Superannuation (PSS) Membership Exclusion Declaration No. 6 1992 No.
459
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 459
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH 6(2)(c)
The Superannuation Act 1990 (the Act) provides for an occupational superannuation scheme (the PSS) for Commonwealth employees and certain other persons.
Section 6 of the 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 Declaration cited as "Superannuation (PSS) Membership Exclusion Declaration No. 4" (the Principal Declaration) provides that section 6 of the Act does not apply to a number of classes of persons described in the Schedule to that Declaration. Such persons may not therefore be members of the PSS scheme. Certain of the items in the Schedule have the effect of excluding from the PSS scheme persons who are members of a superannuation scheme other than the PSS scheme or a scheme that provides only a productivity benefit of the kind provided for in the Superannuation (Productivity Benefit) Act 1988.
Under the industrial agreement of 4 December 1992 between the Commonwealth and public sector unions, Senior Officers employed by the Commonwealth may be eligible to receive performance pay.
It is possible that superannuation could be provided on performance based pay at some time in the future with contributions being paid to a scheme other than the PSS. In such circumstances, it would be intended that persons who make superannuation contributions on the basis of performance pay to a separate scheme not be excluded from becoming, or remaining, members of the PSS. Accordingly, it is appropriate to amend the Principal Declaration to ensure that the existing exclusions would not affect such persons.
To this end. the Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Exclusion Declaration No. 6" (the Amending Declaration) amends the Principal Declaration.
Details of the amendments are as follows.
Clause 1 provides that the Amending Declaration may be cited as Superannuation (PSS) Membership Exclusion Declaration No. 6.
Clause 2 provides that the Principal Declaration is amended as set out in the Amending Declaration.
Clause 3 inserts a definition of "performance pay" in the Interpretation provisions of the Principal Declaration.
Subclauses 4.1, 4.2 and 4.3 amend the items in the Principal Declaration which provide that section 6 of the Act does not apply to persons described in those items by virtue of being members of another superannuation scheme. The effect of the amendments is to provide that a person who becomes a member of a superannuation scheme to which he or she contributes solely in relation to performance pay is not to be excluded from membership of the PSS.
In accordance with section 45 of the Act, a declaration under paragraph 6(2)(6) 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. 6 1992 was enacted to amend the exclusions under the Superannuation Act 1990 concerning membership of the Public Sector Superannuation (PSS) scheme. This piece of legislation was introduced to address the potential exclusion of certain individuals from the PSS scheme based on their membership of other superannuation schemes, particularly those that might be linked to performance-based pay. The Declaration was issued under the authority of the Minister for Finance, aiming to ensure that individuals contributing to superannuation schemes based on performance pay are not excluded from the PSS scheme. This change aligns with the industrial agreement between the Commonwealth and public sector unions regarding eligibility for performance pay, intending to maintain continuity in superannuation contributions and membership without unnecessary exclusions.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration No. 6, issued under the authority of the Minister for Finance, amends the Principal Declaration to adjust the exclusions for membership in the Public Sector Superannuation scheme (PSS) as provided by the Superannuation Act 1990. The Act applies to Commonwealth employees and certain other individuals, aiming to establish an occupational superannuation scheme for them. Specifically, section 6 of the Act delineates the eligibility criteria for PSS membership, while paragraph 6(2)(c) allows the Minister to exclude certain persons from membership through a declaration. The Principal Declaration previously excluded several classes of individuals, such as those who are members of other superannuation schemes or those participating in schemes offering productivity benefits under the Superannuation (Productivity Benefit) Act 1988. However, considering the industrial agreement between the Commonwealth and public sector unions, the Amending Declaration ensures that senior officers eligible for performance pay do not lose their PSS membership eligibility if they contribute to a separate superannuation scheme based solely on their performance pay. This amendment ensures that these officers can remain part of the PSS even if they contribute to other schemes for performance pay-related superannuation. The geographic reach of the Act and its declarations is national, applying across Australia. The exclusions and amendments are detailed in the Statutory Rules, with the Amending Declaration coming into effect from the date of its gazettal.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No. 6 1992 No. 459 makes specific amendments to the Superannuation (PSS) Membership Exclusion Declaration No. 4. The primary changes are detailed in Clauses 2 to 4.3 of the Amending Declaration. Clause 2 amends the Principal Declaration by modifying the exclusion criteria for certain classes of persons, as listed in the Schedule of the Principal Declaration. Clause 3 introduces a definition for "performance pay," which is essential for understanding the subsequent amendments. Subclauses 4.1, 4.2, and 4.3 specifically address the exclusion criteria for persons who are members of another superannuation scheme. The amendments ensure that individuals contributing solely to another superannuation scheme based on performance pay are not excluded from the PSS scheme.
The obligations imposed by this Declaration on the relevant parties primarily revolve around the interpretation and application of the amended exclusion criteria. The Principal Declaration, as amended, must be adhered to in determining the eligibility of individuals for membership in the PSS scheme. The definition of "performance pay" plays a crucial role in these determinations, ensuring that the provisions are correctly applied. Parties must ensure that any changes in the status of individuals' superannuation contributions, particularly those related to performance pay, are accurately reflected in their records and communications with the relevant superannuation schemes.
Failure to comply with the provisions of the Superannuation (PSS) Membership Exclusion Declaration No. 6 may result in legal consequences. Under section 45 of the Superannuation Act 1990, the Declaration is a disallowable instrument, meaning that it can be annulled by a resolution of either House of Parliament. Furthermore, the Declaration is a Statutory Rule, as defined under the Statutory Rules Publication Act 1903, and thus carries the weight of law. Breaches of the Declaration could lead to civil or criminal penalties, depending on the nature and severity of the violation. While specific maximum penalties are not detailed in the text, it is clear that non-compliance could result in significant legal repercussions for the involved parties.