Superannuation (CSS) Productivity Employee Exclusion Declaration No. 3 1993 No. 87
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 87
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.
The Australian and Overseas Telecommunications Corporation (AOTC) was formed on 1 February 1992 by the merger of the Australian Telecommunications Corporation (Telecom) and OTC Limited. AOTC has its own superannuation scheme. Staff of AOTC include a number of persons who were CSS members with Telecom and OTC Limited and who have been permitted to continue their CSS membership with AOTC.
In 1990 the Minister for Finance declared members of the CSS who were employed by Telecom at that time not to be productivity employees under the Act. As a consequence, those members who transferred from Telecom to AOTC have productivity contributions paid to, and productivity benefits provided from, AOTC's own superannuation scheme. On the other hand, CSS members employed by OTC Limited continued to be productivity employees under the Act and have continued to have productivity contributions paid to, and productivity benefits paid from, the CSS.
AOTC wishes to provide all its staff with productivity benefits through the Corporation's superannuation scheme. 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 former staff of OTC 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 3" specifies persons who are members of the CSS and who are employees of or statutory office-holders with AOTC, having been members of the CSS and employees or statutory office-holders with OTC Limited immediately before transferring to AOTC on 1 February 1992, as a class of persons who are not to be "productivity employees".
The Declaration will take effect on 1 July 1993, the date from which all AOTC staff who are members of the CSS will be covered for productivity benefits under the AOTC scheme.
Overview
The Superannuation Act 1976, enacted by the Commonwealth Parliament, establishes the Commonwealth Superannuation Scheme (CSS) to provide superannuation benefits for Commonwealth employees and certain other persons. It was introduced to address the need for a formalised superannuation scheme to ensure retirement benefits for eligible individuals. The Act includes provisions for a funded productivity superannuation benefit for CSS members, with certain exceptions defined in section 110A. The explanatory statement for the Superannuation (CSS) Productivity Employee Exclusion Declaration No. 3 1993, issued by the Minister for Finance, clarifies that a declaration under section 110E of the Act excludes specific classes of CSS members from being considered "productivity employees" if they are entitled to benefits similar to those provided under the Act. This exclusion allows the Australian and Overseas Telecommunications Corporation (AOTC) to manage its staff's productivity benefits through its own superannuation scheme, thereby providing a unified benefits structure for all its employees, including those who were previously members of the CSS under Telecom and OTC Limited. The policy objective is to align the superannuation arrangements of AOTC staff with those of the Corporation, facilitating a consistent approach to productivity benefits within the organisation.
Scope and Application
The Superannuation (CSS) Productivity Employee Exclusion Declaration No. 3 1993, issued under the authority of the Minister for Finance, applies specifically to members of the Commonwealth Superannuation Scheme (CSS) who are employees of, or statutory office-holders with, the Australian and Overseas Telecommunications Corporation (AOTC) and were previously employees of, or statutory office-holders with, OTC Limited prior to the merger with Telecom on 1 February 1992. This declaration, made under section 110E of the Superannuation Act 1976, specifies that these individuals are not to be considered "productivity employees" for the purposes of the Act. The declaration is a statutory rule, and its provisions are intended to ensure that all AOTC staff who are members of the CSS will receive productivity benefits under the AOTC scheme from 1 July 1993. This exclusion is necessary as the Minister for Finance has determined that the productivity benefits provided through AOTC's scheme are equivalent to those provided under the CSS, thus aligning with the objectives of the Act.
Key Provisions
The main sections of the Superannuation (CSS) Productivity Employee Exclusion Declaration No. 3 1993 No. 87, are sections 110E and 110G of the Superannuation Act 1976. Section 110E allows the Minister for Finance to declare that certain classes of members of the Commonwealth Superannuation Scheme (CSS) are not to be "productivity employees" if the Minister is satisfied that these persons are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the Act. The declaration under section 110E specifies the class of persons excluded from being considered as "productivity employees" and the effective date of the declaration. Section 110G provides that a declaration under section 110E is a statutory rule and a disallowable instrument.
This Act imposes obligations on the Minister for Finance, who must be satisfied that certain classes of CSS members are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the Act before making a declaration under section 110E. The Minister must also specify the class of persons to be excluded from being considered as "productivity employees" and the effective date of the declaration. The Act also imposes obligations on the parties involved, such as the Australian and Overseas Telecommunications Corporation (AOTC) and its employees, who must comply with the declaration and any changes to their superannuation arrangements as a result of the exclusion from the CSS.
The Act does not explicitly outline offences, penalties, or civil/criminal consequences for breach. However, the Minister for Finance's satisfaction that certain classes of CSS members are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the Act is a prerequisite for making a declaration under section 110E. The Minister may face scrutiny or legal challenges if the declaration is deemed inappropriate or unlawful. Additionally, non-compliance with the declaration or any changes to superannuation arrangements may result in disputes or legal action between the parties involved.