Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1)

Administered by Department of Finance

Legislation au F2011L01392 Not in force Legislative Instrument

Legislation content

explanatory statement

Issued by the Minister for Finance and Deregulation

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 defines the term “eligible employee” that describes various classes of persons who may contribute to the CSS (that is, 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 2011 (No. 1) (the Declaration) is to amend the Principal Declaration to reflect that the Australian Reward Investment Alliance (ARIA) (formerly the PSS/CSS Board) is now known as the Commonwealth Superannuation Corporation (CSC) and that the Military Superannuation and Benefits Board of Trustees No. 1 (the MSB Board) has been abolished.  The Declaration ensures that the circumstances in which CSS membership will cease for employees of CSC are consistent with those previously in place for ARIA employees. 

The Governance of Australian Government Superannuation Schemes Act 2011 (the Governance Act) established CSC as the single trustee responsible for managing the main Commonwealth civilian and military superannuation schemes.  CSC was created by continuing in existence the body corporate that was formerly called ARIA and merging it with the MSB Board and the Defence Force Retirement and Death Benefits Authority. 

ARIA and the MSB Board were consulted on the amendments contained in the Declaration.

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

The Declaration commences on the commencement of the Governance Act.

The details of the Declaration are explained in the Attachment.


Attachment

Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1)

Section 1 - Name of Declaration

This section provides that the name of the Declaration is the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1).

Section 2 - Commencement

This section provides for the Declaration to commence on the commencement of the Governance of Australian Government Superannuation Schemes Act 2011 (the Governance Act).

Section 3 - Amendment of Superannuation (CSS) Eligible Employees — Exclusion) Declaration 2003

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 a definition of CSC, short for Commonwealth Superannuation Corporation, for the purposes of the Principal Declaration.  CSC is given the same meaning as in the Governance Act.  Section 4 of the Governance Act defines CSC as the body corporate continued in existence by section 5 of the Governance Act.  Section 5 of the Governance Act provides that the board formerly known as the Australian Reward Investment Alliance (ARIA), established under section 20 of the Superannuation Act 1990, will continue as the same body corporate under the new name of CSC.

Item 2 omits the definition of CSS/PSS Board from the Principal Declaration.  CSS/PSS Board was formerly defined as either or both of the CSS Board established under section 27A of Superannuation Act 1976 (which has since been repealed) and the PSS Board established under section 20 of the Superannuation Act 1990 (that is, ARIA).  As the definition of CSC now covers the Board established under section 20 of the Superannuation Act 1990, the definition of CSS/PSS Board is no longer required.

Item 3 omits a reference to the Board in item 1 of Schedule 1, and substitutes a reference to CSC.  As CSC is the trustee of the CSS under the Governance Act, CSC will have the role of taking the notice referred to in this item. 


Item 4 substitutes a new item 22, which formerly set out when CSS membership ceased for employees of the CSS/PSS Board.  The new item sets out when CSS membership ceases for:

  • persons who, as employees of the CSS/PSS Board were provided CSS membership under paragraph 3A(1)(zd) of the Continuing Contribution for Benefits Regulations 1981 as in force immediately before the commencement of the Principal Declaration on 1 July 2005; and
  • employees of CSC who have CSS membership through paragraph 4(2)(l) of the Superannuation (CSS) Eligible Employees — Inclusion) Declaration 2003 (the Inclusion Declaration).  That paragraph formerly applied to employees of ARIA but now includes employees of CSC, who may have been employees of ARIA or the MSB Board before the commencement of the Governance Act.

Item 22 provides that membership will cease on the earliest of the following events:

  • the end of the day when a relevant person ceases to be an employee of CSC; or
  • the end of the day immediately before the day on which the person becomes a casual or temporary employee of CSC.

These are the same circumstances in which membership would have ceased for an employee of ARIA or the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board).

Item 5 omits item 23, which applied to persons who were covered by paragraph 4(2)(o) of the Inclusion Declaration, being employees of the MSB Board.  Paragraph 4(2)(o) of the Inclusion Declaration has been omitted because the MSB Board was abolished under the Superannuation Legislation (Consequential Amendments and Transitional Provisions) Act 2011.  Therefore, item 23 is no longer required.  Former employees of the MSB Board who become employees of CSC will have their membership cessation determined by item 22.

Overview

The Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1) was enacted to update the eligibility criteria for the Commonwealth Superannuation Scheme (CSS) in accordance with changes brought about by the Governance of Australian Government Superannuation Schemes Act 2011. This amendment was necessary to reflect the establishment of the Commonwealth Superannuation Corporation (CSC) as the sole trustee for both civilian and military superannuation schemes, replacing the Australian Reward Investment Alliance (ARIA) and the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board). The Declaration was issued by the Minister for Finance and Deregulation and aims to ensure the continuity of CSS membership rules for employees transitioning from ARIA or the MSB Board to CSC. This legislative instrument addresses the need for clear and updated administrative frameworks to manage the CSS effectively under the new governance structure. The Declaration amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 to incorporate the new definitions and roles established by the Governance Act. It includes definitions and provisions to clarify that CSC now assumes the responsibilities previously held by ARIA and the MSB Board, ensuring that employees' CSS membership conditions remain consistent despite the structural changes. This amendment is essential for maintaining the integrity and functionality of the CSS in light of the new governance arrangements. The Declaration commenced on the commencement date of the Governance Act, ensuring that all changes are implemented concurrently with the new governance framework.

Scope and Application

The Superannuation Act 1976 pertains to the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and other specified persons. It defines "eligible employees," who are individuals that can contribute to the CSS, through various criteria outlined in subsection 3(1). One of these criteria allows the Minister to declare a class of persons that are not eligible to be CSS members. The Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1) amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 to update the terminology and entities involved in the administration of CSS. Specifically, it changes references from the Australian Reward Investment Alliance (ARIA) to the Commonwealth Superannuation Corporation (CSC) and removes references to the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board) due to its abolition. This amendment ensures continuity in the cessation of CSS membership for employees of CSC, aligning it with the conditions previously applicable to ARIA employees. The Declaration is a legislative instrument governed by the Legislative Instruments Act 2003 and comes into effect upon the commencement of the Governance of Australian Government Superannuation Schemes Act 2011.

Key Provisions

The Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2011 (No. 1) amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 to reflect the structural changes in the management of the Commonwealth Superannuation Scheme (CSS) brought about by the Governance of Australian Government Superannuation Schemes Act 2011. This amendment ensures that the new governance framework under the Commonwealth Superannuation Corporation (CSC) is properly reflected in the legislation. Specifically, it introduces the term "CSC" to replace the former Australian Reward Investment Alliance (ARIA) and removes references to the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board), which has been abolished. Section 3 of the Declaration details these amendments, which are necessary to align the CSS membership rules with the current governance structure. The Declaration imposes specific obligations on the parties governed by it. Primarily, it mandates that the CSC, as the new trustee of the CSS, will handle the cessation of CSS membership for its employees under the same conditions previously applicable to ARIA employees. This includes ceasing membership on the earliest of the cessation of employment or the transition to a casual or temporary employment status. Additionally, former employees of the MSB Board who now work for the CSC will have their CSS membership cessation determined under the new provisions. The Declaration ensures continuity and consistency in the application of CSS membership rules despite the structural changes. Breaching the provisions of this Declaration could lead to unintended consequences regarding CSS membership eligibility and cessation. Although the Declaration itself does not specify particular offences, penalties, or consequences for breaches, any non-compliance with the CSS membership rules could result in legal challenges or disputes. The penalties or consequences would depend on the specific breach and would be governed by the broader provisions of the Superannuation Act 1976 and related regulations. It is essential for the CSC to adhere to the amended provisions to maintain the integrity and fairness of the CSS membership rules.

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