Superannuation (CSS) Approved Authority Declaration No. 7 1991 No. 422
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 422
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DECLARATION UNDER PARAGRAPH (a) OF THE DEFINITION OF "APPROVED AUTHORITY" IN SUBSECTION 3(1)
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme (the CSS) for certain Commonwealth employees and other persons.
The Superannuation Act 1990 provides for a new superannuation scheme (the PSS scheme) for Commonwealth employees which came into operation on 1 July 1990. Members of the CSS were given the option of remaining members of the CSS or of transferring to the PSS scheme.
Persons eligible to contribute under the 1976 Act include certain persons employed by an approved authority. In accordance with paragraph (a) of the definition of "approved authority" in subsection 3(1) of that Act, an approved authority includes an authority or other body declared by the Minister for Finance to be an approved authority for the purposes of the Act, being an authority or body of a kind described in the definition.
Section 4A of the 1976 Act provides that such a declaration by the Minister for Finance is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the declaration.
The Export Finance and Insurance Corporation was established under the Export Finance and Insurance Corporation Act 1991 as a body corporate with power to engage employees necessary for the performance of its functions. The Corporation was established on 1 November 1991 and commenced engaging employees on that date.
The Export Finance and Insurance Corporation is a body of a kind described in the definition of approved authority in subsection 3(1) of the 1976 Act. It is appropriate that the body be declared to be an approved authority for the purposes of that Act to enable its employees to remain or become members of the CSS.
The retrospectivity of this Declaration is required in order that those employees of the Export Finance and Insurance Corporation employed by the Corporation from 1 November 1991, and who were eligible employees immediately prior to that date, are not disadvantaged in their superannuation benefits. Such persons would otherwise be disadvantaged by being precluded from continuing their contributions to the CSS and being forced to cease their membership of it.
The Declaration contained in the Statutory Rule, and cited as Superannuation (CSS) Approved Authority Declaration No. 7, declares the Export Finance and Insurance Corporation to be an approved authority for the purposes of the 1976 Act. The Declaration provides that the Corporation is taken to be an approved authority with effect from 1 November 1991, a date which falls within the maximum period of retrospectivity permitted under section 4A of the 1976 Act.
Overview
The Superannuation (CSS) Approved Authority Declaration No. 7, issued under the authority of the Minister for Finance, serves to address a specific issue within the legislative framework of the Superannuation Act 1976. This statutory rule was enacted to ensure that employees of the Export Finance and Insurance Corporation, established under the Export Finance and Insurance Corporation Act 1991, are eligible to participate in the Commonwealth Superannuation Scheme (CSS). This declaration was necessary to prevent any discontinuity in superannuation benefits for employees who were engaged by the Corporation from 1 November 1991 and were eligible participants in the CSS prior to this date. The policy objective underpinning this rule is to ensure that these employees are not disadvantaged by the establishment of the Corporation and can continue their contributions to the CSS without interruption.
The Export Finance and Insurance Corporation, being an approved authority for the purposes of the 1976 Act, is recognised with retrospective effect from 1 November 1991. This backdating aligns with the provisions of section 4A of the 1976 Act, which allows for the declaration to take effect from a date not earlier than 12 months prior to the making of the declaration. By including this retrospective application, the rule ensures that the employees of the Corporation who were already eligible for the CSS prior to 1 November 1991, are not disadvantaged by the change in their employment status. This measure facilitates a smooth transition for these employees, allowing them to maintain their membership and benefits within the CSS.
Scope and Application
The Superannuation (CSS) Approved Authority Declaration No. 7 1991 No. 422 applies to the Export Finance and Insurance Corporation, which was established under the Export Finance and Insurance Corporation Act 1991 and commenced engaging employees from 1 November 1991. This declaration is made to enable the Corporation’s employees to remain or become members of the Commonwealth Superannuation Scheme (CSS) under the Superannuation Act 1976. The declaration identifies the Corporation as an approved authority within the meaning of the 1976 Act, thereby allowing its employees who were eligible to contribute under the Act to continue their membership of the CSS without any disadvantage. This retrospective declaration ensures that employees who were eligible prior to 1 November 1991 are not precluded from continuing their contributions and maintaining their CSS membership.
Key Provisions
The Superannuation (CSS) Approved Authority Declaration No. 7, 1991 No. 422, issued under the authority of the Minister for Finance, pertains to the Superannuation Act 1976 (sections 3(1) and 4A). It declares the Export Finance and Insurance Corporation (EFIC) as an approved authority for the purposes of the Act, which means it can facilitate its employees' participation in the Commonwealth Superannuation Scheme (CSS). The declaration ensures that employees who were eligible before 1 November 1991 and continued in employment with EFIC on that date are not disadvantaged in terms of their superannuation benefits. This declaration has retrospective effect from 1 November 1991, aligning with the maximum period of retrospectivity permitted under the Act.
Entities declared as approved authorities under this Act are required to adhere to certain provisions that govern their role in facilitating employee participation in the CSS. These entities must ensure that their employees who were eligible prior to the declaration continue to have access to the CSS without interruption. The declaration imposes a formal recognition requirement on EFIC, establishing it as an approved authority capable of administering the superannuation contributions and benefits for its employees under the CSS framework.
The Act imposes specific obligations on EFIC as an approved authority. These include ensuring that its employees can contribute to the CSS, maintaining accurate records of these contributions, and facilitating any necessary transfers or options for superannuation membership as per the provisions of the Superannuation Act 1976. Furthermore, EFIC must ensure compliance with any additional requirements or guidelines issued by the Minister for Finance to maintain its status as an approved authority.
Failure to comply with the requirements of the Act or the terms of the declaration may result in civil or criminal penalties. Although the specific penalties are not detailed in the explanatory statement, under general legislative principles, breaches could lead to fines, legal action, or other administrative consequences as prescribed by relevant laws. The Act’s provisions are designed to protect the interests of employees in maintaining their superannuation benefits without undue interruption or disadvantage.