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. 6".
Commencement
2. This determination shall take effect from and including 1 July 2001.
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. 6 (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.
.............................................
P. Reynolds
(Chairperson)
John. A. Flitcroft W. Hall
............................................. .............................................
J.A. Flitcroft W. Hall
(Trustee) (Trustee)
C. Manolios Louise McBride
............................................. .............................................
C. Manolios L. McBride
(Trustee) (Trustee)
The Common Seal of the PSS Board was hereunto affixed by authority of the Board
Dated this Fifth day of June 2001
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 2001
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $38,583 | $308,663 |
$38,583 or more but less than $61,710 | 8 times average salary |
$61,710 or more but less than $114,570 | $123,420 plus 6 times average salary |
$114,570 or more | $467,130 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 2001
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Preliminary Maximum Benefit |
Less than $38,583 | $308,663 |
$38,583 or more but less than $61,710 | 8 times average salary |
$61,710 or more but less than $114,570 | $123,420 plus 6 times average salary |
$114,570 or more | $467,130 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 2001
Table - AFP Preliminary Maximum Benefits - Pensions |
Final Average Salary | Preliminary Maximum Benefit |
Less than $38,583 | $434,059 |
$38,583 or more but less than $61,710 | 11.25 times average salary |
$61,710 or more but less than $114,570 | $185,130 plus 8.25 times average salary |
$114,570 or more | $528,840 plus 5.25 times average salary |
Overview
The Commonwealth of Australia enacted the Superannuation Act 1990 to address the need for a structured and regulated framework for the management and distribution of superannuation benefits across various sectors, including public service superannuation. The Superannuation Act 1990 was brought into effect by the Parliament of Australia, with the primary objective of ensuring that superannuation funds are managed prudently and distributed fairly to eligible members. The PSS (Maximum Benefits) Determination No. 6, made by the PSS Board under the authority granted by the Act, serves to amend the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police, ensuring these levels are aligned with current economic conditions and legislative requirements. This determination specifically updates the dollar amounts for maximum benefits and preliminary maximum benefits for lump sums and pensions, effective from 1 July 2001, thereby maintaining the integrity and relevance of the superannuation provisions.
Scope and Application
The PSS (Maximum Benefits) Determination No. 6, made under the Superannuation Act 1990, aims to amend the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police (AFP). This determination, effective from 1 July 2001, modifies the maximum benefits specified in the PSS (Maximum Benefits) Determination No. 1, as amended, by adjusting the dollar amounts in the relevant schedules. The determination applies to both ordinary scheme members and AFP members, impacting the maximum benefits they can receive based on their average salaries. The amendment details specific dollar amounts for various salary brackets, ensuring compliance with updated legislative requirements. The scope of this determination is confined to the adjustments of benefit levels and does not extend to other aspects of the superannuation scheme, thus maintaining the existing framework while updating the financial thresholds.
Key Provisions
The main operative sections of this determination are Sections 6, 7, and 8, which amend the maximum benefit levels for ordinary scheme members and scheme members employed by the Australian Federal Police. Specifically, Section 6 amends the dollar amounts in Schedule 1 of the Principal Determination, which pertains to maximum benefits for ordinary scheme members. Section 7 adjusts the dollar amounts in Schedule 2, which relates to the Australian Federal Police preliminary maximum benefits for lump sums. Lastly, Section 8 modifies the dollar amounts in Schedule 3, which covers the Australian Federal Police preliminary maximum benefits for pensions. These sections update the benefit levels based on the average salary, providing new figures for different salary brackets.
This determination imposes obligations on the PSS Board to ensure that the amendments to the maximum benefit levels are correctly implemented. The Board is responsible for replacing the existing dollar amounts in the specified schedules with the new amounts provided in the accompanying tables of this determination. These amendments must be in effect from 1 July 2001, as stipulated in Section 2 of the determination. The PSS Board must ensure that all relevant parties, including scheme members and employers, are informed of these changes to comply with the updated benefit levels.
Breach of this determination or failure to comply with the updated maximum benefit levels could result in various consequences. Although the determination itself does not specify any offences or penalties, non-compliance with the Superannuation Act 1990 or the Rules for the Administration of the Superannuation Scheme could lead to civil or criminal penalties. The Superannuation Act 1990 provides for a range of penalties, including fines and imprisonment, for breaches of its provisions. The maximum penalties for breaches of the Superannuation Act 1990 can vary depending on the nature and severity of the offence. For instance, individuals found guilty of dishonestly causing a loss to the fund could face fines of up to $210,000 and/or imprisonment for up to 10 years. Corporate entities could be subject to even higher penalties, with fines reaching up to $1,050,000. These penalties underscore the importance of adhering to the updated maximum benefit levels and the broader requirements of the Superannuation Act 1990.