STATUTES AMENDMENT (TRANSITION TO RETIREMENT—STATE SUPERANNUATION) BILL

Final Stages

The Legislative Council agreed to the bill with the amendments indicated by the following schedule, to which amendments the Legislative Council desires the concurrence of the House of Assembly:

No. 1. Clause 7, page 4, after line 12—Insert:

and

(d) the member has not applied for the benefit of section 30B.

No. 2. Clause 7, page 7, after line 16—Insert:

30B—Early access to superannuation benefits

(1) For the purposes of this section, the basic threshold is an amount prescribed by the regulations for the purposes of this subsection.

(2) Subject to this section, a member may apply to the Board for the benefit of this section if—

(a) the member has reached—

(i) the age of 55 years; and

(ii) his or her preservation age; and

(b) in the case of the first application by the member under this section—the combined balance of his or her eligible contribution accounts equal or exceed the basic threshold; and

(c) the member has not applied for the benefit of section 30A.

(3) An application under this section may be made for the payment of the whole, or a specified proportion, of the balance of the member's eligible contribution accounts but, in the case of the first application by a member under this section, the application must seek the payment of an amount that is at least equal to the basic threshold.

(4) Once a member has made an application under this section, a second or subsequent application cannot be made—

(a) unless at least 12 months have elapsed from any preceding application; and

(b) unless the combined balance of his or her eligible contribution accounts equal or exceed an amount prescribed by the regulations for the purposes of this subsection.

(5) The Board may require that an application under this section be made in such manner, and comply with such requirements, as the Board thinks fit.

(6) A payment pursuant to an application under this section will be drawn from the member's contribution account first and then, to the extent (if any) that an additional amount is required for the purposes of the payment, from the member's other eligible contribution account or accounts in accordance with the regulations.

(7) The payment will, according to an election made by the member as part of his or her application, be invested by the Board (on behalf of and in the name of the member)—

(a) with the Superannuation Funds Management Corporation of South Australia; or

(b) with another entity that will provide a non commutable income stream for the member while the member continues to be employed in the workforce,

so that the member receives (and only receives) a payment in the form of a pension or annuity (a drawn down payment).

(8) An investment under subsection (7) will be on terms and conditions determined by the Board.

(9) An entitlement to a draw down payment is not commutable.

(10) However, the value of an investment may be redeemed in due course under subsection (14).

(11) When the Board makes a payment on an application under this section—

(a) the member's contribution account and, if relevant, any other eligible contribution account, will be immediately adjusted to take into account the payment; and

(b) section 12(2) and (3) will apply with respect to the relevant components constituting the payment.

(12) When a member retires from employment (and is thus entitled to a benefit under section 31), the member's entitlement under section 31 will be adjusted to take into account an entitlement provided under this section (and that section will then have effect accordingly).

(13) If a member's employment is terminated on account of invalidity or by the member's death, any entitlement under section 34 or 35 (as the case requires) will be adjusted to take into account an entitlement provided under this section (and the relevant section will then have effect accordingly).

(14) When a member retires, has his or her employment terminated on account of invalidity or dies (whichever first occurs), an investment being held under subsection (7) may be redeemed (subject to any rules or requirements applicable to the exercise of a power of redemption).

(15) The making of a payment under this section must take into account the operation of any provision under Part 5A.

(16) The Governor may, by regulation, declare that any provision of this section is modified in prescribed circumstances (and the regulation will have effect according to its terms.

(17) In this section—

eligible contribution accounts of a member means—

(a) the member's contribution account; and

(b) the member's employer contribution account; and

(c) if the regulations so provide—

(i) the member's rollover account;

(ii) the member's co-contribution account.

No. 3. Clause 8, page 7, after line 24—Insert:

(6) If a member has received the benefit of a payment under section 30B—

(a) the superannuation interest of the member will be taken to include the balance that is being held under section 30B(8) and(9);

(b) any entitlement under section 30B will be adjusted to take into account the effect of a payment split under this Part.

At 17:49 the house adjourned until Tuesday 23 October 2007 at 11:00.