EXPLANATORY STATEMENT
SUPERANNUATION ACT 1976
DETERMINATION UNDER SECTION 248 (1)
The Commonwealth Superannuation Scheme (the CSS) established by the Superannuation Act 1976 (the Act) provided the superannuation scheme for Commonwealth employees until 1 July 1990 when the Public Sector Superannuation scheme (PSS) , constituted under the Superannuation Act 1990, was introduced. The CSS was closed to new members on 1 July 1990 but continued to provide benefits for existing members.
Part XIV of the Act enables the establishment of arrangements for the transfer of members of the CSS to the PSS. Section 244 defines those persons eligible to transfer to the PSS and provides that such persons may declare in writing to the CSS Board [now Australian Reward Investment Alliance, ‘ARIA’] that they wish to become members of the PSS and elect to cease to be eligible employees for the purposes of the CSS.
Section 245 provides that a person who elects under section 244 ceases to be an eligible employee at the end of the day on which he or she makes the election.
Section 248 empowers the Minister for Finance and Administration [now Minister for Finance and Deregulation] to determine the assets (and liabilities) of the CSS Fund established under the Act to be transferred to the PSS established under the Superannuation Act 1990. The assets to be transferred must fairly and equitably represent the accumulated contributions and accumulated employer contributions of those that have become PSS members. On 3 October 2000, the Minister delegated these powers to the CSS Board [now ARIA].
There have been two choice periods where members could elect to transfer to the PSS. The “first choice” period was 1 July 1990 to 30 June 1991. Previous Ministerial Determinations of 24 June 1992, 11 August 1992, 18 May 1993, 23 February 1996, and 14 August 1997, Superannuation Assets Transfer (Superannuation Fund No. 1/PSS Fund) Determination Nos 1 to 5 refer.
The “second choice” period was 1 March 1996 to 2 September 1996. CSS Board Determination Nos 6, 7 and 8 respectively refer.
Determination 9 made on 10 January 2006 related to 19 members of CSS who were re-employed and, during the period 1 July 2002 to 30 June 2005, in special circumstances covered by the legislation, exercised their right to transfer to the PSS.
This determination relates to 3 members of CSS who were re-employed and, during the period 1 July 2006 to 30 June 2007, in special circumstances covered by the legislation, exercised their right to transfer to the PSS.
In this determination, ARIA has determined the assets that fairly and equitably represent the accumulated contributions and accumulated employer contributions of the CSS members who transferred to the PSS.
This determination may be cited as “Superannuation (CSS) Assets Transfer (PSS Fund) Determination No. 10”.
Overview
The Superannuation Act 1976 was enacted to address the need for a comprehensive superannuation scheme for employees of the Commonwealth of Australia. The Act established the Commonwealth Superannuation Scheme (CSS) to provide superannuation benefits for these employees until the introduction of the Public Sector Superannuation (PSS) scheme under the Superannuation Act 1990. The CSS was closed to new members on 1 July 1990 but continued to provide benefits for existing members. The Act includes provisions, such as those in Part XIV, for the transfer of members from the CSS to the PSS, with the Minister for Finance and Administration empowered to determine the transfer of assets and liabilities. The policy objective is to ensure that the transition from the CSS to the PSS is conducted in a manner that fairly and equitably represents the contributions of the members who transfer to the new scheme.
Scope and Application
The Superannuation (CSS) Assets Transfer (PSS Fund) Determination No. 10 applies to members of the Commonwealth Superannuation Scheme (CSS) who have elected to transfer to the Public Sector Superannuation (PSS) during the period 1 July 2006 to 30 June 2007. These members must have been re-employed under special circumstances covered by the legislation to be eligible for this transfer. The determination pertains to the assets of the CSS Fund that are to be transferred to the PSS Fund, ensuring that these assets fairly and equitably represent the accumulated contributions and accumulated employer contributions of the transferring members. The determination was made under the authority of the Minister for Finance and Deregulation, who has delegated these powers to the Australian Reward Investment Alliance (ARIA), previously known as the CSS Board. The geographic reach of this determination is national, encompassing all members of the CSS across Australia who meet the specified criteria and timeframe. There are no stated exclusions or exemptions in this determination, and it operates within the legislative framework provided by the Superannuation Act 1976 and subsequent acts. The determination may be supplemented by subordinate instruments to further clarify the transfer process or address any additional specific circumstances.
Key Provisions
The main operative sections of this determination (Superannuation (CSS) Assets Transfer (PSS Fund) Determination No. 10) under the Superannuation Act 1976 (the Act) pertain to the transfer of assets from the Commonwealth Superannuation Scheme (CSS) to the Public Sector Superannuation (PSS) scheme. Section 248 of the Act provides the authority for the Minister for Finance and Deregulation to determine the assets and liabilities of the CSS Fund that are to be transferred to the PSS Fund. This determination is made to ensure that the assets transferred fairly and equitably represent the accumulated contributions and employer contributions of the members who have transferred to the PSS. This determination specifically relates to the transfer of assets for three CSS members who were re-employed and exercised their right to transfer to the PSS during the period from 1 July 2006 to 30 June 2007 under special circumstances covered by the legislation.
The obligations and requirements imposed by this Act on the parties governed by it include the necessity for eligible CSS members to declare in writing their intention to transfer to the PSS, as outlined in Section 244. Once a member makes this election, they cease to be an eligible employee of the CSS as per Section 245. The CSS Board, now known as the Australian Reward Investment Alliance (ARIA), is responsible for implementing the determination of asset transfer, ensuring that the assets transferred are representative of the contributions and employer contributions of the transferring members. The Minister’s delegation of powers to ARIA on 3 October 2000 means that ARIA is tasked with the responsibility of executing the transfer as determined by the Minister under Section 248 of the Act.
In terms of offences, penalties, or civil/criminal consequences for breach, the Act does not explicitly detail specific penalties within this determination. However, the Act generally provides that any breach of the provisions could lead to legal consequences. These could include financial penalties or legal action to enforce compliance with the Act’s requirements. The maximum penalties would depend on the nature and severity of the breach, as determined by the relevant authorities under the Act. It is essential for all parties involved to adhere strictly to the provisions to avoid any potential legal repercussions.