2014

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

TREASURER

SUPERANNUATION LEGISLATION AMENDMENT AND REPEAL BILL 2014
SERIAL NO. 89

EXPLANATORY STATEMENT

GENERAL OUTLINE

This Superannuation Legislation Amendment and Repeal Bill 2014 repeals the Unclaimed Superannuation Benefits Act, and amends: the Superannuation Act; the Superannuation Regulations; the Legislative Assembly Members’ Superannuation Fund Act; the Administrators Pensions Act; the Northern Territory Government and Public Authorities’ Superannuation Scheme Rules; and the Northern Territory Supplementary Superannuation Scheme Instrument. 

The purpose of the Bill is to:
·	Repeal the Unclaimed Superannuation Benefits Act along with transferring the management of unclaimed and lost member superannuation benefits to the Commonwealth;
·	Allow the Superannuation Trustee Board (STB) to form committees incorporating all the relevant scheme funds it administers;
·	Ensure STB related fees can be proportionately levied across the relevant scheme funds it administers;
·	Ensure Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS) members working for Public Authorities are adequately captured for membership purposes;
·	Remove the Northern Territory Government Death and Invalidity Scheme (NTGDIS) anticipatory payment;
·	Remove NTGPASS entrant medical declaration provisions;
·	Broaden the NTGPASS and NTSSS interpretation of “dependant” to include “interdependency of relationship”;
·	Increase the NTGPASS payment threshold without the grant of probate;
·	Convert penalty offences to be compliant with Part IIAA of the Criminal Code along with updating and applying confidentiality provisions across the superannuation legislative framework (except the Supreme Court Judges Pension Scheme);
·	Replace the current Superannuation Review Board with an appropriate external administrative tribunal process and introduce the same review mechanism across the superannuation legislative framework (except the Supreme Court Judges Pension Scheme);
·	Introduce time limits for making a claim and when seeking a review of decisions across the superannuation legislative framework (except the Supreme Court Judges Pension Scheme);
·	The ability to comply with Commonwealth taxation measures and allow the release of superannuation money for members of the Territory defined benefit schemes (except members of the Supreme Court Judges Pension Scheme) to meet a superannuation taxation liability, or to allow a refund of excess concessional contributions made by NTGPASS members; and
·	Close the NTGPASS account-based pension product and transfer pension accounts to a successor fund on ‘just terms’.

NOTES ON CLAUSES

PART 1 – PRELIMINARY MATTERS

Clause 1.	Short title

This is a formal clause which provides for the citation of the Act. When passed, the Act may be referred to as the Superannuation Legislation Amendment and Repeal Act 2014.

Clause 2.	Commencement

Clause 2 provides for the Act to commence on the day to be fixed by the Administrator by notice in the Government Gazette. 

Note, section 6A of the Interpretation Act allows for different parts of an Act to commence on different days or different times. Parts 3 and 4 of the Act are to start at a future time to be determined. 

Part 3 of the Act relates to a right of review and opting in to the Northern Territory Civil and Administrative Tribunal (NTCAT) to hear matters relating to the Territory’s defined benefit superannuation schemes. A date for the final opt in is to be determined upon the NTCAT becoming fully operational.  

Part 4 of the Act is to allow Territory defined benefit superannuation schemes to be prescribed for the purposes of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (Cth) for unclaimed benefits and lost members. Commencement of this part is aligned to the timeframe the Territory schemes are prescribed under the Commonwealth regime.  

Part 2 – General amendments

Division 1 – Superannuation Act

Clause 3.	Act amended

The Act being amended by this Part is the Superannuation Act.

Clause 4.	Long Title amended

Clause 4 modernises the long title to reflect that the Superannuation Act provides overarching functions and powers as well as administrative functions for a number of defined benefit superannuation schemes in the Northern Territory. These Schemes are defined in section 3(1) of the Superannuation Act.

Clause 5.	Section 3 amended

Clause 5 undertakes amendments to section 3(1) to revise a number of definitions and insert new ones.  

An additional definition inserts a reference to the Australian Taxation Office (ATO) for compliance with Commonwealth taxation provisions applying to superannuation.  

The definition of ‘dependant’ is to be expanded to include ‘interdependency of relationship’ (as defined in new section 3AA). 

A revised definition of ‘public authority’ has been undertaken to ensure that a ‘public authority’ not listed under an Agency structure in the Administrative Arrangement Orders is prescribed in the Superannuation Regulations. The purpose of prescribing these ‘public authorities’ is to capture the working arrangements for Territory public sector employees who are also members of NTGPASS.

An additional definition is inserted for the ‘SIS Act’ and reference to it is abbreviated in the definition of ‘exempt public sector superannuation scheme’. A definition is also inserted for ‘NTSS Scheme’.

The definition for ‘allocated pension’ is moved to another part of the Superannuation Act.

Clause 6.	Section 3AA inserted 

Clause 6 inserts a new section 3AA to widen and align the interpretation of ‘dependant’ as defined in section 10A of the Superannuation Industry (Supervision) Act 1993 (Cth). This is to reflect more modern ways people interact and can support one another in society. For example, two elderly siblings with adult children of their own living together in a mutual care arrangement can illustrate the potential of a person in society having more than one ‘interdependent’ relationship.   

Clause 7.	Section 3B inserted 

Clause 7 inserts a new section 3B to apply Part IIAA of the Criminal Code (principles of criminal responsibility) to offence provisions in the Superannuation Act. The progressive conversion of all offences in Northern Territory legislation is to be completed by 31 December 2016. 

Clause 8.	Section 8 repealed

Clause 8 repeals section 8 (the secrecy provision) as a consequence of the application of Part IIAA of the Criminal Code. The secrecy provisions are deemed to be outdated and have been modernised with the insertion of a new ‘confidentiality’ and ‘information’ provisions under the new Part 5B of the Superannuation Act.    

Clause 9.	Section 8BA inserted

Clause 9 inserts new delegation power to allow the Superannuation Trustee Board (STB) to delegate any of its power or functions (subject to direction) to either a Board member or a committee which is to be set up under new section 8TA.

This is part of the increased governance oversight and scrutiny of the scheme funds the STB manages and is to align with recent Commonwealth StrongerSuper reforms. The use of the committee structure is widely used across jurisdictions and is a way of bringing Board members closer to the day-to-day operation of the funds and schemes.   

Clause 10.	Section 8TA inserted

Clause 10 inserts new section 8TA to allow the establishment of committees to assist the STB in the performance of its functions.

New subsection 8TA(2) establishes the membership of a committee to include a Board member as the chair with the remaining members to be made up of other Board members or person who are not Board members. The ability to appoint non-Board members is to allow the Board to draw on industry expertise and skills when forming a committee.

New subsection 8TA(3) allows the committee to determine its own procedures subject to direction given by the Board.  

New subsection 8TA(4) ensures that a committee member must disclose their material personal interest in a matter and not partake in any deliberation or decision making related to the matter, in the same way that applies to STB members under section 8S and 8T.

Clause 11.	Section 8TB inserted

Clause 11 inserts new section 8TB which allows the apportionment of the STB’s general costs between the relevant schemes under the Board’s control in a manner it considers appropriate.

New subsection 8TB(2) defines the Board’s general costs as being those costs incurred by the Board in the exercising of its powers and performing its functions that are not attributed solely to the administration of one fund or scheme.  

The relevant schemes managed by the Board are NTGPASS, the Legislative Assembly Members’ Superannuation (LAMS) Scheme, and any other fund or scheme approved by the Minister under section 8B(1)(d) - currently the Northern Territory Police Supplementary Benefit Scheme.    

Clause 12.	Section 8V amended

Section 8V provides a protection to an appointed STB member from being civilly or criminally liable for acts done or omitted to be done in good faith in the performance of functions or the exercise of power as a Board member. The amendment awards this protection to a committee member.

Clause 13.	Section 8W replaced

For clarity section 8W has been rewritten to ensure that both STB and committee members are not subject to direction, including the way members exercise powers or perform functions as either a Board member or as a member of a committee. 

For clarity section 28 has been repealed and rewritten to make it clear as to what information is recorded in an accumulation account of a member or an adherent. In practice not all fees and costs are recorded against these accounts for administrative reasons. For example, administration, switch and family law fees are recorded at the member (or adherent) account level while investment and brokerage fees are recorded at the fund level.

Clause 14.	Section 31 repealed

Clause 15 repeals section 31 relating to allocated pensions, due to the cessation of the NTGPASS pension product. The transitional arrangements in the new Part 8 Division 2 provide the steps for the final closure upon ‘just terms’. Pension accounts and the fund will be transferred after a due diligence process to a successor fund that is equivalent or superior to the NTGPASS pension product. 

Clause 15.	Section 39 amended

Clause 16 omits section 39(2)(b)(ii) and inserts new subsections 39(2)(b)(ii), (iia) and (iib) to clarify costs incurred by the STB in the management of the Northern Territory Government and Public Authorities Employees’ Superannuation Fund. The relevant costs are related to the management of the funds and include costs outlined in new section 8TB(2) (along with any borrowing costs). 

Clause 16.	Part 3, Division 5 inserted

This clause inserts a new Division 5 to set up the framework for authorising the release of an amount from a superannuation account to pay a Commonwealth tax liability (Division 293) or to refund an excess concessional contribution. 

The Commonwealth provisions containing a relevant tax liability or an excess contribution amount are prescribed in new Regulation 7 of the Superannuation Regulations. 

New section 45DA inserts the definitions for new Division 5 to determine that an ‘account holder’ means an eligible employee or adherent of the scheme, with any ‘release amount’ determined by new section 45DC. A ‘release authority’ means an authorisation contained in a Commonwealth Act and prescribed in the Superannuation Regulations that allows the Commissioner to release an amount from an account holder’s entitlement under the scheme.    

New section 45DB steps out how the ‘release authority’ is to work in conjunction with a relevant Commonwealth provision. Upon making a personal tax assessment determining a liability (or an excess contribution amount), the ATO may issue a ‘release authority’ to an account holder. The ‘release authority’ may be given directly to the Commissioner by either the ATO or by the individual account holder (new subsection 45DB(1)).

Upon receipt of the ‘release authority’ the Commissioner releases the amount in accordance with the overriding Commonwealth provisions being either directly to the ATO, or if permitted, to the individual account holder upon request (new subsection 45DB(2)).

The intent of new section 45DC is to place perimeters around the amount able to be released from a superannuation account to meet the amount prescribed in the ‘release authority’. The release amount can be the full liability, the amount the account holder or ATO requests to be paid out of an account (new subsection 45DC(1)) or the balance of the account if it is less than the liability (new subsection 45DC(2)).  New section 45DD determines that an amount paid by the Commissioner as a result of a ‘release authority’ is to be debited against the individual’s superannuation account. 

Clause 17.	Section 45E amended

Clause 18 amends section 45E(1) to omit the definition of death benefit which is reinserted under new Part 5A of the Superannuation Act. The intention is to ensure the definition is applied to any death benefit across the schemes and not just to NTGDIS as is the case under section 45E.    

Clause 18.	Section 45R repealed

Clause 19 repeals section 45R relating to an anticipatory benefit payment made under the NTGDIS scheme.  

Anticipatory payments are made to alleviate financial hardship if a member’s salary is suspended or reduced due to a member’s incapacity whilst undergoing an assessment for invalidity retirement. From an administrative perspective the assessment of an anticipatory benefit claim is both complex and time consuming. Since only one payment has ever been approved to date the intention is to no longer offer this type of benefit for efficiency reasons. In addition, there are more appropriate ways of dealing with these situations through employment measures, such as granting additional sick leave.

Clause 19.	Part 5 heading replaced

Clause 20 omits Part 5 heading and inserts a new heading to make it clear that Part 5 deals with general matters relating to both the NTGDIS and NTGPASS schemes.  

Clause 20.	Section 45U repealed

Clause 21 repeals section 45U relating to information required to be provided to the Commissioner by a member or employer. A new information provision has been inserted under new Part 5B of the Superannuation Act. The repeal is part of the application of Part 11AA of the Criminal Code.

Clause 21.	Section 45X amended

Clause 22 omits section 45X(2) and inserts a new section 45X(2) and (2)(A) increasing a death benefit payment threshold from the current $20 000 to $30 000 without the grant of probate or letters of administration. The release of money must be for a purpose outlined in section 45X(1), such as meeting funeral expenses of the deceased member, or to a dependant(s) or another person under certain conditions.  

The new section 45X(2A) contains the Commissioner’s discretion to make a payment in excess of the $30 000 limit if a dependant(s) can prove financial hardship. This was previously noted as an exception under section 45X(2).

Clause 22.	Part 5, Division 5 heading omitted

Cluse 23 removes Part 5, Division 5 ‘Miscellaneous’ heading. Sections 50, 50A and 50B previously under this heading are now listed under the new Part 5B ‘General Matters’ heading.   

Clause 23.	Part 5B inserted

Clause 24 inserts a new Part 5B (‘General Matters’) to prescribe new penalty provisions relating to the provision of information to the Commissioner or the STB. New Part 5B also inserts new ‘confidentiality’ provisions relating to the access and use of a member’s superannuation information. The new provisions are in compliance with the application of the principles of criminal responsibility in Part 11AA of the Criminal Code. 

New section 49J grants powers to the Commissioner to compel a person to either answer questions or give information. The Commissioner can also compel a person to produce documents or other information as required. A person who fails to comply will commit an offence with a possible maximum of 100 penalty units being imposed. 

New section 49K introduces a strict liability offence if a person knowingly gives information or a document sought by the Commissioner or Trustee Board that is misleading. The maximum penalty of 100 penalty units attached to this type of offence will not apply if the misleading elements in the document or the information is brought to the receiver’s attention and remedied.

New section 49L applies a strict liability penalty provision with a maximum 200 penalty units or two years in prison for the misuse of a member’s confidential superannuation information. The new provision is to be applied to all schemes under the Territory’s superannuation legislative framework (except the Supreme Court Judges Pension Scheme) and is wide in scope to capture anyone who obtains, discloses or uses a member’s confidential information that is not for the administration or management of that particular scheme.   

Clause 24.	Section 50A amended

Clause 25 removes the example where the Commissioner may charge a fee relating to the administration of an allocated pension. The pension product is to be closed with the accounts to be transferred to a successor fund on ‘just terms’.  

Clause 25.	Part 8 inserted

Clause 26 inserts a new Part 8 ‘Transitional matters for Superannuation Legislation Amendment and Repeal Act 2014’ (‘the’ Act) into the Superannuation Act.

New Division 1, section 64 applies the transitional arrangements for the updated penalty offences in compliance with Part IIAA to only apply after the commencement of section 7 of the Act. An offence committed before section 7 commences is to be dealt with under the current provisions as in force before this Act comes into force.

New sections 65, 66, 67, 68 and 69 under Division 2 apply transitional arrangements for the closure of the NTGPASS pension and the subsequent transfer of accounts and funds on ‘just terms’ to a successor fund.  The scheme was closed to new accounts from 1 April 2014 with periodic pension payments to continue until remaining accounts are transferred to a successor fund. The successor fund is to be chosen as part of a due diligence process and be equivalent or superior to the features and fee structure of the current NTGPASS pension product. This is to ensure members are not worse off as a result of the closure.   

Division 2 – Legislative Assembly Members’ Superannuation Fund Act Amendments

Clause 26.	Act  amended 

Clause 27 provides for the Legislative Assembly Members’ Superannuation Fund Act amendments under Division 2 of this Act. 

Clause 27.	Section 3B inserted

Clause 28 inserts a new section 3B to apply Part IIAA of the Criminal Code (principles of criminal responsibility) to offences against the Legislative Assembly Members’ Superannuation Fund Act (LAMS Act).  

Clause 28.	Section 4 amended

Clause 29 amends section 4 to update and clarify what categories of money is to be credited to the LAMS fund and what categories are to be debited from the fund.

New subsection 4(2A) has been inserted to outline the category types to be debited from the LAMS Fund. These include benefits payable under the LAMS Act, LAMS scheme administration costs, fund management costs, apportioned general Board costs, borrowing costs and any other amount lawfully payable under the LAMS Act.   

Clause 29.	Section 4A amended

Clause 30 amends section 4A to insert new subsection 4A(2) to make it clear as to what information is recorded against an active LAMS’s member accumulation account. For example this would include the contributions made by a member, the annual returns each financial year, and other amounts paid to and from the account.

Clause 30.	Section 12 amended

Clause 31 amends section 12 to insert new STB delegation powers to ensure the formation of committees overarch all the funds and schemes under its control – including LAMS as referenced by section 8B of the Superannuation Act.

Clause 31.	Section 25AB inserted

Clause 32 inserts new section 25AB to authorise the release of an amount under a ‘release authority’ as defined in section 45DA of the Superannuation Act, from a LAMS’s members account to meet a Commonwealth tax liability as prescribed in the Superannuation Regulations. Note, any payment to meet a tax liability can only be made upon entitlement to a benefit and before a member’s pension stream commences.     

Clause 32.	Section 28A inserted 

Clause 33 inserts new section 28A to prescribe a new penalty provision relating to the use of a member’s information. The intention is to extend confidentiality provisions across the Territory’s legislative framework to protect members from criminal misuse of their information. The new provision complies with the application of the principles of criminal responsibility in Part IIAA of the Criminal Code and provides maximum penalties of either 200 penalty units or two years imprisonment for breaches.

Division 3 – Administrators Pensions Act

Clause 33.	Act amended

Clause 34 provides for the amendments to the Administrators Pensions Act under Division 3 of this Act.  

Clause 34.	Part 1 heading inserted

Clause 35 inserts a new Part 1 heading titled ‘Preliminary matters’. The insertion of new headings is part of the modernisation of the Administrators Pensions Act using modern drafting techniques.

Clause 35.	Application 3AB of the Criminal Code

Clause 36 inserts a new section 3AB to apply Part IIAA of the Criminal Code (principles of criminal responsibility) to offences against the Administrators Pensions Act. 

Clause 36.	Part 2 heading inserted

Clause 37 inserts a new Part 2 heading titled ‘Tax related arrangements’. The insertion of new headings is part of the modernisation of the Administrators Pensions Act using modern drafting techniques.

Clause 37.	Section 3E amended

Clause 38 corrects omission of the word “and” at the end of section 3E(1)(a).

Clause 38.	Part 3 heading inserted

Clause 39 inserts a new Part 3 heading titled ‘Pensions’. The insertion of new headings is part of the modernisation of the Administrators Pensions Act using modern drafting techniques.

Clause 39.	Section 4 amended

Clause 40 corrects omission of the word “or” at the end of section 4(1)(a).

Clause 40.	Part 5 heading inserted

Clause 41 inserts a new Part 5 heading titled ‘General Matters’ as part of updating the Administrators Pensions Act using modern drafting techniques.

Clause 41.	Section 9 amended

Clause 42 corrects omission of the word “and” at the end of section 9(4)(a).

Clause 42.	Section 10A inserted

Clause 43 inserts a new section 10A to prescribe a new penalty provision relating to use of a member’s information. The intention is to extend confidentiality provisions across the Territory’s legislative framework to protect members from criminal misuse of their information. The new provision complies with the application of the principles of criminal responsibility in Part IIAA of the Criminal Code and provides maximum penalties of either 200 penalty units or two years imprisonment for breaches.

Division 4 – Superannuation Regulations

Clause 43.	Regulations amended

Clause 44 provides for the amendments to the Superannuation Regulations under Division 4 of this Act.  

Clause 44.	Regulation 3 repealed

Clause 45 removes Regulation 3 (‘Interpretation’) as part of the modernisation of the Superannuation Regulations using modern drafting techniques.  

Note, section 20 of the Interpretation Act states that words, expressions and provisions in a statutory instrument have the same interpretation and effect as they have in the Act under which the instrument is made, granted or issued or referred to.  

Clause 45.	Regulation 5 amended

For clarity, clause 46 corrects omissions of the word “or” at the end of Regulation 5(1)(a)(i), (ii) and (iii) and (b)(i) to (vi).

Clause 46.	Regulation 7 inserted

Clause 47 inserts new Regulation 7 to prescribe Commonwealth tax provisions for the purpose of a ‘release authority’ under section 45DA of the Superannuation Act. The release authority enables release of superannuation moneys to either meet a tax liability or to refund excess concessional contributions.  

Clause 47.	Schedule amended

Clause 48 removes the list of ‘public authorities’ listed in Schedule 1 of the Regulations and inserts an updated list. The purpose is to capture NTGPASS members taking employment in an ‘authority’ that is not identified as an Agency in the Administration Arrangement Orders. 

Division 5 – Northern Territory Government and Public Authorities’ Superannuation Scheme Rules

Clause 48.	Rules amended

The Rules being amended by this Division is the Northern Territory Government and Public Authorities’ Superannuation Scheme Rules (the Rules).

Clause 49.	Rule 1 amended

Clause 50 removes definitions for ‘invalidity’ and ‘reduced benefit classification’. The definition for ‘invalidity’ has been moved to Rule 10 and has been aligned with the definition in the Superannuation Act used for assessing NTGDIS invalidity claims. The removal of the ‘reduced benefit classification’ definition reflects repeal of Rules 2 and 3 for ‘medical classification on entry’ and ‘reduced benefit classification’ provisions applying to the now closed NTGPASS scheme. 

Clause 50.	Part II heading replaced

Clause 51 renames the heading ‘Classification and contributions’ as ‘Contributions’, resulting from repeal of the ‘medical classification’ Rules.

Clause 51.	Rules 2 and 3 repealed

Clause 52 repeals both the ‘medical classification on entry’ Rule and the corresponding ‘reduced benefit classification’ Rule.  

A medical classification was an assessment to determine if a new Territory public sector employee had a high risk of dying or becoming an invalid in their first 10 years of service. Those deemed at a high risk were issued a ‘Reduced Benefit Certificate’ and their benefit entitlement was reduced until the 10 year period had elapsed. As NTGPASS closed in 1999, any Reduced Benefit Certificates issued have expired.

The ‘medical classification on entry’ provisions have already been repealed from NTGDIS (for ‘Choice of Fund’ employees) as part of the legislative amendments to the Superannuation Act undertaken in 2010. The repeal will give equality of membership between NTGPASS members and NTGDIS members. 

Clause 52.	Rule 9 amended

With the repeal of the ‘medical classification’ Rules, clause 53 updates Rule 9(1)(c) to reflect the removal.

Clause 53.	Rule 10 amended

Clause 54 updates Rule 10 for determining an invalidity retirement benefit for NTGPASS members to be in line with provisions for NTDGIS members under 45Q of the Superannuation Act.  

Clause 54.	Rule 12 amended

Rule 12(3) is removed as it is no longer required due to the repeal of the ‘medical classification’ Rules.

Clause 55.	Rule 13A amended

Rule 13A heading of ‘Unclaimed benefits’ has been removed and replaced with ‘Crystallisation of benefits’ to better describe the purpose of this rule.

Clause 56.	Rule 18 amended

Clause 57 removes Rules 18(1) and (2) which are now redundant due to the ‘medical classification’ Rules having been repealed.

Clause 57.	Part V inserted

Clause 58 inserts a new Part V ‘Transitional matters for Superannuation Legislation Amendment and Repeal Act 2014’ (the Act) into the Rules.

New Rule 19 sets out the transitional arrangements associated with the removal of the ‘medical classification on entry’ Rules. The new Rule aligns with the same transitional arrangements inserted into NTGDIS when the ‘medical classification on entry’ provisions were removed as part of the legislative amendments to the Superannuation Act in 2010.  

Essentially a claim for a benefit will be assessed under the Rules in force at the time of making the claim. This will determine if a reduce classification attached to a benefit still applies or not.

Division 6 - Northern Territory Supplementary Superannuation Scheme Instrument

Clause 58.	Instrument amended

This Division amends the Northern Territory Supplementary Superannuation Scheme (NTSSS) Instrument. 

Clause 59.	Clause 3 amended

Clause 60 amends the definition of ‘dependant’ to align with the expanded definition of dependant in section 3AA of the Superannuation Act to include ‘interdependency of relationship’. 

Clause 60.	Clause 8 inserted

Clause 61 inserts a new clause 8 to authorise the release of an amount under a ‘release authority’ (as defined in section 45DA of the Superannuation Act) from a NTSSS members’ benefit to pay a Commonwealth tax liability prescribed in the Superannuation Regulations.   

Part 3 – amendments about claim times and review of decisions

Division 1 – Superannuation Act

Clause 61.	Act amended

Clause 62 amends the Superannuation Act. 

Clause 62.	Section 3 amended

Clause 63 amends the definitions in section 3 to remove the Superannuation Review Board. The clause inserts new definitions for the Northern Territory Civil and Administrative Tribunal (NTCAT) and ‘reviewable decision’ for the purposes of the schemes managed under the Superannuation Act. 

Clause 63.	Part 2, Division 2 repealed

Clause 64 repeals Division 2 relating to the Superannuation Review Board. The intention of the Act is to allow the ‘opting in’ to the NTCAT at some later time when it is fully operational. 

Clause 64.	Section 37 amended

With repeal of the Superannuation Review Board in favour of the NTCAT, clause 65 removes reference to the Superannuation Review Board from section 37. The internal and external consultation processes in place are sufficiently robust to ensure Rule changes consider the interests of members.    

Clause 65.	Section 45V amended

With repeal of the Superannuation Review Board in favour of the NTCAT, clause 66 removes reference to the Superannuation Review Board from section 45V. As the Minister provides approval for such a benefit the removal from the process will not prejudice procedural fairness or natural justice to those making a claim.  

Clause 66.	Part 5, Division 4 heading amended

Clause 67 amends Part 5, Division 4 heading to remove the reference to ‘review of decisions’. The provisions associated to seeking a ‘review of decision’ are now under the new heading Part 5B.

Clause 67.	Section 46 amended

Clause 68 amends section 46 to update and clarify the steps when making a claim under NTGDIS or NTGPASS. If the claim is for invalidity retirement this must now be made within two years after ceasing employment.  

Further, the Commissioner is now required to make a decision upon receiving an application as soon as practicable and must give a written response for a decision (preferably with reasons for such a decision). If the applicant is aggrieved by the Commissioner’s original decision there is now a right of review under new Part 5A that has been inserted into the Superannuation Act.      

Clause 68.	Sections 47, 48 and 49 replaced

Clause 69 repeals sections 47, 48 and 49, with the new and updated provisions dealing with a review of an original decision, inserted under the new Part 5A of the Superannuation Act.  

New Part 5A sets out the framework for seeking a review of an original decision. New section 49A inserts a definition for the meaning of a ‘reviewable decision’ and ‘Tribunal’. For the purposes of new section 49B a reviewable decision is one that is first made by the Commissioner or the STB with regards to a scheme named under new subsections 49B(1)(a) or (b) of the Superannuation Act. 

New section 49C sets out the process for seeking a review of an original decision. The application for review must be made in an approved form and be in writing, setting out the grounds and the facts relied on to establish the grievance. Any application for a review must be within the time limits prescribed in new Regulation 8 of the Superannuation Regulations. 

On receipt of an application for review, the Commissioner has time limits to conduct and determine a review and provide a written response to the applicant. The Commissioner has 30 days to respond to an application for review relating to a death benefit matter and 90 days for a review for all other application categories.  When conducting the review, the Commissioner has the power under new section 49E to affirm the original decision undertaken, vary the decision or set it aside. A decision on review by the Commissioner is to be in writing setting out the reasons for the decision and informing the applicant that they have a further right of review to the NTCAT (new section 49F).

Further time limits apply in seeking review by the NTCAT, being also prescribed in new Regulation 8 of the Superannuation Regulations (new section 49G). New section 49H grants the NTCAT jurisdiction to hear matters under the Superannuation Act.

Clause 69.	Part 8, Division 3 inserted

Clause 70 inserts a new Division 3 into Part 8 to outline the transitional arrangements for seeking a review under the new Part 5A of the Superannuation Act.  For the schemes named under new section 49B, any decisions made before the commencement of Part 3 of the Superannuation Legislation Amendment and Repeal Act will be dealt with under the old regime: for NTGPASS and NTGDIS members this is the Superannuation Review Board; for NTSSS members this is to the Commissioner; and for LAMS the review is made to the STB.

Division 2 – Legislative Assembly Members’ Superannuation   Fund Act

Clause 70.	Act amended

Clause 71 amends the Legislative Assembly Members’ Superannuation Fund Act (the LAMS Act).

Clause 71.	Section 27B inserted

Clause 72 inserts new section 27B ‘Claims for benefits’ under the LAMS Scheme. A claim for a benefit due to ill health under section 22 of the LAMS Act must be made within two years after ceasing to be a member of the Legislative Assembly.  

Further, the STB is now required to make a decision upon receiving an application as soon as practicable and must give a written response for a decision.  If the applicant is aggrieved by the STB original decision there is now a right of review under new Part 5A of the Superannuation Act.      

Clause 72.	Part VII inserted

Clause 73 inserts new Part VII into the LAMS Act to outline the transitional arrangements. Essentially decisions made before the commencement of the new review provisions will be dealt with under the old regime with the ultimate right of review being the STB. 

Division 3 – Administrators Pensions Act

Clause 73.	Act amended

Clause 74 amends the Administrators Pensions Act.

Clause 74.	Section 3 amended

Clause 75 inserts definitions in section 3 for the Northern Territory Civil and Administrative Tribunal (NTCAT) and to clarify a ‘decision’ under the new Part 4 of the Administrators Pensions Act. 

Clause 75.	Part 4 inserted

Clause 76 inserts new Part 4 to step out the process for making an application for a review of a decision within the prescribed timelines. A review of decision relating to a reversionary benefit (new section 7B) provides a time limit of 30 days (new section 7C). For any other benefit matter an application for a review is 12 months after the original decision was made. New section 7D allows review of decision to be made to the NTCAT. 

Clause 76.	Part 6 heading inserted

A new Part 6 has been inserted titled ‘Transitional matters’. The new Part 6 clarifies any transitional arrangements associated with amendment undertaken to the Administrators Pensions Act. 

Clause 77.	Section 11 amended

Clause 78 removes the words “Transitional matters for” at the beginning of section 11. These lead in words are no longer required due to the insertion of the new Part 6 heading.

Clause 78.	Section 12 inserted

Clause 79 inserts a new section 12 to outline the transitional arrangements for the new provisions inserted into the Administrators’ Pensions Act. Essentially the right of review provisions will not come into force until the ‘opt in’ to the NTCAT is undertaken sometime in the future when the Tribunal is fully operational. 

Division 4 – Superannuation Regulations 

Clause 79.	Regulations amended

Division 4 of the Superannuation Legislation Amendment and Repeal Act 2014 amends the Superannuation Regulations (the Regulations). 

Clause 80.	Regulation 8 inserted

Clause 81 inserts Regulation 8 ‘Time limits for applications for review of decisions’.
 
New Regulation 8(1) provides a time limit of 30 days after the original decision, for applications for review by the Commissioner under section 49C(2)(a)(ii) of the Superannuation Act relating to a death benefit. For an invalidity retirement benefit, the application must be made within two years after the original decision. For all other benefit categories and complaints the prescribed time limit is 12 months after the original decision was made.

New Regulation 8(2) inserts a time limit for those wishing to exercise a right to have their matter further heard by the NTCAT - if still dissatisfied with a review decision.  For section 49G(2)(a) of the Superannuation Act, an application to the NTCAT has to be made within 30 days for a death benefit matter and within two years for invalidity retirement benefit matter. All other matters are to be lodged with the NTCAT within 12 months of receiving a review decision from either the Commissioner or the STB.  

The NTCAT may use its decision to hear matters outside of these prescribed time limits in strict circumstances. The discretion only relates to a death matter or another benefit review matter where the Commissioner has failed to follow the notice of review procedures as set out in new section 49F. There is no discretion with regards to the time limits prescribed for review of invalidity retirement benefit matters.

Division 5 - Northern Territory Supplementary Superannuation Scheme Instrument 

Clause 81.	Instrument amended

Clause 82 amends the Instrument, made by the Treasurer and dated 3 January 1989, establishing the Northern Territory Supplementary Superannuation Scheme (NTSSS) Instrument.

Clause 82.	Clause 13 amended

Clause 83 inserts clause 13(2A) with the steps the Commissioner must take in making a decision related to a claim for a NTSSS benefit. A decision must be in writing preferably setting out the reason for the decision. The Commissioner must also advise a right of review of an original decision and a right to make an application to the NTCAT if still aggrieved, in accordance with Part 5A of the Superannuation Act.   

Clause 83.	Clause 14 repealed

Clause 84 repeals clause 14 of the Instrument outlining a review of decision mechanism. The review of decision process is now dealt with under the new amendments inserted into clause 13.

Part 4 – Repeal and amendments about unclaimed benefits

Division 1 – Repeal

Clause 84.	Repeal

Clause 85 repeals the Unclaimed Superannuation Benefits Act 1998 (Act No. 30 of 1998).

Clause 85.	Act amended

Division 1 amends the Superannuation Act to affect the repeal and allow the legislative mechanism to opt in to the Commonwealth regime for the management of lost and unclaimed superannuation accounts and money.

Clause 86.	Section 39 amended

Clause 87 amends section 39 of the Superannuation Act to repeal and insert a new section 39(2)(b)(iii). Amounts paid from a fund will no longer include unclaimed benefits payable to the Territory’s public account. Instead, they will include amounts payable to the Commonwealth Commissioner of Taxation for lost and unclaimed money under the Superannuation (Unclaimed Money and Lost Members) Act 1999 (Cth).

Clause 87.	Section 45Z replaced

Clause 88 repeals the old provision dealing with benefits that are not claimed within 6 years. New section 45Z provides that the Commissioner of Superannuation must comply, when the scheme is prescribed, with the Superannuation (Unclaimed Money and Lost Members) Act 1999 when dealing with unclaimed benefits and lost members of the NTGPAS Scheme. 

Clause 88.	Part 8, Division 4 inserted

Clause 89 inserts Division 4, section 76 ‘Transfer of unclaimed benefits to ATO’ into Part 8 of the Superannuation Act providing traditional arrangements for the transfer of unclaimed benefits. After commencement of this section, the balance of unclaimed money (and member information) currently held by the Northern Territory must be transferred to the Commonwealth Commissioner of Taxation.

Part 5 – Expiry of Act

The Superannuation Legislation Amendment and Repeal Act 2014, expires the day after it commences in full.