Superannuation (PSS) Membership Inclusion Declaration (Amendment)

Superannuation (PSS) Membership Inclusion Declaration (Amendment) 1997 No.
212
 

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 212

Issued by the authority of the Minister for Finance

Superannuation Act 1990

Declaration under paragraph 6(1)(j)

The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to an occupational superannuation scheme, the Public Sector Superannuation Scheme (the PSS), for Commonwealth employees and certain other persons.

Section 6 of the 1990 Act specifies the person who are, or may be, members of the PSS. In accordance with paragraph 6(1)(j), a person declared by the Minister for Finance to be a person to whom section 6 applies is a member of the PSS. Declarations made under paragraph 6(1)(j) are contained in the Superannuation (PSS) Membership Inclusion Declaration (the Principal Declarations).

Section 45 of the 1990 Act provides that a declaration under paragraph 6(1)(j) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901, and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and may take effect up to 12 months before the making of the declaration. However, subsection 45(5) provides, that where superannuation contributions were accepted prior to the 12 month period, a declaration under paragraph 6(1)(j) may take effect from the time when the contributions were first accepted by the Fund.

The Nuclear Safety Bureau (NSB) was established as a separate entity, by the Australian Nuclear Science and Technology Organisation Amendment Act 1992 on 30 June 1992. Formerly, its functions were performed by the Australian Nuclear Science and Technology Organisation (ANSTO). ANSTO is an approved authority for the purposes of the 1990 Act and certain employees continued to be, or became, members of the PSS while in that employment. NSB was not, and had not applied to become, an approved authority when the employees, who were PSS members immediately before that employment, commenced their employment with NSB. Recently however, arrangements have been made for NSB to be declared an approved authority.

When ANSTO staff, who were PSS members, became employed by NSB they were, by mistake, treated as if their membership continued. The 1990 Act provides for continuity of PSS membership when an employee changes their employment, as long as the person is employed under the Public Service Act or, by an approved authority or, other arrangements have been made to include such persons. Employees of NSB were not covered by any of these provisions and consequently the assumed membership was not in fact legal.

The Superannuation (PSS) Membership Inclusion Declaration (Amendment) commenced on

30 June 1992, the day NSB became a separate entity. It provides continuity of PSS membership for those employees who were PSS members immediately before their employment with NSB, and PSS membership for other persons who would have qualified to become, and were taken to be, PSS members while employed by NSB. Details of the declaration are set out in the Attachment.

The declaration commenced on 30 June 1992 and ceases on 1 January 1997, the day NSB may be taken to be an approved authority for the purposes of the PSS.

ATTACHMENT

SUPERANNUATION (PSS) MEMBERSHIP INCLUSION DECLARATION (AMENDMENT)

Details of the Declaration are as follows..

Clause 1

Provides that the Declaration commenced retrospectively on 30 June 1992, the day the Nuclear Safety Bureau was established as a separate entity.

Clause 2

Provides that the Superannuation (PSS) Membership Inclusion Declaration (the Principal Declaration) is amended as set out in the Superannuation (PSS) Membership Inclusion Declaration (Amendment).

Clause 3

Subclause 3(1) of the Principal Declaration provides that persons described in the Schedule to the declaration are persons to whom section 6 of the 1990 Act applies. Clause 3.1 of the amending declaration amends subclause 3(1) to include new subclause 3(5).

Clause 3.2 of the amending declaration inserts new subclause 3(5) to provide that section 6 of the 1990 Act ceases to apply to persons included in item 12 on 31 December 1996 or, at the end of the day on which any one of the following occurs:

*       employment with NSB ceases; or

*       the person becomes a member of another superannuation scheme that is an alternative superannuation scheme in relation to the person's employment with NSB; or

*       the mobility provisions of the Public Service Act become applicable to the person.

Note: After that day, the NSB may be taken to be an approved authority for the purposes of the PSS. Approved authority status provides membership of the PSS for employees of NSB who are already members and membership of the scheme for new employees who otherwise qualify.

Clause 4

Provides for the inclusion of item 12 in the Schedule which describes those NSB employees who are persons to whom section 6 of the 1990 Act applies and are accordingly, members of the PSS. Item 12 applies to employees who:

*       contributed to the PSS is if they were bona fide member while employed by NSB; and

*       in relation to that employment are not:

(i) members of an alternative superannuation scheme; or

(ii) persons to whom the mobility provisions apply.