S 20 substituted by No 57 of 2025, s 3 and Sch 1 item 12, effective 1 July 2026. For application and transitional provisions, see note under s
16
. S 20 formerly read:
SECTION 20 DEFINED BENEFIT SCHEMES
-
CERTAIN CASES WHERE MEMBERS CANNOT CHOOSE ANOTHER FUND
20(1)
This section applies to an employer in respect of an employee in respect of a defined benefit superannuation scheme for a quarter if the employee is a defined benefit member of the scheme and subsection (2), (3) or (3A) is satisfied.
History
S 20(1) amended by No 80 of 2020, s 3 and Sch 1 item 3, by substituting
"
subsection (2), (3) or (3A) is satisfied
"
for
"
either subsection (2) or (3) is satisfied
"
, effective 4 September 2020.
Scheme in surplus
20(2)
This subsection is satisfied if:
(a)
the employee was a defined benefit member of the fund immediately before 1 July 2005 and has not ceased to be such a member since that time and before the start of the quarter; and
(b)
an actuary has provided a certificate in accordance with regulations under the
Superannuation Industry (Supervision) Act 1993
stating that the employer is not required to make contributions for the quarter and there has been such a certificate covering all times since 1 July 2005; and
(c)
an actuary has provided a certificate stating that, in the actuary
'
s opinion, at all times from 1 July 2005 until the end of the quarter, there is a high probability that the assets of the scheme are, and will be, equal to or greater than 110% of the greater of the scheme
'
s liabilities in respect of vested benefits and the scheme
'
s accrued actuarial liabilities.
The certificate under paragraph (c) must have been provided no earlier than 15 months before the end of the quarter.
History
S 20(2) amended by No 82 of 2005, s 3 and Sch 1 item 3, by inserting
"
there is a high probability that
"
after
"
end of the quarter,
"
in para (c), effective 1 July 2005.
Member has accrued maximum benefit
20(3)
This subsection is satisfied if, after the start of the quarter, the defined benefit that has accrued to the employee will not increase other than:
(a)
as a result of increases in the employee
'
s salary or remuneration; or
(b)
by reference to accruals of investment earnings; or
(c)
by reference to indexation based on, or calculated by reference to, a relevant price index or wages index; or
(d)
in any other way prescribed for the purposes of this paragraph.
Member
'
s benefit not affected
20(3A)
This subsection is satisfied if the employee would be entitled, on the employee
'
s retirement, resignation or retrenchment, to the same amount of benefit from the defined benefit superannuation scheme, whether or not the employee had contributions:
(a)
for the quarter; and
(b)
made by the employer for the benefit of the employee;
to a fund (within the meaning of Part 3A) other than the defined benefit superannuation scheme.
History
S 20(3A) inserted by No 80 of 2020, s 3 and Sch 1 item 4, effective 4 September 2020.
Meaning of
scheme
'
s accrued actuarial liabilities
and
scheme
'
s liabilities in respect of vested benefits
.
20(4)
In this section:
scheme
'
s accrued actuarial liabilities
, at a particular time, means the total value, as certified by an actuary, of the future benefit entitlements of members of the scheme in respect of membership up to that time based on assumptions about future economic conditions and the future of matters affecting membership of the scheme, being assumptions made in accordance with applicable professional actuarial standards (if any).
scheme
'
s liabilities in respect of vested benefits
, at a particular time, means the total value of the benefits payable from the scheme to which the members of the scheme would be entitled if they all voluntarily terminated their service with their employers at that time.
S 20 inserted by No 102 of 2004, s 3 and Sch 1 item 15D, effective 1 July 2005.
Former s 20 repealed by No 51 of 2002, s 3 and Sch 1 item 51, effective 1 July 2003. For application and transitional provisions, see note under s 5(3). S 20 formerly read:
SECTION 20 CHARGE PERCENTAGE FOR A PERSON WHO WAS AN EMPLOYER FOR THE WHOLE OF THE 1991-92 YEAR
20(1)
This section applies to a person who was an employer for the whole of the 1991-92 year.
20(2)
In this section,
'
base year
'
means the 1991-92 year.
20(3)
Subject to subsection (4) and sections 22 and 23, if an employer
'
s annual national payroll for the base year exceeded
$
1,000,000, the employer
'
s charge percentage for a contribution period in a year, or a part of a year, specified in the following table is the number specified in that table in relation to that year or part of a year (as the case may be):
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