Superannuation (Deferred Benefits) Regulations (Amendment) 1995 No. 92
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 92
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Deferred Benefits) 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 (the CSS).
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Section 136 of the 1976 Act describes and provides for the calculation of deferred benefits payable under the Act. Subsection 136(4) of the 1976 Act applies to a person to whom deferred benefits by way of an invalidity pension have been payable and subsequently cancelled under subsection 143(2) because the person's health has been restored. When the pension is cancelled under subsection 143(2) of the 1976 Act the deferred benefits again become applicable. Deferred benefits which are applicable become payable at age 65 or at an earlier time in the event of death, invalidity, or at the choice of the former CSS member once he or she has reached minimum retiring age.
Subsection 136(5) of the 1976 Act provides that the regulations may make provision for modifying the Act in relation to a person, or class of persons, to whom subsection 136(4) applies.
The regulations for the purposes of subsection 136(5) are contained in the Superannuation (Deferred Benefits) Regulations (the Principal Regulations).
The Schedule to the Principal Regulations contains modifications of the 1976 Act in relation to certain persons to whom subsection 136(4) of the 1976 Act applies. The Schedule includes modifications to section 112 of the 1976 Act including the insertion of a number of subsections. Section 112 includes provision for the payment of benefits from the Consolidated Revenue Fund (CRF) and for the transfer of moneys from the Superannuation Fund to the CRF. The section also provides for those moneys to be transferred back from CRF to the Superannuation Fund in certain circumstances.
The Superannuation Legislation Amendment Act 1994 (the Amending Act) amended the 1976 Act to make changes to the CSS required for compliance with the Superannuation Industry (Supervision) Act 1993. This regulation makes technical amendments to the Principal Regulations as a consequence of the amendments to the 1976 Act contained in the Amending Act. The provisions of the amending Regulations are explained in the Attachment.
The amendments have effect from the date of gazettal.
ATTACHMENT
SUPERANNUATION (DEFERRED BENEFITS) REGULATIONS (AMENDMENT)
THE AMENDMENTS
Regulation 1
This regulation provides that the Principal Regulations are amended by the amending Regulations.
Regulation 2
This amends the Schedule to the Principal Regulations as a consequence of the insertion of subsection 112(10AA) in the 1976 Act by section 70 of the Amending Act. The Schedule to the Principal Regulations also inserts a subsection 112(10AA) in the 1976 Act but not in place of the subsection inserted by the! Amending Act.
To ensure that both subsections can apply to a person referred to in subsection 136(4) when appropriate, the modified subsection 112(10AA) is renumbered by subregulation 2.2. The other subsections inserted in section 112 by the Schedule are also renumbered by that subregulation so that the subsections in section 112 continue to appear in a logical sequence. Subregulations 2.1 and 2.3 to 2.5 include consequential amendments to the modified provisions of section 112 to reflect the revised numbering of the subsections inserted by the Schedule.
Overview
The Superannuation (Deferred Benefits) Regulations (Amendment) 1995, No. 92, were enacted to address technical discrepancies arising from amendments to the Superannuation Act 1976 made by the Superannuation Legislation Amendment Act 1994. This amendment was necessary to ensure compliance with the Superannuation Industry (Supervision) Act 1993 and to align the Superannuation (Deferred Benefits) Regulations with the updated legislative framework. The regulations were issued under the authority of the Minister for Finance and are intended to refine and clarify provisions concerning the calculation and payment of deferred benefits for individuals whose invalidity pensions have been cancelled due to restored health, in accordance with the provisions of the 1976 Act. The overarching policy objective of these amendments is to maintain the integrity and functionality of the Commonwealth Superannuation Scheme by ensuring that regulatory provisions are consistent with legislative changes and effectively support the intended outcomes for deferred benefits.
Scope and Application
The Superannuation (Deferred Benefits) Regulations (Amendment) 1995 applies to the Commonwealth Superannuation Scheme (CSS) established under the Superannuation Act 1976. This scheme is designed to provide superannuation benefits to Commonwealth employees and certain other persons. The regulations are concerned with the calculation and payment of deferred benefits, particularly in scenarios where these benefits have been temporarily cancelled, such as when an invalidity pension is revoked due to a member's restored health. The scope of these regulations includes making modifications to the Act concerning individuals who have had their deferred benefits affected by such cancellations. These modifications include changes to the payment of benefits from the Consolidated Revenue Fund and the transfer of funds between the Superannuation Fund and the CRF. The amendments are necessary to comply with the changes introduced by the Superannuation Legislation Amendment Act 1994, which aligns the CSS with the Superannuation Industry (Supervision) Act 1993. The amendments are effective from the date of their gazettal and involve renumbering and consequential adjustments to the subsections inserted in section 112 of the 1976 Act.
Key Provisions
The Superannuation (Deferred Benefits) Regulations (Amendment) 1995 No. 92 amends the existing Superannuation (Deferred Benefits) Regulations to reflect changes introduced by the Superannuation Legislation Amendment Act 1994. These amendments are designed to align the regulations with the new requirements introduced by the Superannuation Industry (Supervision) Act 1993. Specifically, the amendments address the modifications to section 112 of the Superannuation Act 1976, which concerns the payment of benefits from the Consolidated Revenue Fund (CRF) and the transfer of moneys between the Superannuation Fund and the CRF.
Under the Superannuation Act 1976, section 112 outlines the procedures for the payment of benefits from the CRF and the transfer of funds to and from the CRF. The amendment regulations ensure that the Principal Regulations are updated to incorporate the new subsection 112(10AA) introduced by the Superannuation Legislation Amendment Act 1994. The purpose of this renumbering is to maintain a logical sequence within the subsections of section 112 and to ensure that the correct provisions apply to individuals who are entitled to deferred benefits under subsection 136(4).
Entities and individuals governed by these regulations are required to adhere to the updated provisions concerning the payment and transfer of funds as specified in the amended section 112. This includes ensuring that any new subsections inserted by the Schedule are properly integrated and referenced in the Principal Regulations. These regulations apply to the Commonwealth Superannuation Scheme (CSS) members, particularly those who have had their deferred benefits cancelled and subsequently reinstated due to changes in their health status.
Failure to comply with the provisions of these regulations could result in legal consequences. While the explanatory statement does not detail specific penalties, breaches of superannuation regulations typically carry substantial financial penalties and may also lead to criminal charges under Australian law. The exact penalties depend on the nature and severity of the breach but can include fines and imprisonment for serious or repeated violations.
These amendments are effective from the date of their gazettal, and it is crucial for all stakeholders, including administrators of the CSS, to ensure that they are fully aware of and compliant with these updated regulations. The changes are intended to ensure that the administration of superannuation benefits remains consistent with the legal requirements set out in the Superannuation Act 1976 and the Superannuation Legislation Amendment Act 1994.