Superannuation (PSS) Membership Exclusion Declaration No. 7 1994 No. 270
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 270
Issued by the authority of the Minister for Finance
Superannuation Act 1990
Declaration under paragraph 6 (2)(c)
The Superannuation Act 1990 (the Act) makes provision for and in relation at an occupational superannuation scheme, known as the Public Sector Superannuation (PSS) scheme, 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) of the Act, a person declared by the Minister for Finance to be a person to whom section 6 does not apply is not 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 persons described in the Schedule to the Declaration. Such persons may not therefore be members of the PSS scheme. Some items in the Schedule have the effect of excluding from the PSS scheme certain persons who are members of another superannuation scheme to which the person's employer makes contributions.
Some PSS scheme members are employed on flexible remuneration arrangements which enable them to receive part of their remuneration as non-cash benefits. Under such arrangements some members may sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative superannuation scheme in addition to contributions already being made to the PSS scheme. It is intended that, where a PSS member is entitled to such arrangements as part of his or her remuneration package, selection of this option should not exclude the person from membership of the PSS scheme.
The Declaration contained in the Statutory Rules and cited as "Superannuation (PSS) Membership Exclusion Declaration No. 7" amends the Principal Declaration to give effect to this intention. The Declaration also amends the Principal Declaration to clarify that a reference to membership of a superannuation scheme does not include a reference to the scheme under the Superannuation Act 1976 (known as the CSS) where the person's membership of that scheme relates to employment other than that in respect of which the person is a member of the PSS scheme. The details of the Declaration are set out in the attachment.
Section 45 of the Act provides that such a declaration is 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 commences on gazettal.
Overview
The Superannuation (PSS) Membership Exclusion Declaration No. 7 was issued in 1994 under the authority of the Minister for Finance and pertains to the Superannuation Act 1990. This legislative instrument was enacted to address specific issues within the Public Sector Superannuation (PSS) scheme, particularly concerning the exclusion of certain individuals from membership. The Superannuation Act 1990 governs the PSS scheme, which is designed for Commonwealth employees and certain other persons. The principal objective of this declaration is to clarify and amend the exclusion criteria set out in the earlier Superannuation (PSS) Membership Exclusion Declaration No. 4. It aims to ensure that employees who participate in flexible remuneration arrangements, which may include contributions to alternative superannuation schemes, are not excluded from the PSS scheme. Additionally, the declaration seeks to refine the definition of membership in other superannuation schemes, excluding those that pertain to employment unrelated to the PSS scheme.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration No. 7, issued under the authority of the Minister for Finance, amends the Superannuation (PSS) Membership Exclusion Declaration No. 4 to refine the exclusion criteria for membership in the Public Sector Superannuation (PSS) scheme as established under the Superannuation Act 1990. This Act primarily governs the PSS scheme for Commonwealth employees and certain other persons, defining who may be members of this occupational superannuation scheme. The Declaration excludes certain individuals from PSS membership, notably those who are members of another superannuation scheme to which their employer contributes, thereby ensuring that the flexibility of remuneration arrangements, such as those allowing salary sacrifice to alternative schemes, do not inadvertently exclude eligible individuals from PSS membership. Additionally, the Declaration clarifies that membership in a superannuation scheme, as referenced in the Principal Declaration, does not encompass membership in the Commonwealth Superannuation Scheme under the Superannuation Act 1976, if the membership pertains to employment distinct from that under which the person is a PSS member. This amendment is intended to prevent any confusion or overlap in membership criteria across different superannuation schemes. The Declaration is a statutory rule under the Statutory Rules Publication Act 1903 and is subject to disallowance under the Acts Interpretation Act 1901, commencing upon its gazettal.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No. 7 (1994) under the Superannuation Act 1990, amends the earlier Superannuation (PSS) Membership Exclusion Declaration No. 4. Section 6 of the Act specifies who can be members of the Public Sector Superannuation (PSS) scheme, with Section 6(2)(c) enabling the Minister for Finance to declare certain persons who are not eligible to be members of the PSS scheme. The Declaration No. 7 ensures that certain individuals who are part of flexible remuneration arrangements, which allow them to sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative scheme, remain eligible for PSS membership. Additionally, the Declaration clarifies that membership of another superannuation scheme, specifically the one under the Superannuation Act 1976 (CSS), does not exclude a person from PSS membership if that other membership relates to a different employment.
The Declaration imposes obligations on entities and individuals governed by the Act, ensuring compliance with the specified provisions regarding PSS membership. It mandates that certain persons be excluded from the PSS scheme if they are listed in the Schedule of the Declaration, or if they are members of another superannuation scheme for which their employer makes contributions. However, the Declaration also provides exceptions for members under flexible remuneration arrangements, ensuring that their choice to participate in an alternative superannuation scheme does not exclude them from the PSS scheme. Furthermore, the Declaration specifies that a reference to membership of a superannuation scheme does not include the CSS if that membership pertains to employment other than the one covered under the PSS scheme.
The Superannuation Act 1990, through the provisions of Section 45, establishes that the Declaration is a disallowable instrument under the Acts Interpretation Act 1901 and a Statutory Rule under the Statutory Rules Publication Act 1903. This means that while the Declaration takes effect upon gazettal, it can be subject to disallowance by Parliament. The Act does not specify particular offences or penalties for breach of the Declaration, but the general legal framework under which the Act operates would apply. This could potentially include civil or criminal penalties, depending on the nature and severity of the breach, as well as the specific provisions of other relevant legislation.