COMMONWEALTH OF AUSTRALIA
SUPERANNUATION ACT 1990
DETERMINATION
I, MICHAEL JOHN SIMPSON, Manager, Employer Relations and Member Accounts, Commonwealth Superannuation Administration, Position No. 44, and Delegate of the PSS Board, pursuant to rules 5.6.5 and 5.7.7 of the Rules, DETERMINE as follows:
Citation
1. This determination may be cited as the "PSS (Maximum Benefits) Determination No. 9".
Commencement
2. This determination shall take effect from and including 1 July 2004.
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. 9 (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.
M. Simpson
…………………………………………………..
M.J. Simpson
Manager
Employer Relations and Member Accounts
Commonwealth Superannuation Administration
and Delegate of the PSS Board
Dated this twenty - fifth day of June 2004
SCHEDULE 1
REPLACEMENT DOLLAR AMOUNTS FOR THE PURPOSES
OF THE TABLE IN PSS RULE 5.6.1
EFFECTIVE FROM 1 JULY 2004
Table - Maximum Benefits |
Average Salary | Maximum Benefit |
Less than $45,176 | $361,406 |
$45,176 or more but less than $72,270 | 8 times average salary |
$72,270 or more but less than $134,160 | $144,540 plus 6 times average salary |
$134,160 or more | $547,020 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 2004
Table - AFP Preliminary Maximum Benefits - Lump Sums |
Average Salary | Preliminary Maximum Benefit |
Less than $45,176 | $361,406 |
$45,176 or more but less than $72,270 | 8 times average salary |
$72,270 or more but less than $134,160 | $144,540 plus 6 times average salary |
$134,160 or more | $547,020 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 2004
Table - AFP Preliminary Maximum Benefits - Pensions |
Final Average Salary | Preliminary Maximum Benefit |
Less than $45,176 | $508,230 |
$45,176 or more but less than $72,270 | 11.25 times average salary |
$72,270 or more but less than $134,160 | $216,810 plus 8.25 times average salary |
$134,160 or more | $619,290 plus 5.25 times average salary |
Overview
The Superannuation Act 1990, enacted by the Commonwealth Parliament, was established to address the need for a comprehensive regulatory framework governing the administration of superannuation benefits in Australia. The Act provides a foundational structure for superannuation schemes, ensuring that members receive fair and adequate benefits upon retirement or other qualifying events. The PSS (Maximum Benefits) Determination No. 9, made in 2004, was introduced to amend the maximum benefit levels applicable to ordinary scheme members and those employed by the Australian Federal Police. This determination was made under the authority of the Commonwealth Superannuation Administration and is intended to ensure that the maximum benefit levels are regularly updated to reflect changes in average salaries and other relevant factors. The policy objective of this determination is to maintain the integrity and fairness of the superannuation system by aligning benefit levels with economic changes.
Scope and Application
The PSS (Maximum Benefits) Determination No. 9 amends the maximum benefit levels applicable to ordinary scheme members and scheme members employed by the Australian Federal Police (AFP) under the Superannuation Act 1990. This determination applies to the specified groups of individuals and their superannuation benefits, modifying the dollar amounts set out in the relevant tables of the PSS (Maximum Benefits) Determination No. 1. The amendments outlined in this determination are effective from 1 July 2004 and pertain to the Commonwealth, covering the scope of the Superannuation Act 1990 and its associated rules. The Act applies to entities and persons within the Commonwealth jurisdiction, including those involved in the administration of superannuation schemes. This determination does not introduce new exclusions or exemptions but rather updates the maximum benefit thresholds as per the new tables provided in Schedules 1, 2, and 3. Additionally, this determination itself may be further modified or extended through subordinate instruments, as necessary.
Key Provisions
The PSS (Maximum Benefits) Determination No. 9, effective from 1 July 2004, serves to amend the maximum benefit levels for ordinary scheme members and members employed by the Australian Federal Police (AFP) under the Superannuation Act 1990. This determination, made by the Manager, Employer Relations and Member Accounts, and Delegate of the PSS Board, replaces specific dollar amounts in schedules attached to the Principal Determination. The primary changes involve updating the maximum benefits for ordinary scheme members and AFP members concerning lump sums and pensions, which are detailed in the schedules of this determination (sections 6-8).
The obligations under this determination are primarily directed at updating and adhering to the new maximum benefit levels specified in the schedules. These updated levels apply to both ordinary scheme members and AFP members, with different tiers of benefits tied to various salary brackets (Schedules 1-3). This requirement necessitates the review and adjustment of existing records, systems, and calculations to ensure compliance with the new benefit levels. It is crucial for entities managing superannuation schemes to incorporate these changes into their administrative and operational frameworks to accurately reflect the new benefit structures.
Failure to comply with the provisions of this determination could result in administrative errors or incorrect benefit calculations, potentially leading to legal challenges or financial discrepancies. While the determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches, any non-compliance with the Superannuation Act 1990 or its associated rules could result in penalties. The Act generally provides for fines and other sanctions for non-compliance, which can be severe depending on the nature and extent of the breach. These penalties underscore the importance of adhering strictly to the updated benefit levels as mandated by this determination.