Superannuation (CSS) Productivity Contribution (2002-2003) Declaration 2002 No. 131
EXPLANATORY STATEMENT
STATUTORY RULES 2002 No. 131
Issued by the authority of the Delegate of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) Productivity Contribution (2002-2003) Declaration
The Superannuation Act 1976 (the Act) makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is an occupational superannuation scheme for Commonwealth employees and for certain other persons.
Part VIA of the Act comprising sections 110A to 110S provides for a funded productivity superannuation benefit for members of the scheme.
Section 110H of the Act requires the employer of a member of the scheme who does not pay productivity contributions in respect of the member to another scheme to pay fortnightly productivity contributions to the CSS. In accordance with section 110N of the Act the CSS Board must pay such contributions to the CSS Fund which is established by the Act.
The fortnightly rate of productivity contribution payable by an employer in relation to a member is set out in the Table in section 110C of the Act. This rate varies according to the member's salary. The intention is that the contribution rate be maintained at an average of 3% of salaries.
Section 110D provides that amounts of salary and contribution specified in the Table may be varied by a Declaration by the Minister for Finance and Administration in relation to a period specified in the declaration. Section 165 enables the Minister to delegate his power to make such Declarations to an officer of the Department of Finance and Administration.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Contribution (2002-2003) Declaration", provides for increased amounts of salary and contribution to apply in relation to the period from 1 July 2002 to 30 June 2003.
In accordance with section 110G of the Act a declaration under section 110D is a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Declaration will commence on gazettal. The new Table of productivity contributions included in the Declaration will operate on and from 1 July 2002.
Overview
The Superannuation (CSS) Productivity Contribution (2002-2003) Declaration 2002 No. 131, issued under the authority of the Delegate of the Minister for Finance and Administration, amends the Superannuation Act 1976 to adjust the productivity contributions for the Commonwealth Superannuation Scheme (CSS) for the period from 1 July 2002 to 30 June 2003. This Statutory Rule responds to the need for periodic adjustments to the contribution rates to ensure the scheme remains sustainable and meets its policy objective of providing a funded productivity superannuation benefit for Commonwealth employees and certain other persons. The declaration aims to maintain the average contribution rate at 3% of salaries, in line with the scheme's goals as outlined in Part VIA of the Act, while also ensuring that the contributions are varied appropriately to reflect changes in salary levels and economic conditions. This adjustment is crucial for the ongoing viability of the CSS, supporting the broader policy objective of providing a secure retirement income for eligible members.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2002-2003) Declaration applies to employers of members within the Commonwealth Superannuation Scheme (CSS), a superannuation scheme that covers Commonwealth employees and certain other persons. This Declaration specifically adjusts the fortnightly productivity contributions that employers must pay to the CSS Fund, as required by section 110H of the Superannuation Act 1976. These contributions are meant to maintain an average rate of 3% of salaries, with the specific amounts set out in the Table in section 110C of the Act, which can be varied by a Minister’s Declaration as per section 110D. The Declaration issued in 2002 pertains to the period from 1 July 2002 to 30 June 2003, and it comes into effect upon gazettal. The declaration adjusts the rates of salary and contributions according to the new Table provided, thereby extending its application to all employers within the specified period. The geographic reach of the Act and the Declaration is Commonwealth-wide, and the legislation allows for further adjustments through subordinate instruments as needed.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2002-2003) Declaration 2002 No. 131 amends the rates of productivity contributions for members of the Commonwealth Superannuation Scheme (CSS) under the Superannuation Act 1976. Section 110D of the Act allows for the variation of the salary and contribution rates by a Declaration made by the Minister for Finance and Administration, which in this case, has been delegated to an officer of the Department of Finance and Administration as per section 165 of the Act. The Declaration, effective from 1 July 2002 to 30 June 2003, adjusts the rates outlined in the Table in section 110C of the Act, which dictates the fortnightly productivity contribution based on the member’s salary, with the intention of maintaining an average contribution rate of 3% of salaries.
Under the Act, employers of CSS members who do not pay productivity contributions to another scheme are required to make fortnightly contributions to the CSS, as stipulated in section 110H. These contributions are to be paid to the CSS Fund, which is established by the Act and managed by the CSS Board as per section 110N. The Declaration modifies the rates specified in the Table in section 110C, ensuring that the contributions align with the intended average rate of 3% of salaries. This adjustment aims to reflect changes in salary levels or other relevant economic factors over the specified period.
The Declaration imposes certain obligations on employers of CSS members. They must ensure that they are aware of and comply with the updated rates of productivity contributions set out in the Declaration. Failure to do so could result in non-compliance with the requirements of the Act, potentially leading to legal consequences. Employers need to make the necessary calculations and adjustments to their contribution payments starting from 1 July 2002, to ensure they are in line with the new rates.
The Act does not explicitly state any offences or penalties for non-compliance with the productivity contribution requirements. However, non-compliance could result in civil or administrative penalties under other provisions of the Act or related legislation. Employers are expected to maintain accurate records and make timely contributions as per the rates specified in the Declaration. The Declaration, being a Statutory Rule, is subject to disallowance as per section 46A of the Acts Interpretation Act 1901, which means it can be reviewed and potentially annulled by Parliament if deemed necessary.