Superannuation (CSS) Transfer Arrangements Regulations (Amendment) 1996 No. 100
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 100
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (CSS) Transfer Arrangements Regulations (Amendment)
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons. That scheme is known as the Commonwealth Superannuation Scheme (CSS).
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Part IX of the 1976 Act provides for preservation of superannuation rights and benefits for certain CSS members. Division 2 of Part IX of the Act provides for certain eligible employees with preserved rights from previous employment.
Section 126 of the 1976 Act enables that Act to be modified by regulation in relation to persons who, before becoming members of the CSS, were members of another superannuation scheme.
Section 127 of the 1976 Act describes amounts including certain payments from superannuation schemes that are regarded as transfer values for the purposes of the Act. Section 128 of the 1976 Act provides for various arrangements where a transfer value is paid to the Board.
Regulations for the purposes of section 126 are contained in the Superannuation (Transfer Arrangements) Regulations (the Principal Regulations). The Principal Regulations modify the 1976 Act in respect of specified CSS members and the modifications are contained in a series of Schedules to those Regulations,
The Superannuation Legislation Amendment Act (No. 1) 1995 (the amending Act) amended the 1976 Act in certain ways that necessitated amendments to the Principal Regulations. Subsection 168(12A) was inserted to provide that regulations arising from the amendments to the Act may be made with retrospective effect within one year after the amending Act received Royal Assent. The amending Regulations amend the Principal Regulations as a consequence of the amendments to the 1976 Act contained in the amending Act.
Item 4 of Schedule 2 to the amending Act amended the definition of "period of contributory service" included in subsection 3(1) of the 1976 Act as a consequence of the amendments included in items 9 and 72. These two items create additional periods that should be excluded from contributory service, ie, periods between employments that arise from subsection 3(3) and periods during which section 55A would not allow the accrual of benefits because of the Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS).
Item 80 of Schedule 2 to the amending Act amended section 62 of the 1976 Act, which provides for the payment of a lump sum benefit in the case of involuntary retirement, to introduce the concept of "notional contributions" where a person has been in receipt of partial invalidity pension under section 77 or 78 of that Act prior to becoming entitled to the benefit. The amendment is intended to ensure that the person is not disadvantaged when the employer component of their benefit is a lump sum calculated from their accumulated basic contributions rather than a pension expressed as a percentage of their final annual rate of salary. The item omitted subsections 62(2) and (2A) and inserted subsections 62(2), (2A), (2B), (2C) and (2D).
Item 113 of Schedule 2 of the amending Act inserted subsection 128(4AA) to clarify the part of the transfer value that is available to be paid to a person in certain circumstances.
THE AMENDMENTS
Regulation 1
This regulation provides that regulations 3 and 5 are taken to have commenced on 23 June 1996.
Regulation 2
This regulation provides that the Principal Regulations are amended by the amending Regulations.
Regulation 3
This regulation amends Schedule 2 of the Principal Regulations which relates to certain employees of the Commonwealth Accommodation and Catering Services Limited.
Subregulation 3.1
This subregulation inserts a modification which omits subsection 128(4AA), which was inserted by the amending Act but which does not have application to the class of employees to whom Schedule 2 applies.
Regulation 4
Regulation 11 of the Principal Regulations provides for modification of the 1976 Act in accordance with Schedule 8 for certain TAFE teachers who were members of a superannuation scheme constituted by the Superannuation Act 1916 of the State of New South Wales. Section 130B inserted by Schedule 8 was not annotated correctly.
This regulation corrects the annotations of section 130B.
Regulation 5
This regulation amends the substituted definition of "period of contributory service" included in Schedule 10 to the Principal Regulations as a consequence of the amendments to the "period of contributory service" in the 1976 Act made by item 4 of Schedule 2 to the amending Act.
Overview
The Superannuation (CSS) Transfer Arrangements Regulations (Amendment) 1996 No. 100 was enacted to amend the Superannuation (Transfer Arrangements) Regulations, which are subordinate legislation to the Superannuation Act 1976. This regulatory amendment was necessitated by the Superannuation Legislation Amendment Act (No. 1) 1995, which introduced changes to the 1976 Act. The primary objective of these amendments is to align the Principal Regulations with the recent legislative changes, ensuring that the regulations governing the transfer of superannuation benefits for Commonwealth employees are up-to-date and accurate. The amendments address specific issues such as the correct annotation of certain sections and the inclusion of new definitions to reflect the updated legislative framework. The regulations were issued under the authority of the Minister for Finance, and they aim to provide clarity and ensure the proper application of the superannuation laws in relation to the Commonwealth Superannuation Scheme.
Scope and Application
The Superannuation (CSS) Transfer Arrangements Regulations (Amendment) 1996 No. 100 applies to persons who were previously members of another superannuation scheme before becoming members of the Commonwealth Superannuation Scheme (CSS) as governed by the Superannuation Act 1976. These regulations are specifically designed to modify the principal regulations to reflect amendments made by the Superannuation Legislation Amendment Act (No. 1) 1995. The amendments include changes to the definition of "period of contributory service" to exclude certain periods that do not accrue benefits under the Superannuation Industry (Supervision) Act 1993. Additionally, the regulations address the introduction of "notional contributions" for lump sum benefits payable in cases of involuntary retirement, ensuring that individuals previously on partial invalidity pension are not disadvantaged. The scope of these regulations is national, affecting Commonwealth employees and those previously employed by entities like Commonwealth Accommodation and Catering Services Limited and TAFE teachers in New South Wales. The regulations also correct annotation errors in the principal regulations, ensuring compliance with the legislative intent.
Key Provisions
The main operative sections of the Superannuation (CSS) Transfer Arrangements Regulations (Amendment) 1996 No. 100 involve several amendments to the Superannuation Act 1976 and the Superannuation (Transfer Arrangements) Regulations. Regulation 1 stipulates that certain regulations will commence on a specific date, 23 June 1996. Regulation 2 indicates that the Principal Regulations are amended by the amending Regulations. Regulation 3 addresses changes to Schedule 2 of the Principal Regulations, which concerns employees of Commonwealth Accommodation and Catering Services Limited. Subregulation 3.1 removes subsection 128(4AA), which was added by the amending Act but does not apply to the specified employees. Regulation 4 corrects an annotation error in Regulation 11 of the Principal Regulations, specifically relating to TAFE teachers who were members of a superannuation scheme under the Superannuation Act 1916 of New South Wales. Regulation 5 modifies the definition of "period of contributory service" in Schedule 10 of the Principal Regulations, reflecting changes made to the 1976 Act by item 4 of Schedule 2 to the amending Act.
The obligations and requirements imposed by these regulations primarily revolve around the modification of existing provisions to align with the amendments introduced by the Superannuation Legislation Amendment Act (No. 1) 1995. These regulations ensure that the Principal Regulations are updated to reflect changes in the definition of "period of contributory service" and the introduction of "notional contributions" for lump sum benefits. They also correct annotation errors and clarify the application of certain subsections to specific groups of employees. By amending the Principal Regulations, these provisions ensure that the Superannuation Act 1976 operates coherently with the changes made by the amending Act, preserving and adjusting superannuation rights and benefits as intended.
The Superannuation (CSS) Transfer Arrangements Regulations (Amendment) 1996 No. 100 does not explicitly state specific offences, penalties, or consequences for breaches. However, under the Superannuation Act 1976, breaches of superannuation regulations can lead to both civil and criminal penalties. Civil penalties may include fines and the requirement to compensate affected parties. Criminal penalties can include imprisonment, particularly in cases of fraudulent or dishonest conduct. The exact penalties depend on the nature and severity of the breach, as well as any applicable state or territory laws. Given the regulatory nature of the amendments, non-compliance could potentially result in enforcement actions by the relevant authorities, including investigations and legal proceedings to ensure adherence to the updated regulations.