Superannuation (CSS) Eligible Employees Amendment Regulations 1999 (No. 2) 1999 No. 298
EXPLANATORY STATEMENT
STATUTORY RULES 1999 No. 298
Issued by the authority of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) Eligible Employees Amendment Regulations 1999 (No. 2)
The Superannuation Act 1976 (the 1976 Act) makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is an occupational superannuation scheme for Commonwealth employees and for certain other persons. Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Subsection 3(1) of the 1976 Act contains the definition of "eligible employee" which describes persons who may contribute to the CSS (ie CSS members). Paragraph (j) of that definition provides that a person who would otherwise be an eligible employee may be included in a prescribed class of persons who are not eligible employees. The Superannuation (CSS) Eligible Employees Regulations (the Principal Regulations) contain classes of persons that are prescribed classes of persons for the purposes of paragraph of the definition of eligible employee.
The purpose of the Regulations is to amend the Principal Regulations as a consequence of the establishment of the Australian Parliamentary Service (APS) that will take effect upon the commencement of the Parliamentary Service Act 1999 (the Parl SA 1999) and the associated Public Employment (Consequential and Transitional) Amendment Act 1999 (the PE(CT)A Act). The persons who become APS employees upon the commencement of the Parl SA 1999 are persons who were employed under the Public Service Act 1922 (the PSA 1922) immediately before the commencement of the Parl SA 1999.
Persons employed under the PSA 1922 are described as "officers" or "employees". Officers are included in the definition of "permanent employee" in subsection 3(1) of the 1976 Act, and are automatically members of the CSS. Employees under the PSA 1922 are included in the definition of "temporary employee" in the 1976 Act and have options to join the CSS in certain circumstances. Since 1990, new membership of the CSS has only been available to persons who have a prior connection to the scheme.
The PE(CT)A Act amends the definition of permanent employee and temporary employee in the 1976 Act to remove the references to "officer" and "employee". The amended definition of "permanent employee" includes persons employed by the Commonwealth in a permanent capacity and, therefore, will cover all officers as well as some employees for the purposes of the PSA 1922. As a consequence some persons employed under the PSA 1922 who are temporary employees for the purposes of the 1976 Act and have not exercised an option to join the CSS will become permanent employees for the purposes of the 1976 Act by virtue of employment by the Commonwealth under the Parl SA 1999. Permanent employees are automatically CSS members unless they are included in a prescribed class of persons in the Principal Regulations.
The Regulations provide that persons who are "employees" for the purposes of the PSA 1922 and are in continuing employment and have an option to join the CS 8, but have not done so, do not automatically become members on the commencement of the Parl SA 1999 but continue to have an option to do so in certain circumstances. The Declaration does not adversely affect members' benefits or rights.
Details of the amendments are explained in the Attachment.
The Regulations commence on the commencement of the Parl SA 1999.
ATTACHMENT
SUPERANNUATION (CSS) ELIGIBLE EMPLOYEES AMENDMENT REGULATIONS 1999 (NO. 2)
Regulation 1
Regulation 1 provides that the Regulations are called the Superannuation (CSS) Eligible Employees Amendment Regulations 1999 (No. 2).
Regulation 2
Regulation 2 provides that the Regulations commence on the commencement of the Parliamentary Service Act 1999.
Regulation 3
Regulation 3 provides that the Principal Regulations are amended in accordance with Schedule 1.
Schedule 1
Item 1 amends the punctuation of sub-sub paragraph 4(1)(zp)(iv) as a consequence of the insertion of sub paragraph 4(1)(zq) by item 2.
Item 2 inserts sub paragraph 4(1)(zq). The inserted sub paragraph describes a class of persons who are not CSS members. That class of persons comprises persons who, immediately before the commencement of the Parl SA 1999 were employed under the PSA 1922 and were not CSS members and who become permanent employees for the purposes of the 1976 Act upon the commencement of the Parl SA 1999 and have not elected to be treated as CSS members.
The inserted paragraph ensures that a temporary employee for the purposes of the 1976 Act who had an option to become a CSS member immediately prior to the commencement of the Parl SA 1999 and who becomes a permanent employee upon the commencement of Parl SA 1999 does not automatically become a CSS member. A person contained in this class of persons retains the option to join the CS S while he or she continues to be an APS employee. The option may be exercised by making an election in writing to be treated as a CSS member.