EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 50
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT: SUPERANNUATION ACT 1976 - SUPERANNUATION (PERIOD OF CONTRIBUTORY SERVICE) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which the Act requires or permits to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Act provides a contributory superannuation scheme for persons employed by the Commonwealth and for certain other persons. The rates of employer-financed invalidity, age and early age retirement pensions payable under the Act are based on the contributor’s age, salary and period of contributory or prospective service at the time of retirement or death.
Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”. By virtue of paragraph (a) of the definition of “eligible employee” in sub-section 3(1) of the Act, those eligible to contribute under the Act include persons who, immediately before the commencement of the Act (1 July 1976) were employees for the purposes of the Superannuation Act 1922 and who have continued to be and are such employees.
Sub-section 183(2) of the Act provides that the regulations may make provision for modifying the Act, or a provision of the Act specified in the Regulations, in the application of the Act or that provision to and in relation to an eligible employee, who is, or at any time has been, a person referred to in paragraph (a) of the definition of “eligible employee” or to and in relation to a class of such eligible employees. Sub-section 183(3) provides that the modifications may include, but are not limited to, modifications providing for the payment of contributions and benefits in addition to, or in substitution for, those provided under the Act.
Regulations made by virtue of sub-section 183(2) include the Superannuation (Period of Contributory Service) Regulations (the Regulations) which modify the definition of “period of contributory service” in sub-section 3(1) of the Act to provide that the person’s period of contributory service includes:
- his contributory service since 1 July 1976;
- the period immediately preceding 1 July 1976 during which the person was a contributor under the Superannuation Act 1922; and
- certain periods of membership of other superannuation schemes that were recognised for the purposes of his entitlements under the Superannuation Act 1922.
Sub-section 155(2) of the Act provides that the regulations may make provision for modifying the Act, or a provision of the Act specified in the regulations, in the application of the Act or that provision to and in relation to an eligible employee who is, or at any time has been, an approved part-time employee or to and in relation to a class of such persons. Sub-section 155(3) provides that the modifications may include, but are not limited to, modifications providing for the payment of contributions and benefits in addition to, or in substitution for, those provided under the Act.
The Act as it applies to persons who are approved part-time employees has been modified by the Superannuation (Approved Part-time Employees) Regulations. The Superannuation (Approved Part-time Employees) Regulations modify the definition of “period of contributory service” in sub-section 3(1) as it applies to all persons to whom those regulations apply, including persons to whom paragraph (a) of the definition of “eligible employee” refers. The modifications to the definition of “period of contributory service” made by the Superannuation (Approved Part-time Employees) Regulations will reflect the provisions of the Regulations except that periods during which the person was a “partial contributor” (that is, a person contributing on a part-time basis) will be converted to contributory service as a full-time employee on a proportionate basis.
The Regulations therefore amend the Superannuation (Period of Contributory Service) Regulations to provide that they do not apply to persons who at any time before ceasing to be eligible employees have been approved part-time employees.
The amending regulations operate from the date of their gazettal which is the same date as the date from which the Superannuation (Approved Part-time Employees) Regulations will operate.
In accordance with section 48 of the Acts Interpretation Act 1901, regulations made by authority of an Act are required to be laid before each House of the Parliament within 15 sitting days of that House after the making of
The amendments to the Superannuation (Salary) Regulations will ensure that the intention of the new sub-section 5(2A) is extended to the Regulations. The opportunity has also been taken to make some minor amendments of a drafting nature. The amendments are outlined in the Attachment.
The amending regulations operate from the date of their gazettal which is the same date as the date from which the Superannuation (Approved Part-time Employees) Regulations will operate.