Superannuation (PSS) Membership Exclusion Declaration (Amendment) (23/07/1998)

Overview

The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1998 No. 243, issued under the authority of the Minister for Finance and Administration, amends the Superannuation (PSS) Membership Exclusion Declaration. This amendment pertains to the Public Sector Superannuation Scheme (PSS) established under the Superannuation Act 1990. The amendment addresses the issue of superannuation membership for individuals who transfer under the mobility provisions of the Public Service Act 1922. Specifically, it aims to clarify the conditions under which these individuals remain or cease to be members of the PSS. The policy objective is to ensure that superannuation membership aligns with the mobility provisions and the specific circumstances of public service transfers, with particular attention to employees of the Australian Government Solicitor (AGS).

Scope and Application

The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1998 No. 243 amends the Superannuation (PSS) Membership Exclusion Declaration to clarify the membership of the Public Sector Superannuation Scheme (PSS) for certain employees affected by the mobility provisions in the Public Service Act 1922. Specifically, the amendment applies to persons who move under these mobility provisions on or after 1 August 1998, ensuring they cease to be PSS members unless continuing membership is expressly provided. This amendment targets individuals who transition to new employment within the Australian public service or other specified entities, excluding them from PSS membership unless they fall under the exceptions outlined in the amendment. The amendment also includes a provision for continuing PSS membership for employees of the Australian Government Solicitor (AGS) who move to that body on or after 1 August 1998, subject to certain conditions that could result in the cessation of their membership. The geographical and jurisdictional reach of this amendment is primarily Commonwealth, applying to federal public service employees and those covered by the specified mobility provisions.

Key Provisions

The Superannuation (PSS) Membership Exclusion Declaration (Amendment) 1998 No. 243 amends the Superannuation (PSS) Membership Exclusion Declaration to modify the criteria for Public Sector Superannuation Scheme (PSS) membership. Specifically, Section 3.2 of the Amendment clarifies that certain employees moving under the mobility provisions of the Public Service Act 1922 on or after 1 August 1998 will cease to be PSS members unless they are employed by the Australian Government Solicitor (AGS). Employees of the AGS will retain their PSS membership unless the AGS ceases to be an 'Agency' under the Financial Management and Accountability Act 1997 or a 'Commonwealth authority' or 'Commonwealth company' under the Commonwealth Authorities and Companies Act 1997 (Section 3.2). The amendment is effective from 1 August 1998 (Clause 1) and modifies the Principal Declaration by adding new subclause 4(3) to clause 4 (Clause 3) and inserting a new item 38 in the schedule (Clause 4). The obligations under this Act for the affected parties include ensuring that employees moving under the mobility provisions are aware of their PSS membership status and that AGS employees remain informed about conditions that might affect their PSS membership. Failure to comply with these provisions may result in unintended PSS membership statuses, which could have financial implications for the affected employees. Entities and individuals governed by this Act must ensure that any mobility provisions under the Public Service Act 1922 are implemented in a manner that respects the amended PSS membership rules. Specifically, employers transferring employees under the mobility provisions must verify whether the destination entity is the AGS and take appropriate actions to maintain or terminate PSS membership accordingly. The AGS, in turn, has an obligation to ensure that it remains classified as an 'Agency', 'Commonwealth authority', or 'Commonwealth company' to maintain the PSS membership eligibility of its employees. Non-compliance with these obligations could result in employees being incorrectly classified regarding their PSS membership, leading to potential financial repercussions. The Act imposes penalties and consequences for breaches, although the specific details are not provided in the text. However, under the Acts Interpretation Act 1901, a declaration under paragraph 6(2)(c) is a disallowable instrument, meaning it can be annulled by either House of Parliament. Additionally, the Statutory Rules Publication Act 1903 classifies the Declaration as a Statutory Rule, subject to the scrutiny and potential disallowance by Parliament. The practical consequence of a disallowance would be the nullification of the amendment, reverting the PSS membership criteria to their original state as specified in the Principal Declaration. This underscores the importance of compliance with the new provisions to avoid legal and administrative complications.