State Employees Retirement Benefits Act 1979

Version No. 082

State Employees Retirement Benefits Act 1979

No. 9363 of 1979

Version incorporating amendments as at
1 July 2014

table of provisions

Section Page

Part 1—Preliminary 1

1 Short title 1

2 Definitions 1

2A Declaration of eligible salary sacrifice contributors 15

Part III—Contributions 19

20 Part-time and intermittent service 19

21 Permanent employees to be members and contributors 21

21A Provision as to continuity of membership 24

21B Provision preventing re-calculation of benefits in certain cases 26

21C Reduction of qualifying period for becoming a permanent employee 26

22 Circumstances in which a member will cease to be a
contributor 27

22A Members of approved superannuation schemes 28

23 Rate of contributions 30

24 Contributions deducted from salary 34

24A Eligible member account 40

25 Payments to the Board 42

25A Board to certify amount where employer fails to pay 43

25B Interest on monies owing to Board 43

Part IV—Pensions and Benefits 45

26 Definition of minimum wage 45

27 Member to furnish personal statement to Board and to undergo medical examination 45

32 Submission of information and medical examination 46

33 Entitlement to benefits 46

34 Retrenchment 48

34A Election by retrenched member 48

34AB Exempt officers 48

34B Employer to pay into Fund 49

34C Interest on money payable by employer 49

35 Resignation 50

36 Resignation on grounds of disability 50

37 Resignation benefits 50

38 Deferred retirement benefits 52

39 Amount of lump sum and pension on retirement 54

40 Calculation of benefit where less than 42 years employment 55

41 Retirement between the ages of 60 and 65 years 60

41A Pensioner may apply for reduced pension and lump sum
payment 60

42 Conversion of part of pension entitlement to lump sum
payment entitlement 61

43 Automatic adjustment of pensions 62

43A Prescribed rate 64

43B Registration of names of adult children 64

44 Benefits for partner, children and adult children on death of member before retirement 65

45 Benefits for partner, children and adult children on death of pensioner 68

46 Board's discretion to determine qualifying partners 71

47 Pension to child or adult child if no surviving partner 72

48 Payments for children and adult children where partner dies 73

49 Pension payable for life except in certain cases 73

50 Pensions payable fortnightly 74

51 Where pensioner re-employed by Crown pension may be
reduced 74

51A Entitlement to pension 76

52 Definition of partial disability pensioner 77

53 Disability benefits 77

54 Board to make determination as to entitlement to disability benefits 77

55 Disability benefit entitlements 79

56 Board may review condition of recipient of disability benefits 81

57 Payments at age 65 and on death before age 65 of a partial disability pensioner 82

58 Increase of benefits 84

59 Discontinuance of benefits 84

60 Where Board determines pensioner able to undertake employment 85

60A Disability pensioner retiring due to ill health 86

62 Recipient of disability benefits not to make contributions 87

63 Board to receive medical report when determining question
of disability 88

63A Disclosure of contents of medical reports 88

65 Minimum benefits 89

65A Commutation of pension not exceeding declared rate 92

66 Amount of gratuity to be deducted 93

Part IVA—Family Law Provisions 94

66AA Definitions 94

66AB Accrued benefit multiple 97

66AC Obligation on Board 97

66AD Reduction of benefit or accrued benefit entitlement 100

66AE Board may provide additional information 101

66AF Commutation rights not affected 101

66AG Charging of fees 101

Part V—General 103

66A Payment of benefits subject to specified standards 103

67 Review of decisions of the Board 103

68 Early release of benefits 104

68A Permanent employees may be required to transfer etc.
assetsetc. 105

68B Information to be supplied 105

68C Transfer of assets to Board 106

68D Board to have power to deal with policies 106

68E Board may pay administrator 106

68F Board may open accounts etc. 106

68G Member to receive amount in account on ceasing to be
employed 107

68H On retirement balance of account additional to lump sum entitlement 107

69 Power of Board to acquire information about contributors
for purposes of administering the Act 107

69A Continued application of member classification provisions 108

70A Assignment or charging of interest 109

70B Payment of benefits if person is incapable of managing
financial affairs 109

71 Power to recover 110

72 Regulations 110

73 Specified standards 112

74C Taxation on benefits 114

74CA Surcharge debt account 117

74CB Recovery of surcharge where person entitled to deferred benefit 120

74CC Commutation of pension to meet surcharge liability 121

74D Payment of lump sum benefits 122

75 Transfer to State Superannuation Fund or Transport Superannuation Fund 122

76 Provisions relating to certain water authorities 123

77 Provision relating to change of employment 125

78 Provisions relating to transfer of assets and liabilities 126

______

SCHEDULE 1—Lump sum factors 127

SCHEDULE 2 128

═══════════════

ENDNOTES 129

1. General Information 129

2. Table of Amendments 130

3. Explanatory Details 139

Version No. 082

State Employees Retirement Benefits Act 1979

No. 9363 of 1979

Version incorporating amendments as at
1 July 2014

An Act to constitute a State Employees Retirement Benefits Board, to make Provision for the Administration by the Board of a State Employees Retirement Benefits Fund and for other purposes.

Part IV—Pensions and Benefits

State Employees Retirement Benefits Act 1979
No. 9363 of 1979

BE IT ENACTED by the Queen's Most Excellent Majesty by and with the advice and consent of the Legislative Council and the Legislative Assembly of Victoria in this present Parliament assembled and by the authority of the same as follows (that is to say):

Pt 1 (Heading) inserted by No. 8/1999 s.50(1)(a).

Part 1—Preliminary

S.1 amendedby No. 10258 s.10(a).

1 Short title

This Act may be cited as the State Employees Retirement Benefits Act 1979.

S.2 amendedby No. 81/1988 s.22(2)(a).

2 Definitions

(1) In this Act unless inconsistent with the context or subject-matter—

S.2(1) def. of Actuary substituted by Nos 10258 s.10(b)(i), 4/1996 s.91(1)(a).

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

S. 2(1) def. of adjusted final salary amended by No. 9978 s.2(a), substituted by No. 110/1993 s.150(1).

adjusted final salary means—

(a) in relation to a member with less than 2years of recognised service, an amount calculated in accordance with the formula—

where—

"A" is the aggregate salary paid to the member in respect of the member's period of recognised service;

"B" is the total number of days in that period;

s. 2

(b) in relation to a member with 2 years or more of recognised service, an amount equal to one-half of the member's aggregate salary for the period of recognised service of 2 years ending on the member's last day of service—

and if the period of recognised service includes a period of leave without pay, there is deemed to have been payable to that member during that period of leave without pay, salary at the rate payable to the member immediately before the period of leave, or such higher salary as has been approved by the Board for the purposes of this section, but in no case shall the amount in relation to a person who was a member on 1 January 1994 be less than the member's salary on that date;

S. 2(1) def. of adult child inserted by No. 40/2010 s.45.

adult child has the same meaning as in section43B(1);

S. 2(1) def. of Board inserted by No. 120/1994 s.43(1), repealed by No. 8/1999 s.50(1)(b), new def. of Board insertedby 94/2005 s.27(1)(a).

Board means the Emergency Services Superannuation Board established under section 5 of the Emergency Services Superannuation Act 1986;

S. 2(1) def. of child insertedby No. 120/1994 s.39(a), amended by No.27/2001 s.5(Sch.3 item4.1(b)).

s. 2

child in relation to a person means a child of himself or herself or of his or her partner other than any child born more than 10months after his or her 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. 2(1) def. of complying super-annuation fund insertedby No. 4/1996 s.91(1)(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.2(1) def. of contract officer inserted by No. 87/1992 s.17(1)(a) (as amended by No. 97/1993 s.46(2)(a)), substituted by No. 120/1994 s.41(1)(a), amended by Nos 46/1998 s.7(Sch. 1), 108/2004 s.117(1) (Sch.3 item186.1).

contract officer means—

(a) an executive within the meaning of section 4(1) of the Public Administration Act 2004 employed under a contract of employment under that Act, other than an exempt officer; or

(b) any person who—

(i) is declared or deemed to be a contract officer; or

(ii) is a member of a class of persons declared or deemed to be contract officers—

by the Minister by instrument in writing for the purposes of this Act;

S. 2(1) def. of contributor substitutedby No.94/2005 s.27(1)(b).

contributor means a member who is liable to make contributions under section 23;

S.2(1) def. of disability inserted by No. 10258 s.10(b)(ii), amended by Nos 49/1992 s.79(1)(a), 23/1994 s.118 (Sch. 1 item 53.1(a)), substituted by No. 120/1994 s.40.

s. 2

disability, in relation to a member, means the permanent inability of the member before the age of 60 years due to a continuing or recurring injury, disease or infirmity—

(a) to perform his or her duties; and

(b) to 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—

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

S. 2(1) def. of domestic partner insertedby No.27/2001 s.5(Sch.3 item4.1(a)), substitutedby No.12/2008 s.73(1)(Sch.1 item57.1), amended by No.4/2009 s.37(Sch. 1 item 22.1).

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.2(1) def. of eligible contribution inserted by No. 78/2004 s.12.

eligible contribution means the Government cocontribution payable under the Superannuation (Government Cocontributions for Low Income Earners) Act 2003 of the Commonwealth that the Commissioner of Taxation determines under that Act is to be paid to the Fund or to the person;

S.2(1) def. of eligible member inserted by No. 78/2004 s.12.

eligible member means a member who is a person in respect of whom a Government cocontribution is payable in accordance with section 6 of the Superannuation (Government Co-contributions for Low Income Earners) Act 2003 of the Commonwealth;

s. 2

S.2(1) def. of eligible member account inserted by No. 78/2004 s.12.

eligible member account means the account established under section 24A;

S. 2(1) def. of eligible salary sacrifice contributor insertedby No. 40/2004 s.21.

eligible salary sacrifice contributor means a member in respect of whom a declaration is in force under section 2A;

S.2(1) def. of employee amended by Nos 9400 s.3(a), 9478 s.2(a)(b), 9657 s.2, 9921 s.255, 9978 s.3(1), 10258 s.10(b)(iii)
(A)–(D), 58/1987 s.11(1)(a)(i)
(A)–(D), 50/1988 s.93(2)(Sch. 2 Pt 2 item 53) (as amended by No. 81/1988 s.34(g)(h)), 87/1992 s.17(1)(b) (as amended by No. 97/1993 s.46(2)(a)), 50/1997 s. 11, 46/1998 s.7(Sch. 1), 12/1999 s.4(Sch. 2 item 12.1), 108/2004 s.117(1) (Sch.3 item186.2).

employee means[1]—

(a) any person in the service or employment of the Road Construction Authority other than—

(i) an officer within the meaning of the interpretation of Officer in section 3(1) of the State Superannuation Act 1988;

(ii) a person who declines or has declined to become an officer pursuant to that interpretation;

s. 2

(b) any employee or person or class of employees or persons (other than Associates to Judges of the Supreme Court or Judges of the County Court) employed pursuant to the Public Administration Act 2004 other than—

(i) a person who is an officer within the meaning of the State Superannuation Act 1988; or

(ii) a member of a class of persons who are officers within the meaning of that Act;

(i) under the Crown; or

(ii) as a member or of a class of persons who are members or in the service or employment of any body created by or under any Act of Parliament—

to which person or office or class of persons the Governor in Council, on the recommendation of the Minister, by Order published in the Government Gazette declares that the provisions of this Act shall apply;

* * * * *

s. 2

(e) any person who is not an officer within the meaning of the State Superannuation Act 1988 or any member of a class of persons who are not officers within the meaning of that Act in the service or employment of any body that the Governor in Council, on the recommendation of the Minister, by Order published in the Government Gazette, declares to be a body to which this paragraph applies to which person or class of persons the Governor in Council on the recommendation of the Minister, by Order published in the Government Gazette declares that the provisions of this Act shall apply; or

(f) a person referred to in a preceding paragraph who as a result of a change of employment becomes a person referred to in—

(i) any other paragraph of this definition; or

(ii) any paragraph of the definition of officer in section 3(1) of the State Superannuation Act 1988; or