Superannuation Amendment (PSSAP Membership) Act 2020

Administered by Department of Finance

Legislation au C2020A00086 In force Act

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No. 86, 2020

An Act to amend the law relating to superannuation, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Superannuation Act 2005

Schedule 2—Application and transitional provisions

Superannuation Amendment (PSSAP Membership) Act 2020

No. 86, 2020

An Act to amend the law relating to superannuation, and for related purposes

[Assented to 7 September 2020]

The Parliament of Australia enacts:

1 Short title

This Act is the Superannuation Amendment (PSSAP Membership) Act 2020.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. The whole of this Act	A single day to be fixed by Proclamation. However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.	7 March 2021

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Superannuation Act 2005

1 Section 3 (paragraph beginning “A former public sector employee”)

Omit “continue to”.

2 Subsection 4(1)

Insert:

eligible CSS/PSS member or former member means a person who is an ordinary employer‑sponsored member of PSSAP under subsection 18(8A).

eligible PSSAP member means a person who is an ordinary employer‑sponsored member of PSSAP under subsection 18(7).

3 Subsection 4(1) (definition of former Commonwealth ordinary employer‑sponsored member)

Repeal the definition.

4 After paragraph 13(1)(c)

Insert:

; or (d) the person was a member of the PSS or an eligible employee (within the meaning of the Superannuation Act 1976) at a time after the commencement of the Superannuation Amendment (PSSAP Membership) Act 2020 but is no longer such a member or eligible employee.

5 Paragraph 17(1)(a)

Omit “(except a former Commonwealth ordinary employer‑sponsored member)”, substitute “within the meaning of subsection 18(2), (3) or (5)”.

6 Subsection 17(2) (note 2)

Omit “a former Commonwealth ordinary employer‑sponsored member”, substitute “an eligible PSSAP member or an eligible CSS/PSS member or former member”.

7 Subsection 18(1)

Omit “4”, substitute “5”.

8 Subsections 18(7) and (8)

Repeal the subsections, substitute:

Eligible PSSAP member

(7) Subject to subsections (8) and (9), if:

(a) at a particular time, a person is a member of PSSAP; and

(b) the person is, or previously was, an ordinary employer‑sponsored member of PSSAP under one or more of subsections (2), (3) and (5); and

(c) the person is, or previously would have been eligible to become, a member of PSSAP because of particular employment or holding one or more particular offices, where the periods of any such employment, and the periods of holding any such office, taken together constitute or constituted a continuous period of at least 12 months;

the person is an ordinary employer‑sponsored member of PSSAP.

Note: A person who is an ordinary employer‑sponsored member of PSSAP under this subsection is known as an eligible PSSAP member.

(8) If:

(a) subsection (2), (3) or (5) applies to a person in respect of any employment of the person or any holding of an office by the person; or

(b) a person is, or would be able to become, a member of the PSS or an eligible employee (within the meaning of the Superannuation Act 1976) in respect of any employment of the person or any holding of an office by the person;

the person is not an ordinary employer‑sponsored member of PSSAP under subsection (7) in respect of that employment or the holding of that office.

Eligible CSS/PSS member or former member

(8A) Subject to subsections (8B) and (9), if:

(a) at a particular time, a person is a member of PSSAP; and

(b) the person is, or previously would have been able to become, a member of the PSS or an eligible employee (within the meaning of the Superannuation Act 1976) because of particular employment or holding one or more particular offices, where the periods of any such employment, and the periods of holding any such office, taken together constitute or constituted a continuous period of at least 12 months; and

(i) the person was a former Australian government superannuation scheme member at the time the Superannuation Amendment (PSSAP Membership) Act 2020 commences; or

(ii) the person is a member of the PSS or an eligible employee (within the meaning of the Superannuation Act 1976) at any time on or after the day the Superannuation Amendment (PSSAP Membership) Act 2020 commences;

the person is an ordinary employer‑sponsored member of PSSAP.

Note: A person who is an ordinary employer‑sponsored member of PSSAP under this subsection is known as an eligible CSS/PSS member or former member.

(8B) If:

(a) subsection (2), (3) or (5) applies to a person in respect of any employment of the person or any holding of an office by the person; or

(c) paragraph 6(2)(ba) of the Superannuation Act 1990 applies to a person in respect of any employment of the person or any holding of an office by the person;

the person is not an ordinary employer‑sponsored member of PSSAP under subsection (8A) in respect of that employment or the holding of that office.

9 Before subsection 18(9)

Insert:

Minister may determine class of excluded persons

10 Subsection 18(9)

After “subsection (7)”, insert “or (8A)”.

11 Paragraph 19(1)(a)

Omit “in respect of particular employment or the holding of a particular office”.

12 Subsection 19(2) (table item 5A)

Repeal the item, substitute:

the person is:

(a) an eligible PSSAP member; or

(b) an eligible CSS/PSS member or former member

if the person has an employer—the employer.

13 Paragraph 42(1)(a)

Omit “(except a former Commonwealth ordinary employer‑sponsored member)”, substitute “within the meaning of subsection 18(2), (3) or (5)”.

14 Paragraph 43(1)(b)

Omit “(except a former Commonwealth ordinary employer‑sponsored member)”, substitute “within the meaning of subsection 18(2), (3) or (5)”.

Schedule 2—Application and transitional provisions

1 Eligible PSSAP member

A person who is an ordinary employer‑sponsored member of PSSAP under subsection 18(7) of the Superannuation Act 2005 as in force immediately before the commencement of this item continues to be an ordinary employer‑sponsored member of PSSAP under subsection 18(7) of the Superannuation Act 2005 as amended by this Act.

[Minister’s second reading speech made in—

House of Representatives on 13 February 2020

Senate on 25 August 2020]

(10/20)

Overview

The Superannuation Amendment (PSSAP Membership) Act 2020 is an Act of the Parliament of Australia that seeks to amend the existing superannuation laws, particularly focusing on the membership criteria and definitions related to the Public Sector Superannuation Scheme and the Commonwealth Superannuation Scheme. Enacted to address specific gaps and ambiguities in the existing legal framework, this Act aims to clarify the conditions under which individuals can be considered eligible members of the Public Sector Superannuation Arrangement (PSSAP) and ensure the seamless continuation of their superannuation benefits. The overarching policy objective of this legislation is to provide clarity and continuity in the administration of superannuation benefits for eligible members, thereby ensuring their financial security during and after their employment. The Act, assented to on 7 September 2020, includes provisions that amend the Superannuation Act 2005 to redefine terms such as 'eligible PSSAP member' and 'eligible CSS/PSS member or former member', and it specifies transitional arrangements to maintain the continuity of superannuation benefits for individuals who were already members under the previous legal framework. The Act also allows the Minister to determine specific classes of excluded persons, providing flexibility in the application of these new definitions and ensuring that the legislation can be adapted to meet future needs.

Scope and Application

The Superannuation Amendment (PSSAP Membership) Act 2020 applies to individuals who are ordinary employer-sponsored members of the Public Sector Superannuation Accumulation Plan (PSSAP) and former members who meet certain criteria. It amends the Superannuation Act 2005 to redefine the eligibility criteria for being an ordinary employer-sponsored member of PSSAP. The Act applies nationally across Australia, as it is a Commonwealth Act. It specifies that certain individuals, including those who were former members of the Commonwealth superannuation scheme at the time of the Act's commencement or who were members of the Public Sector Superannuation Scheme (PSS) or eligible employees at any time after the Act's commencement, can be considered eligible PSSAP members or eligible CSS/PSS members or former members. The Act also includes provisions for the Minister to determine classes of excluded persons. The application and transitional provisions ensure that individuals who were eligible PSSAP members before the commencement of the Act continue to be recognised as such under the amended provisions.

Key Provisions

The Superannuation Amendment (PSSAP Membership) Act 2020 (C2020A00086) amends the Superannuation Act 2005 by modifying the eligibility criteria for membership in the Public Sector Superannuation Accumulation Plan (PSSAP). Section 3 of the Act redefines "eligible CSS/PSSAP member or former member" and "eligible PSSAP member" by inserting specific criteria into subsection 4(1). It also modifies the definition of "former Commonwealth ordinary employer-sponsored member" and includes new provisions regarding the eligibility of individuals who were members of the Public Service Superannuation Scheme (PSS) or eligible employees after the commencement of the Act. Section 4 of the Act adjusts subsection 17(1)(a) and the note to subsection 17(2) to incorporate these changes. It further updates subsection 18(1) by changing the number from "4" to "5" and repeals and substitutes subsections 18(7) and 18(8) with new definitions for "eligible PSSAP member" and "eligible CSS/PSS member or former member." The obligations imposed by the Act require entities and individuals to adhere to the new definitions and criteria for membership in PSSAP. Employers, for example, must ensure that employees who meet the criteria of an "eligible PSSAP member" or an "eligible CSS/PSS member or former member" are enrolled in the appropriate superannuation plan. Additionally, the Act mandates that the Minister may determine a class of excluded persons under the new subsection 18(8A). These obligations necessitate compliance with the specified conditions for eligibility, which includes continuous periods of employment or office holding, as well as adherence to the new definitions provided. Breaches of the provisions set out in this Act may result in civil or criminal consequences. While the Act does not explicitly state the penalties for non-compliance, it is understood that failure to adhere to the new membership criteria and definitions could lead to legal repercussions. The precise nature of these consequences would depend on the specific provisions breached and the context in which the breach occurs. In general, penalties for non-compliance with superannuation laws can include fines and, in severe cases, imprisonment. However, the exact penalties are not detailed within the Act itself but are likely to be prescribed in related legislation or regulations.

Area of Law: Superannuation Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Definitions & Interpretation; Eligible PSSAP Member; Eligible CSS/PSS Member or Former Member

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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