Superannuation (Period of Contributory Service) Regulations (Amendment) 1991 No. 172
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 172
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.
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
The superannuation scheme provided under the 1976 Act has operated since 1 July 1976. It replaced the scheme provided under the Superannuation Act 1922 (the 1922 Act). Persons who were contributors to the 1922 Act scheme on 30 June 1976 were transferred to the 1976 Act scheme on 1 July 1976.
Section 183 of the 1976 Act provides that the regulations may modify the 1976 Act in its application to the transferred contributors. Subsection 168(9) of the 1976 Act provides that regulations made within a period of 12 months after 1 July 1990 by virtue of section 183 may be expressed to have taken effect from and including a day not earlier than 1 July 1990.
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 member of the 1976 Act scheme. The definition includes only periods of service from 1 July 1976 onwards.
The Superannuation (Period of Contributory Service) Regulations (the Regulations), made by virtue of section 183, modified subsection 3(1) of the 1976 Act by substituting a new definition of "period of contributory service" to apply to members of the 1922 Act scheme who transferred to the 1976 Act scheme on 1 July 1976. The substituted definition includes periods of contributory service prior to 1 July 1976. Like the definition in the 1976 Act, the substituted definition excludes periods of leave without pay to which subsection 51(1) of the 1976 Act applies and periods of unpaid maternity leave to which subsection 51A(1) applies.
ATTACHMENT
SUPERANNUATION (PERIOD OF CONTRIBUTORY SERVICE) REGULATIONS (AMENDMENT)
REGULATION 1
This provides for the Superannuation (Period of Contributory Service) Regulations (Amendment) (the Amending Regulations) to operate with effect from and including 1 July 1990.
REGULATION 2
This provides that the Superannuation (Period of Contributory Service) Regulations (the Principal Regulations) are amended as set out in the Amending Regulations.
REGULATION 3 AND SUBREGULATION 4.1
These amend regulation 4 of the Principal Regulations and the heading to the Schedule to the Principal Regulations as suggested by the Attorney-General's Department to reflect modern drafting standards. The amendments involve matters of style rather than substance.
SUBREGULATIONS 4.2 AND 4.3
These amend the definition of "period of contributory service" substituted by the Schedule to the Principal Regulations so that the periods excluded from the scope of the term will be the same as those excluded from the definition in the 1976 Act following the changes made by the Amending Act.
SUBREGULATIONS 4.4 TO 4.8
These amend sections 193,194 and 195 as inserted in the 1976 Act by the Schedule to the Principal Regulations as suggested by the Attorney-General's Department to reflect modern drafting standards. The amendments involve matters of style rather than substance.
SUBREGULATION 4.9
This corrects a reference in paragraph 195(1)(a) as inserted in the 1976 Act by the Schedule to the Principal Regulations.
Section 40 of the Superannuation Legislation Amendment Act 1990 (the Amending Act) substituted a new section 51A in the 1976 Act to apply to parental leave as well as maternity leave and changed the arrangements under the Act in relation to such leave. As a consequence of these changes, paragraph 8(1)(j) of the Amending Act amended the definition of "period of contributory service" in subsection 3(1) of the 1976 Act so that the exclusions from the ambit of the term would be
• periods of leave without pay to which subsection 51(1) app
Overview
The Superannuation (Period of Contributory Service) Regulations (Amendment) 1991 No. 172, issued under the authority of the Minister for Finance, amends the existing Superannuation (Period of Contributory Service) Regulations made under the Superannuation Act 1976. This legislation addresses the issue of aligning the definition of "period of contributory service" for members transferred from the previous superannuation scheme under the Superannuation Act 1922 to the new scheme established by the 1976 Act. The objective is to ensure that the regulatory definition matches the statutory definition within the 1976 Act, particularly in light of recent amendments concerning parental and maternity leave, thereby maintaining consistency and fairness in the application of superannuation benefits. The regulations aim to reflect modern drafting standards and correct minor inconsistencies identified in the original regulations.
Scope and Application
The Superannuation (Period of Contributory Service) Regulations (Amendment) 1991 applies to individuals who were contributors to the superannuation scheme under the Superannuation Act 1976, specifically those who transferred from the scheme under the Superannuation Act 1922 on 1 July 1976. This amendment extends to all Commonwealth employees and certain other persons covered under the 1976 Act, aiming to modify the definition of "period of contributory service" to include periods of service prior to 1 July 1976. The amendment is jurisdictional within the Commonwealth of Australia, as it pertains to the regulatory framework established under federal law. The Regulations exclude periods of leave without pay and unpaid maternity leave from the scope of the term "period of contributory service," aligning with the exclusions outlined in the 1976 Act. The application of the Act is not restricted geographically within Australia but is limited to the specified periods and types of leave. The Regulations also correct and modernise certain sections of the 1976 Act, ensuring clarity and consistency in the legislative language without altering the substantive provisions.
Key Provisions
The main operative sections of the Superannuation (Period of Contributory Service) Regulations (Amendment) 1991 No. 172, are the regulations that amend the existing Superannuation (Period of Contributory Service) Regulations. These regulations, in effect from 1 July 1990, modify the definition of "period of contributory service" to include service prior to this date for those members who were transferred from the Superannuation Act 1922 to the Superannuation Act 1976 on 1 July 1976 (Regulation 2). The regulations also make technical amendments to the Principal Regulations to reflect modern drafting standards, ensuring clarity and consistency in the legislative language without altering the substantive law (Regulation 3 and Subregulation 4.1).
The obligations imposed by these regulations are primarily on the administrators of the superannuation schemes to adjust their records and calculations to account for the expanded definition of "period of contributory service." This includes ensuring that the periods of service prior to 1 July 1976 are included in the calculations of pension entitlements for those members who transferred from the 1922 Act scheme to the 1976 Act scheme. The regulations also require adherence to the exclusions from the definition of "period of contributory service," specifically periods of leave without pay and unpaid maternity leave, in line with the provisions of the Superannuation Act 1976 and any subsequent amendments (Subregulations 4.2 and 4.3).
The Superannuation (Period of Contributory Service) Regulations (Amendment) 1991 No. 172 do not explicitly outline offences, penalties, or civil/criminal consequences for breaches of its provisions. However, under the overarching Superannuation Act 1976, any failure to comply with the regulations or the Act could result in penalties as prescribed by the legislation. For example, breaches of the Superannuation Act 1976 may lead to fines, imprisonment, or both, depending on the nature and severity of the breach. The maximum penalties would be determined by the specific provisions of the Superannuation Act 1976 that are applicable to the circumstances of the breach. It is important for the administrators of the superannuation schemes to ensure compliance with these regulations and the Act to avoid any potential penalties or legal consequences.