Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1) 2000 No. 33
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 33
Issued by the authority of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1)
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.
Since 1 July 1990 the CSS has been replaced by the Public Sector Superannuation Scheme that is provided for under the Superannuation Act 1990 as the main superannuation scheme for Commonwealth employees. Membership of the CSS continues to be available to existing members and certain former members (for example, former members with preserved benefits in the CSS).
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 3(1)(j) allows certain classes of persons, who would otherwise be eligible employees, to be excluded, by regulation, from the definition of eligible employee. These classes of persons are prescribed in the Superannuation (CSS) Eligible Employees Regulations 1976 (the Principal Regulations).
ACTEW Corporation is an approved authority for the purposes of the 1976 Act. As a consequence CSS membership is compulsory for all permanent employees and optional for certain temporary employees of ACTEW Corporation for whom CSS membership continues to be available.
ACTEW Corporation has introduced new superannuation arrangements for new employees. Under these arrangements, new employees of ACTEW Corporation, including those for whom CSS membership continues to be available, are to be offered choice of superannuation fund.
The purpose of the Regulations is to amend the Principal Regulations to confirm that certain new ACTEW Corporation employees who have prior links to the CSS are able to maintain their membership. The Regulations provide that these employees retain their CSS membership unless they elect to cease CSS membership within 28 days of commencing employment with ACTEW Corporation. An employee who makes such an election can join an accumulation superannuation scheme of their choice in accordance with ACTEW Corporation's new superannuation arrangements provided for under their enterprise agreement.
Details of the amendments are explained in the Attachment. The Regulations commence on gazettal.
ATTACHMENT
SUPERANNUATION (CSS) ELIGIBLE EMPLOYEES AMENDMENT REGULATIONS 2000 (No. 1)
Regulation 1
Regulation 1 provides that the Regulations are called the Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1).
Regulation 2
Regulation 2 provides that the Regulations commence on gazettal.
Regulation 3
Regulation 3 provides that the Principal Regulations are amended in accordance with Schedule 1.
Schedule 1
Item 1 amends the punctuation of paragraph 4(1)(zr) as a consequence of the insertion of paragraph 4(1)(zs) by item 2.
Item 2 inserts paragraph 4(1)(zs) to provide that certain classes of persons who continue or recommence CSS membership upon commencing employment with ACTEW Corporation, may, within 28 days of commencing that employment, elect not to be treated as CSS members.
The classes of persons who continue to be CSS members unless they elect to cease membership within 28 days of commencing employment with ACTEW Corporation are persons who:
(i) were CSS members immediately before commencing that employment;
(ii) were invalidity pensioners under the superannuation scheme established under the Superannuation Act 1922 (the superseded Act);
(iii) were in receipt of a CSS invalidity pension (or who have a suspended CSS invalidity pension) immediately before commencing employment;
(iv) have a right to future payment of deferred benefits from the CSS or from the superannuation scheme established under the superseded Act; or
(v) were formerly members of the CSS or the superannuation scheme established under the superseded Act and have preserved rights of return to the CSS because they bring a transfer value to CSS that includes a transfer value previously taken from the CSS in respect of previous membership.
Overview
The Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1) was enacted to address the gap arising from the introduction of new superannuation arrangements by ACTEW Corporation, an approved authority under the Superannuation Act 1976. These regulations were established to ensure that certain new employees with prior links to the Commonwealth Superannuation Scheme (CSS) could maintain their CSS membership. The Superannuation Act 1976 allows the Governor-General to make regulations for the purposes of the Act, and the amendments provided by these regulations were issued by the authority of the Minister for Finance and Administration. The policy objective of these regulations is to facilitate a smooth transition for eligible employees who continue or recommence CSS membership when they begin employment with ACTEW Corporation, while also enabling them to opt out of CSS membership if they choose, in accordance with the new superannuation arrangements.
The regulations were designed to amend the existing Superannuation (CSS) Eligible Employees Regulations 1976, ensuring that certain classes of persons retain their CSS membership unless they elect to cease it within 28 days of starting employment with ACTEW Corporation. This allows for flexibility and choice for employees, aligning with the new superannuation options provided by ACTEW Corporation under their enterprise agreement. The regulations came into effect upon gazettal, with specific details of the amendments outlined in the attached schedule.
Scope and Application
The Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1) applies to the Commonwealth Superannuation Scheme (CSS) under the Superannuation Act 1976, and it specifically addresses the membership status of certain employees of ACTEW Corporation. The Act provides a mechanism for the Governor-General to make regulations for the purposes of the 1976 Act, and this regulation amendment focuses on modifying the definition of "eligible employee" to accommodate new employees of ACTEW Corporation who have prior links to the CSS. The regulation applies to those who were CSS members immediately before commencing employment, invalidity pensioners under the superseded Act, in receipt of a CSS invalidity pension, have a right to future payment of deferred benefits, or were formerly members of the CSS with preserved rights of return. Employees have 28 days from the commencement of their employment with ACTEW Corporation to elect to cease CSS membership, after which they may join another superannuation scheme as per ACTEW Corporation's new arrangements. The Regulations commence on gazettal, and any further application or restrictions are outlined in subordinate instruments as necessary.
Key Provisions
The Superannuation (CSS) Eligible Employees Amendment Regulations 2000 (No. 1) (the Regulations) provide for the amendment of the Principal Regulations, which define "eligible employee" under the Superannuation Act 1976 (the 1976 Act). Regulation 2 stipulates that the Regulations commence on gazettal, meaning they come into force as soon as they are published in the Commonwealth of Australia Gazette. Regulation 3 specifies that the Principal Regulations are amended according to Schedule 1, which includes the insertion of new provisions and amendments to existing ones.
Under the amended Principal Regulations, certain classes of employees who have prior links to the Commonwealth Superannuation Scheme (CSS) and commence employment with ACTEW Corporation may retain their CSS membership. These employees include those who were CSS members immediately before commencing employment, invalidity pensioners under the superannuation scheme established under the Superannuation Act 1922, those in receipt of a CSS invalidity pension, those with a right to future payment of deferred benefits from the CSS or the superseded Act superannuation scheme, and former CSS or superseded Act superannuation scheme members with preserved rights of return due to a transfer value. These employees may retain their CSS membership unless they elect to cease CSS membership within 28 days of commencing employment with ACTEW Corporation (Schedule 1, Item 2).
The Regulations impose obligations on ACTEW Corporation to ensure that eligible employees who continue or recommence CSS membership upon commencing employment are offered the choice to retain their CSS membership. Specifically, ACTEW Corporation must allow these employees the option to elect not to be treated as CSS members within 28 days of commencing employment. This obligation ensures that employees with prior links to the CSS are not automatically excluded from maintaining their membership and provides them with a choice to join an accumulation superannuation scheme of their choice in accordance with ACTEW Corporation's new superannuation arrangements.
Breach of the Regulations or failure to comply with the obligations imposed on ACTEW Corporation could result in legal consequences. However, the explanatory statement does not specify any offences, penalties, or civil or criminal consequences for breach. The primary focus of the Regulations is to clarify the eligibility of certain employees to retain their CSS membership and provide them with the choice to continue or cease membership within the specified timeframe.