Superannuation (Eligible Employees) Regulations (Amendment) 1992 No. 458
EXPLANATORY-STATEMENT
STATUTORY RULES 1992 No. 458
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
Superannuation Act 1976
SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme (the CSS) for Commonwealth employees and certain other persons. Persons eligible to contribute to the CSS are referred to in the Act as eligible employees.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (j) of the 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 to the CSS. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
The Regulations provide, with certain exceptions, that persons who become members of another superannuation scheme, fund or arrangement are excluded from becoming, or remaining, contributors to the CSS.
Under the industrial agreement of 4 December 1992 between the Commonwealth and public sector unions, Senior Officers employed by the Commonwealth may be eligible to receive performance pay.
It is possible that superannuation could be provided on performance based pay at some time in the future with contributions being paid to a scheme other than the CSS. In such circumstances, it would be intended that persons who make superannuation contributions on the basis of performance pay to a separate scheme not be excluded from becoming, or remaining, members of the CSS. Accordingly, the Regulations are amended to ensure that the existing exclusions would not affect such persons.
Details of the Regulations are as follows.
Regulation 1 provides that the Regulations are amended as set out in the Amending Regulations.
Regulation 2 inserts a definition of "performance pay" in the Interpretation provisions of the Regulations.
Subregulations 3.1, 3.2 and 3.3 amend the specific provisions in the Regulations which exclude persons from the definition of "eligible employee" by virtue of being members of another superannuation scheme. The effect of the amendments is to provide that persons who become members of a superannuation scheme to which contributions are made in respect of those persons only in relation to performance pay are not to be excluded from membership of the CSS.
The Regulations commence on gazettal.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) 1992 No. 458 was enacted to amend the existing regulations under the Superannuation Act 1976. This amendment was introduced to address a specific issue arising from the industrial agreement dated 4 December 1992 between the Commonwealth and public sector unions, which allowed for the possibility of Senior Officers receiving performance pay. The primary aim of the amendment was to ensure that if superannuation contributions were made on the basis of such performance pay to a scheme other than the Commonwealth Superannuation Scheme (CSS), the individuals involved would not be excluded from becoming or remaining members of the CSS. This legislative change was authorised by the Minister for Finance and made under the authority of the Superannuation Act 1976, ensuring that the exclusions in the regulations would not adversely affect those who contribute to a separate superannuation scheme based on performance pay. The Regulations came into effect upon gazettal.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) 1992 No. 458 pertains to the Superannuation Act 1976, which establishes an occupational superannuation scheme for Commonwealth employees and other eligible persons. These regulations specifically address who can be considered an "eligible employee" under the Act, thereby determining who is eligible to contribute to the Commonwealth Superannuation Scheme (CSS). Eligible employees, as defined in the Act, do not include persons in prescribed classes, which are detailed in the Superannuation (Eligible Employees) Regulations. These regulations generally exclude individuals who join another superannuation scheme, fund, or arrangement from contributing to the CSS. However, the 1992 Amendment Regulations were introduced to address specific circumstances where Senior Officers employed by the Commonwealth may receive performance pay, which could potentially lead to contributions being made to a superannuation scheme other than the CSS. The amendment ensures that such individuals are not excluded from becoming or remaining members of the CSS if they make superannuation contributions based solely on performance pay to a different scheme. The Regulations amend specific provisions to reflect this change and commence upon gazettal.
Key Provisions
The main operative sections of the Superannuation (Eligible Employees) Regulations (Amendment) 1992 No. 458 concern the exclusion of certain classes of persons from becoming or remaining contributors to the Commonwealth Superannuation Scheme (CSS). Regulation 1 indicates that the Regulations are amended as per the Amending Regulations. Regulation 2 introduces a definition for "performance pay" in the Interpretation provisions of the Regulations. Subregulations 3.1, 3.2, and 3.3 specifically modify the provisions that exclude persons from the definition of "eligible employee" because they are members of another superannuation scheme. These amendments ensure that individuals who join a superannuation scheme based on contributions made solely for performance pay are not excluded from the CSS.
The Regulations impose obligations and requirements on eligible employees and the administrators of the CSS. Eligible employees, as defined by the Superannuation Act 1976, must meet the criteria set out in the Act and the Regulations. Specifically, those who join another superannuation scheme but do so based on performance pay are not excluded from the CSS. This amendment aims to maintain the eligibility of certain public sector employees, particularly Senior Officers, who may be eligible for performance pay and wish to contribute to a superannuation scheme other than the CSS. The Regulations ensure that these employees can remain members of the CSS without losing their eligibility.
Breaching the provisions of the Superannuation (Eligible Employees) Regulations (Amendment) 1992 No. 458 could lead to civil or criminal consequences, though the specific penalties are not detailed in the provided text. The Regulations are intended to provide clarity and ensure compliance with the superannuation scheme, thereby avoiding any potential legal ramifications for non-compliance. The consequences of breaching these Regulations may include financial penalties, legal action, or the loss of eligibility to contribute to the CSS. The exact penalties would depend on the nature and severity of the breach, as well as the applicable laws and regulations governing superannuation schemes in Australia.