Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

SUPERANNUATION ACT 1976 - SECT 136

Deferred benefits

  (1)   The deferred benefits applicable under this Division in respect of a person who has ceased to be an eligible employee shall, subject to this Division, be such benefits payable under this Act as CSC considers to be benefits of the same nature, and payable in the same circumstances and on the same conditions and, upon his or her death to the same persons (if any), as the benefits that would have been payable to or in respect of the person under this Act if he or she had not ceased to be an eligible employee and had not made the election by virtue of which the deferred benefits became applicable.

  (2)   Where a deferred benefit by way of age retirement benefit, early retirement benefit or invalidity benefit is payable to a person other than a former eligible employee with benefits from previous employment, the amount of the benefit is calculated in accordance with the following provisions:

  (a)   if:

  (i)   a deferred benefit by way of standard age retirement pension is payable to the person in accordance with subsection   56(1), (2), (3) or (4); or

  (ii)   a deferred benefit by way of standard early retirement pension is payable to the person in accordance with section   60;

    the annual rate of that pension is:

  (iii)   if subparagraph   (iv) does not apply--an amount per annum equal to the amount worked out by using the formula:

    Start formula 2.5 times F subscript 1 times ABC end formula

  (iv)   if the person's surcharge debt account is in debit when the benefit becomes payable to the person and the person does not make an election under subsection   (3A) or (3B)--an amount per annum equal to the amount worked out by using the formula:

    Start formula open bracket 2.5 times F subscript 1 times ABC close bracket minus start fraction SDA over CF subscript 1 end fraction end formula

  (b)   if:

  (i)   a deferred benefit by way of additional age retirement pension is payable to the person in accordance with subsection   57(1); or

  (ii)   a deferred benefit by way of additional early retirement pension is payable to the person in accordance with subsection   61(1);

    the annual rate of that pension is, if the person does not make an election under subsection   (3A), an amount per annum equal to:

  (iii)   if, under the SIS Act, the benefit referred to in section   139AA is not to be paid in cash to the person--the amount calculated in accordance with the formula:

    Start formula F subscript 1 times AC end formula;

  (iv)   if, under the SIS Act, that benefit is to be paid in cash to the person--the amount calculated in accordance with the formula:

    Start formula F subscript 1 times open bracket AC plus AEC close bracket end formula;

    but, if the person makes an election under subsection   (3A), the annual rate of that pension is an amount per annum equal to the amount worked out by using the formula:

    Start formula BR minus start fraction SDA over CF subscript 2 end fraction end formula

  (c)   if a deferred benefit by way of a lump sum benefit is payable to the person in accordance with section   65, the lump sum benefit is an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (d)   if a deferred benefit by way of invalidity pension is payable to the person in accordance with section   67 or 70, the annual rate of that pension is:

  (i)   if subparagraph   (ii) does not apply--an amount per annum equal to the amount worked out by using the formula:

    Start formula 3.5 times F subscript 2 times ABC end formula

  (ii)   if the person's surcharge debt account is in debit when the benefit becomes payable to the person--an amount per annum equal to the amount worked out by using the formula:

    Start formula open bracket 3.5 times F subscript 2 times ABC close bracket minus start fraction SDA over CF subscript 1 end fraction end formula

  (e)   if a deferred benefit by way of a lump sum benefit is payable to the person in accordance with section   67 or 70, the lump sum benefit is an amount equal to the sum of the person's accumulated employer contributions (if any) and the person's accumulated supplementary contributions;

  (ea)   if:

  (i)   a deferred benefit by way of invalidity pension is payable to the person under section   67 or 70 but a deferred benefit by way of a lump sum benefit is not so payable; and

  (ii)   productivity benefit became payable in respect of the person when he or she ceased to be an eligible employee;

    the deferred benefit is to include a lump sum benefit equal to the person's accumulated employer contributions;

  (f)   if a deferred benefit by way of invalidity pension is payable to the person in accordance with section   68 or 71, the annual rate of that pension is:

  (i)   if subparagraph   (ii) does not apply--an amount per annum equal to the amount worked out by using the formula:

    Start formula 2.5 times F subscript 2 times ABC end formula

  (ii)   if the person's surcharge debt account is in debit when the benefit becomes payable to the person and the person does not make an election under subsection   (3B)--an amount per annum equal to the amount worked out by using the formula:

    Start formula open bracket 2.5 times F subscript 2 times ABC close bracket minus start fraction SDA over CF subscript 1 end fraction end formula

  (g)   if a deferred benefit by way of a lump sum benefit is payable to the person in accordance with section   68 or 71, the lump sum benefit is an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (h)   if a deferred benefit of a lump sum benefit is payable to the person in accordance with section   69, 72 or 73, then, subject to paragraph   (i), the lump sum benefit is an amount equal to the sum of:

  (i)   3 ½ times the person's accumulated basic contributions; and

  (ii)   the person's accumulated employer contributions (if any); and

  (iii)   the person's accumulated supplementary contributions (if any);

  (i)   if:

  (i)   a deferred benefit by way of a lump sum benefit is payable to the person in accordance with section   69, 72 or 73; and

  (ii)   the person's surcharge debt account is in debit when the benefit becomes payable to the person;

    the lump sum benefit is an amount equal to the difference between:

  (iii)   the amount that would be payable to the person under paragraph   (h) if this paragraph did not apply to the person; and

  (iv)   the person's surcharge deduction amount.

where:

"F" 1 is such factor as, having regard to:

  (a)   the age of the person on the day on which the deferred benefits become payable; and

  (b)   whether or not the person has elected under section   137A that deferred benefits be paid to him or her at a reduced rate;

is applicable in accordance with Table 1 in Schedule   11; and

"F" 2 is such factor as, having regard to the age of the person on the day on which the deferred benefits become payable, is applicable in accordance with Table 2 in Schedule   11; and

"ABC" is the amount of the person's accumulated basic contributions; and

"AC" is the amount of the person's accumulated contributions; and

"AEC" is the amount of the person's accumulated employer contributions.

"BR (basic rate)" means the annual rate of pension that would be payable to the person under subparagraph   (2)(b)(iii) or (iv) if the person did not make an election under subsection   (3A).

"CF" 1 means the conversion factor that is applicable to the person under the determination made by CSC under subsection   154AB(1).

"CF" 2 means the conversion factor that is applicable to the person under the determination made by CSC under subsection   154AB(2).

"SDA" means the person's surcharge deduction amount.

  (2A)   Where a deferred benefit by way of age retirement benefit, early retirement benefit or invalidity benefit is payable to a person who is a former eligible employee with benefits from previous employment, the amount of any pension or lump sum benefit constituting that benefit is determined by CSC having regard to:

  (a)   the amount of any pension or lump sum benefit that would be payable to the person under subsection   (2) if the person was not a former eligible employee with benefits from previous employment; and

  (b)   the amount of any transfer value paid by, or in respect of, the person to the Superannuation Board or the Commissioner for Superannuation under the superseded Act; and

  (c)   the number of non - contributory units (if any) that were, under the superseded Act, applicable in relation to the person on 30   June 1976 or immediately before the person became entitled to invalidity pension (as the case may be) and the contributions that would have been paid by the person in respect of those units if they had been contributory units of pension in respect of which the person had contributed at rates based on a retiring age of 65; and

  (d)   the amount of any transfer value paid by, or in respect of, the person to CSC under this Act.

  (2B)   Where a deferred benefit by way of spouse's benefit or orphan benefit is payable in respect of a person other than a former eligible employee with benefits from previous employment and no child of the person is a partially dependent child, the amount of the benefit is calculated in accordance with the following provisions:

  (a)   if a deferred benefit by way of spouse's pension is payable in respect of the person in accordance with section   82 or 85, the annual rate of that pension is the applicable percentage of the annual rate of the pension to which the person would have been entitled under paragraph   (2)(d) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (b)   if a deferred benefit by way of a lump sum benefit is payable in respect of the person in accordance with section   82 or 85, the lump sum benefit is an amount equal to the sum of the person's accumulated employer contributions (if any) and the person's accumulated supplementary contributions;

  (ba)   if:

  (i)   a deferred benefit by way of spouse's pension is payable in respect of the person under section   82 or 85 but a deferred benefit by way of a lump sum benefit is not so payable; and

  (ii)   productivity benefit became payable in respect of the person when he or she ceased to be an eligible employee;

    the deferred benefit is to include a lump sum benefit equal to the person's accumulated employer contributions;

  (c)   if a deferred benefit by way of spouse's pension is payable in respect of the person in accordance with section   83 or 86, the annual rate of that pension is the applicable percentage of the annual rate of the pension that would be payable to the person under paragraph   (2)(f) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (d)   if a deferred benefit by way of a lump sum benefit is payable in respect of the person in accordance with section   83 or 86, the lump sum benefit is an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (e)   if a deferred benefit by way of a lump sum benefit is payable in respect of the person in accordance with section   84, 87 or 88, the lump sum benefit is an amount equal to the sum of:

  (i)   3 ½ times the person's accumulated basic contributions; and

  (ii)   the person's accumulated employer contributions (if any); and

  (iii)   the person's accumulated supplementary contributions (if any);

  (f)   if a deferred benefit by way of spouse's standard pension is payable in respect of the person in accordance with section   90, the annual rate of that pension is the applicable percentage of the annual rate of the pension that would be payable to the person under paragraph   (2)(a) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (g)   if a deferred benefit by way of spouse's additional pension is payable in respect of the person in accordance with subsection   91(1), the annual rate of that pension is, at the election of the person's spouse:

  (i)   an amount per annum equal to the amount calculated in accordance with the formula:

    Start fraction F subscript 3 times AC end formula ; or

  (ii)   an amount per annum equal to the amount calculated in accordance with the formula:

    Start formula F subscript 3 times open bracket AC plus AEC close bracket end formula;

    where:

"F" 3 is such factor as, having regard to the age of the person's spouse at the time of the person's death, is applicable in accordance with Table 3 in Schedule   11; and

"AC" is the amount of the person's accumulated contributions; and

"AEC" is the amount of the person's accumulated employer contributions;

  (h)   if a deferred benefit by way of a lump sum benefit is payable in respect of the person in accordance with section   92, the lump sum benefit is an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (j)   if a deferred benefit by way of spouse's standard pension is payable in respect of the person in accordance with section   94, then, except if paragraph   (ma) applies, the annual rate of that pension is the applicable percentage of the annual rate of the pension that was payable to the person in accordance with paragraph   (2)(a) immediately before his or her death;

  (k)   if a deferred benefit by way of spouse's additional pension is payable in respect of the person in accordance with section   95, then, except if paragraph   (ma) applies, the annual rate of that pension is:

  (i)   except if subparagraph   (ii) applies--67% of the annual rate of the pension that was payable to the person in accordance with paragraph   (2)(b) immediately before his or her death; or

  (ii)   if the person elected under section   137A that deferred benefits be paid to him or her at a reduced rate--85% of the annual rate of that pension;

  (m)   if a deferred benefit by way of spouse's pension is payable in respect of the person in accordance with section   96, then, except if paragraph   (ma) applies, the annual rate of that pension is the applicable percentage of the annual rate of the pension that was payable to the person in accordance with paragraph   (2)(d) or (f) (as the case may be) immediately before his or her death;

  (ma)   if:

  (i)   a deferred benefit by way of spouse's standard pension, spouse's additional pension or spouse's pension is payable in respect of the person in accordance with section   94, 95 or 96 (as the case may be); and

  (ii)   the person had had a late short - term marital or couple relationship with his or her spouse;

    the annual rate of that pension is:

  (iii)   if subparagraph   (iv) does not apply--the rate worked out by using the formula:

    Start formula Basic rate of pension times start fraction Number of days in relevant period over 1095 end fraction end formula

  (iv)   if there is one or more than one eligible child who did not become a child of the person because of that late short - term marital or couple relationship--such rate, being a rate higher than the rate worked out under subparagraph   (iii) but less than the basic rate of pension, as CSC determines to be fair and equitable in all the circumstances of the case;

    where:

    basic rate of pension means the annual rate at which, apart from this paragraph, the deferred benefit would be payable in respect of the person under paragraph   (j), (k) or (m) (whichever would be applicable).

    relevant period means the period:

  (a)   beginning on the day on which the marital or couple relationship between the person and his or her spouse began; and

  (b)   ending on the day on which the person died.

  (n)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   97, the annual rate of that pension is the applicable percentage of the annual rate of the pension that would be payable to the person in accordance with paragraph   (2)(a) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (p)   if a deferred benefit by way of a lump sum benefit is payable in respect of the person in accordance with section   97, the lump sum benefit is an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (q)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   98 or 100, the annual rate of that pension is:

  (i)   where a lump sum benefit of an amount equal to the person's accumulated contributions has been paid out of the Fund under subsection   111(1) or where, if the person had not died, he or she would have been entitled to invalidity benefit as provided by subsection   66(3) or (3A)--the applicable percentage of the annual rate of the pension that would be payable to the person in accordance with paragraph   (2)(f) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph; or

  (ii)   where subparagraph   (i) does not apply--the applicable percentage of the annual rate of the pension that would be payable to the person in accordance with paragraph   (2)(d) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (r)   if a deferred benefit by way of lump sum benefit is payable in respect of the person in accordance with section   98 or 100, the lump sum benefit is:

  (i)   except where subparagraph   (ii) applies--an amount equal to the sum of the person's accumulated employer contributions (if any) and the person's accumulated supplementary contributions; or

  (ii)   where, if the person had not died, he or she would have been entitled to invalidity benefit as provided by subsection   66(3) or (3A)--an amount equal to the sum of the person's accumulated contributions and the person's accumulated employer contributions (if any);

  (ra)   if:

  (i)   a deferred benefit by way of orphan pension is payable in respect of the person under section   98 or 100 but a deferred benefit by way of a lump sum benefit is not so payable; and

  (ii)   productivity benefit became payable in respect of the person when he or she ceased to be an eligible employee;

    the deferred benefit is to include a lump sum benefit equal to the person's accumulated employer contributions;

  (s)   if a deferred benefit by way of lump sum benefit is payable in respect of the person in accordance with section   99 or 101, the lump sum benefit is an amount equal to the sum of:

  (i)   3 ½ times the person's accumulated basic contributions; and

  (ii)   the person's accumulated employer contributions (if any); and

  (iii)   the person's accumulated supplementary contributions (if any);

  (t)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   102, the annual rate of that pension is the applicable percentage of the annual rate of the pension that would be payable to the person in accordance with paragraph   (2)(a) on the day on which deferred benefits by way of spouse's benefits ceased to be payable in respect of the person if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (u)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   103 or 104, the annual rate of that pension is:

  (i)   except where subparagraph   (ii) applies--the applicable percentage of the annual rate of pension that would be payable to the person in accordance with paragraph   (2)(d) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph; or

  (ii)   where the spouse of a person had made an election under section   83 or 86 (whichever was applicable in relation to the spouse)--the applicable percentage of the annual rate of pension that would be payable to the person in accordance with paragraph   (2)(f) if he or she had not died but had, on the day immediately following his or her death, become entitled to the deferred benefit referred to in that paragraph;

  (w)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   105, the annual rate of that pension is the applicable percentage of the annual rate of the pension that was payable in accordance with paragraph   (2)(a) to the person immediately before his or her death;

  (y)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   106, the annual rate of that pension is the applicable percentage of the annual rate of a pension that was payable to the person in accordance with paragraph   (2)(d) or (f) (whichever was applicable) immediately before his or her death;

  (z)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   107, the annual rate of that pension is the applicable percentage of the annual rate of the pension that would be payable to the person in accordance with paragraph   (2)(a) if he or she had not died but had continued to receive, and were receiving on the day on which his or her spouse died, the deferred benefit referred to in that paragraph;

  (za)   if a deferred benefit by way of orphan pension is payable in respect of the person in accordance with section   108, the annual rate of that pension is the applicable percentage of the annual rate of pension that would be payable to the person in accordance with paragraph   (2)(d) or (f) (whichever is applicable) if he or she had not died but had continued to receive, and were receiving on the day on which his or her spouse died, the deferred benefit referred to in that paragraph;

  (zb)   if a deferred benefit by way of orphan's pension is payable in respect of the person in accordance with section   108A, the annual rate of that pension is:

  (i)   if subparagraph   (ii) does not apply--the rate worked out by using the formula:

    Start formula Basic rate of pension times start fraction Number of days in relevant period over 1095 end fraction end formula

  (ii)   if at any time there is one or more than one eligible child who is not a child referred to in subsection   108A(1) or (2)--such rate, being a rate higher than the rate worked out under subparagraph   (i) but less than the basic rate of pension, as CSC determines to be fair and equitable in all the circumstances of the case;

    where:

    basic rate of pension means the annual rate at which the deferred benefit by way of orphan pension would be payable in respect of the person under paragraph   (w), (y) or (za) (whichever would be applicable) if the deferred benefit was not payable in respect of the person in accordance with section   108A but was payable in respect of the person in accordance with section   105, 106, 107 or 108 (as the case may be).

    relevant period has the same meaning as in section   108A .

  (2BA)   In spite of subsection   (2B), on each of the 7 pension paydays immediately following the death of a person in respect of whom an amount of benefit is calculated in accordance with paragraph   (2B)(j), (k) or (m), pension mentioned in that paragraph is payable at the rate at which pension would have been payable to that person on that day if the person had not died.

  (2BB)   Where pension is payable as mentioned in subsection   (2BA), section   96A applies as if the pension were payable in accordance with subsection   94(3), 95(2) or 96(3).

  (2C)   Where:

  (a)   a deferred benefit by way of spouse's additional pension is payable in respect of a person other than a former eligible employee with benefits from previous employment in accordance with subsection   91(1); and

  (b)   the amount of that pension is an amount calculated in accordance with subparagraph   (2B)(g)(i);

there is also payable in respect of the person a deferred benefit by way of a lump sum benefit equal to the person's accumulated employer contributions.

  (2D)   Where:

  (a)   at any time a deferred benefit by way of spouse's benefit is payable in respect of a person other than a former eligible employee with benefits from previous employment; and

  (b)   at that time there is one, or more than one, child of the person who is a partially dependent child;

the amount of any pension or lump sum benefit constituting that benefit is determined by CSC having regard to:

  (c)   the amount of pension or lump sum benefit that would be payable to the person under subsection   (2B) if that subsection applied at that time to the person; and

  (d)   the amount of extra spouse's pension that would be payable to the spouse of the person under section   96B or 96BA if deferred benefits had not become applicable in respect of the person and the spouse were, at that time, entitled to extra spouse's pension under that section.

  (2E)   Where:

  (a)   at any time a deferred benefit by way of orphan benefit is payable in respect of a person other than a former eligible employee with benefits from previous employment; and

  (b)   at that time, there is one, or more than one, child of the person who is a partially dependent child;

the amount of any pension or lump sum benefit constituting that benefit is such amount as is determined by CSC having regard to:

  (c)   if a deferred benefit by way of a lump sum benefit is payable in accordance with section   99 or 101--the amount of the lump sum benefit that would be payable in respect of the eligible child or eligible children of the person under that section if deferred benefits had not become applicable in respect of the person and the eligible child or eligible children were entitled to lump sum benefit under that section; or

  (d)   if a deferred benefit by way of orphan pension is payable in accordance with a provision of Division   4 of Part   VI--the amount of orphan pension that would be payable in respect of the person under subsection   (2B) if:

  (i)   at that time that subsection applied to the person; and

  (ii)   that subsection so applied subject to section   109A; and

  (iii)   in its application in relation to that deferred benefit for the purposes of subparagraph   (ii), section   109A had effect as if any reference in that section to orphan pension were a reference to that deferred benefit.

  (2F)   Where a deferred benefit by way of spouse's benefit or orphan benefit is payable in respect of a former eligible employee with benefits from previous employment, the amount of any pension or lump sum benefit constituting that benefit is determined by CSC having regard to:

  (a)   the amount of any pension or lump sum benefit that would be payable to the person under this section if the person was not a former eligible employee with benefits from previous employment; and

  (b)   the amount of any transfer value paid by, or in respect of, the person to the Superannuation Board or the Commissioner for Superannuation under the superseded Act; and

  (c)   the number of non - contributory units (if any) that were, under the superseded Act, applicable in relation to the person on 30   June 1976 or immediately before the person became entitled to invalidity pension (as the case may be) and the contributions that would have been paid by the person in respect of those units if they had been contributory units of pension in respect of which the person had contributed at rates based on a retiring age of 65; and

  (d)   the amount of any transfer value paid by, or in respect of, the person to CSC under this Act.

  (2G)   Where, at any time, a deferred benefit by way of spouse's pension or spouse's additional pension is payable in respect of a person, then, for the purposes of paragraph   (2B)(a), (c), (f) or (m), as the case requires, the applicable percentage is:

  (a)   if paragraphs   (b), (c) and (d) do not apply--67 per centum; or

  (b)   if at that time one child of the person is an eligible child--78 per centum; or

  (c)   if at that time 2 children of the person are eligible children--89 per centum; or

  (d)   if at that time more than 2 children of the person are eligible children--100 per centum.

  (2GA)   If, at any time, a deferred benefit by way of spouse's pension is payable in respect of a person in accordance with section   94, then, for the purposes of paragraph   (2B)(j), the applicable percentage is the percentage worked out in accordance with the following table:

 

Applicable percentage

Item

Number of eligible children

If person did not make election under section   137A

If person made election under section   137A

1

If, at that time, there is no eligible child of the person who is an eligible child

67%

85%

2

If, at that time, one child of the person is an eligible child

78%

97%

3

If, at that time, 2 children of the person are eligible children

89%

108%

4

If, at that time, more than 2 children of the person are eligible children

100%

108%

  (2H)   Where, at any time, a deferred benefit by way of orphan's pension is payable in respect of a person, then, for the purposes of paragraph   (2B)(n), (q), (t), (u), (y) or (za), as the case requires, the applicable percentage is:

  (a)   if at that time one child of the person is an eligible child--45 per centum; or

  (b)   if at that time 2 children of the person are eligible children--80 per centum; or

  (c)   if at that time 3 children of the person are eligible children--90 per centum; or

  (d)   if at that time more than 3 children of the person are eligible children--100 per centum.

  (2HA)   If, at any time, a deferred benefit by way of orphan pension is payable in respect of a person in accordance with section   105 or 107, then, for the purposes of paragraph   (2B)(w) or (2B)(z) (as the case requires), the applicable percentage is the percentage worked out in accordance with the following table:

 

Applicable percentage

Item

Number of eligible children

If person did not make election under section   137A

If person made election under section   137A

1

If, at that time, one child of the person is an eligible child

45%

51%

2

If, at that time, 2 children of the person are eligible children

80%

92%

3

If, at that time, 3 children of the person are eligible children

90%

108%

4

If, at that time, more than 3 children of the person are eligible children

100%

108%

  (3)   Where a deferred benefit becomes applicable in accordance with this Division in respect of a person who has ceased to be an eligible employee and to whom section   54 applied, and:

  (a)   at the time when he or she ceased to be an eligible employee he or she had not ceased to be an eligible member of the Defence Force as defined by subsection   3(1) of the Defence Force Retirement and Death Benefits Act; or

  (b)   at the time when the deferred benefit became applicable, a deferred benefit or retirement pay also became applicable in respect of him or her under that Act;

then, any period during which his or her liability to make contributions under this Act was deferred under section   54 of this Act shall be disregarded in determining the amount of the first - mentioned deferred benefit and he or she is not required or permitted to pay the amount of those deferred contributions.

  (3A)   A person:

  (a)   who is entitled to a deferred benefit referred to in paragraph   (2)(b); and

  (b)   whose surcharge debt account is in debit when the benefit becomes payable to him or her;

may, not later than 3 months after, but not earlier than 3 months before, the benefit becomes payable, by notice in writing given to CSC, elect that the benefit be adjusted to take the person's surcharge deduction amount into account.

  (3B)   A person:

  (a)   who, by virtue of an election ( first election ) under this Act, is entitled to a deferred benefit referred to in paragraph   (2)(c) or (g); and

  (b)   whose surcharge debt account is in debit when the benefit becomes payable to him or her;

may, within the period during which the first election may be made, elect in writing that the surcharge deduction amount in relation to him or her not be deducted from any deferred benefit payable by way of pension to the person.

  (4)   Where:

  (a)   a person ceases to be an eligible employee and, upon his or her so ceasing, deferred benefits become applicable in relation to him or her under this Division;

  (b)   those deferred benefits cease to be applicable in relation to the person upon a deferred benefit by way of invalidity benefit becoming payable to him or her in accordance with section   67, 68, 70 or 71; and

  (c)   his or her entitlement to the deferred benefit is cancelled under subsection   143(2) and deferred benefits again become applicable in relation to him or her;

this subsection applies to the person.

  (5)   The regulations may make provision for modifying this Act, or a provision of this Act specified in the regulations, in the application of this Act or that provision to and in relation to a person to whom subsection   (4) applies, or to and in relation to a prescribed class of persons to whom that subsection applies.

  (6)   The modifications that may be made by regulations in pursuance of subsection   (5) include, but are not limited to, modifications providing for the payment of benefits in substitution for benefits provided for by this Act.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback