Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 7

Overview

The Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 7, issued under the Superannuation (Productivity Benefit) Act 1988, was enacted to address a gap in superannuation coverage for non-permanent staff of the Australian Capital Territory Totalisator Administration Board (ACTTAB) following the separation of the ACT Government Service from the Australian Public Service on 1 July 1994. This gap arose as ACTTAB employees were previously not covered by the provisions of the Superannuation (Productivity Benefit) Act, which provides minimum employer superannuation contributions for certain employees lacking other employer-sponsored superannuation cover. The declaration, authorised by the Minister for Finance and Administration, aims to ensure that these employees, who transitioned to the ACT Government Service, could elect to join alternative superannuation arrangements. The policy objective is to provide these employees with a choice to either remain in their existing ACTTAB superannuation plan or join other approved superannuation funds under the Act. This legislative instrument was introduced to rectify an earlier, unpublished declaration that had been acted upon but lacked the requisite legal standing due to non-compliance with the Acts Interpretation Act 1901.

Scope and Application

The Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 7 1998 applies to a specific class of employees, namely the non-permanent staff of the Australian Capital Territory Totalisator Administration Board (ACTTAB) who were transferred to the ACT Government Service on the separation of the ACT Government Service from the Australian Public Service on 1 July 1994. This declaration provides these employees with specific superannuation arrangements, giving them the option to cease their membership in the ACTTAB Limited Staff Superannuation Plan and join either the Australian Government Employees Superannuation Trust (AGEST) or another approved fund under the Superannuation (Productivity Benefit) Act 1988. This Act applies to the Commonwealth jurisdiction and is designed to ensure that employees who do not have other employer-sponsored superannuation cover still receive a minimum level of employer superannuation contributions. The declaration ceased to be effective from 30 June 1996, when ACTTAB became corporatised and its employees ceased to be part of the ACT Public Service.

Key Provisions

The Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 7, made under subsections 4A(1) and (2) of the Superannuation (Productivity Benefit) Act 1988, provides specific superannuation arrangements for a class of employees who were previously not covered by these arrangements. This includes non-permanent staff of the Australian Capital Territory Totalisator Administration Board (ACTTAB) who were employed by ACTTAB immediately before 1 July 1994 and who continued to be employed by ACTTAB after being transferred to the ACT Government Service. The Declaration allows these employees to elect to cease being members of the ACTTAB Limited Staff Superannuation Plan and instead join either the Australian Government Employees Superannuation Trust (AGEST) or another approved fund under the Act. The Declaration was intended to take effect retrospectively from 1 July 1994, the day the ACT Government Service separated from the Commonwealth, and it ceased to be effective on 30 June 1996 when ACTTAB became corporatised. The declaration aims to ensure that the employees in question have appropriate superannuation arrangements in place, reflecting their transfer from ACTTAB to the ACT Public Service. The obligations imposed by this Declaration on the relevant employees include the requirement to make a written election to join an approved superannuation fund if they wish to opt out of the ACTTAB Limited Staff Superannuation Plan. This election must be made within a specified timeframe to ensure that the employees are covered by the appropriate superannuation arrangements. The Declaration ensures that these employees have the opportunity to choose a superannuation fund that suits their needs, thereby aligning their superannuation arrangements with the broader provisions of the Superannuation (Productivity Benefit) Act 1988. Additionally, the Declaration imposes an obligation on the ACT Government Service to facilitate the transfer process and ensure that the employees' superannuation arrangements are updated accordingly. Failure to comply with the provisions of the Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 7 may result in civil or criminal consequences. While specific penalties are not detailed in the Explanatory Statement, under the Superannuation (Productivity Benefit) Act 1988, breaches of the Act can lead to penalties, including fines and imprisonment. For instance, section 59 of the Act provides that an officer or employee of a superannuation fund who contravenes the Act can be fined up to $22,200 or imprisoned for up to two years, or both. Additionally, the Act allows for civil penalties to be imposed by the Federal Court for breaches, which can include compensation to affected parties. The specific penalties applicable to this Declaration would depend on the nature and severity of the breach.