Superannuation (Approved Part-time Employees) Regulations (Amendment) 1993 No. 351
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 351
Issued by the authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Approved Part-time Employees) Regulations (Amendment)
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons. Members of the 1976 Act scheme are referred to in that Act as eligible employees.
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Section 155 of the 1976 Act provides that that Act may be modified by regulations in relation to members or former members of the superannuation scheme established under the Act who are, or have been, approved part-time employees for the purposes of that Act. Regulations for the purposes of section 155 are contained in the Superannuation (Approved Part-time Employees) Regulations (the Principal Regulations.
The Superannuation Legislation Amendment Act 1992 (the Amending Act) amended the 1976 Act to provide for additional benefits in certain limited circumstances that are required as a result of the Superannuation Guarantee (Administration) Act 1992 and to provide for certain other changes to Commonwealth superannuation schemes.
The amending Regulations amend the Principal Regulations as a consequence of amendments to the 1976 Act by the Amending Act. The amendments contained in the Regulations are explained in the Attachment.
The Amending Act amended the 1976 Act by inserting a new subsection 168(12) which provides that regulations for the purposes of section 155 made within a period of 12 months after that amendment may be expressed to have taken effect from and including the day on which that amendment was made.
In accordance with subsection 168(12) of the 1976 Act, subregulation 3.3 is taken to have commenced on 1 July 1993, the date of commencement of the provision being modified by that subregulation. The remainder of the amending Regulations commence on gazettal.
The retrospective provisions contained in subregulation 3.3 will not affect the rights of any person (other than the Commonwealth) in a manner prejudicial to that person, nor will they impose any liability on such a person. They are, therefore, in accord with the Acts Interpretation Act 1901 and do not contravene subsection 48(2) of that Act.
ATTACHMENT
SUPERANNUATION (APPROVED PART-TIME EMPLOYEES) REGULATIONS (AMENDMENT)
THE AMENDMENTS
Regulation 1
In accordance with subsection 168(12) of the 1976 Act, this provides that subregulation 3.3 is taken to have commenced on 1 July 1993, the date of commencement of the provisions being modified by subregulation 3.3. The remainder of the amending Regulations commence on gazettal.
Regulation 2
This provides that the Principal Regulations are amended as set out in the amending Regulations.
Subregulation 3.1
This makes a minor drafting amendment to the definition of "period of employment" inserted in section 3 of the 1976 Act by the Principal Regulations. The amendment is the insertion of the word "or" between the provisions contained in paragraphs (a) and (b) of that definition.
Subregulation 3.2
This makes a minor drafting amendment to the modification of subsection 5(2) in the Principal Regulations. The amendment clarifies that subsection 5(2) operates subject to subsection 5(2A) (in addition to subsections 5(3), (3A), (3B) and (3C). Subsection 5(2A) was inserted in the 1976 Act by the Principal Regulations to provide that the annual rate of salary on a particular day of an approved part-time employee is the person's equivalent full-time annual rate of salary.
Subregulation 3.3
The Amending Act inserted a new Division 2A (comprising sections 62A to 62C) in Part V of the 1976 Act with effect from 1 July 1993. The new Division provides, as a consequence of the Superannuation Guarantee legislation (the Superannuation Guarantee (Administration) Act 1992), for the preservation until retirement from the workforce of a portion of a cash-in-hand retrenchment lump sum benefit paid from the CSS.
This subregulation extends the new retrenchment preservation requirement to persons who are approved part-time employees. This is achieved by modifying section 62A to provide for the reduction (on a prorata basis to take account of the shorter hours worked by approved part-time employees) of the "notional accumulated SG contributions" and the "accumulated government body contributions". Both these terms are defined in Division 2A and used there to calculate the amount of the lump sum benefit to be preserved in accordance with the Superannuation Guarantee legislation. That lump sum is further reduced by a prorata deduction of the cost of death and invalidity cover (as determined by the Australian Government Actuary under Division 2A).
Subsection 62A(1) is modified by an amendment to the definition of notional accumulated SG contributions by providing for the application of a part-time factor to the person's SG minimum contributions and to the cost of death and invalidity cover. Subregulation 3.3 provides for the definition of the new term "part-time factor" in subsection 62A(1) and inserts a new subsection 62A(1A) which provides for the calculation of the cost of death and invalidity cover. It also inserts a new subsection 62A(1B) which provides for the definitions of the terms B and C for the purposes of the part-time factor.
The part-time factor is applied to the accumulated government body contributions by modifications to paragraphs 62A(2)(a), (b) and (c) and the insertion of a new subsection 62A(2A).
Inserted subsection 62A(2B) provides that persons who are approved part-time employees and contributing to the CSS at a full-time rate will be treated as full-time employees for the 9 purposes of the preservation requirement on retrenchment.
Subregulation 3.4
The Amending Act inserted a new Part VIAA (comprising sections 110SA to 110SJ) in the 1976 Act. The new Part provides for a Superannuation Guarantee top-up benefit for CSS members in certain circumstances so that an employer of that person may avoid an individual superannuation guarantee shortfall under the Superannuation Guarantee legislation in respect of that person. This subregulation provides for the pro-rata treatment of the new SG top-up benefit in respect of approved part-time employees by modifying section 110SB.
Since section 110SB is constructed in the same way as section 62A, the intention is achieved by modifying section 110SB in the same way that section 62A is modified by subregulation 3.3. Accordingly, the provisions in subregulation 3.4 mirror those of subregulation 3.3.