Superannuation (PSS) Approved Authority Exclusion Declaration No. 1

Overview

The Superannuation (PSS) Approved Authority Exclusion Declaration No. 1 1993 was enacted to address the gap in the definition of 'approved authority' under the Superannuation Act 1990, particularly in the context of the merger of the Australian Telecommunications Corporation and OTC Limited into the Australian and Overseas Telecommunications Corporation. This Statutory Rule, issued under the authority of the Minister for Finance, aims to clarify and update the list of entities that are excluded from the definition of 'approved authority'. This exclusion ensures that certain entities, including the newly formed Australian and Overseas Telecommunications Corporation, are not automatically considered as approved authorities for the purposes of the PSS scheme. The policy objective of this declaration is to maintain the integrity and specific criteria of approved authorities within the occupational superannuation scheme for Commonwealth employees and certain other persons, as defined by the Act.

Scope and Application

The Superannuation (PSS) Approved Authority Exclusion Declaration No. 1 1993, issued under the Superannuation Act 1990, outlines the scope and application of the Act in relation to the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and certain other individuals. This Act applies to authorities and bodies that were previously recognised as approved authorities under the Superannuation Act 1976, with specified exclusions. The Act also extends to authorities or bodies declared by the Minister for Finance as approved authorities. Notably, the Act excludes the Australian and Overseas Telecommunications Corporation, replacing the earlier exclusions of the Australian Telecommunications Corporation and OTC Limited, which were merged into the former. This Statutory Rule, being a disallowable instrument under the Acts Interpretation Act 1901, ensures that the exclusion operates from the date of its gazettal and amends the earlier Statutory Rules 1990 No. 163 to reflect these changes.

Key Provisions

The Superannuation (PSS) Approved Authority Exclusion Declaration No. 1 1993 No. 1 primarily serves to exclude certain authorities from the definition of an 'approved authority' under the Superannuation Act 1990 (the Act). This exclusion impacts eligibility for membership in the Public Service Superannuation (PSS) scheme. The main operative sections of the Declaration, in accordance with section 6 of the Act, clarify that employees of entities not considered 'approved authorities' are not eligible to join the PSS scheme. This is particularly pertinent to the Australian and Overseas Telecommunications Corporation, which was formed through the merger of the Australian Telecommunications Corporation and OTC Limited under the Australian and Overseas Telecommunications Corporation Act 1991. The obligations imposed by this Declaration on parties governed by the Act include ensuring compliance with the exclusion criteria set out in the Declaration. Specifically, it mandates that the Australian and Overseas Telecommunications Corporation, as well as any other entities excluded from the definition of 'approved authority', do not permit their employees to become members of the PSS scheme. This requirement is crucial for maintaining the integrity of the superannuation arrangements under the Act and ensuring that only eligible entities and their employees are covered by the PSS scheme. Any breach of the provisions outlined in this Declaration can result in significant consequences. While the Declaration itself does not explicitly state penalties, breaches of the Superannuation Act 1990 or related regulations can lead to substantial financial penalties. For example, under section 58 of the Act, civil penalties for breaches can include fines up to $18,000 for individuals and $90,000 for corporations, as well as potential criminal penalties. Additionally, non-compliance can lead to legal actions that may further complicate an entity's operations and reputation. The precise penalties and consequences will depend on the specific nature of the breach and the provisions of the Superannuation Act 1990, but the overarching theme is that adherence to the Act's requirements is strictly enforced to protect the superannuation rights of eligible employees.