Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 446
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 446
Issued by authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Continuing Contributions for Benefits) Regulations (Amendment)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for certain Commonwealth employees and other persons.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Persons eligible to contribute under the Act are referred to as "eligible employees". The term "eligible employee" is defined in subsection 3(i) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A of the Act applies.
Regulations under section 14A may specify persons to whom the section applies and may modify the Act in respect of such persons. These provisions are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).
The Commonwealth provides health services to veterans and their dependants through the repatriation hospitals and other facilities. These repatriation hospitals and some other repatriation institutions are to be transferred to State control as part of the integration of veterans' health services with those of the States.
On transfer of the repatriation hospitals and other repatriation institutions to State control, staff employed at these institutions may transfer to State employment. These staff are at present employed under the Public Service Act 1922 and include persons who are eligible employees under the Act.
Staff who transfer to State employment will be taken, by virtue of the Repatriation Institutions (Staff) Act, to have resigned from the Commonwealth Public Service. Rather than superannuation resignation benefits becoming payable, it is intended that any Commonwealth Superannuation Scheme members who transfer may continue to be eligible employees for the purposes of the Act, subject to negotiations with the respective States, including negotiation on recovery of the relevant employer superannuation costs.
The amendments to the regulations provide that staff of an institution who transfer to State employment shall be eligible employees if, immediately before transfer, they were eligible employees and do not become members of a superannuation scheme applying to employment with the State. In accordance with the provisions of the Act, the amended regulations exclude persons who become casual employees or part-time temporary employees from remaining eligible employees.
The amended regulations also provide that the staff will continue as eligible employees unless the Minister for Finance signs a certificate to the effect that satisfactory arrangements have not been made in respect of payments by the States for the staff. This provision is primarily to ensure that the States meet the cost to the Commonwealth of continuing to provide superannuation benefits for those staff.
The amendments will come into effect on commencement of the Repatriation Institutions (Staff) Act.
Overview
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 446 were issued under the authority of the Minister for Finance and amend the existing regulations in relation to the Superannuation Act 1976. The purpose of these amendments is to address the transition of staff from Commonwealth control to State control, particularly concerning their eligibility to continue contributing to the superannuation scheme. This regulation is crucial for ensuring that eligible employees who transfer to State employment can maintain their eligibility for superannuation benefits, subject to negotiations and agreements between the Commonwealth and the respective States. The overarching policy objective is to facilitate a smooth transition of superannuation benefits for staff who transfer to State employment while ensuring that the States bear the cost of continuing these benefits.
Scope and Application
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 446 applies to eligible employees who are transferring from Commonwealth employment in repatriation hospitals and other institutions to State employment. These employees must have been eligible employees under the Superannuation Act 1976 immediately before the transfer and must not become members of a superannuation scheme applicable to State employment. The regulation ensures that these staff members retain their eligibility to continue superannuation contributions, subject to negotiations with the respective States and the recovery of relevant employer superannuation costs. The amendments also exclude casual employees or part-time temporary employees from continuing as eligible employees. Furthermore, the eligibility of these employees can be revoked if the Minister for Finance certifies that satisfactory arrangements for State payment contributions have not been made. These regulations are made under the authority of the Superannuation Act 1976 and will come into effect upon the commencement of the Repatriation Institutions (Staff) Act.
Key Provisions
The main operative sections of these regulations amend the Superannuation (Continuing Contributions for Benefits) Regulations 1977 (the Regulations) to adjust eligibility for superannuation benefits for staff transferring from Commonwealth to State employment following the transfer of repatriation hospitals and institutions to State control. Section 4 of the Regulations is amended to ensure that staff who were eligible employees under the Superannuation Act 1976 (the Act) immediately before their transfer to State employment will remain eligible employees, provided they do not become members of a superannuation scheme applying to their State employment. This amendment aims to maintain the continuity of superannuation benefits for these staff during the transition period. Section 4(2) of the Regulations is also amended to exclude casual employees or part-time temporary employees from remaining eligible employees. This ensures that only those staff who were previously covered under the Commonwealth superannuation scheme can continue to benefit from it, subject to certain conditions.
The Act imposes several obligations and requirements on the parties involved. Firstly, eligible employees transferring to State employment must not become members of a superannuation scheme applying to their State employment to remain eligible employees under the Act. This is a condition set forth in the amended regulations to ensure that the Commonwealth continues to provide superannuation benefits for these staff. Secondly, the Minister for Finance is required to sign a certificate stating that satisfactory arrangements have not been made in respect of payments by the States for the staff, unless the States are to meet the cost of continuing to provide superannuation benefits. This is a safeguard to ensure that the States are financially responsible for the superannuation costs of the transferring staff. Lastly, the regulations will come into effect on the commencement of the Repatriation Institutions (Staff) Act, ensuring a seamless transition for the affected staff.
Failure to comply with the provisions of the amended regulations may result in legal consequences for the parties involved. While the specific offences, penalties, or consequences are not detailed in the explanatory statement, it is implied that non-compliance with the Act's requirements could lead to civil or criminal penalties. These may include fines, imprisonment, or other sanctions as prescribed by the relevant laws. The maximum penalties for such offences would depend on the specific provisions of the Superannuation Act 1976 and any other applicable legislation. It is important for all parties involved to adhere to the requirements set forth in the amended regulations to avoid potential legal repercussions.