explanatory statement
Issued by the Minister for Finance and Deregulation
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. Paragraph 6(1)(j) provides that the Minister may declare a person to be a PSS member.
The Superannuation (PSS) Membership Inclusion Declaration 2006 (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 2012 (No. 1) (the Declaration) is to amend the Principal Declaration to provide PSS membership for certain persons who commence employment with the Australian Children’s Education and Care Quality Authority (ACECQA).
The employees involved are persons who immediately before commencing employment with ACECQA were PSS members, that is, persons who may contribute to the PSS.
ACECQA is a national regulatory agency responsible for guiding the delivery of early childhood education and care services. ACECQA is established by Part 11 of the Education and Care Services National Law Act 2010 (Vic).
The amendments contained in the Declaration are as a result of a request from ACECQA.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Declaration commences on the day after it is registered.
The details of the Declaration are explained in Attachment A.
A Statement of Compatibility with Human Rights is at Attachment B.
Attachment A
Superannuation (PSS) Membership inclusion Amendment Declaration 2012 (no. 1)
Section 1 – Name of Declaration
This clause provides that the name of the Declaration is the Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 1).
Section 2 – Commencement
This clause provides for the Declaration to commence on the day after it is registered.
Section 3 – Amendment of Superannuation (PSS) Membership Inclusion Declaration 2006
This clause provides that Schedule 1 of the Declaration amends the Superannuation (PSS) Membership Inclusion Declaration 2006 (the Principal Declaration).
Schedule 1 – Amendments
Item 1 inserts a definition of ACECQA, short for the Australian Children’s Education and Care Quality Authority.
Item 2 inserts subsection 4(21). Subsection 4(21) describes the circumstances in which the PSS membership of PSS members employed by ACECQA ceases. Subsection 4(21) provides that PSS membership ceases for a person who has such membership through item 28 of Schedule 1, which relates to employees of ACECQA, when any of the following circumstances arise:
- the person ceases employment with ACECQA;
- the person becomes a member of an alternative superannuation scheme, as defined in the Principal Declaration; or
- ACECQA ceases to be a statutory authority of Victoria.
Item 3 inserts item 28 in Schedule 1. Item 28 allows employees of ACECQA, in certain circumstances, to be PSS members.
Under item 28, a person who becomes an employee of ACECQA can be a PSS member, provided that he or she:
- commenced employment with ACECQA; and
- immediately before commencing that employment was a PSS member, that is, persons who may contribute to the PSS; and
- is not a member of an alternative superannuation scheme, as defined in the Principal Declaration.
ATTACHMENT B
Overview
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 1) was enacted to amend the existing Superannuation (PSS) Membership Inclusion Declaration 2006, in response to a specific gap identified by the Australian Children’s Education and Care Quality Authority (ACECQA). The Superannuation Act 1990, which governs the Public Sector Superannuation Scheme (PSS), allows for the inclusion of certain members through ministerial declarations. The 2012 Amendment Declaration was initiated by a request from ACECQA, aiming to ensure that employees who were previously PSS members and then joined ACECQA, a national regulatory agency under the Education and Care Services National Law Act 2010 (Vic), would retain their PSS membership. This amendment ensures continuity of superannuation benefits for affected employees, reflecting the policy objective of maintaining consistent superannuation arrangements for public sector employees transitioning to roles within new regulatory frameworks. The Declaration was issued by the Minister for Finance and Deregulation and is a legislative instrument under the Legislative Instruments Act 2003, commencing on the day after its registration.
Scope and Application
The Superannuation Act 1990, as amended, governs the Public Sector Superannuation Scheme (PSS) and applies to Australian Government employees and certain other persons, including those declared by the Minister under the Act. The Act outlines the criteria for PSS membership, which includes individuals who commence employment with specified entities, such as the Australian Children’s Education and Care Quality Authority (ACECQA). The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 1) was made to accommodate employees transitioning from other PSS schemes to ACECQA, a national regulatory agency established under the Education and Care Services National Law Act 2010 (Vic). This legislative instrument specifies that employees who were previously PSS members and are employed by ACECQA can retain their PSS membership, provided they do not join an alternative superannuation scheme. The amendment came into effect on the day after the Declaration was registered and applies nationally, ensuring that the PSS membership conditions are uniformly enforced across jurisdictions.
Key Provisions
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 1) amends the Superannuation (PSS) Membership Inclusion Declaration 2006, which specifies who may be a member of the Public Sector Superannuation Scheme (PSS). This amendment was made in response to a request from the Australian Children’s Education and Care Quality Authority (ACECQA), a regulatory agency established by the Education and Care Services National Law Act 2010 (Vic). The amendment provides PSS membership for certain employees of ACECQA who were previously PSS members. Specifically, individuals who commence employment with ACECQA and were previously PSS members, provided they are not members of an alternative superannuation scheme, are eligible for PSS membership under this amendment. This ensures continuity in superannuation benefits for these employees.
The Declaration imposes specific conditions on the eligibility of ACECQA employees for PSS membership. Firstly, to qualify, an individual must have been a PSS member before starting employment with ACECQA. Secondly, they must not be a member of an alternative superannuation scheme as defined in the Principal Declaration. The PSS membership of these employees ceases under certain conditions, such as if the individual ceases employment with ACECQA, becomes a member of an alternative superannuation scheme, or if ACECQA ceases to be a statutory authority of Victoria. The Declaration also includes a provision detailing the circumstances under which PSS membership terminates, ensuring clarity and consistency in the application of these conditions.
Breaches of the provisions contained within the Superannuation Act 1990 and its related declarations could lead to various consequences. While the specific penalties for non-compliance with the Act are not detailed in the explanatory statement, it is important to note that the Act may provide for both civil and criminal penalties for breaches. For example, non-compliance with superannuation laws can result in financial penalties, legal action, or other administrative sanctions. In the context of the PSS, failure to adhere to the membership criteria and conditions could lead to the loss of superannuation benefits or other legal repercussions. However, the exact penalties and enforcement mechanisms would be governed by the broader superannuation and administrative laws in Australia.