Superannuation (PSS) Maximum Benefits
(2011-2012) Determination 2011 –
Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Maximum Benefits
(2011-2012) Determination 2011.
2 Commencement
This determination takes effect on 1 July 2011.
3 Purpose
The purpose of the determination is to set new maximum benefits for the Public Sector Superannuation (PSS) scheme to apply for the financial year beginning on 1 July 2011.
4 Background
Establishment of the PSS Scheme
The PSS scheme is established by the Superannuation Act 1990, a Trust Deed and Rules.
The PSS Rules were renumbered with effect from 1 July 1995, as a result of amendments made by the Ninth Amending Trust Deed.
The PSS Rules were amended by the Twenty-Eighth Amending Trust Deed executed in 2007 by the deletion of a “B” before each rule with effect from 29 June 2007.
Maximum Benefits
The PSS Rules contain specific rules specifying maximum benefits for scheme members and employees of the Australian Federal Police (AFP).
The lump sum and pension maximum benefits for AFP employees who are PSS members are designed to take into account a special superannuation entitlement paid by the AFP. The maximum benefits for these members place a limit on the combined AFP special benefit and the PSS benefit.
The maximum benefits also place a cap on the employer cost of the PSS.
Relevant Rules
Under the renumbered PSS Rules that came into effect on 1 July 1995, rules 5.6.1, 5.7.1 and 5.7.2 set out the Table of Maximum Benefits Rates.
In particular, the rules dealt with the following:
- rule 5.6.1 – maximum lump sum benefits for members;
- rule 5.7.1 – maximum lump sum benefits for AFP employees; and
- rule 5.7.2 – maximum pension benefits for AFP employees.
The amounts in the tables in rules 5.6.1 and 5.7.1 are the same.
Each rule sets out a table containing the maximum benefits to apply from 1 July 1995 until amended.
Power to Amend Maximum Benefits
Pursuant to rules 5.6.5 and 5.7.7 the Australian Reward Investment Alliance (ARIA) is empowered to determine maximum benefits for the purposes of the PSS scheme, with effect from 1 July 1995 each year:
- under rule 5.6.5 ARIA has the power to determine the amounts to be substituted into the Table - Maximum Benefits in rule 5.6.1.
- under rule 5.7.7 ARIA has the power to determine the amounts to be substituted into the Table - AFP Preliminary Maximum Benefits - Lump Sums in rule 5.7.1 and the Table - AFP Preliminary Maximum Benefits - Pensions in rule 5.7.2.
Delegation
ARIA has delegated its power under rules 5.6.5 and 5.7.7 to relevant officers of the scheme administrator, Commonwealth Superannuation Administration (ComSuper).
Maximum Benefits in the Period 1 July 1996 - 30 June 2005
In the period from 1 July 1996 to 30 July 2005, the amounts set out in the tables in rules 5.6.1, 5.7.1 and 5.7.2 were replaced on 1 July each year, pursuant to the PSS (Maximum Benefits) Determination No. 1, which was amended each year. That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Maximum Benefits (2005-2006) Determination 2005 which set out the maximum benefits for the financial year commencing on 1 July 2005.
Maximum Benefits in the Period from 1 July 2005 – 31 December 2007
Maximum benefits in the period from 1 July 2005 to 31 December 2007 are set out in annual determinations that apply for the financial year commencing on 1 July each year.
Maximum Benefits in the Period from 1 January 2008 – 30 June 2008
The Twenty-Ninth Amending Trust Deed inserts new maximum benefit tables into rules 5.6.1, 5.7.1 and 5.7.2 of the PSS Rules, to apply with effect from 1 January 2008 until 30 June 2008.
The Twenty-Ninth Amending Trust Deed also amends rules 5.6.5 and 5.7.7 of the PSS Rules.
Maximum Benefits in the Period from 1 July 2008
Under new rules 5.6.5 and 5.7.7, the maximum benefits set out in rules 5.6.1, 5.7.1 and 5.7.2 are amended by determination. The Superannuation (PSS) Maximum Benefits (2008-2009) Determination 2008 amends the tables contained in rules 5.6.1, 5.7.1 and 5.7.2 for the financial year commencing on 1 July 2008.
5 New Maximum Benefits
The new maximum benefits that apply with effect from 1 July 2011 are
set out in the determination.
6 References to ARIA
At the date of the signing of this determination, ARIA was legally responsible for the administration of the PSS.
As a result of the Governance of Australian Government Superannuation Schemes Bill 2011, passed by Federal Parliament on 21 June 2011 and currently awaiting Royal Assent, the responsibility for the administration of the PSS will vest in the Commonwealth Superannuation Corporation (CSC), with effect from 1 July 2011.
In accordance with section 25B of the Acts Interpretation Act 1901, any reference to ARIA in an instrument made prior to 1 July 2011 shall be construed as a reference to the CSC.
Further by virtue of clause 22 of Schedule 2 of the Superannuation Legislation (Consequential and Transitional Provisions) Bill 2011, passed by Federal Parliament on 21 June 2011 and currently awaiting Royal Assent, all current delegations under a governing deed continue to be in force on or after 1 July 2011. As such an instrument signed by the delegate of ARIA shall be deemed to be in force after 1 July 2011 as if it were an instrument of the CSC.
7 Consultation
As the instrument is for internal machinery of Government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).