Superannuation (CSS) Productivity Contribution (2011-2012) Declaration 2011 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2011-2012) Declaration 2011.
2 Commencement
This declaration shall take effect from and including 1 July 2011.
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 Australian Reward Investment Alliance (ARIA) 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 ARIA in relation to a period specified in the declaration. ARIA has delegated this power to relevant officers in Commonwealth Superannuation Administration.
The Table set out in section 110C is amended with effect from 1 July each year by a Declaration by ARIA.
5 New Productivity Contribution Rates
The new productivity contribution rates to apply with effect from 1 July 2011 are set out in the declaration.
6 References to ARIA
At the date of the signing of this determination, ARIA was legally responsible for the administration of the CSS.
As a result of the Governance of Australian Government Superannuation Schemes Bill 2011, passed by Federal Parliament on 21 June 2011 and currently awaiting Royal Assent, the responsibility for the administration of the CSS will vest in the Commonwealth Superannuation Corporation (CSC), with effect from 1 July 2011.
In accordance with section 25B of the Acts Interpretation Act 1901, any reference to ARIA in an instrument made prior to 1 July 2011 shall be construed as a reference to the CSC.
Further by virtue of clause 22 of Schedule 2 of the Superannuation Legislation (Consequential and Transitional Provisions) Bill 2011, passed by Federal Parliament on 21 June 2011 and currently awaiting Royal Assent, all current delegations under a superannuation law continue to be in force on or after 1 July 2011. As such an instrument signed by the delegate of ARIA shall be deemed to be in force after 1 July 2011 as if it were an instrument of the CSC.
7 Consultation
As the instrument is for internal machinery of Government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).