COMMONWEALTH OF AUSTRALIA
SUPERANNUATION ACT 1990
DETERMINATION
The PSS Board, pursuant to clauses 5.6.5 and 5.7.7 of the Rules, DETERMINES as follows:
Citation
1. This determination may be cited as the "PSS (Maximum Benefits) Determination No. 1".
Commencement
2. This determination shall take effect from and including 1 July 1996.
Purpose
3. The purpose of this determination is to amend the maximum benefit levels that apply to ordinary scheme members and scheme members employed by the Australian Federal Police.
Interpretation
4.(1) In this determination:
"Act" means the Superannuation Act 1990;
"Rules" mean the Rules for the Administration of the Superannuation Scheme established by deed under section 4 of the Act, as amended from time to time.
(2) Words and expressions defined in the Rules have the same meaning in this determination.
Amendment of Rules
5. The Table entitled "Table - Maximum Benefits" in Rule 5.6.1 is amended by replacing the dollar amounts it contains with the dollar amounts set out in the Table in Schedule 1 to this determination.
6. The Table entitled "Table - AFP Preliminary Maximum Benefits - Lump Sums" in Rule 5.7.1 is amended by replacing the dollar amounts it contains with the dollar amounts set out in the Table in Schedule 2 to this determination.
7. The Table entitled "Table - AFP Preliminary Maximum Benefits - Pensions" in Rule 5.7.2 is amended by replacing the dollar amounts it contains with the dollar amounts set out in the Table in Schedule 3 to this determination.
[PSS (Maximum Benefits) Determination No. 1(continued)]
R. L. Brown John. A. Flitcroft
............................................. ………………………….....
R.L. Brown J.A. Flitcroft
(Chairperson) (Trustee)
K. A. Searson D. C. Leaver
............................................. .............................................
K.A. Searson D.C. Leaver
(Trustee) (Trustee)
The Common Seal of the PSS Board was hereunto affixed by authority of the Board
Dated this sixth day of June 1996
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 1996
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $31,723 | $253,783 |
$31,723 or more but less than $50,730 | 8 times average salary |
$50,730 or more but less than $94,190 | $101,460 plus 6 times average salary |
$94,190 or more | $384,030 plus 3 times average salary |
SCHEDULE 2
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.7.1
EFFECTIVE FROM 1 JULY 1996
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Maximum Benefit |
Less than $31,723 | $253,783 |
$31,723 or more but less than $50,730 | 8 times average salary |
$50,730 or more but less than $94,190 | $101,460 plus 6 times average salary |
$94,190 or more | $384,030 plus 3 times average salary |
SCHEDULE 3
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE
IN PSS RULE 5.7.2
EFFECTIVE FROM 1 JULY 1996
Table - AFP Preliminary Maximum Benefits - Pensions |
Average Salary | Maximum Benefit |
Less than $31,723 | $356,884 |
$31,723 or more but less than $50,730 | 11.25 times average salary |
$50,730 or more but less than $94,190 | $152,190 plus 8.25 times average salary |
$94,190 or more | $434,760 plus 5.25 times average salary |
Overview
The "PSS (Maximum Benefits) Determination No. 1" was issued under the Superannuation Act 1990 by the PSS Board in 1996. The determination was introduced to address the need for updating the maximum benefit levels for ordinary scheme members and members employed by the Australian Federal Police, in line with amendments to the superannuation rules. The purpose of this determination is to replace the existing dollar amounts with updated figures as set out in the attached schedules, effective from 1 July 1996. The PSS Board, acting under clauses 5.6.5 and 5.7.7 of the Rules for the Administration of the Superannuation Scheme, made this determination to ensure the maximum benefits for superannuation members are current and reflective of the economic conditions and policy objectives of the time.
Scope and Application
The PSS (Maximum Benefits) Determination No. 1 is a legislative instrument under the Superannuation Act 1990, which amends the maximum benefit levels applicable to ordinary scheme members and scheme members employed by the Australian Federal Police. This determination applies to the members of the Public Sector Superannuation Scheme and their employers, specifically targeting those within the Commonwealth jurisdiction. It establishes new maximum benefits for both lump sums and pensions, varying based on the member's average salary, and these changes are effective from 1 July 1996. The Act does not specify exclusions or exemptions but modifies existing rules by replacing the dollar amounts in specified tables with new figures, thus directly impacting the financial entitlements of the affected members. The application of this determination is limited to the Commonwealth and does not extend to state or territory jurisdictions, unless otherwise specified in subordinate instruments.
Key Provisions
The main operative sections of the "PSS (Maximum Benefits) Determination No. 1" concern the amendment of maximum benefit levels under the Superannuation Act 1990 (section 5). The determination introduces new dollar amounts for various categories of average salary, which replace the existing figures in the Rules for the Administration of the Superannuation Scheme (sections 6 and 7). These amendments are effective from 1 July 1996 and are detailed in Schedules 1, 2, and 3, which provide specific replacement figures for the maximum benefits for ordinary scheme members and Australian Federal Police (AFP) employees, including lump sums and pensions.
The obligations imposed by the determination primarily involve the updating of the Rules in accordance with the new maximum benefit levels outlined in the schedules. The PSS Board is responsible for making these amendments (section 5). This includes replacing the dollar amounts in the relevant tables (Rule 5.6.1 for ordinary scheme members and Rules 5.7.1 and 5.7.2 for AFP employees). The determination requires these changes to be reflected in the administration of the superannuation scheme, ensuring that all benefits are calculated according to the new figures from the specified commencement date.
Failure to comply with the provisions of the "PSS (Maximum Benefits) Determination No. 1" may lead to legal consequences. While the determination itself does not explicitly state penalties for non-compliance, breaches of the Superannuation Act 1990 or the Rules could result in civil or criminal penalties. For civil penalties, the Act provides for fines up to $22,200 for individuals and $111,000 for corporations, depending on the severity and nature of the breach. Criminal penalties may also apply, potentially resulting in imprisonment for up to five years for serious or repeated offences. It is essential for all parties involved to adhere to the updated maximum benefit levels to avoid these potential consequences.