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Defence Force Retirement Benefits (Amendment) Act 2015

PAPUA NEW GUINEA

DEFENCE FORCE RETIREMENT BENEFITS (AMENDMENT) ACT 2015

No. 30 of 2015.

Defence Force Retirement Benefits (Amendment) Act 2015.

Certified on: 20 JAN 2616

Defence Force Retirement Benefits (Amendment) Act 2015.

ARRANGEMENT OF SECTIONS.

1. Interpretation (Amendment of Section 1).

"accumulated account"

2. New Part IIIA.

"PART IIIA. - CLOSURE OF DEFINED BENEFIT FUND TO NEW CONTRIBUTORS ETC.

24A. CLOSURE OF FUND TO NEW CONTRIBUTORS.

24B. ELECTION OF EXISTING CONTRIBUTORS TO TRANSFER TO ACCUMULATION ACCOUNT.

24C. INVALIDITY BENEFIT.

24D. BENEFITS ON DEATH."

___________________

No. of 2015.

AN ACT

entitled

Defence Force Retirement Benefits (Amendment) Act 2015,

Being an Act to amend the Defence Force Retirement Benefits Act 1974 and for related purposes,

MADE by the National Parliament to come into operation on 1 January 2016.

1. INTERPRETATION (AMENDMENT OF SECTION 1).

Section 1 of the Principal Act is amended by inserting the following definition in alphabetical order:

"accumulation account" means a separate superannuation fund maintained and administered by the Fund, to receive and invest employee and employer contributions in compliance with the Superannuation (General Provisions) Act 2000, in respect of -

(a) new contributors with effect from 1 January 2016; and

(b) contributors who have elected to transfer their existing entitlements under Section 24B.".

2. NEW PART IIIA.

The Principal Act is amended by inserting a new Part after Part III as follows:

"PART IIIA. - CLOSURE OF DEFINED BENEFIT FUND TO NEW CONTRIBUTORS ETC.

24A. CLOSURE OF FUND TO NEW CONTRIBUTORS.

Notwithstanding anything to the contrary contained in this Act, with effect on and from 1 January 2016, all new contributors -

(a) shall be admitted to the Accumulation Account; and

(b) subject to Sections 24C and 24D, shall cease to have any rights or obligations under this Act; and

(c) shall have the rights and obligations of employees as provided in the Superannuation (General Provisions) Act 2000.

24B. ELECTION OF EXISTING CONTRIBUTORS TO TRANSFER TO ACCUMULATION ACCOUNT.

(1) At any time prior to 1 July 2016, or any later date published by the Minister in the National Gazette, a contributor may irrevocably elect, by notice in writing to the Fund, to transfer his existing entitlements under this Act to the Accumulation Account.

(2) Upon receipt of a notice of election in accordance with Subsection (1), the Fund must, as soon as practicable -

(a) undertake an actuarial calculation of the present value of the State's portion of the contributor's future pension entitlement; and

(b) calculate the value of the contributor's accumulated contributions, including interest; and

(c) transfer the total sum to the contributor's account in the Accumulation Account.

(3) Once the monies have been transferred in accordance with Subsection (2)(c), the contributor shall -

(a) subject to Sections 24C and 24D, cease to have any rights or obligations under this Act; and

(b) have the rights and obligations of an employee as provided in the Superannuation (General Provisions) Act 2000.

24C. INVALIDITY BENEFIT.

A contributor who is –

(a) a new contributor to the Accumulation Account under Section 24A; or

(b) a contributor who has transferred to the Accumulation Account under Section 24B,

and who would otherwise have been entitled to an invalidity benefit under Part V.2 shall be entitled to a lump sum invalidity benefit calculated in a manner determined by the Minister and published in the National Gazette.

24D. BENEFITS ON DEATH.

In the case of a contributor who is -

(a) a new contributor to the Accumulation Account under Section 24A; or

(b) a contributor who has transferred to the Accumulation Account under Section 24B,

and dies and is survived by a spouse, a spouse and children or by children, the spouse and children, as the case may be, shall be entitled to a lump sum benefit calculated in a manner determined by the Minister and published in the National Gazette.".

________________

I hereby certify that the above is a fair print of the Defence Force Retirement Benefits (Amendment) Act 2015 which has been made by the National Parliament.

Acting Clerk of the National Parliament.
20 JAN 2016

I hereby certify that the Defence Force Retirement Benefits (Amendment) Act 2015 was made by the National Parliament on 3 November 2015.

Speaker of the National Parliament.
20 JAN 2016