explanatory statement

Issued by the authority of the Minister for Finance and Administration

Superannuation Act 1976

Declaration under paragraph (j) of the definition of eligible employee included in subsection 3(1)

The Superannuation Act 1976 (the Act) makes provision for and in relation to the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and for certain other persons.

Subsection 3(1) of the Act contains the definition of the term ‘eligible employee’ that describes various classes of persons who may contribute to the CSS (ie CSS members).  Paragraph (j) of the definition provides that the Minister may declare a class of persons not to be CSS members.

The Superannuation (CSS) (Eligible Employees – Exclusion) Declaration 2003 (the Principal Declaration) identifies the persons who are declared not to be CSS members under paragraph (j) of the definition of eligible employee.

The purpose of the Superannuation (CSS) (Eligible Employees – Exclusion) Amendment Declaration 2005 (No. 2) (the Amending Declaration) is to amend the Principal Declaration in order to provide when employees of the Military Superannuation and Benefits Board of Trustees No. 1 (the MSB Board) cease CSS membership.

The Amending Declaration provides that CSS membership for employees of the MSB Board will cease when the employee ceases employment with the MSB Board or where the person becomes a casual or temporary part‑time employee of the MSB Board.

The Amending Declaration has been prepared in consultation with the Department of Defence and was drafted by the Office of Legislative Drafting and Publishing.

No further consultation is required as the instrument is machinery in nature and will not alter existing arrangements for employees of ComSuper who will transfer to the MSB Board following the commencement of this instrument and future employees of the MSB Board who have CSS membership prior to commencing employment with the MSB Board.

The Amending Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Amending Declaration commences on the day after registration on the Federal Register of Legislative Instruments.

The details of the Amending Declaration are explained in the Attachment.

Attachment

Superannuation (CSS) (Eligible Employees – EXclusion) Amendment Declaration 2005 (No. 2)

Section 1

This section provides that the name of the Declaration is the Superannuation (CSS) (Eligible Employees – Exclusion) Amendment Declaration 2005 (No. 2).

Section 2

This section provides for the Declaration to commence on the day after it is registered.

Section 3

This section provides that Schedule 1 of the Declaration amends the Superannuation (CSS) (Eligible Employees – Exclusion) Declaration 2003 (the Principal Declaration).

Schedule 1 – Amendments

Item 1 inserts item 23 into Schedule 1 of the Principal Declaration, which describes the circumstances that result in CSS membership of employees of the Military Superannuation and Benefits Board of Trustees No. 1 (the MSB Board) ceasing.  Item 23 provides that CSS membership ceases for a person who has CSS membership through paragraph 4(2)(o) of the Superannuation (CSS) (Eligible Employees – Inclusion) Declaration 2003 when the person:

• ceases employment with the MSB Board; or
• becomes a casual or temporary part‑time employee of the MSB Board.