Superannuation (PSS) Membership Exclusion Amendment Declaration 2000 (No. 1) 2000 No. 42
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 42
Issued by the authority of the Minister for Finance and Administration
Superannuation Act 1990
Declaration under paragraph 6(2)(c)
The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and for certain other persons.
Section 6 of the 1990 Act specifies the persons who are, or who may be, members of the PSS. In accordance with paragraph 6(2)(c), a person declared by the Minister for Finance and Administration to be a person to whom section 6 does not apply is not a PSS member. Declarations made under paragraph 6(2)(c) are contained in the Superannuation (PSS) Membership Exclusion Declaration (the Principal Declaration).
ACTEW Corporation is an approved authority for the purposes of the PSS, and, as such, its permanent employees are required to be PSS members and its temporary employees have an option to join the PSS in certain circumstances.
ACTEW Corporation has introduced new superannuation arrangements for new employees. Under these arrangements, new employees of ACTEW Corporation, including those for whom PSS membership continues to be available, are to be offered choice of superannuation fund.
This Declaration amends the Principal Declaration to confirm that certain new ACTEW Corporation employees who have prior links to the PSS are able to maintain their membership. The Declaration provides that these employees retain their PSS membership unless they elect to cease membership within 28 days of commencing employment with ACTEW Corporation. An employee who makes such an election can join an accumulation superannuation scheme in accordance with ACTEW Corporation's new superannuation arrangements provided under their enterprise agreement.
The Declaration has no effect on the PSS membership of PSS members already employed by ACTEW Corporation when the Declaration is made.
Details of the amendment are explained in the Attachment.
Section 45 of the 1990 Act provides that a declaration made under paragraph 6(2)(c) 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.
The Declaration commences on gazettal.
SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION AMENDMENT DECLARATION 2000 (NO. 1)
Clause 1
1. This clause provides that the name of the Declaration is the Superannuation (PSS) Membership Exclusion Amendment Declaration 2000 (No. 1).
Clause 2
2. This clause provides that the declaration commences on gazettal.
Clause 3
2. This clause provides that Schedule 1 amends the Superannuation (PSS) Membership Exclusion Declaration (the Principal Declaration).
Schedule 1
Item 1 inserts item 42 into the Schedule to the Principal Declaration. The inserted item provides that only a particular class of persons commencing employment with ACTEW Corporation on or after the commencement of the item can be a member of the PSS.
This class of persons includes those who immediately before commencing that employment:
(i) were PSS members (for example because they were employed by the Commonwealth or another approved authority); or
(ii) had preserved PSS benefits that were preserved before the commencement of this item.
The class of persons also includes a CSS member who has not had an opportunity to transfer from the CSS to the PSS. Such a person may transfer by making a declaration to become a PSS member and electing to cease to be a CSS member under section 244 of the Superannuation Act 1976.
Item 42 provides that a new employee of ACTEW Corporation included in this class of persons can choose to cease membership of the scheme by asking, in writing, not to be treated as a PSS member within 28 days of commencing employment.
Overview
The Superannuation (PSS) Membership Exclusion Amendment Declaration 2000 (No. 1) was enacted to address a specific issue arising from the new superannuation arrangements introduced by ACTEW Corporation for its new employees. This instrument amends the Superannuation (PSS) Membership Exclusion Declaration, which is the principal declaration under paragraph 6(2)(c) of the Superannuation Act 1990. The Superannuation Act 1990 sets out the provisions for the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and certain other persons. The policy objective of this amendment is to ensure that certain new employees of ACTEW Corporation who have prior links to the PSS can maintain their PSS membership while allowing them the option to join an accumulation superannuation scheme under the corporation's new arrangements. This amendment applies to new employees who either were PSS members previously or have preserved PSS benefits, or who are Commonwealth Superannuation Scheme (CSS) members with an opportunity to transfer to the PSS. The amendment was made by the Minister for Finance and Administration and is subject to disallowance under the Acts Interpretation Act 1901. The Declaration took effect upon its gazettal.
Scope and Application
The Superannuation (PSS) Membership Exclusion Amendment Declaration 2000 (No. 1) pertains to the Superannuation Act 1990, which governs the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and certain other persons. This declaration specifically addresses the membership of the PSS in relation to new employees of ACTEW Corporation, an approved authority for the PSS. Under this Act, ACTEW Corporation's permanent employees must be PSS members, while its temporary employees may join the PSS under certain conditions. The Declaration amends the existing Superannuation (PSS) Membership Exclusion Declaration to allow certain new employees of ACTEW Corporation, who have prior links to the PSS, to maintain their membership. These employees can choose to cease PSS membership within 28 days of commencing employment, in which case they can join an accumulation superannuation scheme as per ACTEW Corporation's new superannuation arrangements. The Declaration does not affect the PSS membership of employees already working for ACTEW Corporation at the time of its enactment. The declaration is a Statutory Rule and a disallowable instrument, commencing on the date of its gazettal.
Key Provisions
The Superannuation (PSS) Membership Exclusion Amendment Declaration 2000 (No. 1) amends the existing Superannuation (PSS) Membership Exclusion Declaration to clarify the membership status of new employees of ACTEW Corporation under the Public Sector Superannuation Scheme (PSS). Section 6 of the Superannuation Act 1990 specifies who can be a member of the PSS. This Declaration, under paragraph 6(2)(c), excludes certain new employees of ACTEW Corporation from PSS membership unless they choose to remain members within 28 days of commencing employment. These employees include those who were previously PSS members, those who had preserved PSS benefits, and Commonwealth Superannuation Scheme members who have not yet transferred to the PSS. The Declaration ensures that these employees can retain their PSS membership if they wish to do so, while also allowing them to opt-out and join another superannuation scheme under ACTEW Corporation's new arrangements.
The Act imposes specific obligations on ACTEW Corporation and its new employees. ACTEW Corporation must ensure that new employees are informed about their options regarding PSS membership and must allow those eligible to retain their PSS membership if they choose. Employees who were previously PSS members, or who had preserved PSS benefits, must be given the option to maintain their PSS membership. If they decide to opt-out of the PSS, they can join another superannuation scheme in line with ACTEW Corporation’s new superannuation arrangements. This Declaration does not affect the PSS membership of existing ACTEW Corporation employees.
Breaching the requirements outlined in the Declaration may have legal consequences, though specific offences, penalties, or consequences are not detailed in the text. Generally, under the Superannuation Act 1990, non-compliance with the provisions governing superannuation membership and related obligations can lead to penalties. The maximum penalties for breaches of superannuation laws can include fines and imprisonment, depending on the severity and intent of the breach. The declaration itself operates as a disallowable instrument under section 46A of the Acts Interpretation Act 1901 and a Statutory Rule under the Statutory Rules Publication Act 1903, meaning it must be formally approved and published to have legal effect.