Superannuation (PSS) Membership Exclusion Declaration No. 3 1991 No. 254
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 254
ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH 6(2)(c)
The Public Sector Superannuation scheme (PSS) was established under the Superannuation Act 1990 (the Act) from 1 July 1990.
The Australian Securities Commission (ASC) commenced operations on 1 January 1991. Its staff includes persons transferred from the Corporate Affairs Commissions of the Northern Territory and the States.
The majority of transferred staff are now Commonwealth public servants employed under the provisions of the Public Service Act 1922 as either officers or employees. Some, however, will be employed by the ASC on contract and others without contract as temporary employees.
Staff transferring from State employment have been offered options for superannuation coverage dependent on the position held in relation to the relevant State superannuation scheme. The Commonwealth agreed that:
(a) transferees could remain members of the State scheme; or
(b) transferees could cease membership of the State scheme and immediately thereafter join the PSS; or
(c) transferees who have elected not to be members of a State scheme, or who are covered by personal superannuation arrangements permitted under a State scheme, could continue with these arrangements after transfer.
Section 6 of the Act specifies the persons who may become 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. 3" provides that those employees of the ASC who have alternative arrangements are not to be PSS members.
Paragraph 4 of the declaration provide that section 6 of the Act does not apply to staff of the ASC who are appointed or employed under the Public Service Act 1922 and who were members of a private superannuation scheme or who, in accordance with the provisions of the relevant State superannuation scheme, were not members of a that scheme immediately prior to appointment.
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.
It is intended that the superannuation options should be available to ASC staff from their start of employment with the ASC. Accordingly, the Declaration operates with effect from 1 January 1991.
The declaration ensures that the superannuation options agreed with the States are available to former State employees who have taken up positions with the ASC.
Overview
The Superannuation (PSS) Membership Exclusion Declaration No. 3 1991 No. 254 was enacted to address the need for continuity and alignment in superannuation arrangements for employees transitioning from State employment to Commonwealth service, specifically within the Australian Securities Commission (ASC). This Statutory Rule was issued under the authority of the Minister for Finance and operates under the Superannuation Act 1990. The purpose of this Declaration is to ensure that ASC staff who were previously members of State superannuation schemes or had alternative superannuation arrangements are not automatically enrolled in the Public Sector Superannuation (PSS) scheme, thereby respecting the superannuation options previously agreed with the States. The policy objective is to provide a seamless transition for employees while maintaining their existing superannuation arrangements, ensuring the continuity of their benefits and avoiding any disruption to their retirement savings.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration No. 3 1991 applies to specific staff of the Australian Securities Commission (ASC) who were previously employed by State Corporate Affairs Commissions and were offered superannuation options upon transfer to the ASC. This Statutory Rule, issued under the authority of the Minister for Finance and in accordance with the Superannuation Act 1990, ensures that the agreed superannuation arrangements for these staff are maintained. Specifically, the Declaration excludes from membership in the Public Sector Superannuation (PSS) scheme those ASC employees who were previously members of a private superannuation scheme or who were not members of a State scheme immediately prior to their transfer to the ASC. This exclusion is effective from 1 January 1991, the date the ASC commenced operations, and is intended to align with the superannuation options negotiated with the States. The Declaration is a disallowable instrument and a Statutory Rule, subject to the provisions of the Acts Interpretation Act 1901 and the Statutory Rules Publication Act 1903.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No. 3 1991, made under paragraph 6(2)(c) of the Superannuation Act 1990, specifies that certain employees of the Australian Securities Commission (ASC) will not be members of the Public Sector Superannuation (PSS) scheme. Section 6 of the Act details who can become a member of the PSS, but this declaration excludes certain ASC staff from this membership. Specifically, the declaration applies to ASC staff who were members of a private superannuation scheme or who were not members of a relevant State superannuation scheme immediately before their employment with the ASC (Paragraph 4). This means that these individuals are not required to join the PSS and can instead remain with their existing superannuation arrangements.
The declaration imposes specific obligations on ASC staff who are covered by this exclusion. These staff members must adhere to the terms of their existing superannuation arrangements, whether they involve remaining in a private scheme or continuing with arrangements permitted under a State superannuation scheme. This ensures that the transition from State employment to the ASC does not disrupt their superannuation coverage. The declaration is designed to provide continuity and stability for employees who have specific superannuation arrangements in place.
Failure to comply with the provisions of this declaration could lead to legal consequences. As a disallowable instrument under section 46A of the Acts Interpretation Act 1901, any breach of the declaration could be subject to parliamentary disallowance. Additionally, the declaration is a Statutory Rule under the Statutory Rules Publication Act 1903, and non-compliance could result in civil or criminal penalties as prescribed by the Superannuation Act 1990. While the exact penalties are not specified in the explanatory statement, they could include fines or other sanctions depending on the nature and severity of the breach.