SCHEDULE 1 FUNDING AND ESTABLISHMENT OF OPENING BALANCES FOR TRANSFERRING MEMBERS FOR THE PURPOSES OF CLAUSES 3.1.1 AND 4.2.3 OF THE DEED S1.1 Interpretation S1.1.1 In this Schedule: Allocated Pension Account means an account established under Part 6 of the Retirement Benefits Regulations 1994; Allocated Pension Account Entitlement means the total balance of each Allocated Pension Account relating to each Transferring Member on the day immediately before the Transfer Day; FAS (1) means the average annual Salary received by a Transferring Member in relation to the year immediately preceding the Transfer Day; Investment Account means an account established under Part 6 of the Retirement Benefit Regulations 1994; Investment Account Entitlement means the total balance of each Investment Account relating to each Transferring Member on the day immediately before the Transfer Day; Non-Contributory Account means an account established under Part 5 of the Retirement Benefit Regulations 1994; Non-Contributory Account Balance means the total notional balance of each Non-Contributory Account relating to a Transferring Member on the day immediately before the Transfer Day; Non-Contributory Benefit Reduction Amount means the amount by which the Non-Contributory Account Balance is to be reduced; Non-Contributory Entitlement means the total of the Non- Contributory Account Balance plus the 1925 Act Equivalent Entitlement for each qualifying Transferring Member on the day immediately before the Transfer Day; 1
Non-Contributory Scheme means the scheme established under Part 5 of the Retirement Benefits Regulations 1994; 1925 Act Equivalent Entitlement means the entitlement under Regulation 48 of the Retirement Benefits Regulations 1994 calculated pursuant to clause S1.2.3 of this Schedule for each qualifying Transferring Member on the day immediately before the Transfer Day; 1925 Act Benefit Reduction Amount means the amount by which the 1925 Act Equivalent Entitlement is to be reduced; S1.2 Calculation and Transfer of Non-Contributory Entitlement S1.2.1 The Board shall calculate the Non-Contributory Account Balance for each Transferring Member on the day immediately before the Transfer Day in accordance with section 10(4) of the Act. S1.2.2 The Board shall calculate the Non-Contributory Benefit Reduction Amount for each Transferring Member on the day immediately before the Transfer Day by multiplying the post 30 June 1983 component of the Non-Contributory Account Balance by the benefit reduction factor, which is determined according to the date the Member commenced membership of the Non-Contributory Scheme as specified in the following table: Date of commencement of Benefit Reduction Factor membership After 30 June 1999 15.0% Between 1 July 1994 and 30 June 1999 8.7% Before 1 July 1994 9.8% 2
S1.2.3 A Transferring Member who, immediately before 1 July 1993, was a public servant within the meaning of the Public Servants Retiring and Death Allowances Act 1925 with continuous service but not a contributor to the Contributory Scheme, is entitled to a 1925 Act Equivalent Entitlement which the Board, on the day immediately before the Transfer Day, shall calculate as follows: Where: - 1925A = FAS (1) x CS/52 1925 A is the 1925 Act Equivalent Entitlement; FAS (1) is the FAS (1) of the Transferring Member; CS means in the case of a Transferring Member who was employed: 1) on a full-time basis throughout the period of employment ending on 30 June 1993, the total period of years of continuous service in years before 30 June 1993; 2) on a part-time basis throughout the period of employment ending on 30 June 1993, the total number of full-time equivalent years of continuous service in years before 30 June 1993; or 3) for a period on a full-time basis and for a period on a part-time basis throughout the period of employment ending on 30 June 1993, the total number of full-time equivalent years of continuous service in years before 30 June 1993. S1.2.4 The Board shall calculate the 1925 Act Benefit Reduction Amount for each Transferring Member on the day immediately before the Transfer Day in accordance with the following formula: Where: - 1925 BRA = [1925 A x (1 - PVF)] + [0.15 x 1925 AP x PVF] 1925 A is the 1925 Act Equivalent Entitlement; 1925 BRA is the 1925 Act Benefit Reduction Amount; 1925 AP is the post 30 June 1983 component of the 1925 Act Equivalent Entitlement; PVF is a present value factor determined by the Board on the advice of the Actuary as set out in the following schedule: 3
Member s Age as at PVF Transfer Day 55 years and over 1.0000 54 years 0.9709 53 years 0.9426 52 years 0.9151 51 years 0.8885 50 years 0.8626 49 years 0.8375 48 years 0.8131 47 years 0.7894 46 years 0.7664 45 years 0.7441 44 years 0.7224 43 years 0.7014 42 years 0.6810 41 years 0.6611 40 years 0.6419 39 years 0.6232 38 years 0.6050 37 years 0.5874 36 years 0.5703 35 years 0.5537 34 years 0.5376 33 years 0.5219 32 years 0.5067 31 years 0.4919 30 years and under 0.4776 S1.2.5 The Board shall calculate the Opening Balance for each Transferring Member on the day immediately before the Transfer Day and transfer the Opening Balance to the Scheme as at the Transfer Day in accordance with the following formula: Where: - OB OB = NCE (NCBRA + 1925 BRA) NCE NCBRA is the Opening Balance; is the Non-Contributory Entitlement; is the Non-Contributory Benefit Reduction Amount determined in accordance with clause S1.2.2; 1925 BRA is the 1925 Act Benefit Reduction Amount determined in accordance with clause S1.2.4; 4
S1.3 Transfer of Investment Account Entitlement S1.3.1 The Board shall transfer the Investment Account Entitlement of each Transferring Member to the Scheme as at the Transfer Day. S1.3.2 On the day immediately before the Transfer Day the Board is to: a) calculate the surplus or deficiency of the taxation provision account established under regulation 60 of the Retirement Benefits Regulations 1994 in respect of all Transferring Members; and b) transfer the surplus or deficiency to the taxation provision account established for the purposes of this Deed as at the Transfer Day or such later date as determined by the Minister on the advice of the Board. S1.3.3 On the day immediately before the Transfer Day the Board is to: a) calculate the surplus or deficiency of the investment income reserve account established under regulation 60 of the Retirement Benefits Regulations 1994 in respect of all Transferring Members; and b) transfer the surplus or deficiency to the investment income reserve account established for the purposes of this Deed as at the Transfer Day or such later date as determined by the Minister on the advice of the Board. 5
S1.4 Transfer of Allocated Pension Account Entitlement S1.4.1 The Board shall transfer the Allocated Pension Account Entitlement of each Transferring Member to the Scheme as at the Transfer Day. S1.4.2 On the day immediately before the Transfer Day the Board is to: a) calculate the surplus or deficiency of the taxation provision account established under regulation 65 of the Retirement Benefits Regulations 1994 in respect of all Transferring Members; and b) transfer the surplus or deficiency to the taxation provision account established for the purposes of this Deed as at the Transfer Day or such later date as determined by the Minister on the advice of the Board. S1.4.3 On the day immediately before the Transfer Day the Board is to: a) calculate the surplus or deficiency of the investment income reserve account established under regulation 65 of the Retirement Benefits Regulations 1994 in respect of all Transferring Members; and b) transfer the surplus or deficiency to the investment income reserve account established for the purposes of this Deed as at the Transfer Day or such later date as determined by the Minister on the advice of the Board. 6
S1.5 Establishment of Death and Disability Provision Account S1.5.1 On the day immediately before the Transfer Day the Board is to: a) determine on the advice of the Actuary the surplus or deficiency of the death and disability provision account established under regulation 52 of the Retirement Benefits Regulations 1994; b) transfer the surplus or deficiency to the death and incapacity provision account established for the purposes of this Deed as at the Transfer Day or such later date as determined by the Minister on the advice of the Board. S1.6 Financial Statements and Reports S1.6.1 As soon as practicable after the Transfer Day, the Board is to prepare Statements of Accounts for the Contributory Scheme, the Non- Contributory Scheme, all Investment Accounts and the Scheme. S1.6.2 The Statement of Accounts should detail the transactions that occurred under this Schedule and report upon the financial position of each sub fund as at the Transfer Day. S1.6.3 For the purposes of the preparation of the Statements of Accounts the investments of the Fund are to be shown at market value where appropriate with unrealised capital gains and losses being brought into account. S1.6.4 The Board shall provide to the Minister a copy of the Statements of Accounts pursuant to this clause immediately after they are finalised. 7
SCHEDULE 2 PROVISION FOR MEMBERS FOR ACCESS TO A PENSION UNDER CLAUSE 6.9.3 OF THE DEED S2.1 A Member who, a) as at 14 May 1999 was a member of the scheme established under Part 4 of the Retirement Benefits Regulations 1994; or b) as at 14 May 1999 was a member of the scheme established under Part 5 of the Retirement Benefits Regulations 1994; or c) as at 14 May 1999 was entitled to a benefit under Part 6 or Part 7 of the Retirement Benefits Regulations 1994 ; or d) was a Transferred Investment Account Holder; and e) at all times since first becoming a Member of the Scheme has retained an interest in the Fund; and f) has subsequently attained the Preservation Age, or has retired on the grounds of Permanent Incapacity in accordance with clause 6.6; may elect in writing to the Board to convert the whole or part of his or her Benefit to a pension in accordance with Regulation 79 of the Retirement Benefits Regulations 2005. S2.2 The Surviving Partner of a person referred to in clause S2.1 of this Schedule may elect in writing to the Board to convert the whole or part of his or her Benefit to a pension in accordance with Regulation 79 of the Retirement Benefits Regulations 2005. S2.3 If an election is made under this Schedule, the amount of the Member s Benefit is to be reduced by the amount of the Benefit to be converted to a pension. S2.4 The amount of the Member s Benefit to be converted to a pension is to be transferred to the Fund established under the Retirement Benefits Regulations 1994 and is to be converted in whole to a pension in accordance with Regulation 79 of the Retirement Benefits Regulations 2005. 8
SCHEDULE 3 PROVISION FOR OLD INSURANCE ARRANGEMENTS TO CONTINUE IN RELATION TO FUND-INSURED MEMBERS UNDER CLAUSE 4.4 S3.1 SELF-INSURANCE ARRANGEMENTS S3.1.1 The Board at its discretion may self insure the future service component of the death, Terminal Illness Benefit and Incapacity Benefits of a Fund-Insured Member or contract out the same to an Insurer under a policy of insurance. S3.1.2 Where the Board contracts out to an insurer under a policy of insurance, the cost of such insurance shall be met from the account established under clause 3.6 of the Deed. S3.2 ELIGIBILITY FOR DEATH, TERMINAL ILLNESS AND INCAPACITY COVER S3.2.1 A Fund-Insured Member who is an Eligible Employee and who is under 60 years of age has the same level of cover for death and Incapacity Benefits as provided to that person immediately prior to the Policy Commencement Date of the Group Life Insurance Policy (K006362) and Group Income Protection Insurance Policy (K006363). S3.2.2 A Fund-Insured Member who is an Eligible Employee and who is under 60 years of age has the same level of cover for the Terminal Illness Benefit as they have for death cover. S3.2.3 The rates of premium and levels of cover are specified in the following table and are to be reviewed by the Actuary at least annually: Level of Cover expressed as a percentage of Agency Superannuation Contributions Premium rates expressed as a percentage of the rate of Agency Superannuation contributions determined under clause 5.2 of the Deed (9%) 0% 0% 50% 3.62% 100% 6.12% 150% 8.62% 200% 11.12% 250% 13.62% 300% 16.12% 9
S3.2.3 The additional employer contributions referred to in sub-clause 5.3.1 of the Deed are not to be taken into account by the Board when determining death, Terminal Illness and Incapacity Benefits in respect of Fund-Insured Members. S3.3 WHEN COVER CEASES S3.3.1 Subject to sub-clause S3.3.2 and S3.3.3 a Fund-Insured Member ceases to be covered for death, Terminal Illness and Incapacity Benefits under this Schedule 3 on the earliest of the following dates a) in respect of: i) death and Terminal Illness Benefits, from the date the Fund-Insured Member becomes an Insured Member in respect of death and Terminal Illness Benefits, under the Group Life Insurance Policy; ii) Permanent Incapacity Benefits, from the date the Fund- Insured Member becomes an Insured Member in respect of a particular Event for which they had previously not received cover, or had restricted cover, under the Group Life Insurance Policy; iii) Temporary Incapacity Benefits, from the date the Fund- Insured Member becomes an Insured Member in respect of a particular Event for which they had previously not received cover, or had restricted cover, under the Group Income Protection Policy; or b) from the date of termination of employment with an Agency; c) from the date of an election taking effect under section 6 of the Act to become a Member of an RSA or another Complying Superannuation Plan; or d) 12 months after the receipt of the last Agency superannuation contribution made under clause 5.2 of the Deed when on sick leave without pay except where the Fund-Insured Member is in receipt of a Temporary Incapacity Benefit paid in accordance with S3.7 or regular benefits paid in accordance with the Workers Rehabilitation and Compensation Act 1988. S3.3.2 A Fund-Insured Member who was in receipt of a Temporary Incapacity pension which has expired is not entitled to a further Temporary Incapacity Benefit under this Schedule 3. S3.3.3 If a Fund-Insured Member has previously received a Permanent Incapacity Benefit in relation to an Event under this Deed, that Fund- Insured Member is not eligible to be covered for death and Permanent Incapacity Benefits provided under this Schedule 3. 10
S3.4 ENTITLEMENT TO A DEATH, TERMINAL ILLNESS AND INCAPACITY BENEFIT S3.4.1 Where a Fund-Insured Member dies or where the Board has determined in accordance with clause 9.1 of the Deed and clause S3.5 that the Fund- Insured Member is suffering from a Terminal Illness or should be retired on the grounds of Permanent Incapacity and the Fund-Insured Member so retires, the Board must pay in accordance with clause 9.2 or clause 9.2A as applicable: a) an amount equal to the balance of the Fund-Insured Member s account or accounts; and b) where the Fund-Insured Member is covered for death, Terminal Illness Benefits and Incapacity Benefits under clause S3.2, an amount determined in accordance with clause S3.6. S3.4.2 Where the Board has determined pursuant to clause 9.1 of the Deed and S3.5 that a Fund-Insured Member is entitled to a Temporary Incapacity Benefit and that Member has been absent from duty on sick leave without Salary for a continuous period of 30 calendar days, the Fund- Insured Member is entitled to be paid a Temporary Incapacity Benefit determined in accordance with clause S3.7. S3.5 DETERMINING TERMINAL ILLNESS OR INCAPACITY S3.5.1 The question as to whether a Member is suffering from a Terminal Illness or Permanent Incapacity or Temporary Incapacity must be determined by the Board in accordance with clause 9.1 of the Deed. S3.6 FUTURE SERVICE COMPONENT OF DEATH, TERMINAL ILLNESS AND PERMANENT INCAPACITY BENEFIT S3.6.1 For the purpose of clause S3.4.1b), the future service component of the Benefit payable shall be calculated according to the following formula:- Where: B = SAL(D&I) x CL x (PS/365) x PRC B is the future service component; SAL(D&I) means in the case of a Fund-Insured Member: a) whose length of service is 12 months or more, the Salary received by the Fund-Insured Member in relation to the year immediately preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity or commencement of a Temporary Incapacity pension and is determined by the summation of the Agency superannuation contributions paid or payable in respect of that Fund-Insured 11
Member divided by the rate or rates applicable to the relevant period as prescribed in clause 5.2 of the Deed; b) whose length of service is less than 12 months, the annual equivalent of the Salary earned, or deemed by the Board to have been earned, by the Fund-Insured Member immediately preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity or commencement of a Temporary Incapacity Benefit; c) who has been in receipt of a Temporary Incapacity Benefit for 12 months or more immediately preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity, the Salary which the Fund-Insured Member would have received, in the year preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity, if he or she had continued to be employed in his or her usual capacity; d) who has been in receipt of a Temporary Incapacity pension for less than 12 months immediately preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity, the annual equivalent of the Salary earned, or deemed by the Board to have been earned, by the Fund-Insured Member in the year preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity, if he or she had continued to be employed in his or her usual capacity; or e) whose payroll history immediately preceding death or cessation of employment on the grounds of Terminal Illness or Permanent Incapacity or commencement of a Temporary Incapacity pension contains periods during which Agency superannuation contributions have not been paid or the Fund- Insured Member s Salary during the same period is in doubt, such amount as determined by the Board having regard to the circumstances of the Fund-Insured Member; but does not include:- f) amounts paid or payable to the Fund-Insured Member by an Agency; or g) Agency superannuation contributions paid or payable to the Scheme, in respect of accrued recreational leave or accrued long service leave taken as a lump sum payment on termination of employment; CL is the level of cover determined according to clause S3.2.3 for which the Fund-Insured Member was covered at the date of death or retirement on the grounds of Terminal Illness or Permanent Incapacity; 12
PS is prospective service in days from the day following the date of the Fund-Insured Member s death or retirement on the grounds of Terminal Illness or Permanent Incapacity to the day he or she would have attained 60 years of age; PRC is the rate of Agency superannuation contributions applicable as at the date of the Fund-Insured Member s death or retirement on the grounds of Terminal Illness or Permanent Incapacity. S3.6.2 For the purposes of sub-clause S3.6.1, SAL(D&I) includes the Salary determined by the Board that the Fund-Insured Member would otherwise have received for: a) any period of approved leave without pay; b) any period during which benefits are paid in accordance with the Workers Rehabilitation and Compensation Act 1988; or c) a reduction in the percentage of full-time equivalent hours, which has been approved by the Agency Manager due to the illhealth of the Fund-Insured Member. S3.7 TEMPORARY INCAPACITY PENSION S3.7.1 Where the Board has determined pursuant to clause 9.1 of the Deed that a Fund-Insured Member is entitled to a Temporary Incapacity pension and that Fund-Insured Member has been absent from duty on sick leave without Salary for a continuous period of 30 calendar days - a) the Fund-Insured Member is entitled to be paid a pension equal to 75% of the SAL(D&I) as defined in sub-clause S3.6.1; and b) that pension is payable from the later of the following days: i) the day on which the Board receives the Fund-Insured Member s application referred to in sub-clause 9.1.1; ii) the day after the last day of the period of 30 calendar days sick leave without Salary; and c) that pension is payable for a period determined by the Board not exceeding 2 years. S3.7.2 For the purpose of sub-clause S3.7.1a), SAL(D&I) includes the Salary, determined by the Board, that the Fund-Insured Member would otherwise have received for: a) any period of approved leave without pay; b) any period during which benefits are paid in accordance with the Workers Rehabilitation and Compensation Act 1988; or c) a reduction in the percentage of full-time equivalent hours, which has been approved by the Agency Manager due to the illhealth of the Fund-Insured Member. 13
S3.7.3 A Fund-Insured Member is not entitled to a Temporary Incapacity pension under this clause unless the Board has determined pursuant to clause 9.1 of the Deed that the Fund-Insured Member is eligible to receive the Benefit entitlement. S3.7.4 The Board may suspend or reduce the Temporary Incapacity pension of a Fund-Insured Member if the Fund-Insured Member: a) engages in any business or occupation on his or her own account; b) is in the opinion of the Board, Gainfully Employed; c) has in the opinion of the Board, recovered from his or her Temporary Incapacity as to be able to undertake Gainful Employment in an occupation for which he or she is reasonably qualified by education, training or experience; or d) is in receipt of workers compensation payments under the Workers Rehabilitation and Compensation Act 1988 and the combined payments of the Temporary Incapacity pension and workers compensation payments exceed 100% of the Fund- Insured Member s SAL(D&I) for the purposes of sub-clause S3.7.1a). 14