Superannuation (PSS) Membership Exclusion Declaration No. 8 1994 No. 132
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 132
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) makes provision for and in relation to an occupational superannuation scheme, known as the Public Sector Superannuation (PSS) Scheme. The PSS is the main superannuation scheme for Commonwealth employees.
The Superannuation Act 1976 (the 1976 Act) makes provision 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 those 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 a member of the scheme.
The Declaration cited as "Superannuation (PSS) Membership Exclusion Declaration No. W specifies that certain employees of the Department of Defence are persons to whom section 6 of the Act does not apply.
The Department of Defence currently employs certain temporary employees under section 42 of the Naval Defence Act 1910. Those staff are to be transferred to permanent employment under the Public Service Act 1922 (the PS Act) on 19 May 1994.
Membership of the PSS or CSS is optional for temporary employees. Many of the Department of Defence staff who are to be transferred have not exercised an option to join the PSS or the CSS.
Membership of the PSS or the CSS is compulsory for permanent employees under the PS Act. Therefore, those Department of Defence staff who become permanent employees as a result of the transfer will automatically become members of the PSS or the CSS, as appropriate, on the date of transfer.
Superannuation (PSS) Membership Exclusion Declaration No. 8 permits Department of Defence staff formerly employed under the Naval Defence Act 1910 to retain the option not to join the PSS, after they have transferred to employment under the PS Act, unless they wish to do so. 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 Statutory Rules Publication Act 1903.
The Declaration operates with effect from 19 May 1994 (the day the transfer takes place).
ATTACHMENT
SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION DECLARATION NO. 8
The details of the Declaration are as follows:
Clause 1
This cites the Declaration as Superannuation (PSS) Membership Exclusion Declaration No. 8.
Clause 2
This provides that the Declaration commences on 19 May 1994 (the date of the transfers).
Clause 3
This provides the definition of the "Act" as used in the Declaration.
Clause 4
This clause describes those personnel who are to be transferred from temporary employment under the Naval Defence Act 1910 to permanent employment under the PS Act who would normally be required to become members of the PSS scheme as a consequence of that transfer. The Declaration applies to any transferee who, prior to being appointed as an officer under section 81B of the PS Act on 19 May 1994, was not a member of the PSS.
This clause provides that the transferring personnel retain the option of joining the PSS as long as their employment under the PS Act is continuous. Accordingly, those who wish to become members of the PSS may exercise their option to do so by making a written request.
Overview
The Superannuation (PSS) Membership Exclusion Declaration No. 8, issued in 1994, is a statutory rule made under the Superannuation Act 1990, and it was enacted by the Minister for Finance. This declaration addresses the specific issue of superannuation membership for certain employees of the Department of Defence who were temporarily employed under the Naval Defence Act 1910 but were scheduled to be transferred to permanent positions under the Public Service Act 1922 on 19 May 1994. The policy objective of the declaration is to allow these employees the option of not joining the Public Sector Superannuation (PSS) scheme, even after their transfer to permanent positions, unless they choose to do so. This ensures continuity in the choice of superannuation membership for these employees, who would otherwise be automatically enrolled in the PSS upon transfer.
Scope and Application
The Superannuation (PSS) Membership Exclusion Declaration No. 8, issued under the authority of the Minister for Finance, provides specific provisions regarding the membership of the Public Sector Superannuation (PSS) Scheme for certain employees of the Department of Defence. This Declaration, effective from 19 May 1994, applies to those temporary employees of the Department of Defence who are transferred to permanent employment under the Public Service Act 1922 and were not members of the PSS prior to the transfer. The Declaration allows these individuals to retain the option not to join the PSS, even after the transfer, unless they choose to exercise their option to do so by making a written request. This exemption is designed to accommodate the transitional arrangements for certain Defence personnel who are transitioning from temporary to permanent employment. The Declaration is a statutory rule and operates in accordance with the provisions of the Acts Interpretation Act 1901 and the Statutory Rules Publication Act 1903.
Key Provisions
The Superannuation (PSS) Membership Exclusion Declaration No. 8, issued under the Superannuation Act 1990, specifies that certain employees of the Department of Defence, who are being transferred from temporary employment under the Naval Defence Act 1910 to permanent employment under the Public Service Act 1922, will retain the option not to join the Public Sector Superannuation (PSS) scheme. This applies to employees who were not already members of the PSS prior to their transfer on 19 May 1994. This declaration, detailed in the attached document, aims to provide these employees with the option to choose whether or not to join the PSS scheme, unless they explicitly decide to do so by making a written request.
The Superannuation (PSS) Membership Exclusion Declaration No. 8 imposes specific obligations on the Department of Defence and its employees. It mandates that the Department of Defence must ensure that eligible employees are informed about the option to retain their non-membership status in the PSS scheme, despite their transition to permanent employment. Employees who were not previously members of the PSS must be given the opportunity to exercise their option to join the scheme by making a written request. The Department of Defence must also ensure that these employees are fully informed of the implications of their choice, including the benefits and obligations associated with membership in the PSS scheme.
Breaches of the provisions outlined in the Superannuation (PSS) Membership Exclusion Declaration No. 8 could lead to civil and criminal consequences. Although the specific penalties are not detailed in the explanatory statement, it is clear that any failure to comply with the declaration, such as not providing employees with the opportunity to opt into the PSS scheme or not processing written requests correctly, could result in legal action. The penalties could include fines or other civil sanctions, and in severe cases, criminal charges could be brought against individuals or the Department of Defence for non-compliance with the statutory requirements.
The declaration specifies that it operates with effect from 19 May 1994, the date when the transfers of Department of Defence staff from temporary to permanent employment under the Public Service Act 1922 are set to take place. This timing is crucial as it ensures that the declaration is in force when the transfers occur, thereby protecting the rights of the affected employees. The declaration is a disallowable instrument under section 46A of the Acts Interpretation Act 1901, meaning that it can be disallowed by either House of Parliament within a specified period. Additionally, it is a Statutory Rule under the Statutory Rules Publication Act 1903, which requires it to be published in the Commonwealth of Australia Gazette.