Superannuation Legislation Amendment (Post-retirement Commutations) Act 2001 (Cth)

Superannuation Legislation Amendment (Post‑retirement Commutations) Act 2001

No. 98, 2001

An Act to amend various Acts relating to superannuation, and for other purposes

Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Amendment of the Parliamentary Contributory Superannuation Act 1948 Schedule 2—Amendment of the Superannuation Act 1976 Schedule 3—Amendment of the Superannuation Act 1990

Superannuation Legislation Amendment (Post-retirement Commutations) Act 2001

No. 98, 2001

An Act to amend various Acts relating to superannuation, and for other purposes

[Assented to 22 August 2001]

The Parliament of Australia enacts:

1 Short title This Act may be cited as the Superannuation Legislation Amendment (Post‑retirement Commutations) 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3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendment of the Parliamentary Contributory Superannuation Act 1948

1 Subsection 4(1) Insert: assessment has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997. 2 Subsection 4(1) Insert: surcharge has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997. 3 Subsection 4(1) Insert: surchargeable contributions means surchargeable contributions (within the meaning of the Superannuation Contributions Tax (Assessment and Collection) Act 1997) that are attributable to the operation of this Act. 4 After subsection 18(1) Insert: (1AA) For the purposes of this section, the most recent benefit start‑up time is the time when a benefit becomes payable to the person (ignoring any application of subsection (8A) or (8AC)). 5 Subsections 18(1A) and (1B) Omit "subsection (8A)", substitute "subsections (8A) and (8AC)". 6 Subsections 18(2) and (2AA) Omit "(8A)", substitute "(8A), (8AC)". 7 Paragraph 18(8A)(a) Omit "when a benefit becomes payable to the person", substitute "at the most recent benefit start‑up time". 8 Subsection 18(8A) After "instead of the retiring allowance referred to in paragraph (b)", insert ", and for so long as the person does not make an election under subsection 18A(1) after the most recent benefit start‑up time". 9 Subsection 18(8A) (definition of basic rate) Repeal the definition, substitute: basic rate means the rate at which, at the most recent benefit start‑up time, the retiring allowance referred to in paragraph (b) would have been payable to the person if this subsection did not apply to the person. 10 Subsection 18(8A) (definition of percentage) Omit "would be" (wherever occurring), substitute "would have been, at the most recent benefit start‑up time,". 11 Subsection 18(8A) (definition of surcharge adjustment) Repeal the definition, substitute: surcharge adjustment means the total of the person's notional adjustment debits arising under any or all of the following provisions at or before the most recent benefit start‑up time: (a) subsection (8AA); (b) subsection (8AB); (c) subsection 18A(6). 12 After subsection 18(8A) Insert: (8AA) If: (a) a person's surcharge debt account is in debit at the most recent benefit start‑up time; and (b) apart from subsection (8A), the person would be entitled to a retiring allowance under subsection (1A) or (1B) or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d); there is taken to have arisen at the most recent benefit start‑up time a notional adjustment debit of the person equal to the amount worked out using the following formula: where: conversion factor means the factor applicable to the person under the determination made by the Trust under section 22A. surcharge deduction amount means the person's surcharge deduction amount. (8AB) If: (a) at the time this subsection commences (the commencement time), a person is entitled to a retiring allowance under subsection (8A); and (b) that retiring allowance was calculated by reference to a particular surcharge adjustment within the meaning of that subsection as in force before the commencement time; there is taken to have arisen at the commencement time a notional adjustment debit of the person equal to that surcharge adjustment. (8AC) If: (a) a person makes an election under subsection 18A(1) on a particular day (the election day) after the most recent benefit start‑up time; and (b) if the election had not been made, the person would have been entitled on the election day to a retiring allowance under subsection (1A), (1B) or (8A) or this subsection or paragraph (2)(a) or (aa) or (2AA)(a), (b), (c) or (d); then, on and after the election day, instead of the retiring allowance referred to in paragraph (b), the person is entitled to a retiring allowance during his or her lifetime at a rate equal to such percentage of the rate of parliamentary allowance for the time being payable to a member as is worked out using the formula: