February 2003 Volume 84 Number 1 "serving the protectors"
Police Super Update www.policesuper.sa.gov.au
By Micheal Hogg

Breakdown of marriage – superannuation changes

Commonwealth legislation, the Family Law Legislation Amendment (Superannuation) Act 2001, came into operation on December 29, 2002. This new legislation may impact on your superannuation in the event of a breakdown in marriage.

The new Commonwealth legislation provides for the division of superannuation benefits and presents the option for divorcing couples to split their superannuation in the same way as they split their other assets.

The division of their superannuation can be made:

• by mutual agreement; or
• by court order.

In the event a division of superannuation benefits is agreed to, the superannuation benefits for a member must be valued and then divided in accordance with the terms of the agreement. The procedures for valuing and dividing accrued superannuation benefits are set down in the Family Law (Superannuation) Regulations 2001. For the defined benefit, Police Pension and Police Lump Sum schemes, special valuation factors will be set down to enable the defined benefits to be valued prior to any division of superannuation taking place.

The new legislation will apply to all marriage breakdowns. However, superannuation agreements already in place will not be affected by the new legislation, unless those agreements are revoked.

As a result of the new Commonwealth legislation, the Police Superannuation Act, 1990, will require amendments to cater for the division of superannuation benefits, by way of a superannuation agreement, between a Member Spouse (a member of the Police Pension or Police Lump Sum schemes) and a Non Member Spouse (the partner in a legal marriage and not a member of the Police schemes). In the amendments to the Police Superannuation Act it is proposed that:
a) All Non Member Spouse superannuation benefits established when the Member Spouse superannuation benefit is in the growth phase (i.e. the member has not retired) will be in the form of a lump sum.
b) Where a Member Spouse has retired and is in receipt of a fortnightly pension payment, the Non Member Spouse will have the option to receive their superannuation benefit, by way of a fortnightly pension or a commutation lump sum.

The legislation to amend the Police Superannuation Act 1990 is expected to be introduced to the Parliament at the next sitting (February 2003). The ability to divide superannuation benefits will require the passing of the amendments to the Police Superannuation Act. The Commonwealth legislation will apply until the amendments to the Police Superannuation Act are passed.

Under the new Commonwealth legislation, a Non Member Spouse can seek information in respect of the Member Spouse’s superannuation benefits, without the authority of the Member Spouse. Providing the request for information is made in line with the new legislation, the Police Superannuation Office is required to supply the information requested.

The new Commonwealth legislation does not deal with the breakdown in a de facto relationship, as the Commonwealth has no jurisdiction in this area.

To view the new legislation and regulation, the following internet site is available: http://law.gov.au/c_legislation.html

Police Superannuation office:
Ground floor, 30 Flinders St, Adelaide, 5000.
Postal Address: GPO Box 1539, Adelaide, 5001.
Internal postcode: 128.
Phone: 8204 2964 or 8204 2965.
Fax: 8204 2303.
E-mail: admin@policesuper.sa.gov.au
SAPOL Intranet: Police Superannuation,
Services, Business Service, FMSB.

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