Superannuation (PSS) Membership Exclusion Declaration. No. 10 1994 No. 300
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 300
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) provided for the establishment of the Public Sector Superannuation Scheme (the PSS) for Commonwealth employees and certain other persons to operate from 1 July 1990.
The Superannuation Act 1976 (the 1976 Act) makes provisions for and in relation to an occupational superannuation scheme (known as the CSS) for certain Commonwealth employees and other persons. Although the CSS is closed to new members, membership of the CSS continues to be available to existing members and certain former members.
Section 6 of the 1990 Act specifies the persons who may be members of the PSS scheme. 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 to be a member of the scheme,
The intention is that those persons who were excluded from membership of the scheme established under the 1976 Act also be excluded, under similar conditions, from membership of the new scheme.
The Declaration cited as "Superannuation (PSS) Membership Exclusion Declaration. No. 4" provides that section 6 of the 1990 Act does not apply to a number of persons described in the Schedule of that Declaration. Such persons may not therefore be members of the PSS.
Item 20 of the Schedule applies to the permanent employees of the Australian Wheat Board (the AWB). Item 20 specifies that persons who were permanent employees of the AWB on 1 July 1990 and have since been continuously employed by the AWB, and who before 10 March 1987 and 1 July 1990 elected not to be treated as eligible employees, be excluded from membership of the PSS.
The amendment has the effect of allowing those employees of the Australian Wheat Board who have continuously been employed by the AWB and who elected on or after 10 March 1987 and before 1 July 1990 not to be treated as eligible employees and who have asked to be treated as PSS members to become PSS members in accordance with section 6 of the 1990 Act.
In accordance with section 45 of the 1990 Act a declaration under paragraph 6(2)(c) is to be a disallowable instrument for the purposes of section 6A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.
The Declaration operates with effect from the date of gazettal.
Overview
The Superannuation Act 1990 was enacted to establish the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and certain other persons, providing a structured retirement benefit system for eligible individuals. The Act aimed to address the need for a unified superannuation scheme for public sector employees, ensuring they have a reliable income source during retirement. The Parliament of Australia enacted this legislation to formalise and streamline the superannuation arrangements within the public sector. A key policy objective of the Act was to create a comprehensive and consistent superannuation scheme that would cater to the retirement needs of public sector employees, ensuring their financial security upon retirement. The Superannuation (PSS) Membership Exclusion Declaration No. 4, issued under the authority of the Minister for Finance, further refined the eligibility criteria for membership in the PSS, excluding certain groups of employees from participating in the scheme based on their previous employment status and election choices.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration. No. 10 1994 pertains to the exclusion of certain individuals from membership of the Public Sector Superannuation Scheme (PSS) established under the Superannuation Act 1990. This legislation specifically applies to individuals who were permanent employees of the Australian Wheat Board on 1 July 1990 and have remained continuously employed by the AWB, provided they elected not to be treated as eligible employees before 10 March 1987 and before 1 July 1990. These persons are thereby excluded from membership of the PSS. The exclusion applies to the Commonwealth jurisdiction and operates from the date of its gazettal, aligning with the disallowable instrument and Statutory Rule provisions as outlined in the Acts Interpretation Act 1901 and the Statutory Rules Publication Act 1903, respectively. The exclusions outlined in this Declaration are intended to maintain consistency with the conditions set forth in previous legislation, specifically the Superannuation Act 1976, thereby ensuring that those previously excluded from membership in the Commonwealth superannuation scheme remain excluded from the PSS.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No. 10, issued under section 6(2)(c) of the Superannuation Act 1990, specifies individuals who are ineligible for membership in the Public Sector Superannuation Scheme (PSS). This declaration ensures that certain individuals, who were excluded from the Commonwealth Superannuation Scheme (CSS) under the Superannuation Act 1976, are also excluded from the PSS. Specifically, the declaration amends the exclusion criteria for permanent employees of the Australian Wheat Board (AWB) to permit those who were continuously employed by the AWB and who elected not to be treated as eligible employees before 1 July 1990 to join the PSS if they so choose.
The primary obligations under this declaration are that it establishes a clear exclusion criterion for specific groups of individuals from joining the PSS. This includes permanent employees of the AWB who made certain choices regarding their superannuation eligibility prior to 1 July 1990. By declaring these individuals ineligible for PSS membership, the Act aims to maintain consistency with previous superannuation arrangements.
In terms of compliance, the declaration mandates that any permanent AWB employees who fall under the specified exclusion criteria must not be enrolled in the PSS. This requirement extends to employers and superannuation funds who must verify the eligibility of prospective members against the criteria set out in the declaration.
Failure to adhere to the exclusion criteria outlined in the declaration can result in civil or administrative consequences. Although specific penalties are not detailed within the declaration itself, breaches of superannuation laws generally attract penalties that can include fines and other administrative actions. The precise penalties would be governed by the broader provisions of the Superannuation Act 1990 and related legislation.