The Secretary to the Treasury has forwarded me the following minute from the Secretary, Department of Defence, for advice:

1. The question has arisen as to the position under the Superannuation Act 1922 of individuals who received compensation under the Defence Retirement Act 1922.
2. Section 7 of the Defence Retirement Act 1922 reads as follows:
   1. If it appears that any member or employee who is retired or discharged in pursuance of this Act is entitled upon retirement or discharge to any pension, retiring allowance, gratuity, or compensation under any other law, compensation under this Act shall only be allowed upon the member or employee undertaking not to claim pension, retiring allowance, gratuity, or compensation under that other law.
   2. There shall be deducted from the compensation payable to any member or employee under this Act the amount of any compensation or special grant already paid to him in respect of any portion of the service in respect of which compensation is payable under this Act.
3. In a departmental circular issued on 3 July, the following advice was given for general information:

   Persons retiring either voluntarily or compulsorily will not benefit under the proposed superannuation scheme. Persons retiring either voluntarily or compulsorily and receiving compensation will not benefit under the proposed superannuation scheme which is to be submitted to Parliament.

4. On 23 August (vide attached copy of Finance General Memorandum No. 462) a form of undertaking in accordance with section 7(1) of the Defence Retirement Act was circulated for completion by persons retiring (both military and civil) who had had previous State service.
5. It is noted from the Bill for the Superannuation Act that no definite statement is made as to the exclusion from superannuation rights of persons retired under the Defence Retirement Act, but in view of the provisions of sections 35 and 36 of the Bill for the Superannuation Act⁽¹⁾, which relate to individuals retired on or after 31 December 1920,1 shall be glad to know whether it is assured that persons who received compensation are legally excluded from benefiting under the Superannuation Act.

In view of the provisions of section 7 of the Defence Retirement Act 1922 which makes the payment of compensation under that Act conditional upon an undertaking being given that pension under any other law will not be claimed, I am of opinion that, although the Superannuation Act does not contemplate such exceptions, pensions are not legally payable to persons who have received compensation under the former Act and have given the required undertaking.

It is suggested that the names of any persons to whom section 7 applies should be supplied to the Board to be appointed under the Superannuation Act in order to obviate the possibility of pensions being paid to them.

[Vol. 19, p. 103]

(1) Enacted as section 36 and 37 of the Superannuation Act 1922