explanatory statement

Issued by the authority of the Minister for Finance and Administration

Superannuation Act 1990

Declaration under paragraph 6(1)(j)

The Superannuation Act 1990 (the Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) for Australian Government employees and for certain other persons.

Section 6 of the Act specifies the various persons who may be a member of the PSS (PSS member).  Paragraph 6(1)(j) provides that the Minister may declare a person to be a PSS member.

The Superannuation (PSS) Membership Inclusion Declaration 1995 (the Principal Declaration) identifies the persons who are declared PSS members under paragraph 6(1)(j).

The purpose of the Superannuation (PSS) Membership Inclusion Amendment Declaration 2005 (No. 3) (the Amending Declaration) is to amend the Principal Declaration in order to provide continuing PSS membership for employees of the Military Superannuation and Benefits Board of Trustees No. 1 (the MSB Board).

The Amending Declaration ensures continued membership of the PSS for a person employed by the MSB Board who:

• immediately before becoming an employee of the MSB Board was a member of the PSS; and
• is not a member of an alternative superannuation scheme in relation to their employment with the MSB Board.

The Amending Declaration also provides that PSS membership for employees of the MSB Board will cease when the employee becomes a member of an alternative superannuation scheme or ceases employment with the MSB Board.

The Amending Declaration has been prepared in consultation with the Department of Defence and was drafted by the Office of Legislative Drafting and Publishing.

No further consultation is required as the instrument is machinery in nature and will not alter existing arrangements for employees of ComSuper who will transfer to the MSB Board following the commencement of this instrument and future employees of the MSB Board who have PSS membership prior to commencing employment with the MSB Board.

The Amending Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Amending Declaration commences on the day after registration on the Federal Register of Legislative Instruments.

The details of the Amending Declaration are explained in the Attachment.

Attachment

Superannuation (PSS) Membership inclusion Amendment Declaration 2005 (no. 3)

Section 1

This section provides that the name of the Declaration is the Superannuation (PSS) Membership Inclusion Amendment Declaration 2005 (No. 3).

Section 2

This section provides for the Declaration to commence on the day after it is registered.

Section 3

This section provides that Schedule 1 of the Declaration amends the Superannuation (PSS) Membership Inclusion Declaration 1995 (the Principal Declaration).

Schedule 1 – Amendments

Item 1 inserts subsection 3(18), which describes the circumstances that result in PSS membership of employees of the Military Superannuation and Benefits Board of Trustees No. 1 (the MSB Board) ceasing.  Subsection 3(18) provides that PSS membership ceases for a person who has PSS membership through item 25 in Schedule 1 of the Principal Declaration when the person:

• ceases employment with the MSB Board; or
• becomes a member of an alternative superannuation scheme as defined in the Principal Declaration.

Item 2 inserts item 25 in Schedule 1 of the Principal Declaration.

Item 25 provides that employees of the MSB Board can retain PSS membership if they:

• were members of the PSS immediately prior to commencing employment with the MSB Board; and
• are not members of an alternative superannuation scheme (as defined in the Principal Declaration) in relation to their employment with the MSB Board.