Commonwealth Numbered Acts

VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT 1988 No. 134 of 1988 - SECT 31

31. After section 202 of the Principal Act the following sections are
inserted: Commission or public servant acting as trustee

"202A. (1) This section applies where, by virtue of an instrument in force
under subsection 202 (1), the trustee of instalments of the pension or
allowance payable to a pensioner is:

   (a)  the Commission; or

   (b)  an officer of the Australian Public Service appointed as trustee in
        his or her capacity as such an officer.

"(2) The trustee may:

   (a)  accumulate so much of the instalments of the pension or allowance
        received by the trustee as is not required for application in
        accordance with subparagraph 202 (2) (b) (i); and

   (b)  invest any trust funds so accumulated in any manner prescribed by the
        regulations.

"(3) Where the trustee is a trustee of instalments of pensions or allowances
payable to 2 or more pensioners, the trustee may, subject to subsection (4),
for the purposes of investing the trust funds as mentioned in paragraph (2)
(b), pool the trust funds in respect of those pensioners.

"(4) The trustee shall not pool trust funds under subsection (3), or invest
trust funds pooled under that subsection, in a way that prevents the trust
funds held in respect of each individual pensioner being identified
sufficiently to enable paragraph 202 (2) (b) to be complied with.

"(5) The trustee may:

   (a)  make an arrangement with another person for the other person to manage
        the trust funds; and

   (b)  for the purposes of such an arrangement, transfer the trust funds to
        the other person; but the making of such an arrangement, or the
        transferring of the trust funds, does not relieve the trustee of any
        duties or liabilities as trustee.

"(6) The Commission:

   (a)  may charge such fees, whether by way of commission or otherwise, as
        are determined in accordance with the regulations in respect of
        services rendered by the trustee; and

   (b)  is entitled to reasonable expenses incurred by the trustee in
        rendering services as trustee.

"(7) The fees and expenses payable under subsection (6) in respect of services
rendered by the trustee as trustee of a pension or allowance may be paid from
the trust funds.

"(8) In this section:
'trust funds', in relation to the trustee of instalments of the pension or
allowance payable to a pensioner, means the instalments of the pension or
allowance received by the trustee, investments representing those instalments
and returns received on those investments. Other person acting as trustee

"202B. (1) This section applies where, by virtue of an instrument in force
under subsection 202 (1), the trustee of instalments of the pension or
allowance payable to a pensioner is a person other than:

   (a)  the Commission; or

   (b)  an officer of the Australian Public Service appointed as trustee in
        his or her capacity as such an officer.

"(2) The trustee may:

   (a)  accumulate so much of the instalments of the pension or allowance
        received by the trustee as is not required for application in
        accordance with subparagraph 202 (2) (b) (i); and

   (b)  invest any trust funds so accumulated in any investments authorised
        for the investment of trust funds by the law of the State or Territory
        where the pensioner resides.". Commencement: Day of Royal Assent