Overview

The Superannuation (CSS) (Eligible Employees – Inclusion) Amendment Declaration 2005 (No. 2) was introduced to address the need for continued membership in the Commonwealth Superannuation Scheme (CSS) for employees transitioning from other entities to the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board). Enacted by the Minister for Finance and Administration, this legislative instrument aims to ensure that employees who were previously members of the CSS and are not members of another superannuation scheme can maintain their CSS membership when they become employees of the MSB Board, excluding those employed on a temporary or part-time basis. This amendment was developed in consultation with the Department of Defence and is considered machinery in nature, ensuring that it does not alter existing arrangements for current employees transferring from ComSuper to the MSB Board or future employees who already have CSS membership prior to their employment commencement. The declaration was drafted by the Office of Legislative Drafting and Publishing and is a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Superannuation Act 1976 provides for the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and certain other persons. It outlines the eligibility criteria for persons to be considered as CSS members, including through declarations by the Minister for Finance and Administration under specific provisions. The Superannuation (CSS) (Eligible Employees – Inclusion) Amendment Declaration 2005 (No. 2) amends the Superannuation (CSS) (Eligible Employees – Inclusion) Declaration 2003 to ensure continued CSS membership for employees of the Military Superannuation and Benefits Board of Trustees No. 1, provided they were members of the CSS prior to employment with the Board and are not members of an alternative superannuation scheme in relation to their employment with the Board. This Amendment Declaration applies to the Commonwealth jurisdiction and has been prepared in consultation with the Department of Defence. The Declaration commences on the day after its registration on the Federal Register of Legislative Instruments and does not require further consultation as it is machinery in nature and does not alter existing arrangements.

Key Provisions

The Superannuation (CSS) (Eligible Employees – Inclusion) Amendment Declaration 2005 (No. 2) amends the Superannuation (CSS) (Eligible Employees – Inclusion) Declaration 2003 to ensure that employees of the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board) retain their Commonwealth Superannuation Scheme (CSS) membership. This is relevant under paragraph (ec) of the definition of ‘eligible employee’ in subsection 3(1) of the Superannuation Act 1976. The amendment applies to employees of the MSB Board, excluding those employed on a casual or temporary part-time basis, who were CSS members immediately before joining the MSB Board and are not members of another superannuation scheme related to their employment with the MSB Board. Entities governed by the Act, such as the MSB Board, are required to ensure that employees who meet the criteria under the amended Declaration retain their CSS membership. This involves verifying that the employee was a CSS member prior to employment with the MSB Board and confirming that they are not participating in another superannuation scheme related to their employment with the MSB Board. Failure to comply with these requirements may lead to administrative consequences, though no specific administrative obligations are outlined in the Declaration. While the Declaration does not explicitly detail criminal or civil penalties for non-compliance, any breach of the conditions for maintaining CSS membership could result in the affected employee losing their CSS membership. This outcome would be a significant consequence for the individual concerned, impacting their retirement benefits and superannuation entitlements. The Declaration itself is machinery in nature, meaning it does not alter existing arrangements and is not subject to further consultation as it pertains to the smooth transition of employees from the Commonwealth Superannuation to the MSB Board. The Declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.