EXPLANATORY STATEMENT
ISSUED BY THE MINISTER FOR SUPERANNUATION AND CORPORATE LAW ACTING FOR AND ON BEHALF OF THE MINISTER FOR FINANCE AND DEREGULATION
Superannuation BENEFITS (SUPERVISORY MECHANISMS) Act 1990
DETERMINATION UNDER PARAGRAPH 6(1)(a)
SUPERANNUATION BENEFITS (PRESCRIBED REQUIREMENTS) AMENDMENT DETERMINATION 2008 (NO. 1)
The Superannuation Benefits (Supervisory Mechanisms) Act 1990 (the Act) sets the supervisory framework for the provision of superannuation arrangements for Australian Government employees. The Act covers the superannuation arrangements of both employees employed under the Public Service Act 1999 (PS Act), and also those who are employed under other relevant laws, or by a relevant body.
Under the Act, a relevant law is a Commonwealth law, subject to two exceptions named in the Act. A relevant body is, in most cases, a body in which the Commonwealth has a controlling interest.
Subject to membership eligibility, the superannuation arrangements for the majority of employees under the PS Act are provided through the Australian Government civilian schemes – the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) and the Public Sector Superannuation Accumulation Plan (PSSAP).
Provision of superannuation arrangements for employees who are employed under a relevant law or by a relevant body is subject to restrictions imposed by the Act. Although superannuation arrangements for many employees in this category continue to be provided through the Australian Government civilian schemes, some employers have been given flexibility to establish their own superannuation arrangements for their employees – known as alternative superannuation arrangements. Examples of such employers are Australia Post and the Civil Aviation Safety Authority (CASA).
Determinations made under the Act set out “prescribed requirements” which specify the requirements that must be met before an employer is allowed to offer their employees alternative superannuation arrangements.
This Determination, cited as the Superannuation Benefits (Prescribed Requirements) Amendment Determination 2008 (No. 1):
- allows employees to make contributions to an alternative superannuation arrangement if they have ceased membership of the PSS in accordance with the Choice of Fund arrangements for PSS members that are due to commence on 1 July 2008; and
- allows alternative superannuation arrangements to continue for certain employees whose employment arrangements or employer status have changed, for example, where a body is transferred from the Commonwealth Authorities and Companies Act 1997 (CAC Act) to the Financial Management and Accountability Act 1997 (FMA Act).
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LI Act).
No consultation was undertaken in relation to this Determination. In accordance with paragraph 18(2)(a) of the LI Act, consultation was considered to be unnecessary because the instrument is of a minor or machinery nature.
The Determination commences on 1 July 2007. This retrospective application will regularise arrangements already in place for a number of bodies that transferred from the CAC Act to the FMA Act on or since that date.
As the superannuation arrangements allowed by the determination are beneficial to employees, it is legally valid to make the Determination with retrospective effect.