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. 2) (the Declaration) is to amend the Principal Declaration to provide PSS membership for certain persons who commence employment with the Australian Reinsurance Pool Corporation (ARPC), on or after the commencement of this Declaration.
The employees involved are persons who immediately before commencing employment with ARPC were contributing members of the PSS. Their PSS contributory membership will continue on becoming employed by ARPC.
ARPC is a Commonwealth authority established under the Terrorism Insurance Act 2003 to administer the terrorism reinsurance scheme.
ARPC were consulted on the amendments contained in the Declaration.
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. 2)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 2).
Section 2 – Commencement
This section provides for the Declaration to commence on the day after it is registered.
Section 3 – Application
This section provides that the amendments made by item 3 of Schedule 1 only apply in relation to a person who becomes employed by ARPC on or after the commencement of the Declaration.
Section 4 – Amendment of Superannuation (PSS) Membership Inclusion Declaration 2006
This section 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 ARPC, short for the Australian Reinsurance Pool Corporation.
Item 2 inserts subsection 4(22). Subsection 4(22) describes the circumstances in which the PSS membership of PSS members employed by ARPC ceases. Subsection 4(22) provides that PSS membership ceases for a person who has such membership through item 29 of Schedule 1, which relates to employees of ARPC, when any of the following circumstances arise:
- the person ceases employment with ARPC;
- the person becomes a member of an alternative superannuation scheme, as defined in the Principal Declaration; or
- ARPC ceases to be a Commonwealth authority.
Item 3 inserts item 29 in Schedule 1. Item 29 provides for employees of ARPC, in certain circumstances, to continue to be PSS members. Under item 29, a person who becomes an employee of ARPC will continue their PSS contributory membership on becoming employed by the ARPC, provided that he or she:
- 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 Act 1990 was enacted to establish the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other persons, addressing the need for a structured retirement savings plan for public sector workers. The Act provides for various membership criteria, with Section 6 specifying the individuals eligible to be PSS members, including the provision for the Minister to declare certain persons as PSS members under paragraph 6(1)(j). This legislative framework was aimed at ensuring a reliable superannuation arrangement for public sector employees. The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 2), issued by the Minister for Finance and Deregulation, seeks to amend the initial Superannuation (PSS) Membership Inclusion Declaration 2006. The primary objective of this amendment is to extend PSS membership to specific employees of the Australian Reinsurance Pool Corporation (ARPC) who were already contributing members of the PSS before transitioning to employment with ARPC. This legislative instrument, registered under the Legislative Instruments Act 2003, ensures that the continuity of PSS membership is maintained for these employees, reflecting a policy objective to uphold consistent superannuation benefits across relevant employment changes.
Scope and Application
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 2) amends the Superannuation (PSS) Membership Inclusion Declaration 2006 to provide for Public Sector Superannuation Scheme (PSS) membership for employees of the Australian Reinsurance Pool Corporation (ARPC) under specific conditions. The Act applies to individuals who are employed by ARPC on or after the commencement of this Declaration and who were contributing members of the PSS immediately before commencing employment with ARPC. The Declaration ensures that such individuals' PSS contributory membership continues upon employment with ARPC, provided they are not members of an alternative superannuation scheme as defined in the Principal Declaration. The Declaration applies nationally as it pertains to a Commonwealth authority, and it is a legislative instrument under the Legislative Instruments Act 2003. The amendments are intended to ensure continuity of PSS membership for certain employees transitioning from other public sector roles to ARPC.
Key Provisions
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2012 (No. 2) amends the Superannuation (PSS) Membership Inclusion Declaration 2006 to include certain employees of the Australian Reinsurance Pool Corporation (ARPC) as members of the Public Sector Superannuation Scheme (PSS) (Sections 1-4). The Declaration comes into effect on the day after it is registered (Section 2). The amendments apply only to those who begin employment with ARPC on or after the commencement of this Declaration (Section 3). The Declaration amends the Principal Declaration by inserting a definition for ARPC and inserting a new subsection in Schedule 1 that explains when PSS membership for ARPC employees ceases, as well as inserting a new item in Schedule 1 that allows for certain ARPC employees to remain PSS members (Section 4, Schedule 1, Items 1-3).
The Declaration imposes specific obligations on ARPC and its employees. It requires that employees who were previously contributing members of the PSS and who begin employment with ARPC on or after the commencement of this Declaration continue their PSS membership (Schedule 1, Item 29). Additionally, the PSS membership for these employees will cease if they cease employment with ARPC, become members of an alternative superannuation scheme, or if ARPC ceases to be a Commonwealth authority (Schedule 1, Item 2, Subsection 4(22)).
Breach of the provisions in the Declaration could result in legal consequences for the Australian Reinsurance Pool Corporation and its employees. The specific legal ramifications are not detailed in the Declaration; however, it is reasonable to infer that failure to comply with the provisions could lead to issues with superannuation contributions and entitlements. Penalties or consequences for non-compliance would likely be determined by the governing body overseeing the Public Sector Superannuation Scheme or other relevant legislation.