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. 7".
Commencement
2. This determination shall take effect from and including 1 July 2002.
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. 7 (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.
Peter Reynolds
.............................................
P. Reynolds
(Chairperson)
W. Hall C. Manolios
............................................. ..............................................
W. Hall C. Manolios
(Trustee) (Trustee)
Louise McBride S. O’Loughlin
............................................. .............................................
L. McBride S. O’Loughlin
(Trustee) (Trustee)
The Common Seal of the PSS Board was hereunto affixed by authority of the Board
Dated this fifth day of June 2002
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 2002
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $40,986 | $327,886 |
$40,986 or more but less than $65,560 | 8 times average salary |
$65,560 or more but less than $121,710 | $131,120 plus 6 times average salary |
$121,710 or more | $496,250 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 2002
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Preliminary Maximum Benefit |
Less than $40,986 | $327,886 |
$40,986 or more but less than $65,560 | 8 times average salary |
$65,560 or more but less than $121,710 | $131,120 plus 6 times average salary |
$121,710 or more | $496,250 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 2002
Table - AFP Preliminary Maximum Benefits - Pensions |
Final Average Salary | Preliminary Maximum Benefit |
Less than $40,986 | $461,093 |
$40,986 or more but less than $65,560 | 11.25 times average salary |
$65,560 or more but less than $121,710 | $196,680 plus 8.25 times average salary |
$121,710 or more | $561,810 plus 5.25 times average salary |
Overview
The Superannuation Act 1990 was enacted to establish a framework for superannuation schemes in Australia, ensuring that employees receive a reliable income post-retirement. This legislation was introduced to address the need for a systematic approach to superannuation, providing a safety net for workers. The PSS (Maximum Benefits) Determination No. 7, made by the PSS Board in 2002, aims to amend the maximum benefit levels that apply to ordinary scheme members and scheme members employed by the Australian Federal Police. This determination is intended to update the financial thresholds for superannuation benefits, aligning them with current economic conditions and ensuring that the benefits remain relevant and adequate for the recipients. By doing so, the determination upholds the policy objective of the Superannuation Act to provide a fair and sustainable retirement income for eligible individuals.
Scope and Application
The PSS (Maximum Benefits) Determination No. 7, made under the Superannuation Act 1990, applies to ordinary scheme members and scheme members employed by the Australian Federal Police (AFP). The primary purpose of this determination is to adjust the maximum benefit levels that apply to these members, thereby impacting the superannuation entitlements for those involved. Effective from 1 July 2002, the determination amends the maximum benefit amounts outlined in the PSS (Maximum Benefits) Determination No. 1, as well as the AFP Preliminary Maximum Benefits for both lump sums and pensions, through the substitution of new dollar amounts in respective schedules. This legislative instrument is a Commonwealth matter, and its application is confined to the members of the Public Service Superannuation Scheme as amended by the Superannuation Act 1990 and the Rules for the Administration of the Superannuation Scheme. The amendments do not extend beyond the scope of the PSS and AFP Preliminary Maximum Benefits as specified in the schedules, and there are no exclusions or exemptions outlined in the text of this determination.
Key Provisions
The PSS (Maximum Benefits) Determination No. 7, effective from 1 July 2002, amends the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police under the Superannuation Act 1990. It specifically replaces the dollar amounts in the schedules of the Principal Determination (sections 6, 7, and 8). These schedules detail the maximum benefits based on the average salary of the member. For instance, for members earning less than $40,986, the maximum benefit is set at $327,886. For those earning $40,986 or more but less than $65,560, the maximum benefit is eight times the average salary, and so on (Schedule 1). Similarly, the AFP Preliminary Maximum Benefits are adjusted for lump sums and pensions (Schedules 2 and 3).
The PSS Board, under the authority granted by sections 5.6.5 and 5.7.7 of the Rules, is responsible for making these amendments. These amendments apply to the existing benefits outlined in the Principal Determination, specifically targeting the dollar amounts in the relevant schedules. The changes reflect updated calculations based on average salary brackets, ensuring that the maximum benefits remain aligned with current economic conditions and legislative intent.
Parties governed by the Superannuation Act 1990, including scheme members and the Australian Federal Police, must comply with the new maximum benefit levels stipulated in this determination. This includes adhering to the specific dollar amounts outlined in the amended schedules for both ordinary members and AFP personnel. These changes are pivotal for the calculation of lump sum benefits and pensions, ensuring that all calculations are performed in accordance with the updated figures.
Breaches of the provisions outlined in the PSS (Maximum Benefits) Determination No. 7 may result in legal consequences. While the determination itself does not specify particular penalties for non-compliance, any violations of the Superannuation Act 1990 or associated rules may incur civil or criminal penalties. These could include fines or imprisonment, depending on the severity of the breach and the specific provisions of the Act that are contravened. The exact penalties are detailed elsewhere in the Superannuation Act 1990 and should be consulted for comprehensive understanding.