Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1994 No. 8
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 8
Issued by the 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 (the CSS) for certain Commonwealth employees and other persons. Persons eligible to contribute to the CSS are referred to in the Act as eligible employees.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A applies. Regulations under section 14A may specify classes of persons to which the section applies and may modify the Act in respect of such persons.
Regulations for the purposes of section 14A are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations).
The National Blood Group Reference Laboratory (previously part of Commonwealth Serum Laboratories Limited (CSL Ltd)) was transferred to the New South Wales Red Cross Blood Transfusion Service (NSW BTS) on 1 September 1993. The Director of the Laboratory, who as an employee of CSL Ltd was a CSS member, transferred to employment with the NSW BTS also with effect from 1 September 1993.
Under an agreement between the Commonwealth and the Australian Red Cross Society New South Wales Division (the transfer agreement), the operations of the Laboratory will continue to be funded by the Commonwealth Government for an interim period of 3 years commencing on 1 September 1993.
The Regulations which amend the Principal Regulations, enable the Director of the Laboratory to continue his membership of the CSS after his transfer to NSW BTS.
The details of the amendments to the Regulations are explained in the Attachment.
The Regulations operate with retrospective effect from 1 September 1993, the date of transfer. This ensures continued CSS membership for the Director so that his superannuation entitlements are not adversely affected by the transfer. Both the NSW BTS and the Director have indicated in writing that they are prepared to make contributions to the CSS with effect from 1 September 1993.
The retrospectivity of the Regulations does not contravene subsection 48(2) of the Acts Interpretation Act 1901 in that the rights of the Director are not affected in a manner prejudicial to him nor are liabilities imposed on him.
Overview
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1994 No. 8 were introduced to address the gap in the continuation of superannuation benefits for the Director of the National Blood Group Reference Laboratory following its transfer to the New South Wales Red Cross Blood Transfusion Service on 1 September 1993. This amendment ensures that the Director remains eligible for superannuation contributions under the Commonwealth Superannuation Scheme (CSS), despite the transfer. These regulations were enacted by the authority of the Minister for Finance under the Superannuation Act 1976, which governs the occupational superannuation scheme for certain Commonwealth employees and other persons. The policy objective of the amendment is to protect the superannuation entitlements of the Director, ensuring that his transfer does not result in any adverse consequences to his accrued benefits.
Scope and Application
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1994 No. 8, issued under the authority of the Minister for Finance, amends the Superannuation (Continuing Contributions for Benefits) Regulations 1994, which themselves are made pursuant to the Superannuation Act 1976. This Act pertains to an occupational superannuation scheme (CSS) for certain Commonwealth employees and other individuals deemed eligible, known as eligible employees. The amended regulations specifically address the transition of the National Blood Group Reference Laboratory from Commonwealth Serum Laboratories Limited to the New South Wales Red Cross Blood Transfusion Service, effective from 1 September 1993. The amendment enables the Director of the Laboratory, who transferred to the New South Wales Red Cross Blood Transfusion Service on the same date, to maintain his CSS membership, ensuring continuity of his superannuation entitlements. The regulatory changes operate retrospectively from the date of transfer, thereby safeguarding the Director's rights and entitlements without imposing any liabilities on him, as per the provisions of the Acts Interpretation Act 1901.
Key Provisions
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1994 No. 8 (the Regulations) amends the existing Superannuation (Continuing Contributions for Benefits) Regulations 1994 under the Superannuation Act 1976. These amendments primarily aim to allow the Director of the National Blood Group Reference Laboratory to continue his membership in the Commonwealth Superannuation Scheme (CSS) despite a transfer of employment from the Commonwealth to the New South Wales Red Cross Blood Transfusion Service (NSW BTS) on 1 September 1993. This is achieved by modifying the Principal Regulations to include the Director in the class of persons to whom section 14A of the Act applies.
Under the amended Regulations, the Director's eligibility to remain in the CSS is preserved, ensuring that his superannuation entitlements remain unaffected by the transfer. This is done through the retroactive application of the Regulations from 1 September 1993, the date of the transfer. Both the NSW BTS and the Director have agreed in writing to make contributions to the CSS from the effective date of the transfer. The retrospective effect of the Regulations does not contravene subsection 48(2) of the Acts Interpretation Act 1901, as it does not adversely affect the Director's existing rights or impose new liabilities on him.
The obligations imposed by these Regulations include the requirement for the NSW BTS and the Director to ensure that contributions to the CSS are made as per the agreement. The NSW BTS, as the new employer, is responsible for facilitating the continued membership of the Director in the CSS by ensuring that contributions are made to the scheme. The Director, as the member, must also comply with the provisions of the CSS by ensuring that he continues to be an active member and participates in the scheme.
Breach of the obligations set out in the Regulations may result in civil or criminal consequences. The Act provides that failure to comply with the regulations may result in penalties under section 213 of the Superannuation Act 1976, which includes fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, but they are intended to enforce compliance with the superannuation scheme and protect the entitlements of the members.