Superannuation (Former Eligible Employees) Regulations (Amendment) 1995 No. 93
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 93
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Former Eligible Employees) 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 126A of the 1976 Act provides that regulations made under that provision may modify that Act or a provision of the Act in relation to persons to whom that section applies.
Regulations for the purposes of section 26A are contained in the Superannuation (Former Eligible Employees) Regulations (the Principal Regulations). The Principal Regulations modify the 1976 Act in various ways in relation to specified persons and the modifications are contained in a series of Schedules.
Schedule 5 of the Principal Regulations modifies the 1976 Act in relation to persons who transfer from the CS S to the Australia Post Superannuation Scheme or the Telecom Superannuation Scheme (referred to as approved superannuation schemes).
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 and regulations under that Act. The regulations amend 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 (FORMER ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
THE AMENDMENTS
Regulation 1
This regulation provides that the Principal Regulations are amended by the amending Regulations.
Regulation 2
Section 133 of the 1976 Act as inserted by Schedule 5 of the Principal Regulations includes provisions relating to the transfer of assets of the Commonwealth Superannuation Fund No. 2 (the CSS Fund) and liabilities relating to those assets to the relevant approved superannuation scheme. Section 133 provides that the assets and liabilities to be transferred are determined by the Minister.
Equivalent provisions in relation to certain other CSS members who transfer to another superannuation scheme are included in section 240 of the 1976 Act. Section 45 of the Amending Act amended subsection 240(1) of the 1976 Act to provide that the Minister's determination in relation to the transfer of assets and related liabilities from the CSS Fund must be made with the consent of the Beard.
This regulation amends subsections 133(1) and (2) of the 1976 Act as inserted by Schedule 5 of the Principal Regulations to reflect this change to section 240 so that the consent of the Board is required before the Minister may make a determination to transfer assets of the CSS Fund and liabilities related to those assets to the relevant approved superannuation scheme.
Overview
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1995 No. 93 was enacted to amend the Superannuation (Former Eligible Employees) Regulations 1992, which were themselves made under the Superannuation Act 1976. This legislative amendment was introduced to address the need for modifications in the regulation of superannuation transfers for certain Commonwealth employees transitioning to approved superannuation schemes such as the Australia Post Superannuation Scheme or the Telecom Superannuation Scheme. The enacting body for these regulations is the Minister for Finance, and the primary policy objective is to ensure that the transfer of assets and liabilities from the Commonwealth Superannuation Fund to these approved schemes is done with the appropriate oversight and consent, thereby maintaining compliance with broader superannuation regulations and industry standards. The changes reflect legislative adjustments made by the Superannuation Legislation Amendment Act 1994, which sought to align the CSS with the Superannuation Industry (Supervision) Act 1993.
Scope and Application
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1995 No. 93 applies to persons who transfer from the Commonwealth Superannuation Scheme (CSS) to an approved superannuation scheme, specifically the Australia Post Superannuation Scheme or the Telecom Superannuation Scheme. These regulations modify the Superannuation Act 1976 to address changes required for compliance with the Superannuation Industry (Supervision) Act 1993. The amendment pertains to the transfer of assets and related liabilities from the Commonwealth Superannuation Fund No. 2 (CSS Fund) to the relevant approved superannuation scheme, necessitating the consent of the Board before the Minister can make such a determination. These regulations extend across the Commonwealth of Australia, impacting both the federal and approved state-specific superannuation schemes. The amendments take effect from the date of gazette.
Key Provisions
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1995 No. 93, issued under the authority of the Minister for Finance, amends the Superannuation (Former Eligible Employees) Regulations, which are themselves modifications of the Superannuation Act 1976 (1976 Act). These amendments primarily affect individuals who have transferred from the Commonwealth Superannuation Scheme (CSS) to approved superannuation schemes such as the Australia Post Superannuation Scheme or the Telecom Superannuation Scheme. The changes are a response to the Superannuation Legislation Amendment Act 1994 (Amending Act), which necessitated modifications to the CSS to comply with the Superannuation Industry (Supervision) Act 1993.
Under section 133 of the 1976 Act, as modified by Schedule 5 of the Principal Regulations, the Minister has the authority to determine the assets and liabilities of the Commonwealth Superannuation Fund No. 2 (CSS Fund) to be transferred to approved superannuation schemes. Regulation 2 of the amending Regulations further refines this authority by requiring the Minister to obtain the consent of the Board before making any such determination. Similarly, section 240 of the 1976 Act, which pertains to certain CSS members transferring to other superannuation schemes, has been amended by the Amending Act to require Board consent for the Minister’s determination regarding the transfer of assets and related liabilities.
These amendments impose specific obligations on the Minister and the Board. The Minister is now required to seek the consent of the Board before determining the transfer of assets and liabilities from the CSS Fund to approved superannuation schemes. This ensures a collaborative decision-making process, involving both the Minister and the Board, to safeguard the interests of CSS members and maintain compliance with relevant legislation.
Failure to comply with the requirements of the amended regulations could lead to legal consequences. Although the specific penalties for breaches are not detailed in the provided text, non-compliance with regulations made under the 1976 Act can generally result in administrative actions, financial penalties, or other civil or criminal sanctions depending on the nature and severity of the breach. The precise penalties would be outlined in other sections of the 1976 Act or in related legislation, but it is clear that adherence to the regulatory framework is essential to avoid potential repercussions.