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. 2".
Commencement
2. This determination shall take effect from and including 1 July 1997.
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.
Principal Determination
4. In this determination, "the Principal Determination" means the PSS (Maximum Benefits) Determination No. 1.
Amendments to Principal Determination
[Amendment of dollar amounts for the purposes of the Table entitled "Table - Maximum Benefits" in Rule 5.6.1]
5. Schedule 1 to the Principal Determination is amended by replacing the dollar amounts it contains with the dollar amounts set out in the Table in Schedule 1 to this determination.
[Amendment of dollar amounts for the purposes of the Table entitled "Table - AFP Preliminary Maximum Benefits - Lump Sums" in Rule 5.7.1]
6. Schedule 2 to the Principal Determination is amended by replacing the dollar amounts it contains with the dollar amounts set out in the Table in Schedule 2 to this determination.
[Amendment of dollar amounts for the purposes of the Table entitled "Table - AFP Preliminary Maximum Benefits - Pensions" in Rule 5.7.2]
7. Schedule 3 to the Principal Determination 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. 2 (continued)]
R. Brown
.............................................
R.L. Brown
(Chairperson)
Peter Reynolds M. Hutchinson
............................................. .............................................
P. Reynolds M.J. Hutchinson
(Trustee) (Trustee)
W. Hall John. A. Flitcroft
............................................. .............................................
W. Hall J.A. Flitcroft
(Trustee) (Trustee)
The Common Seal of the PSS Board was hereunto affixed by authority of the Board
Dated this sixth day of June 1997
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 1997
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $33,168 | $265,338 |
$33,168 or more but less than $53,040 | 8 times average salary |
$53,040 or more but less than $98,480 | $106,080 plus 6 times average salary |
$98,480 or more | $401,520 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 1997
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Maximum Benefit |
Less than $33,168 | $265,338 |
$33,168 or more but less than $53,040 | 8 times average salary |
$53,040 or more but less than $98,480 | $106,080 plus 6 times average salary |
$98,480 or more | $401,520 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 1997
Table - AFP Preliminary Maximum Benefits - Pensions |
Final Average Salary | Maximum Benefit |
Less than $33,168 | $373,140 |
$33,168 or more but less than $53,040 | 11.25 times average salary |
$53,040 or more but less than $98,480 | $159,120 plus 8.25 times average salary |
$98,480 or more | $454,560 plus 5.25 times average salary |
Overview
The Commonwealth of Australia enacted the Superannuation Act 1990 to address the need for a comprehensive legal framework governing superannuation arrangements in Australia. The Act was designed to provide a uniform set of rules governing the establishment, operation, and administration of approved superannuation funds. The PSS (Maximum Benefits) Determination No. 2, made by the PSS Board under the authority granted by the Superannuation Act, was introduced to amend the maximum benefit levels that apply to ordinary scheme members and scheme members employed by the Australian Federal Police. This determination took effect from 1 July 1997 and was made in accordance with clauses 5.6.5 and 5.7.7 of the Rules. The policy objective behind this amendment was to adjust the maximum benefits payable to account for changes in economic conditions and the cost of living, ensuring that the superannuation benefits remain fair and equitable for the members concerned.
Scope and Application
The PSS (Maximum Benefits) Determination No. 2, effective from 1 July 1997, amends the maximum benefit levels applicable to ordinary members and members employed by the Australian Federal Police under the PSS (Maximum Benefits) Determination No. 1. This legislative instrument is designed to adjust the maximum benefits provided under the Superannuation Act 1990 by altering specific dollar amounts in schedules related to maximum benefits, AFP preliminary maximum benefits for lump sums, and AFP preliminary maximum benefits for pensions. The amendments cater to different salary brackets, ensuring that the maximum benefits are proportionately adjusted according to the average salary of the scheme members. The scope of the Act applies to ordinary scheme members and scheme members employed by the Australian Federal Police, focusing on the financial benefits they are entitled to under the superannuation scheme. The jurisdictional reach of this Act is within the Commonwealth of Australia, applying national standards for superannuation benefits. This determination does not explicitly state exclusions, exemptions, or thresholds, but it is understood that the adjustments apply specifically to the categories and salary brackets outlined in the schedules. The application of the Act is further refined through the subordinate instruments detailed in the schedules, which provide specific figures for the maximum benefits based on varying salary levels.
Key Provisions
The PSS (Maximum Benefits) Determination No. 2 amends the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police under the Superannuation Act 1990. This determination specifically alters the dollar amounts contained in the schedules of the PSS (Maximum Benefits) Determination No. 1 (subsection 5). The new figures are set out in Tables within the schedules to this determination, effective from 1 July 1997 (subsection 2). The amendments involve replacing the previous dollar amounts with new ones for various salary brackets, thus altering the maximum benefits for lump sums and pensions (subsections 6 and 7).
The obligations imposed by this determination are primarily on the PSS Board, which is tasked with ensuring that the amended maximum benefit levels are correctly applied according to the new figures provided. This involves updating the relevant schedules to reflect the new dollar amounts and ensuring that these changes are communicated effectively to all stakeholders, including scheme members and employers (subsections 5, 6, and 7). The Board must ensure that the amendments are correctly implemented in line with the new schedules and that all relevant documentation is updated accordingly.
Failure to comply with the provisions of this determination could lead to legal consequences for the PSS Board and potentially for employers and scheme members who are affected by the changes. While specific penalties are not outlined in the text, non-compliance could result in financial discrepancies or incorrect benefit payments, leading to potential legal action or administrative penalties. It is crucial for all parties to adhere to the new benefit levels as stipulated to avoid any legal repercussions or financial disputes.
In summary, this determination sets out the new maximum benefit levels for scheme members and those employed by the Australian Federal Police, effective from 1 July 1997. The PSS Board is responsible for implementing these changes and ensuring that all relevant parties are aware of and comply with the new figures. Non-compliance could lead to legal or financial consequences, underscoring the importance of accurate and timely implementation of the amendments.