Superannuation (Former Eligible Employees) Regulations (Amendment) 1994 No. 346
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 346
Issued by the authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Former Eligible Employees) Regulations (Amendment)
The Superannuation Act 1976 (the Act) provides for a contributory superannuation scheme (known as the CSS) for Commonwealth employees and for certain other persons.
Members of the CSS are eligible to contribute to the scheme and are referred to as "eligible employees", as defined in section 3(1) of the Act.
Section 168 of the Act provides that the Governor-General may. make regulations, not inconsistent with the Act, prescribing matters that the Act requires, or permits, to be prescribed for carrying out or giving effect to the Act.
Section 126A of the Act provides that the regulations may modify the Act, or a provision of the Act, in relation to a person who has ceased to be an eligible employee and who becomes a member of another superannuation scheme. Regulations for the purpose of section 126A are contained in the Superannuation (Former Eligible Employees) Regulations (the Principal Regulations).
The Northern Territory of Australia (NT) is an approved authority for the purposes of the Act and many of its employees are eligible employees for the purposes of the Act. Certain NT authorities are also approved authorities with employees who are eligible employees.
Regulation 14 the Principal Regulations modifies the Act, as specified in schedule 10 of the regulations, to require certain Northern Territory employees, who are engaged in employment under a contract of service that is an Executive Contract of Employment within the meaning of section 3 of the Public Sector Employment (Interim Arrangements) Act 1992 (the 1992 Act), to preserve their CSS benefits upon ceasing to be eligible employees. They cease to be eligible employees when they join another superannuation scheme in relation to their employment with the NT.
The Public Sector Employment and Management Act 1993 (the 1993 Act) of the NT has now, in most respects, replaced the 1992 Act in providing for the regulation of the Public Service of the NT and the employees of a number of its government agencies and organisations. However, some NT employees, such as some members of the Territory Police Force, employees of the Tourist Commission and the Aboriginal Areas Protection Authority continue to be covered by the 1992 Act.
For this reason a reference to the 1993 Act has been included in the Principal Regulations to ensure that NT employees employed on Executive Contracts of Service, and who cease to be eligible employees, must preserve their CSS benefits. The details of the Regulations are as follows:
REGULATION 1
This provides that the Principal Regulations are amended as set out in the Amending Regulations.
REGULATION 2
This amends regulation 14 of the Principal Regulations which specifies the classes of NT employees in relation to whom the Act is modified. The modifications are set out in schedule 10 of the Principal Regulations. The amendment omits the existing paragraph 14(2)(b), which includes NT employees engaged under Executive Contracts of Employment under the 1992 Act in the class. The substitute paragraph includes NT employees engaged under Executive Contracts of Employment under either the 1992 Act or the 1993 Act in the class of persons who, by the operation of the modifications in schedule 10, must preserve their CSS benefits upon ceasing to be eligible employees.
The regulations operate from the date of gazettal.
Overview
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1994 No. 346 is an amendment to the existing regulations under the Superannuation Act 1976. It was introduced to address the issue of preserving superannuation benefits for certain Northern Territory employees who cease to be eligible employees and join another superannuation scheme. This is achieved through the authority of the Minister for Finance and was enacted by the Parliament of Australia. The policy objective of these regulations is to ensure that certain NT employees who are engaged under Executive Contracts of Service, as defined in either the Public Sector Employment (Interim Arrangements) Act 1992 or the Public Sector Employment and Management Act 1993, preserve their Commonwealth superannuation benefits upon ceasing to be eligible employees. The regulations modify the Principal Regulations by expanding the classes of NT employees to include those engaged under Executive Contracts of Employment under the 1993 Act, thereby ensuring the preservation of their CSS benefits.
Scope and Application
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1994, made under the Superannuation Act 1976, applies to the Commonwealth of Australia and its employees, including those within the Northern Territory (NT). Specifically, it concerns individuals who were previously eligible employees under the Commonwealth Superannuation Scheme (CSS) and who subsequently join another superannuation scheme. The regulation focuses on ensuring that these former eligible employees, now working under the Northern Territory's Public Sector Employment and Management Act 1993 or the Public Sector Employment (Interim Arrangements) Act 1992, preserve their CSS benefits. The amendment to the Principal Regulations modifies the scope to include NT employees engaged under Executive Contracts of Employment under either the 1992 or 1993 Act, thereby requiring them to retain their CSS benefits upon transitioning to another superannuation scheme. This legislative adjustment ensures continuity and protection of superannuation benefits for affected employees in the NT.
Key Provisions
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1994 No. 346 modifies the Superannuation (Former Eligible Employees) Regulations by updating the class of Northern Territory (NT) employees who must preserve their Commonwealth Superannuation Scheme (CSS) benefits upon ceasing to be eligible employees. This amendment is detailed in Regulation 2 of the amending regulations. Regulation 1 specifies that the Principal Regulations are amended as set out in the Amending Regulations. Regulation 2 amends Regulation 14 of the Principal Regulations, which specifies the classes of NT employees in relation to whom the Superannuation Act 1976 is modified. The amendment omits the existing paragraph 14(2)(b), which includes NT employees engaged under Executive Contracts of Employment under the Public Sector Employment (Interim Arrangements) Act 1992 in the class, and includes NT employees engaged under such contracts under either the 1992 Act or the Public Sector Employment and Management Act 1993 in the class of persons who must preserve their CSS benefits.
These regulations impose obligations on NT employees who are engaged under Executive Contracts of Employment and who cease to be eligible employees when they join another superannuation scheme in relation to their employment with the NT. These employees are required to preserve their CSS benefits. This includes ensuring that their CSS benefits are not lost when they transition to another superannuation scheme. The regulations ensure that the requirements for preserving CSS benefits apply to all relevant NT employees, regardless of whether they are covered by the 1992 Act or the 1993 Act.
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1994 No. 346 does not explicitly state any offences, penalties, or civil or criminal consequences for non-compliance. However, it is reasonable to assume that non-compliance with the preservation of CSS benefits could result in civil consequences under the Superannuation Act 1976. The Act provides for the imposition of civil penalties for breaches of the Act, including penalties for failing to preserve benefits. The maximum penalties for breaches of the Act are set out in the Superannuation Act 1976 and can include fines of up to $26,100 for individuals and $130,500 for corporations, depending on the nature and severity of the breach. Additionally, the Act provides for the recovery of lost benefits and other remedies to ensure compliance with the preservation requirements.