Superannuation (Former Eligible Employees) Regulations (Amendment) 1992 No. 94
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 94
Issued by Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Former Eligible Employees) Regulations (Amendment)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for certain Commonwealth employees and other persons.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Persons eligible to contribute under the Act are referred to as eligible employees. The term "eligible employee" is defined in subsection 3(1) of the Act.
Section 126A of the Act provides that the Regulations may modify the Act in its application to or in respect of a person who ceases to be an eligible employee and who immediately after ceasing, becomes a member of another superannuation scheme. Regulations for the purposes of section 126A of the Act are contained in the Superannuation (Former Eligible Employees) Regulations (the Regulations).
The Australian Postal Corporation (APC) has for many years made employer contributions in respect of its eligible employees under section 159 of the Act. These contributions were paid into Consolidated Revenue. other Commonwealth agencies make like contributions. The rate at which contributions are made is determined individually for each agency by the Minister for Finance on actuarial advice. For this purpose, an actuarial analysis is undertaken as if each agency's employer contributions were paid into a continuing fund, invested and that "notional fund" used to pay benefits.
Eligible employees employed by the APC had the option of transferring to the Australia Post Superannuation Scheme (APSS) during the period from 1 July 1990 to 28 February 1991. Following the close of the transfer period an actuarial assessment of estimated liabilities has been made. After taking into account all liabilities and after assuming that there will not be any contributions paid, there is a residual amount of the "notional fund" still standing to the APC's credit.
The amended regulations empower the Minister for Finance to determine (and re-determine as necessary) a schedule of payments to the APSS to return this residual amount. It is intended to return the amount by way of regular payments over a number of years.
The specific details of these proposed amendments to the Regulations are set out in the attachment.
The proposed Regulations would commence on gazettal.
ATTACHMENT
SUPERANNUATION (FORMER ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
Proposed Regulation 8
This regulation provides that the amendments set out in new schedule 5A will apply in respect of those persons who are employees of, and holders of statutory office in, the Australian Postal Corporation (APC).
Proposed New Schedule 5
Paragraphs 1 to 4 modify the Act by omitting those provisions that would otherwise conflict with the payments from Consolidated Revenue Fund to the Australia Post Superannuation Scheme (APSS) in respect of persons who were eligible employees employed by the APC and elected to transfer to be members of the APSS.
Paragraph 5 modifies subsection 241(1) so that the Minister may determine that payments be made to the person or body administering the APSS, the amounts of which are in respect of payments made under section 159 by the APC (referred to as employer contributions in this memorandum).
Overview
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1992 No. 94 were introduced to address the issue of residual funds in the "notional fund" of the Australian Postal Corporation (APC) after a transfer period for eligible employees to move to the Australia Post Superannuation Scheme (APSS). This amendment was enacted under the authority of the Minister for Finance and is an alteration to the Superannuation Act 1976. The primary policy objective behind these amendments is to ensure that any residual funds remaining in the APC’s account after the transfer of eligible employees to the APSS are returned efficiently. This is achieved by empowering the Minister to determine and re-determine a schedule of payments to the APSS over a number of years to liquidate these remaining funds. The Regulations aim to modify the Act to facilitate this process by eliminating any conflicting provisions that would impede the transfer of these residual funds.
Scope and Application
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1992 No. 94, issued under the authority of the Minister for Finance, amend the existing Superannuation (Former Eligible Employees) Regulations to modify the application of the Superannuation Act 1976 for certain former eligible employees of the Australian Postal Corporation (APC). The Superannuation Act provides for an occupational superannuation scheme for certain Commonwealth employees, including those who were eligible to contribute under the Act. The Act allows for the modification of its application to individuals who cease to be eligible employees and subsequently join another superannuation scheme. This amendment specifically applies to former APC employees who elected to transfer to the Australia Post Superannuation Scheme (APSS) between 1 July 1990 and 28 February 1991. The amendments enable the Minister for Finance to determine a schedule of payments from the Consolidated Revenue Fund to the APSS, thereby returning a residual amount of the notional fund to the APC over a number of years. The Regulations are designed to ensure there are no conflicting provisions affecting these payments. The changes will take effect from the date of gazettal.
Key Provisions
The Superannuation (Former Eligible Employees) Regulations (Amendment) 1992 No. 94 primarily focuses on modifying the Superannuation Act 1976 in respect of individuals who were previously eligible employees and subsequently became members of another superannuation scheme. Specifically, Section 126A of the Act allows for the regulation to adjust provisions applicable to former eligible employees who cease to be in the scheme and join another, ensuring a smooth transition in their superannuation benefits. The amendments, detailed in the attached Schedule 5A, particularly target employees of the Australian Postal Corporation (APC). These amendments aim to facilitate the transfer of a residual amount from the Consolidated Revenue Fund to the Australia Post Superannuation Scheme (APSS) over a series of years.
The Superannuation (Former Eligible Employees) Regulations impose several obligations on the parties involved, most notably on the Minister for Finance. Under the amended regulations, the Minister is tasked with determining and periodically re-determining the schedule of payments to the APSS. This involves calculating the amount to be paid based on actuarial assessments, ensuring that the payments accurately reflect the residual amount attributable to former APC employees. The Minister must also ensure that these payments do not conflict with existing provisions under the Superannuation Act, thereby maintaining the integrity of the occupational superannuation scheme.
Breach of the provisions set out in these regulations could result in significant consequences. While the regulations themselves do not explicitly outline specific offences or penalties, non-compliance with the Superannuation Act 1976 can lead to various civil or criminal liabilities. The Act includes provisions for penalties, which can be substantial, depending on the nature and severity of the breach. For instance, failure to make the mandated payments could result in financial liabilities for the government, as well as potential legal actions from affected employees. Additionally, any discrepancies in the calculation or distribution of payments might lead to investigations and subsequent penalties imposed by relevant authorities.