Superannuation (Deferred Benefits) Regulations (Amendment) 1991 No. 170
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 170
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
SUPERANNUATION (DEFERRED BENEFITS) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons.
Section 168 of the Act provides that the Governor General may make regulations for the purposes of that Act.
Division 3 of Part IX of the Act (sections 131 to 144) provides arrangements for the preservation of superannuation rights of certain persons who cease to be members of the scheme. The arrangements include, in certain circumstances, the payment of deferred benefits.
Where a person is entitled to deferred benefits but those benefits are not payable, the benefits are referred to in the Act as being applicable to the person.
Subsection 136(5) provides that the Act may be modified by regulations in relation to a person to whom deferred benefits have again become applicable after deferred benefits by way of invalidity pension have been cancelled under subsection 143(2). Subsection 168(9) of the Act provides that regulations made within a period of 12 months after 1 July 1990 by virtue of section 136 may be expressed to have taken effect from and including a day not earlier than 1 July 1990.
The modifications provided for in subsection 136(5) are contained in the Superannuation (Deferred Benefits) Regulations (the Principal Regulations).
The Amending Regulations amend the Principal Regulations as a consequence of amendments to the Act by the Superannuation Legislation Amendment Act 1990 (the Amending Act) and in relation to certain other matters. The amendments contained in the Amending Regulations are explained in the Attachment.
In accordance with subsection 168(9) of the Act, the Amending Regulations will operate with effect from and including 1 July 1990, the date of commencement of the amendments to the Act.
ATTACHMENT
SUPERANNUATION (DEFERRED BENEFITS) REGULATIONS (AMENDMENT)
REGULATION 1
This provides for the Superannuation (Deferred Benefits) Regulations (Amendment) (the Amending Regulations) to operate with effect from and including 1 July 1990.
REGULATION 2
This provides that the Superannuation (Deferred Benefits) Regulations (the Principal Regulations) are amended as set out in the Amending Regulations.
SUBREGULATION 3.1
This amends the heading to the Schedule to the Principal Regulations as suggested by the Attorney-General's Department to reflect modern drafting standards. The amendment involves matters of style rather than substance.
SUBREGULATION 3.2
The Schedule to the Principal Regulations modified section 112 of the Act by inserting subsection 112(10). However, section 52 of the Superannuation Legislation Amendment Act (No 2) 1986 also inserted a new subsection 112(10) which is of no relevance to the persons to whom the Principal Regulations apply.
Subregulation 3.2 overcomes this duplication in the subsection numbering by amending the Schedule to the Regulations so that subsection 112(10) as inserted in the Act in 1986 is omitted and subsection 112(10) as inserted by the Principal Regulations is substituted for it.
SUBREGULATION 3.3
The Schedule to the Principal Regulations inserted a new subregulation 112(13) in the Act which refers to the calculation of interest in accordance with regulations under the Act.
Section 81 of the Superannuation Legislation Amendment Act 1990 (the Amending Act) inserted section 154A in the Act to provide for interest payable under the latter Act to be calculated in accordance with a determination by the Commonwealth Superannuation Board rather than in accordance with regulations under the Act as was the case before the amendment.
Subregulation 3.3 amends subsection 112(13) to remove the reference to interest being calculated in accordance with the regulations. Interest will then be calculated in accordance with a determination of the Board in accordance with section 154A of the Act.
SUBREGULATIONS 3.4 AND 3.5
The Schedule to the Principal Regulations inserted subsection 136(7) to ensure that, where deferred benefits have ceased to be payable to a person and subsequently again become payable to or in respect of the person, certain amounts that have already been paid to the person will not be paid again. Paragraph 136(7)(a) provides that where the earlier benefit was paid in accordance with section 67 or 70 of the Act any subsequent benefit will not include the amount of the person's accumulated supplementary contributions. Paragraph 136(7)(b) provides that where the earlier benefit was paid in accordance with section 68 or 71 of the Act, any subsequent benefit will not include the amount of the person's accumulated basic contributions and accumulated supplementary contributions.
Section 64 of the Amending Act inserted Part VIA in the Act in relation to productivity superannuation. Where a deferred benefit became payable to a person in accordance with section 67, 68, 70 or 71 of the Act the amount of the person's accumulated employer contributions (ie productivity superannuation contributions) would have been paid to the person in accordance with Part VIA. Subregulations 3.4 and 3.5 amend paragraphs 136(7)(a) and (b) to ensure that the amount of the accumulated employer contributions will not form part of any deferred benefit that subsequently becomes payable.