Version No. 074

Emergency Services Superannuation Act 1986

No. 94 of 1986

Version incorporating amendments as at
1 July 2014

table of provisions

Section Page

v

Section Page

Part 1—Preliminary 1

1 Purpose 1

2 Commencement 1

3 Definitions 2

3A Declaration of eligible salary sacrifice contributors 18

4 Application of Act 18

4A Payment of contributions by employers 24

4AA Eligible protective services officer may make election 25

4B Effect of Act 26

4C Guarantee of no detriment 26

4D Review of decision 26

Part 2—Emergency Services Superannuation Board 27

5 Establishment of Board 27

6 Objectives and duties of Board 27

6A Functions and powers of the Board 33

6B Prudential superannuation standard 35

7 Membership of the Board 35

8 Vacancies on Board 39

9 Deputies—elected members 41

9A Deputies—nominated members 41

10 Suspension and removal of members 42

11 Payment of members 42

12 Procedure of the Board 42

12A Resolutions without meetings 44

12B Improper use of information 44

12C Committees of the Board 45

12D Pecuniary interests of members of the Board 45

13 Chief Executive Officer 46

13A Staff 47

14 Delegation 49

Part 3—Emergency Services Superannuation Scheme 50

15 Establishment of Scheme 50

17 Borrowing and investment powers 50

17A Investment funds 50

17B Group accounts 50

18 Management Account of the Board 51

19 Actuarial investigation of the Scheme 52

Part 3AA—Contributions and Benefits 54

20 Scheme may be supplemented by Consolidated Fund 54

20A Contributions 55

20B Membership 59

20C Accrued benefits 61

20D Retirement of contributor 66

20E Death of contributor or police recruit 66

20F Disability of contributor or police recruit 69

20G Temporary pension for illness or injury 75

20H Termination due to ill health 77

20I Indexation of pensions 78

20J Retrenchment of contributor 79

20K Other termination of service of contributor 79

20L Restriction of death and disability benefits 80

20M Optional contributions during leave of absence 82

20N Nominated personal representatives 83

20NA Registration of names of dependants 84

20O Death benefit when no dependants 84

20P Payment of benefits in case of multiple claimants 85

20PA Entitlements in respect of returning members who are operational staff members 86

20Q Separate employer accounts 86

20R Remittance of contributions 88

20S Minimum Requisite Benefit 88

Part 3A—ESSPLAN Scheme 89

21 Definitions 89

21A ESSPLAN Scheme 91

21B Membership of ESSPLAN 92

21C Employer contributions 94

21D Member's contributions for ESSPLAN 95

21E Amount and payment of benefits under ESSPLAN 96

21F Disability and death cover under ESSPLAN 97

21FA Optional additional disability and death cover under ESSPLAN 99

21G Disability and death insurance under ESSPLAN 100

21H Amount and payment of disability or death benefits 100

21I Member's accounts for ESSPLAN 101

21IA Contribution splitting 102

21J Beneficiaries Accounts 104

21JA Spouse Accounts 106

21JB Optional disability and death cover for eligible spouses 108

21K Investment funds 109

21L Net earning rate 110

21M Roll over or transfer of preserved benefit 111

21N Transfer to or from new scheme 111

21O Roll over or transfer of benefits to other fund 112

Part 4—Transfer from other Superannuation Funds 113

22 Pensions for former contributors to other funds 113

22A Transfer of assets and liabilities of Police Pensions Fund and Police Superannuation Fund 114

22B Transfer of assets in respect of VEISF beneficiaries 114

22C Provisions relating to transferred beneficiaries 116

22D Commutation of pension not exceeding declared rate 117

Part 4AA—Transfer of the State
Superannuation Fund and Transfer of Administration of the MTA Superannuation
Fund and Related Matters 118

22DA Definitions 118

22DB Transfer of assets and liabilities of the State
Superannuation Fund 118

22DC Board is successor in law 119

22DD Exemption from stamp duty or other tax 121

22DE Transitional provision—Registrar of Titles 121

Part 4AB—Transfer of Administration of
Declared Public Sector Superannuation
Schemes 122

22DF Application of this Part 122

22DG Declaration of administered schemes 122

22DH Board is successor in law 122

22DI Conflict between duties, functions and powers 123

22DJ Matters which may be included in Order in Council 124

22DK General provisions relating to Orders in Council 124

22DL Exemption from stamp duty or other tax 125

22DM Transitional provision—Registrar of Titles 126

Part 4AC—Transfer of the Parliamentary Contributory Superannuation Fund and
Related Matters 127

22DN Definitions 127

22DO Transfer of assets and liabilities of the Parliamentary Contributory Superannuation Fund 127

22DP Board is successor in law 128

22DQ Exemption from stamp duty or other tax 129

22DR Transitional provision—Registrar of Titles 129

22DS Actuarial investigation 129

22DT Scheme may be supplemented by Consolidated Fund 130

Part 4A—Family Law Provisions 131

22E Definitions 131

22EA Accrued benefit multiple 134

22F Obligation on Board 134

22G Reduction of benefit or accrued benefit entitlement 137

22H Board may provide additional information 138

22I Charging of fees 138

Part 5—Review of Decisions of Board 140

23 Person may request Board to reconsider decision 140

Part 6—General 142

23AA Payment of benefits subject to specified standards 142

23A Application for disability benefit 142

24 Medical issues 142

25 Disclosure of contents of medical reports 143

25A Taxation on benefits 143

25AA No detriment provision 147

25B Surcharge debt account 149

25C Commutation of pension to meet surcharge liability 152

26 Assignment or charging of interest 153

26A Early release of benefits 154

27 Money owing to the Scheme 154

27A Unpaid lump sum benefits 155

28 Minors 155

28A Payment of benefits if person is incapable of managing
financial affairs 155

29 Board may require information 156

29A Specified standards 158

Part 7—Regulations 160

31 Regulations generally 160

32 Regulations under this Act 161

Part 8—Transitional Provisions 163

33 Victoria Police Act 2013 163

═══════════════

ENDNOTES 164

1. General Information 164

2. Table of Amendments 165

3. Explanatory Details 172

v

Version No. 074

Emergency Services Superannuation Act 1986

No. 94 of 1986

Version incorporating amendments as at
1 July 2014

111

Part 3A—ESSPLAN Scheme

Emergency Services Superannuation Act 1986
No. 94 of 1986

The Parliament of Victoria enacts as follows:

Part 1—Preliminary

S. 1 amendedby No.94/2005 s.3 (ILA s.39B(1)).

1 Purpose

(1) The purpose of this Act is to establish an Emergency Services Superannuation Board and Scheme to provide superannuation benefits for persons employed in the emergency services.

S. 1(2) insertedby No.94/2005 s.3.

(2) In addition to the purpose specified in subsection (1), the purpose of this Act as amended by the Superannuation Legislation (Governance Reform) Act 2005 is to—

(a) re-constitute the Board and empower the Board to administer public sector superannuation schemes; and

(b) improve the administration of public sector superannuation schemes.

2 Commencement

This Act comes into operation on 1 January 1987.

S. 3 amendedby No.27/2001 s.5(Sch.3 item2.2) (ILA s.39B(1)).

3 Definitions

(1) In this Act—

S. 3(1) def. of actuary substituted by No. 4/1996 s.3(a).

actuary means a fellow or accredited member of the Institute of Actuaries of Australia approved by the Minister;

S. 3(1) def. of adjusted total contributions inserted by No. 82/1996 s.6(1).

adjusted total contributions means the sum of—

s. 3

(a) the total contributions (other than optional contributions under section 20M made after 31 December 1987) which would have been made by a contributor under the Scheme if the salary of the contributor had always been equal to the salary of the contributor at the date of termination of service; and

(b) a percentage of salary at the date of termination of service of the contributor determined by the Board having regard to the period of membership and contributions under a prior fund and any benefits paid to the contributor from a prior fund; and

(c) a percentage of salary at the date of termination of service of the contributor determined by the Board having regard to any money or other assets transferred from an approved superannuation arrangement;

S. 3(1) def. of administered scheme insertedby No.94/2005 s.4(1).

administered scheme means—

(a) the MTA Superannuation Fund; and

(b) a public sector superannuation scheme which is declared to be an administered scheme under section 22DG;

S. 3(1) def. of appointed day insertedby No.94/2005 s.4(1).

appointed day, in respect of an administered scheme within the meaning of paragraph (b) of the definition of "administered scheme", means the appointed day specified in the Order in Council made under section 22DG in respect of the transfer of the administered scheme;

approved superannuation arrangement means a superannuation arrangement which has been approved by the Minister;

S. 3(1) def. of benefit amendedby No.94/2005 s.4(2).

benefit means any amount paid or payable by the Board out of the Scheme under this Act;

s. 3

Board means Emergency Services Superannuation Board;

S. 3(1) def. of Chief Executive Officer insertedby No.94/2005 s.4(1).

Chief Executive Officer means the Chief Executive Officer of the Board appointed to be the Chief Executive Officer under section13 or a person appointed to act as the Chief Executive Officer under that section;

S. 3(1) def. of child insertedby No.27/2001 s.5(Sch.3 item2.1(a)).

child in relation to a deceased contributor or former contributor or member or former member or police recruit or former police recruit means a child of the person or the person's partner other than any child born more than 10 months after the person's death who is—

(a) under 18 years of age; or

(b) between the age of 18 and 25 years and in the opinion of the Board is a full-time student;

S. 3(1) def. of complying super-annuation fund
inserted by No. 4/1996 s.3(b).

complying superannuation fund means a superannuation entity or a superannuation fund within the meaning of section 10 of the Commonwealth Superannuation Industry (Supervision) Act 1993 which is a complying superannuation fund or a complying approved deposit fund within the meaning of Part IX of the Commonwealth Income Tax Assessment Act 1936;

S. 3(1) def. of consumer price index inserted by No. 82/1996 s.6(1), substituted by No.44/2014 s.33(Sch. item 10(1)).

consumer price index means the all groups consumer price index in original terms for all capital cities in respect of a half year ending on 30 June or 31 December published by the Australian Bureau of Statistics;

s. 3

S. 3(1) def. of contributor substituted by No. 84/1998 s.3, amendedby No.94/2005 s.4(3).

contributor means an employee who will be, is, or has been, liable to contribute to the Scheme under Part 3AA with respect to the entitlement to benefits under that Scheme;

S. 3(1) def. of current equivalent of salary on termination of service inserted by No. 82/1996 s.6(1), amended by No. 29/2000 s.3(1).

current equivalent of salary on termination of service means the salary (in accordance with section 4(1E)(f)) that the Board determines, having regard to increases in salary that have occurred since the termination of service of the former contributor or former police recruit, as being equivalent to the salary that was payable to the contributor or police recruit immediately prior to termination of service;

S. 3(1) def. of dependant inserted by No. 82/1996 s.6(1), amended by No.27/2001 s.5(Sch.3 item2.1(b)).

dependant means in relation to a deceased contributor or former contributor or member or former member or police recruit or former police recruit—

(a) the partner or any child of the contributor or former contributor or member or former member or police recruit or former police recruit; or

(b) any other person who in the opinion of the Board was at the date of death of the contributor or former contributor or member or former member or police recruit or former police recruit, wholly or partially dependent on the contributor or former contributor or member or former member or police recruit or former police recruit or who at that date had a legal right to look to the contributor or former contributor or member or former member or police recruit or former police recruit for financial support;

S. 3(1) def. of disability inserted by No. 4/1996 s.3(c), amended by No. 82/1996 s.6(2).

disability means—

s. 3

(a) if a disability benefit insurance policy is in force in respect of a member, disability as defined in or for the purposes of that policy; or

(b) in any other case, the inability of a contributor or member before the age of 60 years or of a police recruit due to a continuing or recurring injury, disease or infirmity to ever—

(i) perform his or her duties; and

(ii) perform any other duties for which he or she is suited by education, training or experience or for which he or she would be suited as a result of retraining—

s. 3

as determined by the Board on the basis of reports provided by at least 2registered medical practitioners appointed by the Board;

S. 3(1) def. of domestic partner insertedby No.27/2001 s.5(Sch.3 item2.1(a)), substituted by No. 12/2008 s.73(1)(Sch. 1 item 19.1), amended by No.4/2009 s.37(Sch.1 item 12.1).

domestic partner of a person means—

(a) a person who is, or was at the time of the person's death, in a registered domestic relationship with the person; or

(b) a person to whom the person is not married but with whom, in the opinion of the Board, the person is, or was at the time of the person's death, living as a couple on a genuine domestic basis (irrespective of gender);

S. 3(1) def. of eligible beneficiary insertedby No.43/2008 s.3, amendedby No.61/2013 s.12(a).

eligible beneficiary means a person who is entitled to a benefit under a Superannuation Act (other than this Act or Part 3 of the Parliamentary Salaries and Superannuation Act 1968) or an administered scheme;

S. 3(1) def. of eligible protective services officer insertedby No.38/2009 s.3(1).

eligible protective services officer means a person who was appointed as a protective services officer during the period commencing on or after 1 January 1994 and ending on the day on which section 3 of the Superannuation Legislation Amendment Act 2009 comes into operation;

S. 3(1) def. of eligible salary sacrifice contributor insertedby No.94/2005 s.4(1).

eligible salary sacrifice contributor means a contributor in respect of whom a declaration is in force under section 3A;

S. 3(1) def. of employee amended by Nos 50/1988 s.93(2)(Sch. 2 Pt2 item 15), 81/1988 s.3(a)(i)–(iv), 72/1990 s. 17, 58/1994 s.10(a)–(c), 82/1996 s.20(1)(2), 38/1998 s.15(a), 94/2005 s.4(4), 38/2009 s.3(2)(a), 40/2010 s.3(a), 37/2014 s.10(Sch. item54.1(b)).