Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1996 No.
4
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 4
Issued by the Authority of the Minister for Finance
Superannuation Act 1990
Declaration under paragraph 6(2)(c)
The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to an occupational superannuation scheme known as the Public Sector Superannuation Scheme (the PSS) for Commonwealth employees and certain other persons.
The Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS) provide for a regulatory system for superannuation schemes which are regulated superannuation funds under that Act. The PSS is a regulated superannuation fund.
To ensure that the PSS complies with SIS requirements, the Declaration amends the Superannuation (PSS) Membership Exclusion Declaration (the Principal Declaration) to provide that a regulated superannuation fund not accept contributions made by or in respect of a member over age 65, or allow an additional benefit accrual after that age, other than in special. circumstances.
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 to be a person to whom section 6 does not apply is not a member of the scheme. Declarations made under paragraph 6(2)(c) are contained in the Principal Declaration.
Section 45 of the 1990 Act provides that a declaration 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.
SIS does not permit the payment of contributions by or on behalf of a member of a regulated superannuation fund in certain circumstances.
The Schedule to the Principal Declaration describes persons for whom PSS membership is not available. The Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Exclusion Declaration (Amendment)" amends the Schedule to the Principal Declaration by adding item 36.
Clause 1 provides that the Principal Declaration is amended as set out in the amending Declaration.
Clause 2 adds item 36 to the end of the Schedule of persons to whom section 6 of the Act does not apply. A person included in the new class of person is described as "a contributions-barred person" and, because of SIS, is a person from whom a regulated superannuation fund may not accept contributions.
The amendment further provides for persons who are PSS members at the commencement of this declaration and who remain members to be excluded from the effect of this declaration. Also excluded are persons who become PSS members after the commencement of this declaration and who later become persons included in the class. This ensures that the existing members (who continue to be members) or future members who join the scheme while still permitted by SIS to contribute are not affected by the amendment.
This Declaration operates with effect from the date of gazettal.
Overview
The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1996 No. 4 was enacted to address compliance issues with the Superannuation Industry (Supervision) Act 1993, which governs regulated superannuation funds. This amendment to the Superannuation Act 1990 specifically targets the Public Sector Superannuation Scheme (PSS), ensuring it adheres to the regulatory requirements set by the SIS Act. The policy objective is to prevent the PSS from accepting contributions for members over the age of 65, except in special circumstances, thereby maintaining compliance with the SIS Act. The amendment was issued under the authority of the Minister for Finance, and the Statutory Rule was made to align the PSS with the provisions of the SIS Act, thereby ensuring that the PSS does not contravene these regulatory standards.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1996 No. 4 applies to the Public Sector Superannuation Scheme (PSS), which is governed by the Superannuation Act 1990 and is a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993. Specifically, this amendment to the Declaration under paragraph 6(2)(c) of the 1990 Act excludes certain persons from membership of the PSS, namely those over the age of 65, unless special circumstances apply. This exclusion is designed to align the PSS with the requirements of the SIS Act, which does not permit regulated superannuation funds to accept contributions by or on behalf of members over 65 years old, except in specific cases. The amendment operates by adding a new item to the Schedule of the Principal Declaration, identifying these individuals as "contributions-barred persons." Importantly, the amendment does not affect those who were already PSS members at the time of its enactment, nor does it affect those who join the scheme while still eligible to contribute under SIS rules. This Declaration is a Statutory Rule, which means it is subject to disallowance under section 46A of the Acts Interpretation Act 1901 and is published under the Statutory Rules Publication Act 1903.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1996 No. 4 primarily amends the Superannuation (PSS) Membership Exclusion Declaration to align with the requirements set out in the Superannuation Industry (Supervision) Act 1993 (SIS). Specifically, section 1 of the Amendment provides that the Principal Declaration is amended as detailed in the amending Declaration, while section 2 adds item 36 to the Schedule of persons for whom PSS membership is not available. Item 36 refers to "contributions-barred persons," which means individuals from whom a regulated superannuation fund may not accept contributions due to the provisions of SIS (section 2, clause 2).
The amendment imposes several obligations on the parties involved. Firstly, it mandates that the Public Sector Superannuation Scheme (PSS) must not accept contributions made by or in respect of a member over the age of 65, or allow an additional benefit accrual after that age, unless in special circumstances (section 1). This aligns the PSS with the broader regulatory framework provided by SIS. The amendment also ensures that existing PSS members who were members at the commencement of this declaration and continue to be members, as well as future members who join the scheme while still permitted by SIS to contribute, are excluded from the effects of this amendment (section 2, clause 2).
The Declaration outlines specific consequences for non-compliance with its provisions. If a regulated superannuation fund accepts contributions from or allows an additional benefit accrual for a "contributions-barred person," it would be in breach of the Superannuation Act 1990 and the Superannuation Industry (Supervision) Act 1993. While the exact penalties are not detailed in the explanatory statement, breaches of SIS can result in substantial penalties under the Superannuation Industry (Supervision) Act 1993, including fines and potential criminal sanctions for individuals. Additionally, the Superannuation Act 1990 allows for the disallowance of instruments, meaning that any amendments or declarations made under the Act can be annulled by Parliament if found to be non-compliant with legislative requirements.