

(i) transport; or

(ii) accommodation; or

(iii) the purchase of food or drink; or

(iv) incidental matters;

then the Trust may determine that the deferring member is entitled to be paid by the Commonwealth an amount equal to so much of those expenses as the Trust considers reasonable. The Consolidated Revenue Fund is appropriated for the purposes of this subsection.

22DI Other special payments during deferral period (1) If the Trust is satisfied that a deferring member qualifies on a ground prescribed by the regulations, the Trust may make a written determination that:

(a) authorises payment to the deferring member of an amount specified in the determination; and

(b) specifies the manner in which the deferring member's retiring allowance is to be reduced on account of the payment.

(2) The determination cannot be revoked or varied after the payment referred to in paragraph (1)(a) is made.

(3) In specifying the manner in which the deferring member's retiring allowance is to be reduced, the Trust must have regard to advice from an actuary. The reduction may be more than the amount of the payment.

(4) The deferring member's retiring allowance is reduced in accordance with the determination.

(5) The regulations may prescribe:

(a) the grounds for payments under this section; and

(b) the matters that the Trust must take into account when determining the amount of a payment under this section.

(6) Before the Governor-General makes a regulation prescribing grounds for the purposes of paragraph (5)(a), the Minister must be satisfied that those grounds are the same as, or substantially similar to, the conditions of release that are referred to in the SIS regulations as "severe financial hardship" and "compassionate ground".

(7) Before the Governor-General makes a regulation prescribing matters for the purposes of paragraph (5)(b), the Minister must be satisfied that those matters are the same as, or substantially similar to, matters that are prescribed by the SIS regulations in relation to the conditions of release referred to in subsection (6).