Superannuation (Period of Contributory Service) Regulations (Amendment) 1996 No. 104
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 104
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Period of Contributory Service) 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 (CSS).
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Prior to the establishment of the CSS with effect from 1 July 1976, superannuation arrangements were provided for Commonwealth employees by a scheme established under the Superannuation Act 1922 (the 1922 Act).
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.
Subsection 3(1) of the 1976 Act defines the term "period of contributory service" in relation to a person who has ceased to be a CSS member. The definition includes periods of service from 1 July 1976 onwards only.
Section 183 of the 1976 Act provides that regulations may modify the provisions of that Act in relation to contributors under the 1922 Act who transferred and became CSS members.
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 their periods of membership of the scheme under the 1922 Act and other appropriate pre-1 July 1976 periods may be included in the definition.
The Superannuation Legislation Amendment Act (No. 1) 1995 (the amending Act) amended the 1976 Act in certain ways that necessitated amendments to the regulations that modify that Act. Subsection 168(12A) was inserted to provide that regulations arising from the amendments to the Act may be made with retrospective effect within one year after the amending Act received Royal Assent. The Regulations amend the Principal Regulations as a consequence of the amendments to the 1976 Act contained in the amending Act.
Item 4 of Schedule 2 to the amending Act amended the definition of "period of contributory service" included in subsection 3(1) of the 1976 Act as a consequence of the amendments included in items 9 and 72. These two items create additional periods that should be excluded from contributory service, ie, periods between employments that arise from subsection 3(3) and periods during which section 55A would not allow the accrual of benefits because of the Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS).
THE AMENDMENTS
Regulation 1
This regulation provides that regulation 4 is taken to have commenced on 23 June 1995.
Regulation 2
This regulation provides that the Principal Regulations are amended by the amending Regulations.
Regulation 3
This regulation changes the title of the Principal Regulations to Superannuation (CSS) Period of Contributory Service Regulations.
Regulation 4
This regulation inserts paragraphs (k) and (1) in item 1 of Schedule 1 of the Principal Regulations which inserts a modified definition of "period of contributory service". The amendment is required as a consequence of the amendment made to the definition of "period of contributory service" in the 1976 Act by item 4 of Schedule 2 to the amending Act.
Overview
The Superannuation (Period of Contributory Service) Regulations (Amendment) 1996 No. 104 was enacted to address certain deficiencies identified in the existing regulatory framework under the Superannuation Act 1976. This Act, which was originally established to create an occupational superannuation scheme for Commonwealth employees and others, was amended by the Superannuation Legislation Amendment Act (No. 1) 1995. These amendments necessitated corresponding changes to the regulations, particularly concerning the definition of "period of contributory service" for contributors who transferred from the scheme under the Superannuation Act 1922 to the new Commonwealth Superannuation Scheme (CSS). The regulations aim to ensure that the amended provisions of the 1976 Act are accurately reflected in the regulatory framework, thereby maintaining the integrity and efficacy of the superannuation arrangements for affected individuals. The amendments were issued by the authority of the Minister for Finance and align with the policy objective of updating and refining the regulatory provisions to better reflect the legislative intent and address identified gaps in the existing regulatory framework.
Scope and Application
The Superannuation (Period of Contributory Service) Regulations (Amendment) 1996 No. 104 applies to individuals who were contributors under the Superannuation Act 1922 prior to the establishment of the Commonwealth Superannuation Scheme (CSS) on 1 July 1976. These regulations modify the definition of "period of contributory service" under the Superannuation Act 1976 to include periods of service under the 1922 Act and other specified periods prior to 1 July 1976. The amendment is necessitated by changes to the 1976 Act introduced by the Superannuation Legislation Amendment Act (No. 1) 1995, which in turn were made to align with the Superannuation Industry (Supervision) Act 1993. The regulations extend to the Commonwealth and are made under the authority granted by section 168 of the 1976 Act. These amendments do not apply to contributions made after the specified exclusion periods and those during which benefits cannot accrue under the SIS Act. The regulations have retrospective effect, applying from 23 June 1995, as allowed by subsection 168(12A) of the 1976 Act.
Key Provisions
The key provisions of the Superannuation (Period of Contributory Service) Regulations (Amendment) 1996 No. 104 are outlined in regulations 1 to 4, which are designed to modify the Principal Regulations in response to amendments made by the Superannuation Legislation Amendment Act (No. 1) 1995. Regulation 1 sets the commencement date for the amendments, while regulation 2 confirms that these changes are to be applied to the Principal Regulations. Regulation 3 updates the title of the Principal Regulations to reflect the new scope, now named Superannuation (CSS) Period of Contributory Service Regulations. Regulation 4 modifies the definition of "period of contributory service" by incorporating additional exclusions that align with the changes in the Superannuation Act 1976 (the 1976 Act) made by the amending Act.
The obligations and requirements imposed by these regulations primarily concern those who are responsible for administering the Commonwealth Superannuation Scheme (CSS). The amendments necessitate adjustments to the administrative processes to account for the new definition of "period of contributory service" as outlined in the 1976 Act. This includes ensuring that all relevant periods of service, both under the 1922 Act and other pre-1 July 1976 periods, are correctly included or excluded in the calculation of contributory service. These changes require careful review and adjustment of records to ensure compliance with the updated regulations.
Breaching the requirements of these regulations could result in incorrect calculations of superannuation benefits for CSS members. Such errors may lead to financial discrepancies, which could have legal consequences for both the administrators and the affected members. While the regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, the underlying act and its associated regulations may have provisions that apply. For example, errors in the administration of superannuation benefits could lead to civil penalties under the Superannuation Industry (Supervision) Act 1993, which includes provisions for fines and other corrective measures. The precise penalties would depend on the nature and severity of the breach, but they could be substantial given the importance of accurate superannuation record-keeping.