Superannuation (CSS) Productivity Employee Exclusion Declaration No. 2 1992
No. 39
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 39
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DECLARATION UNDER SECTION 110E
The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees and certain other persons. That scheme is referred to as the Commonwealth Superannuation Scheme (CSS).
Part VIA (comprising sections 110A to 110S) of the Act provides, with effect from 1 July 1990, a funded productivity superannuation benefit for members of the CSS.
Section 110P provides that a productivity benefit is payable to a person who ceases to be a member of the CSS and who immediately before so ceasing, or earlier, was a "productivity employee" for the purposes of the Act. The term "productivity employee" is defined in section 110A as a member of the CSS with certain exceptions. These exceptions include persons included in a class of persons specified in a declaration by the Minister for Finance under section 110E.
Section 110E provides that the Minister for Finance may declare that a specified class of members of the CSS are not to be productivity employees if the Minister is satisfied that those persons are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the Act. Section 110E also provides that a declaration under the section takes effect from such day, not earlier than 1 July 1990, as is specified in the declaration.
Section 110G provides that a declaration under section 110E 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.
Both the Northern Land Council and Snowy Mountains Engineering Corporation Limited include members of the CSS amongst their staff. Both bodies have established their own superannuation schemes and wish to provide their staff with productivity benefits through their own superannuation schemes. The Minister for Finance is satisfied that those productivity benefits are amounts like the productivity benefits provided for in the Act.
It is therefore appropriate that persons who are members of the CSS and who are statutory office-holders with the Northern Land Council or employees of the Northern Land Council or the Snowy Mountains Engineering Corporation Limited be excluded from the Commonwealth's productivity superannuation arrangements.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Employee Exclusion Declaration No. 2" specifies holders of statutory offices in the Northern Land Council, employees of the Northern Land Council and employees of the Snowy Mountains Engineering corporation Limited as classes of persons who are not to be "productivity employees".
The Declaration is taken to have commenced on 1 July 1990, the date specified in section 110E as the earliest date on which a declaration under the section may take effect. The Northern Land Council has been making productivity contributions to its own scheme in respect of CSS members since that date. Arrangements are being made to cover employees of the Snowy Mountains Engineering Corporation Limited through its own scheme with effect from 1 July 1990.
Overview
The Superannuation (CSS) Productivity Employee Exclusion Declaration No. 2, issued under the authority of the Minister for Finance in 1992, addresses a gap in the Commonwealth Superannuation Scheme (CSS) by excluding certain classes of employees from receiving productivity superannuation benefits through the CSS. This exclusion is in response to the Northern Land Council and the Snowy Mountains Engineering Corporation Limited establishing their own superannuation schemes that include productivity benefits for their staff. The Superannuation Act 1976, as amended, allows for the exclusion of specified classes of CSS members from being classified as "productivity employees" if the Minister for Finance is satisfied that these employees are entitled to similar benefits through their respective employers' schemes. The policy objective is to ensure that employees who are covered under alternative superannuation arrangements receive their productivity benefits through those schemes rather than through the CSS.
Scope and Application
The Superannuation (CSS) Productivity Employee Exclusion Declaration No. 2 1992 No. 39 applies to members of the Commonwealth Superannuation Scheme (CSS) who are statutory office-holders with the Northern Land Council, employees of the Northern Land Council, and employees of the Snowy Mountains Engineering Corporation Limited. These persons are excluded from being classified as "productivity employees" for the purposes of the Superannuation Act 1976, effectively removing them from the Commonwealth's productivity superannuation arrangements. This exclusion is in place from 1 July 1990, the earliest date permissible under section 110E of the Act, and is based on the Minister for Finance's satisfaction that these individuals are entitled to equivalent productivity benefits through their respective organisations' superannuation schemes. This statutory rule operates under the authority of the Minister for Finance, and as a disallowable instrument, it can be reviewed under the Acts Interpretation Act 1901.
Key Provisions
The Superannuation (CSS) Productivity Employee Exclusion Declaration No. 2 (1992 No. 39) amends the Superannuation Act 1976 (the Act) by excluding certain employees from the Commonwealth Superannuation Scheme’s (CSS) productivity benefits. Section 110E of the Act allows the Minister for Finance to declare certain classes of CSS members as not being "productivity employees," effectively excluding them from receiving productivity benefits under the Act. This declaration is made if the Minister is satisfied that these employees are entitled to equivalent benefits through other schemes. In this case, the declaration excludes holders of statutory offices within the Northern Land Council, employees of the Northern Land Council, and employees of the Snowy Mountains Engineering Corporation Limited from being considered "productivity employees." This exclusion takes effect from 1 July 1990, as mandated by section 110E.
The obligations imposed by this legislation on the parties involved primarily concern the exclusion of specified classes of CSS members from the productivity benefit scheme. For the Northern Land Council and the Snowy Mountains Engineering Corporation Limited, the obligation lies in establishing and maintaining their own superannuation schemes that provide productivity benefits to their employees. The Minister for Finance’s obligation is to ensure that the declared classes of employees receive equivalent benefits under their respective schemes, thus justifying the exclusion from the CSS productivity benefits. Both entities must ensure compliance with the declaration by making appropriate contributions or arrangements for their staff.
Breaches of the obligations set out in this legislation do not explicitly outline specific offences or penalties within the Act. However, the declaration under section 110E is a statutory rule and a disallowable instrument, meaning it is subject to parliamentary disallowance. If either the Northern Land Council or the Snowy Mountains Engineering Corporation Limited fails to provide equivalent productivity benefits as required, it could face scrutiny or legal challenges regarding compliance with the Act. The primary consequence of non-compliance would likely be the reversion of these employees to being eligible for CSS productivity benefits, potentially leading to administrative and financial complications for the affected entities.