New Zealand Legislation: Acts

16 New sections 84 to 84B substituted

• (1) The principal Act is amended by repealing sections 84 to 84D, and substituting the following sections:

  “84 Interpretation

  • For the purposes of sections 84A and 84B,—

    “contribute, in relation to a superannuation scheme, means to make superannuation contributions to the scheme to provide to a significant extent the benefits payable by the scheme, not being merely nominal contributions or contributions only to meet the costs of administration and management of investments of the scheme

    “employee includes a chief executive

    “employer—

    • “(a) means a person who pays, or is liable to pay, to any person (being an employee) any earnings as an employer; but

    • “(b) means the chief executive of the Ministry within the meaning of section 91A(1) of the Education Act 1989, for the duration of the application period in that section, in relation to—

      • “(i) an institution that is subject to Part 9 of that Act; or

      • “(ii) a free kindergarten within the meaning of section 120 of that Act; and

    • “(c) includes any person or organisation whose officers or employees were, immediately before 1 July 1992, entitled to elect or required to become contributors to the Government Superannuation Fund established under the Government Superannuation Fund Act 1956

    “State services includes—

    • “(a) any tertiary education institution:

    • “(b) any employer within the meaning of this section

    “superannuation scheme or scheme has the same meaning as in the Superannuation Schemes Act 1989.

  “84A Power to establish superannuation schemes for officers and employees

  • An employer in the State services may—

    • “(a) arrange for any superannuation scheme or schemes to be established for its officers or employees (or both):

    • “(b) join with another employer (whether or not in the State services) in arranging for any superannuation scheme, or any trust arrangement that is part of a superannuation scheme, to be established for the purpose of providing, or facilitating the provision of, superannuation for its officers or employees (or both):

    • “(c) arrange for its officers or employees to become members of any established superannuation scheme:

    • “(d) provide arrangements in respect of the superannuation of any individual officer or employee.

  “84B Contributions to superannuation schemes

  • An employer in the State services may contribute to a superannuation scheme for the purpose of providing retirement benefits to its officers or employees (or both) only if—

    • “(a) the scheme is registered under the Superannuation Schemes Act 1989; and

    • “(b) the scheme provides that the sum of all benefits (including any lump sum payments, annuities, and other benefits) payable from the scheme in respect of any member of the scheme will not exceed the sum of—

      • “(i) contributions paid by or on behalf of a member and investment earnings on the contributions; and

      • “(ii) any allocations to the member from surplus funds held within the scheme; and

      • “(iii) the amount paid in respect of that member from any insurance policy effected for the benefit of members of the scheme; and

    • “(c) the trust deed of the scheme defines the rates or amounts (if any) of contributions of the employer or officers or employees; and

    • “(d) the trust deed of the scheme entitles the employer to cease contributing to the scheme on behalf of a person if that person ceases to be an officer or employee of the employer; and

    • “(e) the benefits provided by the scheme are fully funded as they accrue; and

    • “(f) the scheme, if it enables members to withdraw from the scheme, enables withdrawing members to transfer to other superannuation schemes the value (as determined in accordance with the terms of the scheme) of the benefits attributable to that person's membership of the scheme up to the date of withdrawal; and

    • “(g) the scheme enables any person who becomes an officer or employee of that employer, if the employer agrees to contribute to the scheme on that person's behalf, to become a member of the scheme and to transfer to the scheme the value of the benefits attributable to that person's membership of other superannuation schemes; and

    • “(h) the trust deed of the scheme does not permit amendments to be made to the scheme that would result in any provision of paragraphs (a) to (g) ceasing to apply to the scheme.”

  (2) The entitlement of an officer or employee in the State services under any superannuation arrangement that applies to that officer or employee at the commencement of this section is not affected by—

  • (a) the repeal of sections 84 to 84D of the principal Act by this section; or

  • (b) the amendments to Acts that are contained in Schedule 6 of the Crown Entities Act 2004.