Superannuation (PSS) Membership Inclusion Declaration No. 10 1993 No. 124
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 124
Issued by the authority of the Minister for Finance
Superannuation Act 1990
Declaration under paragraph 6 (1) (j)
The Superannuation Act 1990 (the Act) makes provision for and in relation to an occupational superannuation scheme - the Public Sector Superannuation (PSS) scheme - for persons employed by the Commonwealth and certain other persons.
Section 6 of the Act specifies the persons who may be members of the PSS scheme. 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 scheme.
The Declaration contained in the Statutory Rules and cited as "Superannuation (PSS) Membership Inclusion Declaration No. 10" provides that certain directors and employees of the Fisheries Research and Development Corporation may be members of the PSS scheme.
The Fisheries Research and Development Corporation was established in 1991 under the Primary Industries and Energy Research and Development Act 1989. The Minister has declared the Corporation to be an approved authority for the purposes of the Act. As a consequence, persons who are not existing members of the PSS scheme immediately before becoming permanent employees of the Corporation are required to become members of the PSS scheme with effect from the date of gazettal of the approved authority declaration or their date of employment, whichever is the later. Also with effect from the date of gazettal of the approved authority declaration, persons without existing PSS membership who become temporary employees of the Corporation may elect under section 8 of the Act to join the PSS scheme; such an election has effect from and including the day on which it is made.
Currently the Corporation has no permanent employees. A number of persons became directors under contract or temporary employees of the Corporation between 1 September 1992 and the gazettal of the approved authority declaration. These persons wish to become or remain members of the PSS scheme and have each made an election in writing that they be treated as members of the PSS from the date of commencement of their employment with the Corporation. The Corporation has requested that access to, or continuity of, membership of the PSS for these persons be available from the commencement of their employment.
It is intended that a person who was made such an offer by the Corporation and who elects, before the day this declaration is gazetted, to become a member of the PSS scheme shall be treated as a member of the PSS scheme with effect from 1 September 1992 or the day on which he or she became a director or an employee of the Corporation, whichever is the later. To achieve this, the persons concerned have been declared to be a class of persons to which section 6 of the Act applies.
The Declaration contained in the Statutory Rules provides that directors and employees of the Fisheries Research and Development Corporation who were directors or employees of the Corporation on 1 September 1992 or who became such directors or employees after that date but before the date of gazettal of the Declaration (which was the same as the date of gazettal of the approved authority declaration) and have elected before that gazettal to become members of the PSS scheme (other than under section 8 of the Superannuation Act 1990), shall be members of that scheme.
The Declaration provides that a person described in the Declaration shall be a member of the PSS scheme with effect from 1 September 1992 or the day on which the person became a director or employee of the Corporation, whichever is the later. This retrospectivity is necessary in order to ensure that the employees are not disadvantaged in their superannuation benefits; they would be disadvantaged if they were not permitted to join the PSS scheme as offered by their employer. Both the Corporation and the employees concerned have indicated that they are prepared to make appropriate retrospective contributions to the PSS scheme.
The retrospectivity of the membership arrangements complies with subsection 48 (2) of the Acts Interpretation Act 1901 in that the rights of the employees concerned are not affected in a manner prejudicial to them nor are liabilities imposed on them other than the responsibility for superannuation contributions which they have accepted by making an election to join the PSS scheme.
In accordance with section 45 of the Act, 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.
The Declaration operates with effect from the date of gazettal.
Overview
The Superannuation Act 1990 was enacted to provide a superannuation scheme for certain persons employed by the Commonwealth, known as the Public Sector Superannuation (PSS) scheme. The Act addresses the need for a standardised superannuation arrangement for public sector employees, ensuring they have access to retirement benefits. The policy objective is to provide a reliable and consistent superannuation framework for public sector employees, enhancing their financial security upon retirement. The Superannuation (PSS) Membership Inclusion Declaration No. 10, issued under the authority of the Minister for Finance, was introduced to include specific directors and employees of the Fisheries Research and Development Corporation within the PSS scheme. This Declaration allows these individuals, who were not previously members of the PSS scheme, to become or remain members, effective from the date of their employment with the Corporation or 1 September 1992, whichever is later. This measure ensures that these employees are not disadvantaged in terms of their superannuation benefits and aligns with the overarching policy objective of providing comprehensive superannuation coverage.
Scope and Application
The Superannuation (PSS) Membership Inclusion Declaration No. 10, issued under the authority of the Minister for Finance, expands the eligibility of the Public Sector Superannuation (PSS) scheme established by the Superannuation Act 1990 to include certain directors and employees of the Fisheries Research and Development Corporation. This Declaration applies to those who were either directors or employees of the Corporation on 1 September 1992 or who subsequently became such directors or employees before the date of gazettal of the Declaration, provided they have elected to join the PSS scheme prior to this date. This inclusion ensures that these individuals, who would otherwise not automatically qualify for the PSS scheme, can become members with their membership retroactively effective from 1 September 1992 or the date they commenced employment with the Corporation, whichever is later. The Declaration is necessary to prevent any disadvantage to these employees concerning their superannuation benefits, aligning with the principles of the Acts Interpretation Act 1901 to avoid prejudicial effects on their rights. The Declaration operates from the date of its gazettal and is subject to the disallowance provisions of the Acts Interpretation Act 1901, ensuring parliamentary oversight of its application.
Key Provisions
The primary sections of the Superannuation (PSS) Membership Inclusion Declaration No. 10 (1993) revolve around the inclusion of certain directors and employees of the Fisheries Research and Development Corporation into the Public Sector Superannuation (PSS) scheme (Section 6(1)(j)). The Declaration specifies that those individuals who were directors or employees of the Corporation on 1 September 1992 or who became such after that date but before the gazettal of the Declaration, and have elected to become members of the PSS scheme, will be considered members of the scheme. This membership will be effective from 1 September 1992 or the date they became a director or employee of the Corporation, whichever is later (Section 6). The inclusion of these individuals into the PSS scheme is to ensure that they are not disadvantaged in terms of their superannuation benefits.
The obligations and requirements imposed by this Act primarily involve the Fisheries Research and Development Corporation and its employees. The Corporation, having been declared an approved authority under the Superannuation Act 1990, must ensure that all new permanent employees who do not already have PSS membership become members of the PSS scheme from the date of gazettal of the approved authority declaration or their date of employment, whichever is later (Section 6). Temporary employees who do not have existing PSS membership have the option to elect to join the PSS scheme under Section 8 of the Act. Additionally, those who were directors or employees on 1 September 1992 and elected to join the PSS scheme before the gazettal of the Declaration will be treated as members from the date of their employment or 1 September 1992, whichever is later. This ensures continuity of membership and prevents any potential disadvantage to these employees.
There are no specific offences or penalties outlined in the Declaration itself. However, the Superannuation Act 1990 and related legislative instruments may impose penalties for breaches. For instance, failure to comply with the requirements to join the PSS scheme could result in fines or other civil penalties as stipulated by the Superannuation Act. The retrospective application of membership is designed to ensure that employees are not unfairly disadvantaged, and it aligns with the provisions of the Acts Interpretation Act 1901 to avoid prejudicial effects on the employees' rights. The Declaration operates under the authority of the Minister for Finance and is subject to disallowance as per section 46A of the Acts Interpretation Act 1901 and is considered a Statutory rule under the Statutory Rules Publication Act 1903.