EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 114
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT: SUPERANNUATION ACT 1976
SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that the Act requires or permits to be prescribed, or that are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
The Act provides a contributory superannuation scheme for Commonwealth employees. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.
By virtue of the definition of “eligible employee” in sub-section 3(1) of the Act, and sections 11, 12, 13 and 14, a permanent employee is required to become an eligible employee, while a temporary employee or the holder of a statutory office may do so at his or her own request subject to certain qualifications. In accordance with paragraph (j) of the “eligible employee” definition, the term does not include a person included in a prescribed class of persons. Thus, certain classes of persons may be excluded by regulation from becoming, or remaining, contributors. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations.
Prior to the enactment of amendments to the Governor-General Act 1974 contained in the Public Service Reform Act 1984, members of the Governor-General’s staff were employed as exempt employees in accordance with an order under sub-section 8A(1) of the Public Service Act 1922. They were therefore temporary employees for the purposes of the Act and membership of the Commonwealth Superannuation Scheme (CSS) was optional for them.
However, section 13 of the Governor-General Act 1974, inserted by section 141 of the Public Service Reform Act 1984, provides that the Official Secretary may, on behalf of the Commonwealth, employ, under an agreement in writing, a person as a member of the Governor-General’s staff. Such persons are permanent employees for the purposes of the Act and are therefore eligible employees.
Following the enactment of section 13 of the Governor-General Act 1974, members of the Governor-General’s staff then employed under the Public Service Act were offered employment under that section. In cases where those persons were not eligible employees, acceptance of the offer meant that they automatically became eligible employees.
It is intended that those persons who are employed as members of the Governor-General’s staff under section 13 of the Governor-General Act 1974 and who, immediately before becoming so employed, were employed as members of the Governor-General’s staff in accordance with an order under sub-section 8A(1) of the Public Service Act 1922 and were not eligible employees for the purposes of the Act shall, if they so request, be excluded from being eligible employees. The Statutory Rule amends the Superannuation (Eligible Employees) Regulations to achieve this intention.
The amending Regulation operates from the date of gazettal.
SR NO 114/87
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule 1987, issued under the authority of the Minister for Finance, was enacted to address the transition in employment status of members of the Governor-General's staff following the legislative changes introduced by the Public Service Reform Act 1984. This statutory rule amends the Superannuation (Eligible Employees) Regulations, which are subordinate legislation made under the Superannuation Act 1976, to align with the new employment framework established by section 13 of the Governor-General Act 1974. The policy objective is to ensure that employees transitioning from the Public Service Act 1922 to the Governor-General Act 1974 have the option to exclude themselves from becoming eligible employees for the Commonwealth Superannuation Scheme if they so request, thereby accommodating their prior non-eligibility status. The rule facilitates this transition by modifying the regulations to reflect the updated employment conditions and eligibility criteria, thus ensuring a coherent and consistent application of superannuation provisions within the federal public service.
Scope and Application
The Superannuation (Eligible Employees) Regulations, as amended by Statutory Rule 114/87, pertain to the eligibility of certain employees for the Commonwealth superannuation scheme established under the Superannuation Act 1976. The Act itself applies to Commonwealth employees and specifically identifies permanent employees as eligible, while temporary employees and holders of statutory offices may choose to become eligible, subject to certain qualifications. Certain classes of persons are excluded from being eligible employees, a definition that is further refined by the Superannuation (Eligible Employees) Regulations. These regulations were amended to address employees of the Governor-General’s staff who transitioned from being exempt employees under the Public Service Act 1922 to becoming permanent employees under the Governor-General Act 1974. The amendment allows those who were not previously eligible employees to opt out of becoming eligible, if they so choose. This regulation has a direct impact on the scope of individuals who can participate in the superannuation scheme, aligning with the changes in employment status and the legislative framework governing the Governor-General’s staff. The regulation’s application is limited to those employees who were specifically affected by the transition and who make the request to be excluded.
Key Provisions
The Superannuation (Eligible Employees) Regulations, as amended by Statutory Rule No. 114/87, introduce significant changes to the eligibility criteria for Commonwealth employees under the Superannuation Act 1976. Section 168 of the Act authorises the Governor-General to make regulations necessary for carrying out or giving effect to the Act, including the definition of “eligible employees”. Under this framework, section 3(1) specifies that a permanent employee must become an eligible employee, while temporary employees and statutory office holders can do so upon request, subject to certain qualifications. These regulations clarify that certain classes of employees may be excluded from becoming or remaining eligible employees, as outlined in the amended Superannuation (Eligible Employees) Regulations.
The amendments introduced by Statutory Rule No. 114/87 aim to address the eligibility of members of the Governor-General's staff following changes enacted in the Public Service Reform Act 1984. Previously, members of the Governor-General's staff were employed under the Public Service Act 1922 as temporary employees, and their participation in the Commonwealth Superannuation Scheme was optional. However, section 13 of the Governor-General Act 1974, which was inserted by the Public Service Reform Act 1984, allows the Official Secretary to employ staff under written agreements, making them permanent employees and thus eligible employees under the Superannuation Act. The amendment now allows those who transitioned from the Public Service Act to the Governor-General Act to request exclusion from being eligible employees if they were not eligible before the transition.
The obligations imposed by these regulations primarily concern the definition and application of "eligible employees" within the context of the Governor-General's staff. The regulations mandate that any member of the Governor-General’s staff who was previously employed under the Public Service Act and not considered an eligible employee can request exclusion from eligibility if they were employed under an order under sub-section 8A(1) of the Public Service Act 1922. This provision ensures clarity and compliance with the new employment framework established by the Governor-General Act 1974.
Failure to comply with the regulations or non-compliance by parties governed by them may result in civil or criminal consequences. While the specific penalties for breaches are not detailed in the explanatory statement, under the Superannuation Act 1976, breaches of regulations can lead to fines or other penalties as prescribed by law. These consequences underscore the importance of adhering to the stipulated requirements to avoid potential legal repercussions.