COMMONWEALTH OF AUSTRALIA
SUPERANNUATION ACT 1990
DETERMINATION
The PSS Board, pursuant to rules 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. 3".
Commencement
2. This determination shall take effect from and including 1 July 1998.
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, as amended.
Interpretation
5.(1) In this determination:
“Act” means the Superannuation Act 1990; and
“Rules” means 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 Act and the Rules have the same meaning in this determination.
Amendments to the Principal Determination
[Amendment of dollar amounts for the purposes of the Table entitled "Table - Maximum Benefits" in Rule 5.6.1]
6. Schedule 1 to the Principal Determination is amended by replacing the dollar amounts set out therein with the dollar amounts set out in the Table in Schedule 1 to this determination.
[PSS (Maximum Benefits) Determination No. 3 (continued)]
[Amendment of dollar amounts for the purposes of the Table entitled "Table - AFP Preliminary Maximum Benefits - Lump Sums" in Rule 5.7.1]
7. Schedule 2 to the Principal Determination is amended by replacing the dollar amounts set out therein 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]
8. Schedule 3 to the Principal Determination is amended by replacing the dollar amounts set out therein with the dollar amounts set out in the Table in Schedule 3 to this determination.
R. Brown
.............................................
R.L. Brown
(Chairperson)
Peter Reynolds G. Kelly
............................................. ................................................
P. Reynolds G.J. Kelly
(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 Fourth day of June 1998
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 1998
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $34,369 | $274,949 |
$34,369 or more but less than $54,960 | 8 times average salary |
$54,960 or more but less than $102,050 | $109,920 plus 6 times average salary |
$102,050 or more | $416,070 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 1998
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Maximum Benefit |
Less than $34,369 | $274,949 |
$34,369 or more but less than $54,960 | 8 times average salary |
$54,960 or more but less than $102,050 | $109,920 plus 6 times average salary |
$102,050 or more | $416,070 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 1998
Table - AFP Preliminary Maximum Benefits - Pensions |
Final Average Salary | Maximum Benefit |
Less than $34,369 | $386,651 |
$34,369 or more but less than $54,960 | 11.25 times average salary |
$54,960 or more but less than $102,050 | $164,880 plus 8.25 times average salary |
$102,050 or more | $471,030 plus 5.25 times average salary |
Overview
The Commonwealth of Australia enacted the Superannuation Act 1990, which aimed to establish a comprehensive legal framework for superannuation arrangements in Australia. The Act was intended to address issues such as the need for a consistent and equitable approach to superannuation benefits across various sectors and occupations. This legislation was enacted by the Australian Parliament with the policy objective of ensuring the provision of adequate retirement income for individuals. One of the legislative instruments under this Act is the PSS (Maximum Benefits) Determination No. 3, made in 1998 by the PSS Board. This determination modifies the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police. It effectively updates the financial thresholds for superannuation benefits, ensuring they reflect contemporary economic conditions and provide fair retirement provisions for affected members.
Scope and Application
The Superannuation Act 1990, through the PSS (Maximum Benefits) Determination No. 3, governs the maximum benefits applicable to ordinary scheme members and those employed by the Australian Federal Police under the Public Service Superannuation Scheme. This determination, effective from 1 July 1998, amends the maximum benefit levels specified in the PSS (Maximum Benefits) Determination No. 1. The Act applies to individuals who are members of the scheme and are employed by the Commonwealth or the Australian Federal Police, setting specific caps on the benefits based on the member's average salary. The amended benefit levels are detailed in the schedules attached to this determination, providing specific dollar amounts and conditions that apply to different salary brackets. The determination is administered by the PSS Board and adheres to the rules set forth in the Superannuation Act 1990 and the Rules for the Administration of the Superannuation Scheme.
Key Provisions
The main sections of this determination (sections 4 to 8) focus on amending the maximum benefit levels applicable to ordinary scheme members and scheme members employed by the Australian Federal Police (AFP). Specifically, it amends the dollar amounts set out in the existing Principal Determination (PSS (Maximum Benefits) Determination No. 1, as amended) by replacing them with new figures outlined in the accompanying schedules. This includes updating the maximum benefits for different salary brackets (Schedule 1), the lump sums for AFP members (Schedule 2), and the pensions for AFP members (Schedule 3). These changes are effective from 1 July 1998.
The PSS Board, under the authority granted by the Rules for the Administration of the Superannuation Scheme, has the obligation to periodically review and adjust the maximum benefits. This is to ensure that the benefits remain aligned with economic conditions and legislative requirements. The Board must also ensure that the new figures are clearly communicated to all relevant parties, including the scheme members, employers, and any other stakeholders affected by these changes. Additionally, the Board must ensure that these amendments comply with the overarching Superannuation Act 1990 and any other relevant legislative provisions.
There are no explicit offences, penalties, or civil/criminal consequences outlined in this determination for breaches of the new maximum benefit levels. However, non-compliance with the Superannuation Act 1990 or the Rules for the Administration of the Superannuation Scheme could potentially lead to legal consequences. Such breaches might result in penalties under the relevant sections of the Act or Rules, which could include fines or other sanctions as prescribed by the legislation. It is important for all parties to adhere to the updated benefit levels to avoid any potential legal repercussions.
In summary, the PSS (Maximum Benefits) Determination No. 3 primarily serves to update the maximum benefit levels for ordinary scheme members and AFP members, effective from 1 July 1998. The PSS Board has the responsibility to ensure these changes are properly implemented and communicated. While this determination itself does not specify penalties for non-compliance, adherence to the Superannuation Act 1990 and the Rules is crucial to avoid any legal issues that might arise from breaches of these provisions.