Superannuation (Period of Contributory Service) Regulations 1995 No. 95
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 95
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Period of Contributory Service) Regulations
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.
Subsection 3(1) of the 1976 Act defines the term "period of contributory service" in relation to a person who has ceased to be an eligible employee. The definition includes periods of service from 1 July 1976 onwards only.
The Superannuation Act 1922 (the 1922 Act) which provided superannuation arrangements for Commonwealth employees was closed from that date and persons who were contributors to the scheme under the 1922 Act on 30 June 1976 were transferred to the CSS on 1 July 1976, Special arrangements apply in relation to the transferred contributors.
Section 183 of the 1976 Act provides that regulations may modify the provisions of the 1976 Act in relation to contributors under the 1922 Act who transferred and became eligible employees under the 1976 Act.
Regulations made for the purposes of section 183 of the 1976 Act include the Superannuation (Period of Contributory Service) Regulations (the Principal Regulations). The Principal Regulations modify the 1976 Act by substituting a new definition of "period of contributory service" in subsection 3(1) of the 1976 Act in relation to transferred contributors so that pre-1 July 1976 periods may be included in the definition.
The Superannuation Legislation Amendment Act 1994 (the Amending Act) amended the 1976 Act to make changes to the CS S required for compliance with the Superannuation Industry (Supervision) Act 1993 and for certain other related reasons. These 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 (PERIOD OF CONTRIBUTORY SERVICE) REGULATIONS (AMENDMENT)
THE AMENDMENTS
Regulation 1
This regulation provides that the Principal Regulations are amended by the amending Regulations.
Regulation 2
This amends the Schedule to the Principal Regulations which includes modifications to the 1976 Act in respect of transferred contributors. The Schedule inserts, in addition to a new definition of "period of contributory service" in subsection 3(1) of the 1976 Act new sections 193 to 195 which describe certain periods before 1 July 1976.
Those sections refer also to certain functions of the Superannuation Board under the 1922 Act which, from 1 July 1976 were performed by the Commissioner for Superannuation. Subsection 193 (2) makes it clear that where the sections inserted by the Schedule to the Principal Regulations refer to the Board they are actually referring to the Commissioner if that function was performed on or after 1 July 1976.
On 1 July 1994 the Commonwealth Superannuation Board of Trustees No 2 (the CSS Board) took over responsibility for the administration of the CSS from the Commissioner for Superannuation. To distinguish between the CSS Board and the Superannuation Board under the 1922 Act for the purposes of modifications relating to events before 1 July 1976 section 73 of the Amending Act omitted the definition of "Board" or "Superannuation Board" for the purposes of Part XII of the 1976 Act from section 169 of the Act and inserted a definition of the term "former Board" to mean the Superannuation Board established under the 1922 Act.
Regulation 2 changes the references to the Board in sections 193 to 195 to references to the former Board to make it clear that it is intended to refer to the Superannuation Board under the 1922 Act.
Overview
The Superannuation (Period of Contributory Service) Regulations 1995 were enacted to address the need to include pre-1 July 1976 periods of contributory service for transferred contributors from the Superannuation Act 1922 to the Superannuation Act 1976. These regulations were made under the authority of the Minister for Finance, in accordance with Section 168 of the Superannuation Act 1976. The primary policy objective is to ensure that the transferred contributors' service periods are accurately recognised, facilitating fair and consistent treatment within the Commonwealth Superannuation Scheme. The regulations amend the definition of "period of contributory service" in the 1976 Act, thereby incorporating relevant service periods that were previously excluded, and clarifying the administrative functions of the former Superannuation Board under the 1922 Act as performed by the Commissioner for Superannuation post-1 July 1976. This amendment aims to provide a seamless transition and administration of the superannuation scheme, ensuring compliance with the Superannuation Industry (Supervision) Act 1993 and other related legislative changes.
Scope and Application
The Superannuation (Period of Contributory Service) Regulations 1995, issued under the authority of the Minister for Finance, pertain to the Superannuation Act 1976 and its regulations. This legislation applies to individuals who have ceased to be eligible employees of the Commonwealth and seeks to redefine the "period of contributory service" for such individuals. Specifically, the regulations provide that the definition of this period includes service rendered from 1 July 1976 onwards, while special arrangements apply to those contributors who were transferred from the Superannuation Act 1922 to the Commonwealth Superannuation Scheme (CSS) on 1 July 1976. The 1995 Regulations modify these provisions by allowing for the inclusion of pre-1 July 1976 periods in the definition of "period of contributory service" for transferred contributors. The scope of these regulations is further refined through subordinate instruments, which adjust the principal regulations in response to amendments made by the Superannuation Legislation Amendment Act 1994, ensuring compliance with the Superannuation Industry (Supervision) Act 1993 and addressing other related reasons. These amendments clarify the application of the regulations to historical functions and the distinction between the Superannuation Board under the 1922 Act and the CSS Board.
Key Provisions
The Superannuation (Period of Contributory Service) Regulations 1995 (No. 95) (the Regulations) amend the Superannuation Act 1976 (the 1976 Act) to include periods of contributory service for certain contributors who were transferred from the Superannuation Act 1922 (the 1922 Act) to the Commonwealth Superannuation Scheme (CSS) as of 1 July 1976. This amendment applies specifically to those contributors who had been participating in the superannuation arrangements under the 1922 Act on 30 June 1976 and were subsequently transferred to the CSS on 1 July 1976.
Under the 1976 Act, the term "period of contributory service" is defined in subsection 3(1) and generally includes periods of service from 1 July 1976 onwards. However, the Regulations modify this definition for transferred contributors by allowing the inclusion of periods before 1 July 1976. This change ensures that eligible employees who were contributors under the 1922 Act can have their pre-1976 service recognised as part of their contributory service for superannuation purposes. The Regulations further detail specific sections, 193 to 195, that describe certain periods before 1 July 1976 and clarify that references to the "Board" in these sections actually refer to the "former Board" established under the 1922 Act.
The Regulations impose specific obligations on the parties involved, primarily the CSS Board and the transferred contributors. The CSS Board, which took over administrative responsibilities for the CSS from the Commissioner for Superannuation on 1 July 1994, must now ensure that the contributory service periods of transferred contributors are accurately calculated and recognised in accordance with the amended definitions. Transferred contributors, on the other hand, must ensure they understand the new provisions and how their pre-1976 service is included in their contributory service, which may affect their superannuation entitlements.
Breach of the provisions set out in these Regulations could potentially lead to disputes regarding superannuation entitlements and benefits. However, the Regulations themselves do not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance. Such consequences would typically be addressed under the broader framework of the 1976 Act and related legislation, where penalties for non-compliance might include fines or other sanctions as prescribed by law. It is essential for both the CSS Board and contributors to adhere to the stipulations of the Regulations to ensure accurate and fair administration of superannuation benefits.