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Tuesday, 7 May 1968


Mr McMAHON (Lowe) (Treasurer) [8.25.1-1 move:

That the Bill be now read a second time. This Bill is a companion measure to the Defence Forces Retirement Benefits Bill and makes provision for those contributors to the Commonwealth Superannuation Fund who become liable to contribute to the Defence Forces Retirement Benefits Fund.

The main provisions of the Bill are concerned with the deferment of contributions to the Superannuation Fund and the supplementation of pensions payable from that Fund in certain specific circumstances. The deferred contributions will become payable to the Fund when the member ceases to be liable to contribute to the Defence

Forces Retirement Benefits Bill Fund or he ceases to be an employee for the purposes of the Superannuation Act, whichever first occurs. Benefits payable to these members from the Defence Forces Retirement Benefits Fund will be limited to payment of gratuity and refund of contributions.

Should a superannuation contributor be discharged from the forces on invalidity grounds and because of that invalidity is retired from his Public Services employment, all pension benefits will be paid from the Superanuation Fund and he will receive a refund of contributions and a gratuity comparable to the class C gratuity from the Defence Forces Retirement Benefits Fund. His deferred contributions to the Superannuation Fund will be met from these Defence Forces Retirement Benefits Fund payments. Where the pension entitlement under the Defence Forces Retirement Benefits Act is greater than under the Superannuation Act an appropriate increment will be added to the superannuation pension to bring it up to the Defence Forces Retirement Benefits entitlement.

The member who is discharged unfit from the defence force but is able to return to his employment with the Commonwealth will also receive from the Defence Forces Retirement Benefits Fund a refund of his contributions together with a gratuity at the Class C invalidity rate. His deferred contributions to the Superannuation Fund will be met from this benefit and thereafter his benefits will be from and subject to the provisions of the Superannuation Act. Should he subsequently be retired from the Public Service on invalidity grounds or die, and the Superannuation Board is satisfied that the cause of the invalidity retirement or death is related to the grounds on which he was discharged from the defence force, the superannuation pension will be supplemented, if it is less than the Defence Forces Retirement Benefits entitlement, at the time of discharge from the defence force.

In relation to children's and widows' benefits, when a superannuation contributor dies while still a contributor to the Defence Forces Retirement Benefits Fund, pension benefits will be payable from the Superannuation Fund with an addition to pension to bring it to the Defence Forces Retirement Benefits pension level should the Defence Forces Retirement Benefits Fund pension entitlement be higher. There will be a refund of Defence Forces Retirement Benefits Fund contributions from which the deferred contributions to the Superannuation Fund will be met, any balance reverting to the beneficiaries. The additional cost of all these supplemented pensions will be met by the Commonweath under an existing provision of the Superannuation Act. I commend the Bill to honourable members.

Debate (on motion by Mr Crean) adjourned.







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