This Act may be cited as the Local Authorities Superannuation Amendment Act, 1912, and shall form part of and be read together with the Local Authorities Superannuation Act, 1908 (hereinafter referred to as the principal Act).

It shall be lawful for a local authority, when establishing a fund under the principal Act, by special resolution to agree to grant as part of the scheme of such fund to all or any employees who have become contributors to that fund within six months of the establishment of the fund, and who retire from the service of that local authority under such circumstances that they are entitled to retiring-allowances under the principal Act, an additional annual allowance for the rest of their lives, or for such shorter period, and on such conditions as the local authority by such special resolution provides.

No such additional allowance shall exceed one-sixtieth part of the annual salary of an employee (computed in accordance with section twenty-six of the principal Act) for every year of his service, whether continuous or not, in the employment of that local authority prior to the date of the commencement of the special resolution establishing the fund.

Such special resolution shall be subject to the provisions of section six of the principal Act in the same manner as if it were a special resolution establishing a fund.

It shall also be lawful for the local authority to appropriate a sum in any year out of its ordinary revenues towards the creation of a special fund to provide for any future contingent liabilities in respect of any additional annual allowance agreed to be granted under this section, and the local authority may from time to time apply such special fund or any part thereof for that purpose.

All such additional annual allowances shall be payable out of the ordinary revenues of the local authority by equal monthly instalments, the first instalment being payable one month after the date of the contributor’s retirement, and shall, when due, be a debt recoverable by the contributor from the local authority in any Court of competent jurisdiction.

Section sixteen of the principal Act is hereby repealed.

Notwithstanding anything contained in section twenty-two of the principal Act, no contributor shall be entitled on retirement from service of the local authority to a retiring-allowance exceeding three hundred pounds per annum.