Superannuation (PSS) Membership Exclusion Declaration No 2 1991 No. 34
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 34
ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH 6(2)(c)
The Superannuation Act 1976 established the Commonwealth Superannuation Scheme (CSS) from 1 July 1976. The Public Sector Superannuation (PSS) scheme operates from 1 July 1990 under the Superannuation Act 1990 (the Act).
Generally, members of the CSS are to have the option, to be exercised during the 12 months from 1 July 1990, of remaining members of the CSS or of transferring to the PSS.
There is a deficiency in the current provisions in that a former employee with benefits under the CSS (or under the scheme established by the Superannuation Act 1922) who is reemployed by the Commonwealth could also get benefits under the PSS.
Section 6 of the Act specifies the persons 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 to be a member of the PSS.
The Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Exclusion Declaration No 2" specifies those employees who may not become members of the PSS.
Paragraph 3(a) of the Declaration excludes invalidity pensioners under the Superannuation Act 1922 or the Superannuation Act 1976.
Paragraph 3(b) excludes persons to whom deferred benefits under the Superannuation Act 1976 are applicable.
Paragraph 3(c) excludes persons who have available to them a transfer value from another superannuation scheme that includes the amount of a transfer value that previously had been paid out in respect of those persons under either the Superannuation Act 1922 or the Superannuation Act 1976 who have not become members of the CSS since 1 July 1990.
The persons referred to in paragraphs 3(a) to 3(c) may become members of the CSS. Then they will have the option to transfer to the PSS. The option would last for 3 months after becoming members of the CSS.
In accordance with section 45 of the Act, a declaration under paragraph 6(2)(c) is to be 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 operates with effect from the date of gazettal.
Overview
The Superannuation (PSS) Membership Exclusion Declaration No 2 1991 was enacted to address the issue of certain employees potentially accruing benefits under both the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation (PSS) scheme. The Superannuation Act 1990 established the PSS scheme from 1 July 1990, and it allowed former employees with benefits under the CSS or the scheme established by the Superannuation Act 1922 who were reemployed by the Commonwealth to potentially gain benefits under the PSS. This overlap was deemed problematic, and the Declaration was introduced to rectify this issue by specifying the categories of employees who are excluded from becoming members of the PSS. The enactment was authorised by the Minister for Finance and the policy objective was to ensure that only eligible persons become members of the PSS, thereby maintaining the integrity of the superannuation schemes.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration No 2 1991 No. 34, issued under the Superannuation Act 1990, outlines specific exclusions for membership in the Public Sector Superannuation scheme. The Act applies to individuals who are employees of the Commonwealth, with certain exceptions. The declaration excludes invalidity pensioners under the Superannuation Act 1922 or 1976, individuals who are entitled to deferred benefits under the 1976 Act, and those who have a transfer value from another superannuation scheme previously paid out under either the 1922 or 1976 Acts. These excluded individuals may still be members of the Commonwealth Superannuation Scheme and have the option to transfer to the PSS within three months of becoming CSS members. The Declaration, issued by the Minister for Finance, operates from the date of its gazettal and is a disallowable instrument under the Acts Interpretation Act 1901, making it subject to parliamentary disallowance.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No 2 1991 No. 34, issued under the authority of the Minister for Finance, specifies individuals who are ineligible to join the Public Sector Superannuation (PSS) scheme. Section 6 of the Superannuation Act 1990 (the Act) outlines the criteria for PSS membership, and paragraph 6(2)(c) allows the Minister to declare certain individuals as excluded. The Declaration, referenced as "Superannuation (PSS) Membership Exclusion Declaration No 2," identifies specific categories of individuals who are barred from joining the PSS. These include invalidity pensioners under the Superannuation Act 1922 or the Superannuation Act 1976 (paragraph 3(a)), persons eligible for deferred benefits under the Superannuation Act 1976 (paragraph 3(b)), and individuals who have a transfer value from another superannuation scheme that includes amounts previously paid out under the Superannuation Act 1922 or the Superannuation Act 1976 and who did not become members of the Commonwealth Superannuation Scheme (CSS) after 1 July 1990 (paragraph 3(c)). These excluded individuals may still join the CSS and have the option to transfer to the PSS within three months of becoming CSS members.
The Declaration imposes specific obligations on the parties it governs. Firstly, it mandates that the individuals identified in paragraphs 3(a) to 3(c) cannot join the PSS. Secondly, it allows these individuals to join the CSS and exercise their option to transfer to the PSS within three months of becoming CSS members. Compliance with these provisions ensures that only eligible individuals are members of the PSS, thereby maintaining the integrity of the scheme. The Declaration also specifies that it operates from the date of gazettal, ensuring that the provisions are immediately effective.
Breach of the provisions outlined in the Declaration could result in legal consequences. Under section 45 of the Superannuation Act 1990, the Declaration is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901, meaning it can be annulled by a resolution of either House of Parliament. Failure to adhere to the Declaration's provisions may lead to civil or criminal penalties as stipulated by the Act. The specific penalties for breaches are not detailed in the Declaration but would generally be in line with the provisions of the Superannuation Act 1990, which may include fines or other sanctions as determined by the relevant authorities.