explanatory statement

Issued by the Minister for Finance and Deregulation

Superannuation Act 1976

Declaration under paragraph (ec) 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 (that is, CSS members). Paragraph (ec) of the definition provides that the Minister may declare a class of persons to be CSS members.

The Superannuation (CSS) (Eligible Employees — Inclusion) Declaration 2003 (the Principal Declaration) identifies the persons who are declared CSS members under paragraph (ec) of the definition of eligible employees.

The purpose of the Superannuation (CSS) (Eligible Employees — Inclusion) Amendment Declaration 2012 (No. 2) (the Declaration) is to amend the Principal Declaration to provide CSS membership for certain persons who commence employment with the Australian Reinsurance Pool Corporation (ARPC), on or after the commencement of this Declaration.

The employees involved are persons who immediately before commencing employment with ARPC were contributing members of the CSS.  Their CSS contributory membership will continue on becoming employed by ARPC provided they are not employed on a casual or temporary part-time basis.

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 — Inclusion) 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 – Inclusion) 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 – Application

This section provides that the amendments made by item 3 of Schedule 1 only apply in relation to persons who become employed by ARPC on or after the commencement of the Declaration.

Section 4 – Amendment of Superannuation (CSS) (Eligible Employees — Inclusion) Declaration 2003

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

Schedule 1 – Amendments

Item 1 inserts a definition of ARPC, short for the Australian Reinsurance Pool Corporation.

Item 2 changes the punctuation at the end of subparagraph 4(2)(q)(iii) of the Principal Declaration from a full stop to a semi-colon as a new paragraph will follow.

Item 3 inserts paragraph 4(2)(r) into the Principal Declaration. This paragraph provides that an employee of ARPC, other than a casual or temporary part-time employee, will continue their CSS membership if they were a CSS contributing member immediately before becoming employed by ARPC.

However, the paragraph also provides that an employee is not a CSS member if they are a member of an alternative superannuation scheme, as defined in the Principal Declaration, in relation to their employment with ARPC.

ATTACHMENT B