explanatory statement

Issued by the Minister for Finance and Deregulation

Superannuation Act 1976

Declaration under paragraph (j) of the definition of eligible employee in subsection 3(1) of the Superannuation Act 1976.

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 (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 not to be declared CSS members under paragraph (j) of the definition of eligible employees.

The purpose of the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2) (the Declaration) is to amend the Principal Declaration in order to provide when employees of the Australian Reinsurance Pool Corporation (ARPC) cease CSS membership after the commencement of this amending declaration.

ARPC is a Commonwealth authority established under the Terrorism Insurance Act 2003 to administer the terrorism reinsurance scheme.

ARPC 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 day after it is registered.

The details of the Declaration are explained in Attachment A.

A Statement of Compatibility with Human Rights is at Attachment B.

Attachment A

Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (no. 2)

Section 1 – Name of Declaration

This section provides that the name of the Declaration is the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2).

Section 2 – Commencement

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

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

This clause 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 ARPC, short for the Australian Reinsurance Pool Corporation.

Item 2 inserts item 26 into the table at Schedule 1 of the Principal Declaration.  Item 26 provides that CSS membership ceases for a person who has CSS membership through paragraph 4(2)(r) of the Principal Declaration when any of the following events occur:

• the person ceases employment with ARPC;
• the person becomes a casual or temporary part-time employee of ARPC;
• ARPC ceases to be a Commonwealth authority.

Item 26 also specifies the time that CSS membership is taken to cease for each of the circumstances above.

ATTACHMENT B