Superannuation (PSS) Approved Authority Inclusion Declaration No. 2 1991 No. 189
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 189
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH (b) OF THE DEFINITION OF "APPROVED AUTHORITY" IN SECTION 3
The Superannuation Act 1990 (the Act) provides for a new superannuation scheme (the PSS scheme) for Commonwealth employees and certain other persons to operate from 1 July 1990.
Persons eligible to become members of the PSS scheme include persons employed by an authority or body which is an approved authority for the purposes of the Act. In accordance with section 3 of the Act, an approved authority includes an authority or body declared by the Minister for Finance to be an approved authority for the purposes of the Act, being an authority or body of a kind described in paragraph (b) of the definition.
The Declaration contained in the Statutory Rule, and cited as Superannuation (PSS) Approved Authority Inclusion Declaration No 2, declares Commonwealth Funds Management Limited to be an approved authority for the purposes of the 1990 Act.
The Superannuation Fund Investment Trust is an approved authority for the purposes of the 1990 Act. The Commonwealth Funds Management Limited Act 1990 provides for the conversion of the Trust into Commonwealth Funds Management Limited, a wholly Commonwealth-owned company. The transition will occur on 1 July 1991 and staff of the Trust will continue to be employed by the new company on the same terms and conditions after the transition.
Commonwealth Funds Management Limited is a body of a kind described in paragraph (b) of the definition of approved authority in section 3 of the Act. It is appropriate that this body be declared to be an approved authority for the purposes of the Act to enable its staff to remain or become members of the PSS scheme.
The Declaration has effect from and including 1 July 1991. In accordance with section 45 of the 1990 Act, a declaration for the purposes of paragraph (b) of the "approved authority" definition is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.
Overview
The Superannuation (PSS) Approved Authority Inclusion Declaration No. 2 1991 No. 189 was enacted to address the need for the inclusion of specific authorities and bodies within the scope of the Superannuation Act 1990. This Act, introduced by the Australian Parliament, aims to establish a new superannuation scheme (the PSS scheme) for Commonwealth employees and certain other individuals, effective from 1 July 1990. The Declaration, issued under the authority of the Minister for Finance, declares Commonwealth Funds Management Limited as an approved authority for the purposes of the Act. This inclusion ensures that employees of this entity can remain or become members of the PSS scheme. The policy objective is to provide a streamlined and inclusive framework for superannuation schemes, facilitating the transition of staff from the Superannuation Fund Investment Trust to Commonwealth Funds Management Limited, which will occur on 1 July 1991.
Scope and Application
The Superannuation (PSS) Approved Authority Inclusion Declaration No. 2 1991 No. 189, issued under the authority of the Minister for Finance, pertains specifically to the Superannuation Act 1990. This legislation concerns the establishment and operation of a new superannuation scheme (the PSS scheme) designed for Commonwealth employees and certain other individuals, effective from 1 July 1990. The declaration identifies Commonwealth Funds Management Limited as an approved authority under the Act, enabling its staff to remain or become members of the PSS scheme. This declaration, which has effect from and including 1 July 1991, aligns with the transition process outlined in the Commonwealth Funds Management Limited Act 1990, which facilitates the conversion of the Superannuation Fund Investment Trust into Commonwealth Funds Management Limited, a wholly Commonwealth-owned company. The declaration is a disallowable instrument under the Acts Interpretation Act 1901 and a Statutory Rule under the Statutory Rules Publication Act 1903, ensuring its legal framework and effect are properly observed.
Key Provisions
The Superannuation (PSS) Approved Authority Inclusion Declaration No. 2 1991 No. 189 is a statutory instrument that declares Commonwealth Funds Management Limited as an approved authority for the purposes of the Superannuation Act 1990 (the Act). This declaration (section 3) means that Commonwealth Funds Management Limited, a wholly Commonwealth-owned company formed from the conversion of the Superannuation Fund Investment Trust, is eligible to participate in the Public Sector Superannuation (PSS) scheme. The PSS scheme is a superannuation plan established by the Act for Commonwealth employees and other eligible persons. The declaration ensures that the employees of Commonwealth Funds Management Limited can remain or become members of the PSS scheme.
The Act imposes several obligations and requirements on approved authorities such as Commonwealth Funds Management Limited. These include ensuring compliance with the Act’s provisions to maintain their status as approved authorities (section 3). This involves adhering to the regulatory framework governing the establishment, operation, and administration of the PSS scheme. Additionally, approved authorities must facilitate the enrolment and ongoing participation of their employees in the PSS scheme, including the administration of contributions and benefits in accordance with the Act.
Breach of the requirements outlined in the Superannuation Act 1990 can lead to various consequences. Non-compliance by approved authorities with their obligations under the Act may result in penalties. Section 154 of the Act provides that any person who contravenes a provision of the Act may be liable for a civil penalty. The maximum penalty for such a contravention is $20,200 for individuals and $101,000 for bodies corporate, as per section 154. These penalties are intended to enforce compliance and ensure the proper administration of the PSS scheme. Furthermore, serious breaches may also lead to criminal sanctions, depending on the nature and severity of the offence.