Superannuation (Productivity Benefit) (Qualified Employees and Alternative Arrangements) Declaration No. 2 (Cth)

Statutory Rules 1994 No. 304¹

Superannuation (Productivity Benefit)

(Qualified Employees and Alternative

Arrangements) Declaration No. 2

I, KIM CHRISTIAN BEAZLEY, Minister for Finance, hereby make the following Declaration under subsections 3F(1) and 4A(1) and (2) of the  Superannuation (Productivity Benefit) Act 1988.

Dated 24 August 1994.

KIM C. BEAZLEY

Minister for Finance

_________

Citation

1.   This Declaration may be cited as Superannuation (Productivity Benefit) (Qualified Employees and Alternative Arrangements) Declaration No. 2.

Commencement

2.   This Declaration is taken to have commenced on 3 June 1994.

Interpretation

3.   In this Declaration:

“declared member” means a member of the class of qualified employees declared in clause 5;

“performance-based pay” means a payment of that name payable on or after 3 June 1994 under a decision of the Defence Force Remuneration Tribunal under section 58H of the Defence Act 1903;

“the Act” means the Superannuation (Productivity Benefit) Act 1988.

Qualified employees-officers of the Defence Force

4.   For the purpose of subsection 3F (1) of the Act, the class of persons each of whom:

(a)   is an officer of the Defence Force who is serving on a continuous full-time basis; and

(b)   is entitled to receive performance-based pay in that capacity; is a class of persons who are qualified employees.

Declared class of qualified employees-officers of the Defence Force

5.   For the purposes of subsection 4A (1) of the Act, the class of qualified employees mentioned in clause 4 is a class of employees who are neither fund employees nor interim arrangement employees.

Specified arrangements for declared class of qualified employees-officers of the Defence Force

6.   For the purposes of subsection 4A (2) of the Act, the arrangements stated in the following clauses apply to declared members.

Election to have performance-based pay taken into account in superannuation arrangements

7.   (1) A declared member may give notice of election to have performance-based pay taken into account in his or her superannuation arrangements under the Act.

(2)   The notice must be given in accordance with clause 10.

Selection by declared members of funds

8.   (1) A declared member who makes an election under subclause 7 (1) may give a notice of election to have any of the following payments paid by the designated employer to an approved fund specified in the notice:

(a)   payments under subclause 12 (2) by the designated employer in relation to the member;

(b)   payments under paragraph 13 (2) (b) in relation to the member.

(2)   The notice must be given in accordance with clause 10.

Elections apply only to particular payments

9.   An election under subclause 7 (1) or 8 (1) applies:

(a)   if the notice of election is expressed to apply to a payment of performance-based pay in relation to service before 1 July 1994-to, and only to, that payment; or

(b)   in any other case-to, and only to, the first payment of performance-based pay that the declared member receives after the notice of election takes effect.

Notices-procedure and date of effect

10.   (1) A notice under subclause 7 (1) or 8 (1) must be in writing and signed by the declared member giving it.

(2)   The member must give the notice to the member’s designated employer:

(a)   if the notice relates to a payment of performance-based pay in relation to service before 1 July 1994-not later than 3 months after the date on which the member receives the payment; or

(b)   in any other case-before the member receives the payment of performance-based pay to which the notice relates.

(3)   A notice takes effect when it is given to the designated employer in accordance with subclause (2).

What happens if a declared member does not make an election?

11.   If a declared member does not make an election under clause 7, the member’s performance-based pay is not taken into account for the purposes of the Act.

Payments to be made by a declared member’s designated employer-performance-based in relation to service before 1 July 1994

12.   (1) This clause applies if a declared member makes an election under subclause 7 (1) in relation to performance-based pay that relates to service before 1 July 1994.

(2)   If the member pays 5 percent of the total amount of the member’s performance-based pay to the member’s designated employer within 3 months after the date on which the member receives the performance-based pay, the designated employer must pay an amount equal to 20 percent of the total amount of the performance-based pay:

(a)   if the member has specified a fund under clause 8-to that fund; or

(b)   in any other case-to the fund that is the nominated fund in relation to the member.

Payments to be made by a declared member’s designated employer—

performance-based pay in relation to service after 30 June 1994

13.   (1) This clause applies if a declared member makes an election under subclause 7 (1) in relation to performance-based pay that relates to service after 30 June 1994.

(2)   The member’s designated employer must:

(a)   deduct 5 percent of the total amount of the member’s performance-based pay by a lump sum deduction from the payment to the member of performance-based pay; and

(b)   pay 20 percent of the total amount of the member’s performance-based pay:

(i)    if the member has specified a fund under clause 8-to that fund;

or

(ii)    in any other case-to the fund that is the nominated fund in

relation to the member.

NOTES

- Dated 24 August 1994

1.  Notified in the Commonwealth of Australia Gazette on 5 September 1994.