Superannuation (PSS) Approved Authority Inclusion Declaration No. 5 1991 No. 423
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 423
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 1976 makes provision for and in relation to an occupational superannuation scheme (the CSS) for certain Commonwealth employees and other persons.
The Superannuation Act 1990 (the 1990 Act) provides for a new superannuation scheme (the PSS scheme) for Commonwealth employees and certain other persons to operate from 1 July 1990. Members of the CSS were given the option of remaining members of the CSS or of transferring to the PSS scheme. The PSS scheme is the principal superannuation scheme for new Commonwealth employees.
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 1990 Act. In accordance with section 3 of that 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.
In accordance with section 45 of the 1990 Act, a declaration for the purposes of paragraph (b) of the "approved authority" definition is to be 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 and may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the declaration.
The Export Finance and Insurance Corporation was established under the Export Finance and Insurance Corporation Act 1991. It is a body corporate with power to engage employees necessary for the performance of its functions. The Corporation was established on 1 November 1991 and commenced engaging employees on that date.
The Corporation is a body of a kind described in the definition of approved authority in section 3 of the 1990 Act. It is appropriate that the Corporation be declared to be an approved authority for the purposes of that Act to enable its employees to remain or become members of the scheme established under the Act.
The retrospectivity of this Declaration is required in order that those employees of the Export Finance and Insurance Corporation employed by the Corporation from 1 November 1991, and who were PSS members immediately prior to that date, are not disadvantaged in their superannuation benefits. Such persons would otherwise be disadvantaged by being precluded from continuing their contributions to the PSS scheme and being forced to cease their membership of it.
The Declaration contained in the Statutory Rule, and cited as Superannuation (PSS) Approved Authority Inclusion Declaration No 5, declares the Export Finance and Insurance Corporation to be an approved authority for the purposes of the 1990 Act. The Declaration provides that the Corporation is taken to be an approved authority with effect from 1 November 1991, a date which falls within the maximum period of retrospectivity permitted under section 45 of the 1990 Act.
Overview
The Superannuation (PSS) Approved Authority Inclusion Declaration No. 5 1991, issued under the authority of the Minister for Finance, addresses a specific gap within the Superannuation Act 1990 by declaring the Export Finance and Insurance Corporation (EFIC) an approved authority. This declaration was enacted to ensure that employees of the EFIC, which was established on 1 November 1991, could be members of the Public Sector Superannuation (PSS) scheme without any disadvantage, particularly for those who were PSS members prior to the establishment of the Corporation. The intent behind this Statutory Rule is to align the EFIC with the provisions of the Superannuation Act 1990, thereby allowing its employees to remain or become members of the PSS scheme and continue their contributions uninterrupted. This legislative measure ensures that employees of the EFIC are not prejudiced in their superannuation benefits due to the establishment of the Corporation.
Scope and Application
The Superannuation (PSS) Approved Authority Inclusion Declaration No 5 applies to the Export Finance and Insurance Corporation, making it an approved authority under the Superannuation Act 1990. This legislative instrument seeks to ensure that employees of the Corporation are eligible to participate in the Public Sector Superannuation Scheme, thereby granting them access to the benefits and protections provided by this scheme. The Corporation, established under the Export Finance and Insurance Corporation Act 1991, is deemed an approved authority for the purposes of the 1990 Act, thus facilitating the continuity of superannuation benefits for its employees. The Declaration ensures that employees engaged by the Corporation from 1 November 1991, including those who were PSS members prior to that date, are not disadvantaged by being forced to cease their membership and contributions to the PSS scheme. The retroactive effect of the Declaration, taking into account the date of the Corporation’s establishment, underscores the intention to maintain uninterrupted superannuation benefits for the affected employees.
Key Provisions
The Superannuation (PSS) Approved Authority Inclusion Declaration No. 5 1991 No. 423, made under the Superannuation Act 1990, declares the Export Finance and Insurance Corporation (EFIC) to be an approved authority. This declaration, effective from 1 November 1991, aims to allow employees of the EFIC to remain or become members of the Public Service Superannuation (PSS) scheme. The declaration is made in accordance with the provisions of the Superannuation Act 1990, specifically section 3, which defines an approved authority as one declared by the Minister for Finance. The declaration is also in line with section 45 of the 1990 Act, which allows for the retrospective effect of such declarations to ensure that employees are not disadvantaged by being excluded from the PSS scheme.
The declaration imposes obligations on the EFIC to ensure that it adheres to the requirements of the Superannuation Act 1990, thereby enabling its employees to participate in the PSS scheme. This includes ensuring that all eligible employees are informed about their options to remain or transfer to the PSS scheme and that the EFIC complies with the necessary administrative and reporting obligations under the Act. The EFIC must also ensure that any contributions to the PSS scheme are managed in accordance with the provisions of the Superannuation Act 1990.
Failure to comply with the requirements of the Superannuation Act 1990 can result in legal consequences for the EFIC. Under the Act, breaches may be subject to penalties, fines, or other civil or criminal consequences. The maximum penalties for non-compliance with the Act can vary depending on the nature and severity of the breach, but they may include substantial fines or other sanctions. It is important for the EFIC to ensure that it complies with the Act to avoid any potential legal repercussions.