Superannuation Act 1990 (Interest) Determination No. 172

Overview

The Superannuation Act 1990 (Interest) Determination No. 172 was introduced to update the interest rates for the Public Sector Superannuation (PSS) scheme, as mandated by Clause 3.1 of the Trust Deed under Part 2 of the Superannuation Act 1990. This determination, issued by the PSS Board, amends the principal instrument, the Superannuation Act 1990 (Interest) Determination No. 1, which has been revised through consecutively numbered determinations. The objective of this instrument is to adjust the daily compounding interest rates for both the Default Fund and the Cash Option, the two investment strategies available under the PSS scheme, with the Cash Option being a choice for preserved benefit members who opt for it since 1 December 2004. The new rates, as specified in Schedules 2 and 3 of the principal instrument, apply from the date outlined in the determination.

Scope and Application

The Superannuation Act 1990 (Interest) Determination No. 172 pertains to the setting of interest rates for the Public Sector Superannuation (PSS) scheme, as empowered by Clause 3.1 of the Trust Deed under Part 2 of the Superannuation Act 1990. This determination is applicable to the PSS Board, which is responsible for determining these interest rates. The legislation governs the interest rates for two different investment strategies available within the PSS scheme: the Default Fund and the Cash Option, the latter being available for preserved benefit members who opt for this strategy since 1 December 2004. The interest rates for these strategies are detailed in Schedules 2 and 3 of the principal instrument, which has been amended through various consecutively numbered determinations. This specific determination amends the interest rates set out in these schedules, effective from a specified date. The scope of this legislation is limited to the interest rate determinations for the PSS scheme and does not extend to other areas of superannuation or retirement benefits.

Key Provisions

The Superannuation Act 1990 (Interest) Determination No. 172, outlines specific interest rates for the Public Sector Superannuation (PSS) scheme. Clause 3.1 of the Trust Deed under Part 2 of the Superannuation Act 1990 grants the PSS Board the authority to set these interest rates (Section 2). This determination updates the interest rates for two investment strategies: the Default Fund and the Cash Option, which has been available since 1 December 2004 for preserved benefit members (Section 4). The updated interest rates are specified in Schedule 2 for the Default Fund and Schedule 3 for the Cash Option, effective from the date mentioned in the determination (Section 5). The obligations under this determination primarily rest on the PSS Board to ensure the interest rates are updated and accurately reflected in the Trust Deed schedules. This includes the responsibility of calculating and specifying the new interest rates in the respective schedules. For members of the PSS scheme, their obligation is to be aware of these rates as they affect the growth and returns on their superannuation savings under the selected investment strategies (Section 2 and 4). Failure to comply with the provisions of this determination can lead to potential legal consequences. While the determination itself does not explicitly state penalties, breaches of the Superannuation Act 1990 or the Trust Deed, where this determination is part of, could result in civil or criminal penalties. These penalties can include fines and, in severe cases, imprisonment. The exact penalties would depend on the specific breach and other applicable laws (Section 2). The PSS Board must ensure adherence to these provisions to maintain the integrity and legality of the PSS scheme.