Overview

The Superannuation (PSS) Membership Inclusion Amendment Declaration 2005 (No. 3) was enacted to ensure continuity of Public Sector Superannuation Scheme (PSS) membership for employees transitioning to the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board). This legislative instrument amends the existing Superannuation (PSS) Membership Inclusion Declaration 1995, aligning the superannuation arrangements for employees of the MSB Board with those of other public sector employees. The declaration was prepared in consultation with the Department of Defence and ensures that employees who were already PSS members before joining the MSB Board retain their membership, provided they do not join an alternative superannuation scheme. The policy objective is to maintain consistent superannuation benefits for affected employees without altering existing arrangements for other employees, such as those transferring to the MSB Board from ComSuper. The enactment of this declaration by the Minister for Finance and Administration under the authority of the Superannuation Act 1990 addresses the specific need to update superannuation membership criteria in response to organisational changes within the public sector.

Scope and Application

The Superannuation Act 1990, as amended by the Superannuation (PSS) Membership Inclusion Amendment Declaration 2005 (No. 3), governs the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other individuals. The Act applies to persons who are members of the PSS, specifically those who were members immediately prior to commencing employment with the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board) and are not members of an alternative superannuation scheme in relation to their employment with the MSB Board. The geographic and jurisdictional reach of this Act is Commonwealth-wide, as it pertains to the federal public sector. The Act's application can be extended or restricted through subordinate instruments, such as the Amending Declaration, which provides for the amendment of the Principal Declaration and ensures continued PSS membership under specified conditions. The Amending Declaration ensures that employees of the MSB Board retain their PSS membership unless they cease employment with the MSB Board or become members of an alternative superannuation scheme.

Key Provisions

The Superannuation (PSS) Membership Inclusion Amendment Declaration 2005 (No. 3) amends the Superannuation (PSS) Membership Inclusion Declaration 1995 (the Principal Declaration) to provide continued Public Sector Superannuation Scheme (PSS) membership for employees of the Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board) under specific circumstances (section 1). PSS membership for these employees will remain intact if they were PSS members before joining the MSB Board and are not members of another superannuation scheme related to their employment with the MSB Board (section 3). However, PSS membership will cease if the individual either leaves the MSB Board or becomes a member of an alternative superannuation scheme (section 3, Schedule 1, Item 1). The Amending Declaration imposes obligations on the employees of the MSB Board who were previously PSS members, requiring them to maintain their PSS membership by ensuring they do not become members of another superannuation scheme in relation to their employment with the MSB Board. They must also continue their employment with the MSB Board to retain their PSS membership. These provisions are designed to ensure a seamless transition for employees transferring from ComSuper to the MSB Board and for future employees with pre-existing PSS membership. Failure to comply with the provisions of the Amending Declaration may not directly result in civil or criminal penalties, as the declaration is primarily machinery in nature and is designed to clarify and amend existing arrangements. However, any breaches of the underlying Superannuation Act 1990, such as fraudulent actions related to superannuation membership, may incur penalties. The Act provides for offences and penalties, which can include fines and imprisonment, for breaches such as dishonestly obtaining benefits, failing to provide information, or falsifying records. The maximum penalties for these offences vary but can include substantial fines and imprisonment terms depending on the severity of the breach.