Superannuation (CSS) Productivity Contribution Rates (2005-2006) Declaration 2005 - Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution Rates (2005-2006) Declaration.
2 Commencement
This declaration shall take effect from and including 1 July 2005.
3 Background
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.
4 Purpose and operation of instrument
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 CSS Board in relation to a period specified in the declaration. The Board has delegated this power to relevant officers in Commonwealth Superannuation Administration.
The new productivity contribution rates to apply with effect from 1 July 2005 are set out in the determination.